In October 2024, global hot metal production experienced a notable increase of 8% compared to the previous month, reaching a total of 118.3 million metric tons. This growth was not only month-on-month but also marked a year-on-year increase of 2.5%, signaling a rebound in production levels after some slower periods earlier in the year. According to data from the WorldSteel Association, the rise in global production is attributed to a combination of factors, including a surge in output from countries like India and improvements in the direct reduction method of pig iron production.
The production of hot metal through the blast furnace method reached 104.93 million metric tons in October 2024, a 5% increase compared to the previous month and a slight 0.5% increase compared to October 2023. On the other hand, the direct reduction method, which is considered a more environmentally friendly alternative, saw a remarkable 38.7% rise in monthly output, producing 13.37 million metric tons in October. Year-on-year, the direct reduction method showed a more impressive 21.7% increase, highlighting the growing shift towards cleaner technologies in pig iron production.
Despite this month’s positive performance, global pig iron production in the first ten months of 2024 has seen a slight decline of 2.2% compared to the same period in 2023, totaling 1.16 billion metric tons. This reduction is primarily driven by decreases in production from major steel-producing nations such as China and Russia. However, the shift towards more sustainable production methods, such as direct reduction, continues to gain momentum, offering some optimism for the future of the industry.
China, the world’s largest producer of pig iron, saw a 4% year-on-year decrease in production during the first ten months of 2024, producing 715.11 million metric tons. This dip in output is largely attributed to domestic challenges, including environmental regulations and market fluctuations. India, by contrast, saw a strong 5.6% increase in production, reaching 118.5 million metric tons. India’s growth can be attributed to its expanding steel industry and efforts to modernize production methods, including the adoption of direct reduction techniques. Japan and Russia, two other key players in global pig iron production, experienced reductions of 4% and 5.6%, respectively, in their production levels compared to the previous year.
Ukraine’s pig iron production showed a more promising trend in October 2024. The country produced 624.9 thousand metric tons of pig iron, marking a slight 0.1% increase from September and a significant 22.2% year-on-year growth. Over the first ten months of the year, Ukraine produced 5.98 million metric tons of pig iron, a 21.9% increase compared to the same period in 2023. This growth places Ukraine 13th in the global rankings for pig iron production, an impressive position considering the ongoing challenges faced by the country due to geopolitical tensions and the ongoing conflict with Russia.
In 2023, global pig iron production increased by 1.1% compared to 2022, reaching a total of 1.41 billion metric tons. Of this total, 1.29 billion metric tons were produced using the blast furnace method, while 120.15 million metric tons were produced via direct reduction. The top three pig iron-producing nations in 2023 were China, India, and Japan, with production levels of 871.01 million, 135.07 million, and 63.04 million metric tons, respectively. Ukraine ranked 16th in global pig iron production in 2023, producing 6 million metric tons, a 6.1% decline from the previous year.
The outlook for the global pig iron market remains mixed. On the one hand, the overall increase in production for October 2024 and the significant rise in direct reduction output suggest that the industry is adapting to growing demands for more sustainable production methods. On the other hand, challenges such as fluctuations in raw material costs, energy prices, and ongoing geopolitical instability in key producing regions may continue to affect production levels in the coming months. Despite these challenges, the continued growth of the direct reduction method and the efforts of countries like India and Ukraine to boost their production capacities offer a sense of cautious optimism for the future of the global pig iron market.
As global markets continue to demand more sustainable and efficient production methods, pig iron producers are increasingly turning to direct reduction technologies. These methods not only reduce the carbon footprint of production but also help meet the rising demand for low-emission steel. With countries like India leading the way in embracing these technologies, and regions like Ukraine showing resilience in boosting output despite challenges, the global pig iron industry is poised for a more sustainable and diversified future.
