India Leads Global DRI Production in January 2025 Amid Slight Decline in Global Output
According to the latest data from the World Steel Association, the global production of direct reduced iron in January 2025 amounted to 9.32 million metric tons, marking a 4% month-on-month increase, but reflecting a 5.1% decline year-on-year compared to January 2024. DRI, a key material in steelmaking, is produced by reducing iron ore in a solid-state, and its production trends serve as a barometer for the global steel industry.
The data highlights the dominance of India in global DRI production, which accounted for 51.6% of the world's output in January 2025. With 4.81 million metric tons produced in January alone, India remains the largest producer by far, leading its counterparts such as Iran, Russia, and Egypt.
Country-wise DRI Production in January 2025:
• India:
India is the clear leader in global DRI production, contributing a substantial 51.6% of the total output. The country's production reached 4.81 million metric tons in January 2025. India's dominance is largely attributed to its robust steel industry, vast iron ore reserves, and a shift toward cleaner production methods such as natural gas-based direct reduction.
• Iran:
Iran followed India, producing 1.28 million metric tons, contributing 13.7% to global DRI production in January. Despite facing international sanctions and political challenges, Iran has continuously boosted its steel output, driven by significant investments in its DRI plants.
• Russia:
With 700,000 metric tons of DRI produced, Russia accounted for 7.5% of global output. Russia’s DRI production has been growing steadily, thanks to its vast mineral reserves and well-established steel industry.
• Egypt:
Egypt produced 616,000 metric tons, making up 6.6% of global DRI production. The country has increasingly become a regional leader in steel production, with major investments in iron ore and DRI technology aimed at improving efficiency and lowering emissions.
Other Key DRI Producers:
• United Arab Emirates
The UAE produced 3.6% of the world's DRI output in January 2025. This performance continues the country’s ongoing efforts to modernize and diversify its steel production capabilities, particularly through natural gas-based technologies.
• Saudi Arabia:
Saudi Arabia, contributing 5.1% of global production with 474,000 metric tons, remains a key player in the Middle East's growing steel industry. The kingdom’s expansion plans include increasing its DRI capacity as part of its economic diversification goals.
• Qatar:
Qatar produced 2.3% of global DRI output, amounting to 214,000 metric tons. Despite being a smaller producer, the country’s strategic location and advanced steel manufacturing infrastructure continue to drive its role in the region.
Other Notable DRI Producers:
• Venezuela:
Venezuela contributed 1.8% of global DRI production, with 168,000 metric tons produced. The country faces ongoing economic challenges but has maintained its position as a notable regional producer.
• Libya:
Libya, despite its political and economic issues, produced 0.8% of global DRI output in January 2025, reaching 75,000 metric tons.
• Argentina, Canada, South Africa, and Mexico:
These countries combined made up a small fraction of global DRI production in January, with each contributing less than 1% to global output. Despite their smaller shares, these nations are focusing on expanding their steel industries and enhancing their DRI production capacities.
Global DRI Production Share by Country (January 2025):
• India: 51.6%
• Iran: 13.7%
• Russia: 7.5%
• Egypt: 6.6%
• Saudi Arabia: 5.1%
• United Arab Emirates: 3.6%
• Qatar: 2.3%
• Venezuela: 1.8%
• Libya: 0.8%
• Others (Argentina, Canada, South Africa, Mexico): Less than 0.8%
Key Factors Influencing Global DRI Production:
1. India’s Continued Growth: India’s massive share in global DRI production highlights its pivotal role in the steel industry. The country’s investments in cleaner technologies and increasing demand for steel in construction and infrastructure projects support its growth.
2. Middle Eastern Expansion: Countries like Iran, Saudi Arabia, and the UAE are significantly increasing their steel production, contributing to a larger share of global DRI. Natural gas-based DRI production, which is more environmentally friendly, is becoming increasingly popular in these regions.
3. Technological Advancements: Countries that are investing in advanced steel-making technologies, particularly gas-based DRI production, are seeing higher efficiency and a reduction in carbon emissions.
4. Political and Economic Challenges: While nations like Russia and Egypt are increasing their production, others like Venezuela face significant political and economic hurdles that hinder their ability to fully capitalize on DRI production potential.
5. Price Fluctuations: Global demand and prices for iron ore and steel continue to influence DRI production rates. Countries with abundant, low-cost access to raw materials are likely to see higher output levels.
Key Takeaways:
• Global DRI production in January 2025 amounted to 9.32 million metric tons, up 4% from December 2024, but down 5.1% from January 2024.
• India remained the world leader, producing 4.81 million metric tons, accounting for 51.6% of global DRI output.
• Iran was the second-largest producer, with 1.28 million metric tons, followed by Russia and Egypt, contributing 7.5% and 6.6%, respectively.
• The UAE and Saudi Arabia also made significant contributions, with 3.6% and 5.1% of the global share.
• Smaller producers like Argentina, Canada, Venezuela, and Libya collectively accounted for less than 10% of global production.
• Technological advancements and natural gas-based production are key drivers for growth in countries like Iran and Saudi Arabia.
This snapshot of January 2025 global DRI production reveals the ongoing shifts in regional dominance and highlights the important role of technological innovation in shaping the future of the iron and steel industry.
