Global direct-reduced iron production surged to 151 million tons in 2025. This record growth was driven by output in India, Iran, and gas-based shaft furnaces.
Record Output Led by India and Iran
Direct-reduced iron serves as a critical steelmaking feedstock. It supplements or replaces recycled scrap. Global production reached 151 million tons last year. Midrex Technologies compiled this annual report. World Steel Dynamics audited the data. Production grew by 7.2 percent year-on-year. Output was 140.8 million tons in 2024. Worldwide output expanded by over 44 percent across six years. This growth shows rapid commercial adoption of gas-based shaft furnaces and coal-based rotary kiln technologies.
Regional Production Breakdown and Technology Dominance
India and Iran led global DRI production last year. India generated 58.8 million tons. Iran followed closely with 37.2 million tons. Russia produced 8.2 million tons. Algeria reached 6.7 million tons. Saudi Arabia recorded 6.6 million tons. United States production stayed below the top five. It reached just under 5 million tons. Midrex-patented technology accounted for over 54 percent of global DRI output. It captured more than 80 percent of worldwide shaft furnace production. This highlights its dominance in low-emission steelmaking solutions.
International Trade and Export Dynamics
India and Iran consume most of their domestic DRI production. However, regional trade flows continue to evolve. Russia stood out as the leading global exporter of DRI and hot briquetted iron. It shipped over 2 million tons. Destinations included Western Europe, Turkey, the United Arab Emirates, and Asia. Industry analysts note that Russian trade figures are frequently underreported. This highlights complex logistics and shifting purchasing patterns. Steel mills pivot toward high-purity feedstocks to reduce carbon intensity.
Market Impact
○ Impacted Metals: Direct-Reduced Iron (DRI), Hot Briquetted Iron (HBI), Steel Melt Shop Feedstock
○ Direction: Bullish
○ Time Horizon: 2026–2027
○ Affected Industries: Steelmaking, Manufacturing, Industrial Facilities, Mining
○ Related Price Reports: Stainless Steel Weekly Price Report
○ Watch Item: Monitor international HBI trade flows and trade reporting discrepancies from major Eurasian exporting nations.
SuperMetalPrice Commentary:
The explosive growth in global DRI production highlights the steel industry’s structural migration toward high-purity, lower-carbon melt shop feedstocks. As mills increasingly replace traditional blast furnace inputs with gas-based DRI and HBI, secure access to premium iron ore pellets will dictate competitive advantage in green steel manufacturing.
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