Global pig iron production fell by 1.8% year-on-year to 689.02 million tonnes in the first half of 2026, according to data from the World Steel Association and Ukrmetallurgprom. The drop highlights ongoing adjustments in major steelmaking hubs as high input costs and shifting regional demand weigh on primary metal output.
Major Producer Trends Across Key Asian and European Markets
China, the world’s leading producer, recorded a 2.8% year-on-year decline, generating 426.64 million tonnes between January and June 2026. Conversely, India bucked the broader downward trend, increasing its output by 4% to reach 79.35 million tonnes. Other top producers experienced minor contractions, with Japan output slipping 0.4% to 29.16 million tonnes and Russia dropping 4.7% to 28.58 million tonnes. Meanwhile, South Korea posted a modest gain of 1.2% to 21.81 million tonnes.
Direct reduction processes accounted for 61.82 million tonnes of the total first-half production, while blast furnaces remained the dominant route, yielding 627.2 million tonnes. Ukraine maintained its position as the 13th largest producer globally, turning out 3.66 million tonnes, a negligible 0.2% decrease from the previous year. These regional shifts reflect divergent manufacturing health and raw material availability across global steel supply chains.
Global Steel Market Context and Annual Outlook
While primary pig iron output contracted during the first half, global steel production showed signs of tentative recovery in June 2026, rising 1.7% year-on-year to 155.7 million tonnes. However, the cumulative first-half steel figure still lagged behind 2025 levels, dropping 0.7% to 931.5 million tonnes. This follows a broader annual contraction in 2025, where global pig iron production fell 1.7% to 1.368 billion tonnes. Industry analysts note that shrinking pig iron availability underscores tighter merchant supply conditions for electric arc furnace operators relying on imported feedstock.
Market Impact
○ Impacted Metals: Pig iron, blast furnace pig iron, merchant pig iron
○ Direction: Bearish
○ Time Horizon: Q3 2026
○ Affected Industries: Steelmaking, Foundries, Infrastructure, Automotive, Construction
○ Related Price Reports: Stainless Steel Weekly Price Report
○ Watch Item: Monitor Chinese blast furnace operating rates and merchant pig iron export availability for the remainder of the third quarter.
SuperMetalPrice Commentary:
The contraction in global pig iron output points to a tightening raw material market for non-integrated steelmakers. While overall steel output stabilizes, reduced merchant availability from top producers like China and Russia will force foundries to seek alternative metallic inputs.
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