Global DRI Production Rally on Increased Output from MENA Regions

According to the data compiled by SteelMint, world's total DRI production increased by 9.4% to 97 MnT in CY18 which was around 88.68 MnT in the previous year (CY17). The primary reason behind increase in DRI output lies substantial increase in production from MENA regions which mostly consume DRI as raw material.

India is the largest producer of DRI (Sponge iron) in the world followed by second largest Iran. In the world's total DRI production, India contributes for share of 30% & Iran around 25%, as per released data by WSA & maintained by SteelMint.

The seven major regions include East Middle, Asia, North America, South America, Africa, CIS & Europe.

-- In Middle East including Iran, the total DRI production moved up by 19.1% to 39.55 MnT Y-o-Y in CY18.

-- In line with this, DRI output from Africa stood at 7.19 MnT DRI in CY18, surged by 16.8% Y-o-Y.

-- Coming to Asia where DRI production rose slightly (including India) by 3% to 30.96 MnT Y-o-Y in CY18. India's production grew by 2.9% to 30.36 MnT Y-o-Y in CY18.

-- However, downfall was observed, which is in North America by 14.1% to 8.26 MnT. Meanwhile similar proportion rose in South America by 18.6% to 2.04 MnT Y-o-Y in CY18.

-- Russia, known as one of the largest Billet exporters in CIS region, registered DRI production at 7.50 MnT in CY18, increased by 4.2% Y-o-Y.

-- Meanwhile in Europe, DRI production also gained momentum and was registered at 1.5 MnT in CY18 as against 0.73 MnT during CY17.