Global Pig Iron Production Falls to 119.7 Million Tons in May 2025

Pig Iron

Global Pig Iron Production Decline in May 2025

Global pig iron production in May 2025 decreased by 1.5% compared to the same month in 2024, totaling 119.7 million tons. This marks a significant shift in the market, despite a 2.1% increase from April 2025. The data, sourced from the World Steel Association and Ukrmetprom, reveals a decline in production through both the blast furnace and direct reduction methods. In May, blast furnaces produced 107.2 million tons, down by 3.1% from May 2024 but up 2% compared to the previous month. Meanwhile, direct reduction methods produced 12.5 million tons, representing a 6.7% decrease year-on-year but a 2.5% increase month-on-month.

Leading Pig Iron Producing Countries

China continues to dominate the global pig iron market, producing 362.74 million tons in May 2025, a slight increase of 0.1% year-on-year. India saw a notable growth of 7.5%, reaching 63.63 million tons. Russia, Japan, and South Korea, however, experienced declines in production compared to May 2024. Russia produced 24.95 million tons, a decrease of 1%, while Japan and South Korea saw reductions of 4.2% and 2%, respectively. In total, the world's largest pig iron producers have seen varied performance, driven by domestic production methods, energy availability, and regional market demands.

Challenges in the Global Pig Iron Market

Overall, global pig iron production for the first five months of 2025 showed a slight 0.3% decline compared to the same period in 2024, totaling 583.28 million tons. Notably, blast furnace production contributed 529.78 million tons, while direct reduction methods accounted for 53.5 million tons. While the shift to direct reduction may present a potential growth area, the fluctuation in pig iron production reflects broader industry challenges. Factors such as global energy constraints, fluctuating steel demand, and regulatory policies continue to impact production volumes and cost-efficiency, especially in countries heavily reliant on traditional blast furnace technology.

ScrapInsight Commentary

The decrease in global pig iron production in May 2025 signals the ongoing volatility in the global steel industry. As countries like India show positive growth, others face setbacks. With the rise of direct reduction methods, it’s clear that the market is evolving, but energy costs and environmental regulations could reshape production trends in the coming years. This change in production volumes could affect scrap metal markets, with increased demand for cleaner alternatives likely to shift global trade dynamics.