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| Global Pig Iron production |
Global pig iron production dropped by 1.8% year-on-year to 689.02 million tonnes in the first half of 2026. This downward trend highlights structural shifts across major economies, with China recording a 2.8% decline to 426.64 million tonnes. Meanwhile, India bucked the trend by increasing output to 79.35 million tonnes, securing its position as a primary growth engine in the sector.
Regional Disparities and Blast Furnace Dynamics
Blast furnace operations accounted for 627.2 million tonnes of total output, while the direct reduction process contributed 61.82 million tonnes. Production figures varied significantly across key territories, as Japan produced 29.16 million tonnes and Russia recorded 28.58 million tonnes. Furthermore, South Korea maintained resilience with a 1.2% increase to reach 21.81 million tonnes.
Global Steel Recovery and Supply Implications
Global steel production rose by 1.7% in June 2026, offsetting earlier losses and signaling a potential demand rebound for raw materials. However, persistent reductions in merchant pig iron supply continue to pressure electric arc furnace operators who rely heavily on imports. Therefore, market participants must closely monitor these supply constraints as steel mills adapt to shifting macroeconomic conditions.
ScrapInsight Commentary
Global pig iron contraction reflects tightening raw material availability and localized operational adjustments. Consequently, steelmakers relying on merchant pig iron will face sustained procurement pressures, likely driving higher reliance on prime scrap alternatives.
