Iran’s direct reduced iron (DRI) production fell by 13.2% in the first half of 2026 to 13.976 million tonnes, while India increased its output by 6% to 31 million tonnes. The latest report from the Bureau of International Recycling (BIR) shows that DRI production trends varied among major producing countries during this period.
According to Gozideh Jahan Foulad, the latest report from the Bureau of International Recycling (BIR), released on October 27, 2026, during the organization’s meeting in Málaga, Spain, puts Iran’s DRI production at 13.976 million tonnes in the first half of 2026. This represents a 13.2% decline compared with the same period in 2025.
These figures were included in an update to the 17th edition of the World Steel Recycling in Figures report, based on data from the World Steel Association (worldsteel).
DRI Production in Reporting Countries Declines by 1%
According to the report, total direct reduced iron (DRI) production across the 12 reporting countries reached 61.8 million tonnes in the first half of 2026, down 1% from the same period a year earlier.
India remained the largest DRI producer among the reporting countries. Its output rose by 6% to 31 million tonnes, while Iran ranked second with production of nearly 14 million tonnes.
As a result, the gap between India’s and Iran’s DRI production exceeded 17 million tonnes in the first half of 2026.
Production Declines in Saudi Arabia and Qatar
The decline in DRI production was not limited to Iran. Saudi Arabia produced 2.33 million tonnes in the first half of 2026, down 28.4%. Qatar’s output also fell by 20.4% to 928,000 tonnes.
By contrast, some producers recorded growth. Mexico’s DRI production increased by 19.9% to 3.41 million tonnes, while Russia’s output rose by 1.9% to 4.251 million tonnes.
These contrasting results show that DRI production trends do not necessarily follow the same pattern across countries, even over the same reporting period.
Why the Decline in DRI Production Matters for Iran’s Steel Industry
Direct reduced iron is one of the main raw materials used in electric arc furnace (EAF) steelmaking in Iran and plays a key role in supplying feedstock to steelmaking facilities.
A decline in DRI production could affect the balance between raw material supply and demand, production planning, and the cost of metallic charge materials for steelmakers. However, the actual impact depends on inventory levels, domestic consumption, supply flows, and operating conditions at production facilities.
The BIR report did not identify a specific cause for the decline in Iran’s DRI production. Although energy constraints are a recognized challenge for the country’s steel industry, the reported decline cannot be directly attributed to electricity or gas restrictions without additional supporting data.
Outlook for DRI Production
First-half 2026 data show that despite the decline in output, Iran remains one of the two leading DRI producers among the reporting countries.
Meanwhile, India’s production growth and output declines in several Middle Eastern countries highlight differences in the development and utilization of production capacity across markets.
Assessing performance for the full year 2026 will require examining production data for the coming months, capacity utilization at direct reduction plants, and developments in energy supply.
Source: Bureau of International Recycling (BIR), report dated October 27, 2026, based on data from the World Steel Association.
https://www.bir.org/news-press/press-releases/1000043070-bir-malaga-2026-bir-ferrous-division-update-of-the-17th-edition-of-world-steel-recycling-in-figures
Production figures and percentage changes have been cross-checked against the official BIR report.
