Tel :
According to the World LR/EH42 steel Steel Association, although direct reduced iron (DRI) production in countries such as Egypt, Qatar, the United Arab Emirates, and Libya has steadily increased, the total DRI production in Northeast Africa has only achieved moderate growth in the first five months of 2025, dragged down by the poor performance of Iran and Saudi Arabia.
Data shows that from January to May 2025, the total DRI production of major Middle Eastern countries reached 21.8 million tons, a year-on-year increase of 2.8%, but there was significant differentiation in performance among countries.
Among them, Egypt LR/EH42 steel has consolidated its position as the second largest DRI producer in the region, thanks to the continuous release of production capacity and the recovery of domestic demand, with a year-on-year increase of 11.1% in output to over 3 million tons.
Qatar leads the region, with production soaring by 38% year-on-year to 948000 tons, the highest increase. The United Arab Emirates and Libya also recorded steady growth rates of 8.6% (1.4 million tons) and 6.6% (755000 tons), respectively.
In contrast, Iran, as the largest producer of DRI in the Middle East (accounting for nearly 60%), has seen a slight decline in production to 12.9 million tons. Industry insiders point out that the bottleneck of natural gas supply remains the core obstacle to its stable production. However, Iran's production in May increased by 3.7% year-on-year to 4 million tons, showing initial signs of recovery.
Saudi Arabia's LR/EH42 steel production decreased by 2.0% to approximately 2.8 million tons during the same period, mainly due to a decline in crude steel production and an increase in dependence on imported billets, partially replacing domestic DRI demand.
It is worth noting that the overall production performance in May was impressive, with regional DRI total production jumping 11.1% year-on-year to 5.9 million tons, and all countries achieving positive growth. Among them, Qatar's production doubled in May, while Saudi Arabia and Egypt also saw significant increases of 24.1% and 36.5% respectively, reflecting stronger signs of market recovery.