The Global Direct Reduced Iron Market was valued at USD 27.8 Billion in 2022 and is projected to reach USD 45.2 Billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 6.4% during the forecast period (2023–2029). This growth is being driven by rising demand for eco-friendly steelmaking alternatives, increasing infrastructure developments in emerging economies, and the accelerating adoption of gas-based and coal-based DRI technologies across metallurgical and steel industries worldwide.

The USA market for the Global Direct Reduced Iron market is estimated to increase from USD 3.2 billion in 2022 to reach USD 5.1 billion by 2030, at a CAGR of 6.0% during the forecast period of 2023 through 2030.

The China market for the Global Direct Reduced Iron market is estimated to increase from USD 8.5 billion in 2022 to reach USD 14.3 billion by 2030, at a CAGR of 6.7% during the forecast period of 2023 through 2030.

The Europe market for the Global Direct Reduced Iron market is estimated to increase from USD 4.1 billion in 2022 to reach USD 6.8 billion by 2030, at a CAGR of 6.5% during the forecast period of 2023 through 2030.

Direct Reduced Iron (DRI), also known as sponge iron, represents a cleaner alternative to traditional blast furnace methods in steel production. It is produced by reducing iron ore in its solid state using carbon monoxide and hydrogen from natural gas or coal, avoiding the high emissions associated with conventional processes. As the steel industry faces mounting pressure to reduce its carbon footprint, DRI has emerged as a pivotal feedstock in electric arc furnaces, enabling more sustainable manufacturing.

As the global steel sector transforms toward low-carbon operations and circular economy principles, the spotlight falls on the key producers who are driving innovation, efficiency, and greener production pathways. In this blog, we profile the Top 10 Companies in the Direct Reduced Iron Market—a mix of established steelmakers, integrated miners, and technology innovators shaping the future of sustainable iron production.

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🔟 1. Mobarakeh Steel Company

Headquarters: Isfahan, Iran
Key Offering: Gas-based DRI, Sponge Iron for Steel Melting

Mobarakeh Steel Company stands as one of the largest producers of direct reduced iron in the Middle East, leveraging abundant natural gas resources to manufacture high-quality DRI for its integrated steel operations. The company supplies DRI to electric arc furnaces, supporting the production of flat steel products used in automotive, construction, and appliance sectors.

Sustainability Initiatives:

• Implementation of energy-efficient gas reforming processes to reduce emissions

• Partnerships for carbon capture and storage in DRI production

• Commitment to net-zero operations by 2040 through renewable integration

Download FREE Sample Report: Direct Reduced Iron Market – View in Detailed Research Report

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9️⃣ 2. Tata Sponge Iron Limited

Headquarters: Bhubaneswar, India
Key Offering: Coal-based DRI, Integrated Sponge Iron Plants

Tata Sponge Iron Limited, a subsidiary of Tata Steel, is a prominent player in India’s DRI sector, operating coal-based reduction facilities that produce sponge iron for downstream steelmaking. The company caters to the booming infrastructure and manufacturing needs in Asia, with its products feeding into electric arc furnaces for rebar, wire rods, and structural steel.

Sustainability Initiatives:

• Adoption of low-ash coal to cut down on waste and emissions

• Investment in green hydrogen pilots for DRI reduction

• Recycling initiatives for plant byproducts to enhance circularity

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8️⃣ 3. Welspun Group

Headquarters: Mumbai, India
Key Offering: Gas-based and Coal-based DRI, Pipe and Steel Products

Welspun Group excels in the production of direct reduced iron through a combination of gas and coal-based methods, serving the steel and pipe manufacturing industries globally. With facilities in India and international partnerships, Welspun supplies DRI to support the construction and energy sectors, where durable steel components are essential.

Sustainability Initiatives:

• Transition to syngas utilization for reduced fossil fuel dependency

• Water conservation programs in DRI plants

• Targets for 20% emission reduction by 2025 through process innovations

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7️⃣ 4. Jindal Steel & Power Limited

Headquarters: New Delhi, India
Key Offering: Coal-based DRI, Integrated Steel Complexes

Jindal Steel & Power Limited is a major force in the DRI landscape, utilizing coal-based reduction to produce sponge iron for its expansive steel mills in India and beyond. The company supports large-scale infrastructure projects, supplying DRI-derived steel for railways, highways, and power plants.

Sustainability Initiatives:

• Coal beneficiation to minimize environmental impact

• Exploration of biomass co-firing in DRI processes

• Goal of carbon neutrality in steel production by 2050

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6️⃣ 5. Umesh Modi Group

Headquarters: Raipur, India
Key Offering: Sponge Iron, Ferro Alloys, and Captive Power

The Umesh Modi Group, through its steel division, produces direct reduced iron using coal-based technology, feeding into ferroalloy and steel production for industrial applications. Operating in central India, the group benefits from proximity to iron ore mines, ensuring a steady supply for its DRI plants.

Sustainability Initiatives:

• Installation of electrostatic precipitators for dust control

• Renewable energy sourcing for captive power plants

• Community programs for sustainable mining practices

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5️⃣ 6. Prakash Industries Limited

Headquarters: New Delhi, India
Key Offering: Coal-based DRI, Structurals and Billets

Prakash Industries Limited is renowned for its coal-based DRI production, which forms the backbone of its steel manufacturing operations in eastern India. The company produces sponge iron for conversion into billets and structurals, serving construction and infrastructure needs across South Asia.

Sustainability Initiatives:

• Afforestation efforts around mining sites

• Advanced waste heat recovery in DRI kilns

• Certification under ISO 14001 for environmental management

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4️⃣ 7. Sarda Energy & Minerals Limited

Headquarters: Raipur, India
Key Offering: Sponge Iron, Ferro Alloys, Power Generation

Sarda Energy & Minerals Limited integrates DRI production with ferroalloy manufacturing, using coal-based methods to create sponge iron for high-value steel products. Based in Chhattisgarh, the company leverages local resources to supply the power and metals sectors, with exports to Southeast Asia.

Sustainability Initiatives:

• Utilization of DRI off-gases for electricity generation

• Reduction in coal consumption through process refinements

• Targets for 15% renewable energy in operations by 2030

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3️⃣ 8. Qatar Steel Company

Headquarters: Mesaieed, Qatar
Key Offering: Gas-based DRI, Rebar and Wire Rods

Qatar Steel Company leads in gas-based DRI production in the Gulf region, utilizing natural gas to manufacture high-grade sponge iron for its rolling mills. The company serves the construction boom in the Middle East, producing reinforcement bars and wires from DRI feedstock.

Sustainability Initiatives:

• Pilot projects for green hydrogen in direct reduction

• Emissions monitoring and reduction programs

• Collaboration with global partners on low-carbon steel tech

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2️⃣ 9. ArcelorMittal

Headquarters: Luxembourg City, Luxembourg
Key Offering: Gas-based DRI, Advanced Steel Solutions

ArcelorMittal, the world’s largest steel producer, incorporates DRI into its operations through gas-based plants in multiple countries, including Brazil and Europe. The company uses DRI as a scrap substitute in electric arc furnaces, producing flat and long products for automotive and construction.

Sustainability Initiatives:

• Over USD 1 billion invested in DRI and EAF synergies

• Targets for 30% DRI usage in global production by 2030

• Partnerships for 100% renewable hydrogen DRI

Download FREE Sample Report: Direct Reduced Iron Market – View in Detailed Research Report

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1️⃣ 10. NMDC Steel Limited

Headquarters: Hyderabad, India
Key Offering: Integrated DRI and Steel Plant Operations

NMDC Steel Limited, part of the National Mineral Development Corporation, focuses on DRI production tied to its vast iron ore reserves in India. The company supplies sponge iron to its new steel plant in Nagarnar, supporting defense, rail, and civilian infrastructure.

Sustainability Initiatives:

• Zero-liquid discharge systems in DRI facilities

• Research into hydrogen-based reduction technologies

• Community development tied to eco-friendly mining

Read Full Report: Direct Reduced Iron Market – View in Detailed Research Report

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🌍 Outlook: The Future of Direct Reduced Iron Is Greener and More Efficient

The direct reduced iron market is undergoing a profound transformation. While coal-based methods still hold significant share due to cost-effectiveness in certain regions, the industry is pouring investments into gas-based and emerging hydrogen-based alternatives, advanced reduction technologies, and integrated supply chains to support the global steel industry’s net-zero ambitions.

📈 Key Trends Shaping the Market:

• Rapid expansion of gas-based DRI capacity in the Middle East and North America

• Regulatory mandates for low-carbon steel, including EU’s Carbon Border Adjustment Mechanism

• Digitalization of DRI plants with AI for process optimization and predictive maintenance

• Strategic alliances between miners, steelmakers, and energy firms for hydrogen supply

Read Full Report: Direct Reduced Iron Market – View in Detailed Research Report

The companies listed above are not only powering global steel production—they’re spearheading the green revolution in metallurgy, paving the way for a more sustainable industrial future.