India Accounts for Over 60% of Global New Blast Furnace Steel Production Capacity

India accounts for over 60% of global new blast furnace steel production capacity, despite international efforts to reduce emissions in the steel industry. This is the conclusion of the sixth annual report by the Global Energy Monitor (GEM) on the development of the steel industry.

According to the organization, there are currently 319 million tonnes/year of new blast furnace capacity announced or under construction worldwide, a 5% increase from the previous year. In addition, approximately 80 million tonnes of other capacity are planned for modernization and extended operation through the repair of existing blast furnaces.

Meanwhile, only 141 million tonnes of existing blast furnace capacity are planned for official closure. This means global blast furnace capacity could increase by a net 88 million tonnes by 2035.

GEM emphasizes that India remains the main driver of coal-fired steel production. Approximately 93% of the country's new pig iron production capacity is based on blast furnace technology. Along with China, India accounts for 86% of all new blast furnace projects globally.

However, analysts note that only about 5% of India's planned new blast furnace capacity has actually entered the construction phase, leaving open the possibility of adjusting investment decisions toward lower-carbon emission technologies.

According to GEM estimates, approximately 88% of CO2 emissions in the steel industry come from coal-fired production, while the entire steel industry accounts for about 11% of global carbon dioxide emissions.

Despite increasing claims of emission reduction, the adoption of low-carbon technologies in the industry remains slow. The share of electric arc furnace (EAF) capacity globally increased by only 1% over the past year, from 33% to 34%. In the direct reduction iron (DRI) segment, only 2% of operating capacity uses green hydrogen as the primary reducing agent.

GEM argues that expanding the use of electric arc furnaces and accelerating the transition to low-emission technologies are key conditions for reducing emissions in the global metallurgical industry.

Domestic Steel Price Update

Construction steel prices remain stable at various companies. Specifically, at Hoa Phat, both CB240 and D10 CB300 steel are priced at 15,430 VND/kg.

Similarly, Viet Y Steel Northern Vietnam recorded CB240 and D10 CB300 steel prices at 15,150 and 14,700 VND/kg respectively. Viet Duc Steel Northern Vietnam recorded CB240 and CB300 prices at 15,250 and 15,050 VND/kg respectively. Several other companies such as VJS Steel Northern Vietnam, Pomina, and Southern Steel maintain stable prices.

Steel prices recorded up to May 18, 2026. Source: SteelOnline