Global direct reduced iron production fell by 17.5% in May 2026 compared to the same month last year, according to World Steel Association data. The decline reflects pressure from natural gas prices, geopolitical disruptions in key producing regions, and weaker demand from downstream steel markets. Direct reduced iron is central to the steel industry's decarbonisation strategy, as it produces significantly lower carbon dioxide emissions than traditional blast furnace ironmaking and can transition fully to green hydrogen as a reducing agent.