Just 2% of operating DRI capacity uses green hydrogen, while 319 mtpa of blast furnace capacity is under development.
Why this market is moving now
- Electric arc furnaces make up 50% of steelmaking capacity in development worldwide, against 34% of the operating fleet.
- Coal-based blast furnace capacity of 319 mtpa is still under development worldwide.
- Only 2% of operating DRI capacity uses green hydrogen as its primary reductant.
- Stegra closed a 1.4 billion euro financing round on 24 June 2026 for its plant in Boden, Sweden.
Key figures
Global figures for this market, with the year each one describes. Use Cite to copy a reference to this page.
| Figure | Value | Year | Cite |
|---|---|---|---|
| Electric arc furnaces made up 34% (727 mtpa) of the global operating steelmaking fleet in 2026, up from 31% in 2022, and 50% of steel capacity in development. | 34 % of global operating steelmaking capacity | 2026 | |
| China holds 48% (1,073 mtpa) of global operating steelmaking capacity, which totalled 2,216 mtpa in 2026. | 48 % of global steelmaking capacity | 2026 | |
| Just 2% (4 mtpa) of operating direct reduced iron (DRI) capacity worldwide uses green hydrogen as its primary reductant. | 2 % of operating DRI capacity | 2026 | |
| Worldwide, 319 mtpa of coal-based blast furnace capacity was under development in 2026. | 319 mtpa | 2026 | |
| ArcelorMittal cancelled DRI-EAF plans for two of its German plants, in Bremen and Eisenhuttenstadt. | two German plants | 2026 | |
| World crude steel production was 1,849.4 million tonnes in 2025. | 1,849.4 million tonnes | 2025 | |
| China ranked first in the world with 960.8 million tonnes of crude steel in 2025, down 4.4% from 1,005.1 million tonnes in 2024. | 960.8 million tonnes | 2025 | |
| Steelmaking emitted 1.92 tonnes of CO2 per tonne of crude steel on average in 2024, based on reporting companies that cover 51% of global production. | 1.92 tonnes CO2 per tonne of crude steel | 2024 | |
| Stegra announced the closing of a 1.4 billion euro financing round on 24 June 2026 for its green steel plant in Boden, Sweden. | 1.4 billion EUR | 2026 | |
| Baosteel, part of China Baowu, has announced a 1 mtpa integrated DRI plant designed to run on hydrogen. | 1 mtpa | 2026 |
Calculated figures (shares, changes and prices per kilogram) are plain arithmetic on the reported values. Read how we work.
Companies to watch
Stegra
Building an integrated green steel plant in Boden, Sweden. Closed a 1.4 billion euro financing round in June 2026.
China Baowu Steel Group (Baosteel)
Its Baosteel arm has announced a 1 mtpa integrated DRI plant designed to run on hydrogen.
ArcelorMittal
Cancelled DRI-EAF plans for two German plants, in Bremen and Eisenhuttenstadt.
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the global market - 03Global market size, 2021 to 2025
Historical series and growth rates - 04Countries and regions
Demand, supply and trade by country and region - 05Outlook to 2031
Base, low and high scenarios with stated assumptions - 06Rules, policy and deadlines
Regulation and programmes that change demand - 07Drivers and barriers
What accelerates or slows adoption, by customer segment - 08Prices, costs and margins
Unit economics where public data allows - 09Competitive landscape
8 to 12 company profiles with recent moves - 10Opportunities and risks
For new entrants, suppliers and investors - 11Method and assumptions
How every figure was built
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Frequently asked questions
How big is the global steel market?
World crude steel production was 1,849.4 million tonnes in 2025. Global operating steelmaking capacity was 2,216 mtpa in 2026.
How much of global steelmaking uses electric arc furnaces?
Electric arc furnaces made up 34% (727 mtpa) of global operating steelmaking capacity in 2026, up from 31% in 2022. They make up 50% of steel capacity in development.
Which countries lead global steel production?
China leads. It ranked first with 960.8 million tonnes of crude steel in 2025, down 4.4% on 2024, and holds 48% of global operating steelmaking capacity.
How much steel is made with green hydrogen?
Very little so far. Just 2% (4 mtpa) of operating DRI capacity worldwide uses green hydrogen as its primary reductant. Baosteel has announced a 1 mtpa DRI plant designed to run on hydrogen.
How carbon intensive is steel production?
Steelmaking emitted 1.92 tonnes of CO2 per tonne of crude steel on average in 2024, based on reporting companies that cover 51% of global production.
Who is building green steel plants?
Stegra closed a 1.4 billion euro financing round in June 2026 for its plant in Boden, Sweden. Baosteel has announced a 1 mtpa hydrogen DRI plant. ArcelorMittal cancelled DRI-EAF plans for two German plants.
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