CRU says US DRI demand tops operating and planned capacity by 2035
XLB•US direct-reduced iron (DRI) demand is projected to exceed operating capacity plus identified projects by 2035, even if all quantified projects proceed. CRU analysis identifies DRI capacity, low-carbon power and hydrogen supply as constraints on deeper steel decarbonization through 2050.
1. Capacity constraints
US DRI demand is projected to outpace operating capacity and identified projects by 2035, even if all quantified projects proceed. DRI demand is also set to outpace scrap growth, increasing metallics investment requirements to sustain product mix in lower-emissions production.
2. Steel production mix
Electric arc furnaces produced 73% of US steel output in 2025, compared with a 28% global average. CRU analysis flags DRI capacity, low-carbon power and hydrogen supply as key constraints for deeper US steel decarbonization through 2050.
