North Korea Steel Sector Assessment

Extremely secretive North Korea does not provide data on its industrial strength, but the latest US intelligence data indicate that the country has a fairly stable steelmaking capacity of about 12 million tons per year. However, experts believe that the actual production is much lower than the existing capacity.

The country's crude steel production in 2015 was at its lowest annual level in 20 years at 1.079 million tonnes, according to New York-based Trading Economics. This is well below North Korea's peak output of over 3.4 million tonnes in 1990.

The Kim Chaek Iron Steel Complex is the largest steel plant in North Korea, capable of producing about 6 million tonnes of steel per year, or about half of the country's total capacity.

In 1975, the Soviet Union provided technology and equipment for primary steelmaking and hot and cold rolling of steel. But after the collapse of the Soviet Union, Russia stopped supplying equipment, and after the death of Kim Il Sung in 1994, it did not supply coke either.

In 1996, equipment for the production of low-carbon steel and coke-free cast iron was installed at the Kim Chaek Iron metallurgical complex. At the time, there were reports of a shortage of coke for steel production. Kim Yong Il visited the plant in August 2000 and stressed the need to upgrade the complex. The production processes at the facility were modernized and increased production in 2001.

North Korea has the following steel facilities: the Hwanghae pig iron and steel complex at Sonney; Songjin Steel Complex in Gimjak, North Hamgen; Ch'ollima became in Nampo; Metallurgical plant in Thengdinbu, North Hamgen; Metallurgical plant in Nampo; Metallurgical facilities at Songgan Kun, Chagando; Taedonggang Steel Works.

North Korea is one of the most centralized and least open economies in the world. According to the CIA World Factbook, the country "faces chronic economic problems." As a result, the CIA claims that "the North Korean industry is at an impasse."

North Korea also holds 400 million tonnes of iron ore reserves, and annual iron ore production increased to 10 million tonnes in the 1990s from 8 million tonnes in 1985, according to Western estimates. However, there is no more recent data.