Sponge Iron Price Today
Live Sponge Iron (DRI) rates updated through the day.
Live Prices
View Metalsbuy SiMn Index →Sponge Iron Overview
Sponge Iron (Direct Reduced Iron, DRI) is produced by reducing iron ore in the solid state, and is a primary metallic charge for induction and electric arc furnaces — a cleaner, consistent feed widely used by secondary steelmakers.
It is called sponge iron because the reduction happens without melting: oxygen is removed from the ore in the solid state, leaving a porous, sponge-like metallic structure that keeps the shape of the original pellet or lump. In India the dominant route is the coal-based rotary kiln, using iron ore and non-coking coal; gas-based shaft furnaces are used where natural gas is available.
Its value to a steelmaker is predictability. Steel scrap arrives with whatever the last owner put into it — copper from wiring, tin from coatings, nickel and chromium from mixed grades — and those tramp elements cannot be refined out. They accumulate and limit what the steel can be used for. Sponge Iron carries none of them, so charging it alongside scrap dilutes the contamination and lets a secondary steelmaker hold a tighter specification.
The number that matters is metallisation — the share of the iron present as metallic iron rather than as remaining oxide, typically in the 80-92% range for commercial DRI. Higher metallisation means more usable iron per tonne and less oxide to reduce in the furnace, so it is the right basis for comparing two offers. Carbon content matters too, since it contributes energy in the melt.
India is the world's largest producer of Direct Reduced Iron, with coal-based capacity concentrated in the ore and coal belt across Odisha, Chhattisgarh, Jharkhand and West Bengal.
Applications & End Uses
- Induction furnace steelmaking — the primary metallic charge for most secondary steel plants
- Electric arc furnace melting, charged alongside or in place of scrap
- Diluting tramp elements (copper, tin, nickel) that scrap brings into the melt
- Producing cleaner billets for TMT rebar and structural sections
- Foundry and casting feedstock where a known chemistry is needed
- Blending to hold a consistent charge chemistry when scrap quality varies
Buying Sponge Iron: What to Check
Compare metallisation, not just the rate
Metallisation is the proportion of iron present as metal rather than oxide, usually 80-92%. A lot with higher metallisation delivers more usable iron per tonne and needs less energy to finish in the furnace. Two offers at the same rate per tonne are not the same purchase if their metallisation differs.
Ask for total iron and carbon together
Total Fe tells you how much iron is present; metallisation tells you how much of it is already reduced; carbon tells you how much energy the material brings into the melt. All three belong on the test certificate, and all three affect your cost per tonne of liquid steel.
Check the fines proportion
Sponge iron is friable and breaks down in handling and transport. Fines behave differently in a furnace charge and can be difficult to feed. Agree an acceptable percentage in the order and inspect on arrival rather than after charging.
Store it dry
The porous structure that gives sponge iron its name also makes it reactive. It picks up moisture and can re-oxidise, which reduces metallisation between dispatch and use. Covered storage and reasonable stock turnover protect what you paid for.
Use it to control scrap, not only to replace it
The strongest economic case is usually blending. Charging sponge iron with scrap dilutes copper and tin that cannot be removed later, which lets you hold a grade that scrap alone would not support — often worth more than the difference in input price.
Sponge Iron — Frequently Asked Questions
What is Sponge Iron?
Sponge Iron, also called Direct Reduced Iron or DRI, is iron ore that has had its oxygen removed in the solid state without melting. The result is a porous, sponge-like metallic material used as a charge in induction and electric arc furnaces.
What is the difference between Sponge Iron and scrap?
Chemistry you can rely on. Scrap carries tramp elements such as copper, tin and nickel that cannot be refined out and limit what the steel can be used for. Sponge Iron has a known composition and none of that contamination, so it is used both as a substitute and as a diluent.
What is metallisation and why does it matter?
Metallisation is the share of iron present as metallic iron rather than as remaining oxide, typically 80-92% in commercial DRI. Higher metallisation means more usable iron per tonne and less work left for the furnace, so it is the correct basis for comparing offers.
How is Sponge Iron produced in India?
Predominantly by the coal-based rotary kiln route, using iron ore and non-coking coal. Gas-based shaft furnaces are used where natural gas is available. India is the world's largest producer of Direct Reduced Iron.
Can Sponge Iron completely replace scrap?
It can, but most plants blend the two. Scrap melts with less energy while sponge iron brings clean, predictable chemistry, so a mix usually gives the best combination of cost and quality.
How should Sponge Iron be stored?
Under cover and dry. The porous structure absorbs moisture and can re-oxidise, which lowers metallisation over time. Keeping stock covered and turning it over reasonably quickly preserves the value of the material.
Where is Sponge Iron produced in India?
Coal-based capacity is concentrated in the iron ore and coal belt running across Odisha, Chhattisgarh, Jharkhand and West Bengal, which is where most domestic supply is offered from.
Copyright © 2025 Metalsbuy. All rights reserved.