Sponge iron

Sponge Iron

Introduction to Sponge Iron

Sponge iron, also known as Direct Reduced Iron (DRI), is produced by reducing iron ore without melting it. In this process, oxygen is removed from the ore using reducing gases like natural gas, leaving behind pure iron with a porous, sponge-like structure.

The Production Process of Sponge Iron

In the direct reduction process, high-grade iron ore or pellets are placed in special furnaces and exposed to reducing gases at high temperatures. The oxygen is stripped from the ore, and metallic iron is formed without melting. The result is a porous product that looks like a sponge — which is why it’s called sponge iron.

Key Features of Sponge Iron

High metallic iron content (high metallization)

Porous structure for better reactivity during melting

Lower impurities compared to some traditional raw materials

Ideal for use in electric arc furnaces

Applications in Steelmaking

Sponge iron is one of the most important raw materials in electric arc furnace (EAF) steel production. It is typically melted along with steel scrap to produce steel billets. Using sponge iron improves the quality of the final steel and allows better control over its chemical composition.

Factors Affecting Sponge Iron Prices

The price of sponge iron depends on factors such as iron ore pellet prices, energy and natural gas costs, demand from steelmakers, and supply conditions in both domestic and export markets. In Iran, a significant share of sponge iron transactions is carried out through the Iran Mercantile Exchange.