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sponge iron price per ton today

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sponge iron productionDirect reduction iron ore pelletsAnalysis of iron ore pelletsiron ore pellets blast furnaceAnalysis of sponge ironDirect Iron Reduction ProcessMidrex process for sponge iron makingPERRED Persian reduction processSponge iron analysis of Neyriz Ghadir Iranian Steel CoCarbon content in sponge ironLow carbon sponge ironHigh-carbon sponge ironHBI hot briquetted ironIron briquettes manufacturing

The sponge iron price per ton today is determined by the price of Khuzestan steel ingot and its 50% share. Khuzestan steel ingot prices are the benchmark for pricing upstream products such as iron concentrate, iron pellets as well as sponge iron prices.

The sponge iron price per ton today is announced with a few days’ limited and limited validity. The validity period of the price depends on the market conditions of the iron and steel sector. If the relative stability of the steel market prevails, it may be possible to declare the price of sponge iron for a longer period of time, but if the steel price volatility is high, the daily price quotation will be announced daily.

As we have said, the steel billet rate is a criterion for the price of sponge iron, but it is also a criterion for other upstream products. It is a benchmark not only in Iran but also in the world. However, the ratio set in the world and Iran market is slightly different between the price of billet and the price of sponge iron or, for example, iron concentrate and the price of iron pellets.

The price of iron concentrate is 23.4% of the price of China’s Tangshan steel billet. In the Iranian market, this ratio is 13%, which has increased to 16% during the year 1398 (2019). The price of iron pellets in the world market is also 27% of the price of China’s Tangshan billet, which is 21.5% in Iran, which has increased to 23.5% in the last amendment. Also, the approved and announced ratio for the price of sponge iron as mentioned at the beginning of the article is 50% of the price of Fakhuz ingot. Of course, this ratio is modest. In most cases, what is announced on the market is the price of sponge iron in the range of 50 to 53 percent compared to steel ingots.

Given the steel ingot rate for the sponge iron price per ton today in the event of a swing and the change in the price of the billet, the sponge iron price also fluctuates. Or the relative stability of the steel rate could cause the price of sponge iron to stabilize.

sponge iron production

Sponge Iron is a processed iron ore prepared and manufactured for use in induction furnaces and arcs in several stages. As you know, direct use of granulated iron ore, which often has a purity range of 50 to 65%, or use of iron ore pellets having a purity of between 64 and 69% is unlikely for these types of furnaces, unlike the long furnace. This is due to high impurities in iron ore and pellets.

The feed of induction furnaces and arc furnaces is iron scrap. As you know, scrap iron has a high purity. But because of the high cost and low capacity of this product, there is a need to use crude iron ore. For raw iron ore to enter the steel cycle with induction furnace and arc furnace, initial preparation on iron ore having a purity of between 50% and 65% for the granular type and 64 to 69% for the iron concentrate and iron pellet type is required, be done.

Direct reduction iron ore pellets

Of the three types of iron ore, ie:

  • Grained iron ore
  • Iron ore concentrate
  • Iron Ore pellets

Iron ore pellets are best suited for making metallic iron in it and for use in electric and induction arc furnaces.

Iron ore pellets are obtained from the iron ore concentrate during the pelletizing process. Iron ore pellets are 6 to 25 mm porous pellets, often with a purity of about 64 to 66 percent. The reason for the pelletizing of the iron ore concentrate is the powdery form and the fine-grained concentrate. This eliminates the possibility of direct use in the furnace due to problems that may affect the performance and performance of the furnace.

Analysis of iron ore pellets

Remark Result Element
Min 65% T.Fe
Max 1% FeO
Max 5% Al2O3+SiO2
Max 0.01% P
Ave 0.01% S
Max 1% Moisture
Min 270kg/pellet CCS
Min 96% T index
Max 2% A Index
20-24% Prosity
Min 90% Size 6.3 – 16 mm
Max 8% Size +16 mm
Max 2% Size<6.3 mm

iron ore pellets blast furnace

Iron pellets are used in two ways.

  1. Directly using iron ore pellets for blast furnace
  2. Direct reduction to produce sponge iron for induction furnace and electric arc

Analysis of sponge iron

DRI Sponge iron
Fe Total (%) Min88<total< 92 Max
Fe Metal (%) 82< Metal< 84
MD (%) Min 91< MD< 93  Max
C(%) 1.5 Min
SiO2 (%) 4 Max
Al2O3 (%) 0.5 Max
S (%) 0.008 Max
P (%) 0.05  Max
Sizing 9-18 mm, 90%

6.3-9 mm, 5%

Direct Iron Reduction Process

Direct resuscitation is the process of resuscitation of iron without melting. In general, the methods of producing sponge iron can be divided into two main categories:

  • Gas based sponge iron plant
  • Coal based sponge iron process

Production of sponge iron by gas is the most common way of producing sponge iron in the world. However, in India as the largest producer of sponge iron, 70% of the product is produced by Coal based sponge iron process. How a sponge iron production process is used in a region or country depends on the abundance of resources. In India there are many natural resources of coal. In India there are many natural resources of coal.

Methods of producing sponge iron based on natural gas include:

  • Midrex method
  • HYL process
  • And the Purofer way

Coal-based methods also include:

  • Jingdal
  • DRC
  • SL/RN

Another method that is native to Iran and has been successfully tested and exploited at the industrial level is the Persian Reduction (PERRED). Currently, sponge iron is manufactured and processed in Iran in two ways: Midrex and Perred.

In the following sections, we briefly describe these two methods and processes of sponge iron production.

Midrex process for sponge iron making

Currently, the Midrex process is the most widely used method for direct iron reduction. As mentioned above, this method falls under the set of basic gas methods.

In the Midrex process, the agent for reduction of iron ore pellets is the methane gas with the chemical formula CH4. 85% of the natural gas is methane. So we can see natural gas as a factor in the reductions in the Midrex process. In the Midrex process, methane gas is transferred to the breakdown unit before entering the furnace chamber. And there the chemical decomposition process takes place and methane is converted to carbon and hydrogen in the following process.



In the Midrex process, the feed of the reclaiming furnace, which is iron ore pellets, falls from the upper part of the furnace downwards, while the regenerating gas is injected into the furnace. The result of the collision of iron ore pellets with regenerative gas is the direct reduction of iron pellets and the production of sponge iron. In total, the direct reduction process involves the following three stages of chemical reaction:




The reduction process is performed at temperatures below 1000 ° C. The temperature range is between 850 and 920 degrees. The production efficiency of sponge iron is high in the Midrex process. Often, about 92 to 96 percent of the iron in the iron ore pellets is recovered and converted to metallic iron. The simplicity of the equipment and so easy to repair it, the most widely used method of direct reduction methods to make restoration. Of course, each process along with its advantages, disadvantages, too. One of the disadvantages of the Midrex method is the hardness of the sponge iron produced by the Midrex process. In fact, the sponge iron produced by the Midrex method requires higher initial energy for melting in steel.

The second method of direct reduction pellets and sponge iron production in Iran is PERRED process.

PERRED Persian reduction process

The most important differences between PERRED and Midrex direct reduction process, there can be mentioned the following:

  • Remove a lump breaker
  • Creating an injection tube in the center of the furnace for the feed of direct resuscitation unit ie iron pellets

The presence of another power supply in the center of the furnace for iron ore pellets has increased the efficiency of the furnace. The major advantage of PERRED direct reduction processing method can refer to the following:

  1. Low capital and costs for operation
  2. Less pollution caused to the environment
  3. Achieve higher production capacity throughout the year
  4. And …

Among the complexes of sponge iron production in Iran that have already been exploited by the PERRED method, we can mention the Shadegan Steel and the Neyriz Ghadir Iranian Steel Co. Tarh Gostar-e-Javan Company has been a cooperating company to exploit these plants.

Sponge iron analysis of Neyriz Ghadir Iranian Steel Co

Table 1:   DRI sponge iron
Fe Total (%) Min88.5
Fe Metal (%) 82-+1
MD (%) Min 92.5_+0.5
C(%) >1.7
SiO2 (%) 3.2_+0.3
Al2O3 (%) 0.8_+ 0.2
S (%) 0.009_+0.001
P (%) 0.05-+0.01
Fine 4_+1


Carbon content in sponge iron

Sponge iron is used for two types of induction furnace and electric arc. The sponge iron used for these two types of furnaces, of course, differs according to the characteristics of the furnaces. Accordingly, sponge iron is produced in two types of low carbon and high carbon. High carbon sponge iron is suitable for electric arc furnace and low carbon sponge iron is suitable for induction furnace.

Here are two types of analysis of low carbon and high carbon sponge iron:

Low carbon sponge iron

Table 1:   DRI sponge iron
Fe Total (%) Min88.5
Fe Metal (%) 82-+1
MD (%) Min 92.5_+0.5
C(%) 1.6 – 1.8
SiO2 (%) 3.2_+0.3
Al2O3 (%) 0.8_+ 0.2
S (%) 0.009_+0.001
P (%) 0.05-+0.01
Fine 4_+1


High-carbon sponge iron

Table 1:   DRI sponge iron
Fe Total (%) Min88.5
Fe Metal (%) 82-+1
MD (%) Min 92.5_+0.5
C(%) 1.8 – 2.1
SiO2 (%) 3.2_+0.3
Al2O3 (%) 0.8_+ 0.2
S (%) 0.009_+0.001
P (%) 0.05-+0.01
Fine 4_+1


Of course, in making sponge iron, whether low-carbon or high-carbon sponge, there is another issue besides the type of furnace, and that is the type of ingot produced by the factory. To produce cast iron ingots, we need to use high carbon sponge iron.

HBI hot briquetted iron

Sponge Iron is manufactured and supplied in the following four forms:

  • DRI pellets
  • Hot briquetted sponge iron
  • Cold briquetted sponge iron
  • Briquetted sponge iron fines

Sponge iron is a direct product with no secondary processing of direct resuscitation unit. Iron briquette is a compressed type of sponge iron. Briquetting is performed on sponge iron with the aim of improving the storage and portability of this product. Sponge iron has a high percentage of porosity. Therefore, there is the possibility of oxidation and of course ignition. The briquetting process is performed to reduce the porosity and thus the probability of oxidation and ignition. The general form of sponge iron may be suitable for domestic supply, which is a short distance and shipment time. But it is not suitable for export unless it is packaged in a Jumbo bag.

The briquetting process is costly, but due to improved efficiency and, of course, the elimination of the problems and disadvantages of sponge iron, the briquetting process has become economically justified.

Sponge iron briquettes are of three types.

  • Hot briquetted iron
  • Cold briquetted iron
  • Briquette fines Sponge

This classification is based on the inlet temperature of the charging in the briquetting line and the difference of the briquette feed feed. Cold sponge iron briquettes and sponge iron hot briquettes are self-made sponge iron products. The inlet charge temperature of the sponge iron in the production of hot briquettes is about 650 ° C, and in the production of cold briquettes is equal to the ambient temperature. Sponge iron fin briquette is also obtained from briquetting sponge fin which is a product of direct waste recycling plant.

For analysis of sponge iron briquette products of Azarbaijan Steel and Mineral Steel Complex you can refer to the following link.

Article: “Cold briquetted sponge iron production line

Iron briquettes manufacturing

Several direct reduction plant and sponge iron briquette production lines are working in Iran. Along with India, Iran is one of the largest producers and exporters of sponge iron in the world. It is also one of the hot iron briquette producing countries. Iran’s sponge iron and briquette iron exports to various countries such as Iraq, Turkey, Syria and …

The sponge iron produced in Iran this year due to an increase in the number of direct reduction plants in operation and to achieve higher capacity units, has been on the rise.

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