Sponge iron (DRI)

What it is

Porous iron made by removing oxygen from iron ore with coal or gas, without melting. The main charge for induction and electric arc furnaces with scrap.

Coal-based lumps and finesGas-based DRIHot briquetted iron (HBI)

Where India produces it

1. ChhattisgarhRaipurRaigarh

   Principal DRI plants at Siltara (Raipur) and Raigarh.

2. OdishaSundaragadaKendujharJajpur

   Principal DRI plants listed in Sundargarh, Kendujhar and Jajpur.

3. GujaratSuratKachchh

   Gas-based plant at Hazira; coal-based at Bhachau.

4. MaharashtraRaigadChandrapurBhandara
5. PunjabLudhiana

Where imports come from

Low; India is the world's largest sponge iron producer (installed capacity 60.52 million tonnes in 2023-24).

Rules before you buy or sell

• Imports of pig iron, sponge iron, ferro alloys, remelting scrap and semi-finished and flat or long steel are 'free' under ITC(HS) 2022 (as summarised in IMYB 2024), but QCO-covered grades still need the BIS mark.
• Check the current import and export policy for your exact 8-digit HS code in the DGFT ITC(HS) schedules.

Storage and handling

Store under cover; wet DRI re-oxidises, heats up and loses metallic iron.

Businesses that use it

Steel Castings (Induction Furnace Foundry) →Stainless Steel Ingots (Induction Furnace) →Steel Re-Rolling Mill (MS Rounds, Angles, Channels, Tor Steel) →