Ispat Industries to market sponge iron, DRI

Ispat Industries to market sponge iron, DRI

Indian steel producer Ispat Industries will market sponge iron and direct reduced iron (DRI), beginning from June, sources report. The idea of marketing such raw materials stemmed from the global fall in scrap prices. Ispat will market its sponge iron in southern markets since there are many automakers and auto-parts suppliers. Ispat currently produces 1.1 million tons of DRI annually. The company currently uses a mixture of raw materials –60% hot metal, 30-35% DRI and around 5% metal scrap– in its steel production. In order to take advantage of falling scrap prices, Ispat will lower its DRI consumption and increase its scrap consumption.