Sponge iron production volume in India FY 2020-2024

In financial year 2024, the production volume of sponge iron in India accounted for around 52 million metric tons. This volume was an increased compared to the previous year. Since 2003, India was the world’s largest producer of sponge iron. 

Production from iron ore

Sponge iron is produced by treating iron ore with coal at a temperature below the melting point of iron. This process results in the formation of sponge iron that is spongy and metallic in nature. During the process of manufacturing sponge iron, the goal is to remove oxygen from the iron ore. It is also known as direct reduced iron. Most sponge iron producing units were in the mineral-rich states of India. The country produced more than 80 percent of the sponge iron by coal-based units.

Production from natural gas

Another method to produce sponge iron was by using natural gas instead of iron ore. This method produced half the amount of carbon dioxide in comparison to coal-based method because natural gas has less carbon in comparison to coal. In 2020, the production volume of sponge iron by natural gas unit was at 18 percent. The amount of natural gas required in steel sector was increasing year by year.