Iranian Sponge Iron Supplier

The process of sponge iron manufacturing involves the removal of oxygen from iron ore. The departing oxygen causes micropores in the ore body, turning it porous. When the final product is observed under a microscope, it resembles a honeycomb structure, which looks spongy in texture. Hence, the name is sponge iron.

Iranian Sponge Iron suppliers containerize solution Generally in the form of sponge iron pellets or lumps varying between 6 and 25mm nominal diameter; but often 8 to 12mm diameter. The IMO BC Code classes this product as “material that is hazardous only when in bulk” (MHB). It can be found in the BC Code as BC015.

If a sponge becomes wet, it can significantly overheat and emit hydrogen gas. Thus, it must be carried under inert conditions. Nitrogen gas is frequently used and applies to the holds by way of a temporary manifold fitted to the tank top before loading. Thermoplastic must also be positioned in the cargo on the reservoir top and elsewhere throughout the stop at different heights to monitor the temperature. Gas monitoring of the holds must be undertaken throughout the voyage, typically for hydrogen and oxygen. Also, the product must be kept dry at all times before and during carriage. Furthermore, it should treat as DRI, BC 015.

The price of sponge iron is determined based on the daily price of one of the biggest Iranian Steelmaking Plants. The price of Billet is the pricing criterion of upstream products such as iron concentrate iron pellets as well as the price of sponge iron.
Today, the sponge iron price is announced with a limited validity of a few days. The validity period of the price depends exactly on the market conditions of the iron and steel sector. If there is relative stability in the steel market, the daily price of sponge iron can be announced with a longer time validity, but if the fluctuations in steel prices are high, the price rate will be announced on a daily basis.
As said above, the daily price of steel Billet is the criterion for the pricing of sponge iron, and of course, it is also the criterion for other upstream products.
This index is not only in Iran but also in the whole world. Of course, the ratio determined in the world market and Iran 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.

Due to the fact that the price of steel Billet is the criterion for the daily price of sponge iron, in case of fluctuations and changes in the price of billet, the price of sponge iron will also fluctuate. Or relative stability in steel prices could stabilize the price of sponge iron.

The price of iron concentrate is 23.4% of the price of Tangshan steel billet in China. In the Iranian market, this ratio is 13%, which has increased to 16% during the amendment in 2019. Also, the price of iron pellets in the world market is 27% of the price of China Tangshan billet; this ratio was 21.5% in Iran, which has increased to 23.5% in the latest amendment.
Also, the approved and announced ratio for the price of sponge iron, as mentioned at the beginning of the article, is equal to 50% of the price of Billet produced in one of the biggest steelmaking plants in Iran. Of course, this ratio is a limit. Most of the time, what is announced in the market is that the price of sponge iron is between 50% and 53% compared to steel Billet.