sponge iron fines price 2020

sponge iron fines price has faced a price increase in 2020. The price of this product is increasing and changing due to the increase in the dollar and the corona virus. iron sponge suppliers By offering quality and organic products, they have been able to capture a wide range of markets

what is sponge iron fines?

In general, sponge iron is the raw material for steel production and is also known as direct reduction iron (DRI). Direct resuscitation is an alternative way to solve some of the problems of conventional blast furnaces. Solid iron ore is reduced to gas at 10-800 ° C by gas (H2 + CO) or coal. Making sponge iron is a process in which iron ore masses (typically 5 mm -18 mm in size) are placed in a sloping rotary kiln with a small amount of dolomite coal, and the process takes about 12 hours in the presence of air. Before the products cool, they are magnetically separated and screened.

In general, this process requires the direct reduction of iron ore (ie, the removal of oxygen from the ore) in the solid state.
Iron, as a chemical element, is rarely found in pure form in nature. Iron is commonly found as an oxide in nature but is also found in the form of the carbonate, silicate, and iron sulfide. As mentioned, iron is found in nature as iron ore. Iron ore itself is composed of iron oxides and various impurities. Impurities that come with iron ore include silicon oxide, calcium carbonate, sulfur, manganese, phosphorus compounds, and so on. Initially, various operations are performed on iron ore, such as crushing and concentrating, to be converted into sponge iron in later stages.

To produce sponge iron, iron ore is reduced without melting, and the raw iron produced from this type of furnace is known as sponge iron. Sponge iron contains about 29 to 69 percent pure iron and is used to make steel in later stages.

sponge iron fines price changes

One of the reasons for the inflammation of the steel market in recent times is that liquidity has invaded the steel market. Steel is a commodity with high durability and liquidity; For this reason, it has attracted the attention of traders. In such cases, sponge iron does not reach the production units; In this way, market inflammation increases.

 Until six months ago, demand for sponge iron was lower than supply. As we approach the end of the year, the demand for sponge iron increases. The reason for the increase in demand is the entry of induction units into the consumption cycle. As demand increased, traders stepped in and raised prices.
Earlier, induction units used scrap iron. At present, the supply of scrap iron in the country has decreased and its price has increased. There is no high regulation on the price of scrap iron; For this reason, induction units have started to use sponge iron and the demand for this product has increased.

The executive director of the Steel Association says about the reason for the decrease in the supply of scrap iron: the issue of recycling and scrap metal has decreased, while the scrap iron has no organization. Prices are so high that it is not cost-effective for a steelmaker to charge a high percentage of his unit with scrap iron, which is why demand for sponge iron is rising.

According to him, last year the market regulation headquarters decided to stop the supply of sponge iron on the stock exchange. This leads to the attraction of traders to buy and sell sponge iron, and suddenly the demand has increased for six months and the supply of sponge iron has decreased in return.

Yaqoubi explains why traders want to enter the steel market: Inflation expectations are high next year. Merchants have come here to trade in order to preserve the value of their money. From this year to next year, traders may make a profit of one thousand tomans per kilogram of sponge iron.

He emphasizes: The decision of the Ministry of Silence is with all the intellectuals of the steel industry activists and organizations in this sector, and after holding persuasive meetings, this decision has been announced. selling price of sponge iron It is determined by the economic conditions of the market