Sometimes known as direct-reduced iron,sponge Iron is mainly used as a raw material for speciality steel as well as substitute for scrap. Made from iron ore, It is further processed to make wrought iron.Sponge iron can also be used to produce a powdered ore that works very well when mixed with other metals in the production of different types of iron-based products.

There are several benefits associated with sponge iron that allow it to compete effectively with other types of smelted irons. One has to do with the actual composition of the final product itself. For example, this type of iron is considered richer than pig iron, another type of iron commonly produced in blast furnaces. Direct-reduced iron has a slightly higher iron content, which often makes it better suited for use in electric furnaces.

The sponge iron is a key raw material for the manufacture of steel. The appropriate percentage of metallization (removal of oxygen) ensures the high quality of the sponge iron. The percentage of metallization is the ratio of metallic iron to the total iron present in the product

Use of sponge iron

One of the more common uses for sponge iron is the creation of wrought iron. Iron of this type is helpful in the creation of ornamental objects for use around the house, such as decorative grills for screen doors, burglar bars for windows, and even for various types of wall hangings. Sponge iron is also often used for the manufacture of components used to create durable lawn and patio furniture. When properly treated, wrought iron furniture can easily resist deterioration from the weather, and last for a number of years.

Sponge iron is not useful in itself, but can be processed to create . The sponge is removed from the furnace, and repeatedly beaten with heavy hammers and folded over to remove the slag,  any carbon or carbide and  the iron together. This treatment usually creates wrought iron with about three percent slag and a fraction of a percent of other impurities. Further treatment may add controlled amounts of carbon, allowing various kinds of heat treatment (e.g. "steeling").

In recent years, refinements to the production of sponge iron have made it possible to reduce the iron without necessarily having to melt the ore. Because the iron can be made into pellets and even into powder, it is an economic and useful substitute for the scrap metal sometimes used by steel manufacturers. The amount of time and resources required to produce sponge iron is minimal, so it is possible to manufacture large amounts quickly, a fact that only adds to the advantages of this type of iron product