Sponge Iron (DRI) Procurement Playbook

Coal-based vs gas-based sponge iron

Indian induction furnaces are dominated by coal-based sponge iron (DRI) produced in rotary kilns across Durgapur, Raipur, Jharsuguda and Bellary. Gas-based DRI is more common in West India and tends to carry higher metallization (92–94%) compared to the typical coal-based 80–86% range.

Choosing the right grade depends on your furnace power profile and slag chemistry. LohaLink's listings expose Fe(T), Fe(M), metallization % and sulphur from the seller's lab report up-front.

Pricing and procurement strategy

DRI prices move with thermal coal, iron ore lump availability and downstream billet demand. Foundries that lock in 30–60 day rolling contracts with verified sponge iron suppliers consistently beat spot buyers by ₹800–₹1,200/tonne.

On LohaLink, buyers can filter by hub (Durgapur, Raipur, Jharsuguda), metallization band, and seller rating — then settle through escrow with no PDC exposure.

Why escrow matters more for DRI

DRI degrades on exposure to moisture, so re-handling delays from payment disputes are doubly expensive. Escrow-backed dispatch keeps the truck moving, the buyer protected on quality, and the seller paid within 24 hours of weighbridge confirmation.