It is a metallic product produced by direct reduction of high grade iron ore pellets in the solid state. Sponge Iron Plants can be divided into two categories depending on the fuel used as reductant – Coal or Gas. Hence, it is called Direct Reducted Iron and contains large percentage of metallic iron (82%-86%). This is a substitute of melting scrap for production of steel. DRI is used for steel making mainly in Electric Arc Furnace (EAF). It is also being used in Induction Furnaces (IF). It is used world wide in other smelting/melting system, such as blast furnaces, submerged ore furnaces, open hearths and basic oxygen furnaces is restricted. Accordingly, the demand of DRI products is closely related to the growth of the secondary steel sector.