History
Producing sponge iron and then working it was the earliest method used to obtain iron in the Middle East, Egypt, and Europe, where it remained in use until at least the 16th century. There is some evidence that the bloomery method was also used in China, but China had developed blast furnaces to obtain pig iron by 500 BCE.
The advantage of the bloomery technique is that iron can be obtained at a lower furnace temperature, only about 1,100°C or so. The disadvantage, relatively to using a blast furnace, is that only small quantities can be made at a time.
Read more about this topic: Direct Reduced Iron
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