Direct Reduced Iron (DRI) is the product of the direct reduction of iron ore in the solid state by carbon monoxide and hydrogen derived from natural gas or coal. Most gas-based direct reduction plants are part of integrated steel mini-mills, located adjacent to the electric arc furnace (EAF) steel plant. DRI can be either hot or cold charged to the EAF. Some steel companies ship DRI from their captive direct reduction plants to their remote steel mills and a small volume of DRI is sold to third parties. In India there are many small rotary kiln furnaces producing DRI, known locally as sponge iron, using coal as energy and reductant source. Some of the sponge iron plants are captive to steel mills, but there is a significant domestic merchant market, India producing 57% of its crude steel in electric arc furnaces (2016).