Abstract: A method and apparatus for producing crude liquid steel using direct reduced iron as a raw material in an electric arc furnace with an acid resistant sidewall refractory lining. In order to effect the more economical melting operation, the electric arc furnace uses a slag containing a B4 ratio of (lime+magnesia)/(silica+alumina) in the range of about or less than 1.50, resulting in less slag volume, reduced electric power consumption, reduced electrode consumption, and improved iron yield.