Abstract: A method for producing iron carbide for use as an iron source in steelmaking is provided. The method can use a wide range of feedstocks without depending on natural gas by using other forms of carbon as the carburizing source. The present method accomplishes the production of iron carbide by mixing together finely divided iron oxide containing feedstocks and carbon, pelletizing the mixture, and heating the pellets to a high temperature under reducing conditions. Preferably, the pellets are heated to a temperature of at least 1100.degree. C. Excess levels of carbon should be used in the process to assure maximum production of iron carbide.