In this study, experiments were conducted to understand the optimum direct reduction conditions of mill scale which is formed on the surface of the materials produced by continuous casting and which contains iron (II) and iron (III) oxides. Experiments were performed in a rotary kiln and anthracite and metallurgical coke were used as carbon source. The eligible parameters like process temperature, process duration, reductant type and quantity were tried to determine. Obtained reduced iron pellets were characterized by using EPMA, XRD and chemical analysis techniques. The highest metallization degrees were observed as 97.4% for the stoichiometrically 200% anthracite added experiments and as 95.5% for the stoichiometrically 200% metallurgical coke added experiments at 1423 K.