FIELD: metallurgy. SUBSTANCE: invention can be used for production of steel in closed power metallurgical cycle using metallized raw material. Reduction gases are generated from carbonaceous material by gasification in a gasifier to produce a low-calorie reducing gas, which is divided into low and high pressure gas streams, metallization of iron ore material in reducing unit using cooled and purified low pressure reducing gas, supply of metallized raw material and scrap to electric arc furnace for further melting, steel refining in ladle furnace, transfer of cooled and purified high-pressure reducing gas as energy gas to cogeneration steam-gas turbine plant for generation of electric power and steam using steam in gasifier, and electric energy—in electric arc furnace, ladle furnace and oxygen station, oxygen of which is used in electric arc furnace. Additionally, semi-coking carbon-containing material with carbon dioxide-oxygen blowing is used, in which high-calorie reducing gas is generated, which is cooled, purified and mixed in ratio of 1:(0.4–0.5) with low-calorie high-pressure reducing gas and is used in said steam-gas turbine plant, and obtained semi-coke is supplied to gasifier for production of low-calorie reducing gas. EFFECT: invention allows improving steel quality with simultaneous reduction of power consumption, improve environmental situation without using natural gas and coking coal due to use of high-calorific gas of semi-coking.