In order to improve the efficiency of slag and iron separation, a new idea of "the separation of slag (solid state) and iron (molten state) in rotary hearth furnace process at lower temperature" is put forward. In this paper, the forming process of iron nuggets has been investigated. Based on those results, the forming mechanisms and influencing factors of iron nugget at low temperature are discussed experimentally using an electric resistance furnace simulating a rotary hearth furnace process. Results show that the reduction of iron ore, carburization of reduced iron, and the composition and quantity of slag are very important for producing iron nuggets at lower temperature. Reduction reaction of carbon-containing pellets is mainly at 1273 K and 1473 K (1000 A degrees C and 1200 A degrees C). When the temperature is above 1473 K (1200 A degrees C), the metallization rate of carbon-containing pellets exceeds 93 pct, and the reduction reaction is substantially complete. Direct carburization is the main method for carburization of reduced iron. This reaction occurs above 1273 K (1000 A degrees C), with carburization degree increasing greatly at 1473 K and 1573 K (1200 A degrees C and 1300 A degrees C) after particular holding times. Besides, to achieve the "slag (solid state) and iron (molten state) separation," the melting point of the slag phase should be increased. Slag (solid state) and iron (molten state) separation can be achieved below 1573 K (1300 A degrees C), and when the holding time is 20 minutes, C/O is 0.7, basicity is less than 0.5 and a Na2CO3 level of 3 pct, the recovery rate of iron can reach 90 pct, with a proportion of iron nuggets more than 3.15 mm of nearly 90 pct. This study can provide theoretical and technical basis for iron nugget production.