The invention provides a method for producing castings by smelting iron chips with a medium frequency furnace and briquetting. The method comprises the following steps: pressing iron chips, preparing furnace burden, smelting with the medium frequency furnace and pouring, wherein 1 part by mass of furnace burden is mixed with 0-0.02 part by mass of recarburizer for use; the furnace burden comprises the following raw materials by mass percent: 10%-60% of iron chip blocks, 0-50% of waste steel, 20%-30% of scrap returns and the balance of pig iron. In the briquetting process of iron chips, no additive is added and mechanical pressure is adopted to perform the cold moulding on the iron chips in bulk; the pressed iron chip blocks are used to prepare the furnace burden according to a designated ratio and the raw materials are added in the medium frequency furnace according to a special sequence to smelt iron and produce castings, thus the manufacturing cost is low, the waste residue, dust and waste gas discharged in the smelting process are less and the environmental pollution is little; and the utilization rate of iron chips is obviously increased, the productive rate of the briquetting of iron chips is about 90% and the productive rate of the iron chips in bulk is usually 80%-85%.