The invention relates to a method for producing iron powder by semisteel. The method comprises the following steps of: (S1), manufacturing side products of high-titanium smelting slags into iron-powder particles; (S2) removing water on the surfaces of the iron-powder particles obtained in the step (S1); (S3) carrying out reduction on the iron-powder particles obtained in the step (S2) to obtain iron-powder cakes; and (S4) adopting the procedures of crushing, sieving and combining to treat the iron-powder cakes obtained in the step (S3), and obtaining the iron powder used for reduction and meeting the particle-size requirements. The method has the advantages that the iron powder for reduction is produced by utilizing the semisteel without need of the procedures of carburetting, desulfurizing and alloying and the like, so that not only is the energy consumption reduced greatly, but also the process flow is greatly shortened and the production efficiency is improved.