A method for partial reduction in a fluid bed of a fine grained iron oxide containing material whereby a fine grain low sulphur content mixture of partially reduced iron oxide containing material and coke is produced; the coke is obtained from carbonaceous material with a relatively high content of sulphur; accordingly, the combination allows the utilization of carbonaceous materials with a relatively high content of sulfur for the reduction of iron oxide and subsequent production of iron or steel without transferring the sulfur into the final product but separating it therefrom during the partial reduction of the iron oxide.