A process for producing iron carbide in a fluid bed reactor in which the pressure is maintained in excess of the pressure at which the mole fraction of hydrogen in the process gas begins to decrease. The hydrogen concentration may also be increased above the equilibrium concentration for hydrogen at the temperature and pressure in the reactor. Further improvements are gained by preheating a iron ore reactor feed in which the iron oxide is primarily in the form of hematite under a reducing atmosphere, and using at least two fluid bed reactors in series.