To explore the mechanism for saving energy and reducing consumption in pelletizing process, the pelletizing process is decomposed correlatively into two parts: the material flow process and energy flow process. On this basis, it is studied that the physical and chemical changes and the flow mechanism in ferrite flow and carbon flow respectively, by analyzing the changes and conversion of the ferrite and carbon flow in pelletizing process, variation of material and energy flow has been summarized, using the law to guide the production, minimizing consumption of energy and maximizing resource utilization will be achieved. It provides another path to reduce energy consumption for steel plant.