Cement-bonded agglomerates of by-products generated in iron and steel plants are commonly used as burden material for blast furnaces. It has been observed that under certain conditions the briquettes containing pellet-fines show a tendency to swell catastrophically when reduced at 900-1 000°C using carbon monoxide as reducing agent. This swelling is dependent upon a number of factors like: reducing temperature, reducing conditions and composition of reducing gas. The optical micrographs do not show the formation of iron whiskers as the cause of swelling; instead, the reduced iron particles seem to move apart, thereby causing swelling. This paper describes the effect of various parameters that cause the abnormal swelling of briquettes.