The invention discloses an iron oxide pigment and its production method. The method includes steps of 1) preparing reaction fluid, wherein the reaction fluid contains complexing agent and inert gas and its pH value is 7.0-13.0; adding scrap iron or ferrous compound or ferric ion compound therein; after dissolving, separating impurities to obtain iron solution; 2), charging oxygen gas in the iron solution so that the ferric ion in the iron solution is oxidized to be iron oxide yellow, iron oxide red or iron oxide black sediment; separating to obtain iron oxide pigment and reaction mother liquor, wherein the complexing agent is one or two of methylamine, ethylamine, ethylenediamine, propylene amide, ethanolamine, imidazole, diethylenetriamine, triethylenetetramine, ethylenediamine tetraacetic acid, ethylene diamine diacetate, nitrilotriacetic acid, glutamic acid, valine, histidine, proline, aspartic acid, alanine, serine, phenylalanine, arginine, threonine, glycine, lysine, asparaginate and glutamine.