A method of producing steel by charging a furnace with scrap metal and agglomerated oxy-carbon material into a workspace of a furnace, to reduce specific electricity consumption when melting. Increasing the iron output quantity by inputting electric energy, fuel, a carburizer, a flux and gaseous oxygen, using electric arc melting with decarburization of a metal bath, and releasing metal and slag from the furnace. Prior to melting, a portion of the material is loaded with a first portion of the metal charge into the central zone of the furnace, and the remaining material into the melted charge during melting 0.5-10 kg/min per 1 megavolt-ampere of electric arc transformer power. The oxy-carbon material size is between 5 and 80 millimeters.