The short process of electric furnace steelmaking with direct reduction iron (DRI) as raw material is an important process for smelting high-quality and special steels. In order to prepare high-quality DRI, the pellets with basicity of natural basicity and 0.4 were prepared from magnetite concentrate (MR=0.09, MR=0.4) and hematite concentrate (HR=0.02, HR=0.4). Based on the HYL method, the gas-based direct reduction experiments were conducted under the condition of rich hydrogen (H2/CO = 2.6). The reduction index (RI), reduction swelling (RSI), cold compressive strength (CCS), and phase changes of the pellets were systematically studied. The results show that the RI of four kinds of pellets is greater than four in the temperature range of 800~950°C. For the magnetite pellets, at a fixed reduction temperature, the RSI increases and then gradually decreases, reaching a peak between 50 per cent and 80 per cent. Moreover, the RSI enhances with the increase of the reduction temperature. In general, the RI, RSI, and reduced CCS of the MR=0.09 pellets are better than those of the MR=0.4 pellets. For the hematite pellets, the maximum RSI decreases from 23 per cent to 17 per cent during hydrogen-rich reduction, while the compressive strength increases from 500 to 1070 Nꞏpellet-1. The main reason is that the glass phase generated by the increase of basicity adheres to the surface of hematite grains, hindering the contact between reducing gas and particles. As a result, the apparent activation energy is reduced, which is not conducive to the reduction process. In addition, the glassy phase attached to the hematite reduces the migration rate of Fe2+/Fe3+, resulting in a difference in the reduction expansion rate of hematite in the inner and outer layers of the pellet. Thus, concentric cracks are formed inside the pellets, the RSI increases and reduced CCS decreases.