Aiming at reducing energy consumption of pelletizing system,thermal balance and exergic balance of chain grate-rotary kiln-ring cooler oxidation pelletizing system were calculated and ana-lyzed to further understand the change and loss of energic flow and exergic flow during pelletizing process.The analysis shows that the major items of thermal income and exergic income of the system are fuel chemical energy and pellet oxidation.Heat consumption is mainly used to discharge waste heat and external surface heat dissipation.Exergic loss of heat transfer irreversible,exergic loss of combus-tion and exergic loss of system body heat are major parts of exergic expenditure.In view of the incom-plete utilization of waste heat resources in the system,some suggestions are put forward,such as recy-cling of waste heat from ring cooling exhaust gas and surface heat recovery of rotary kiln.After calcula-tion and optimization,for waste gas waste heat cycle,thermal efficiency increased to 85.29%through the utilization of waste heat in the second and third stages of ring cooling,while exergic efficiency in-creased to 33.40%.As for collector waste heat recovery,thermal efficiency increased to 86.53%,while system exergic efficiency increased to 33.93%.The research results provide some suggestions for pellet production,and find a suitable waste heat utilization scheme for the system based on the actual situation,so as to provide reference for energy saving optimization.