The most prominent solutions are the establishment of a circular economy by recirculating the iron-rich residues from steelworks and the adoption of hydrogen as a clean reducing agent to mitigate fossil CO2 emission. One such residue is mill scale, which is generated during steelmaking, casting, and rolling processes. However, the fine particles and easy reoxidation of the mill scale make it difficult to be used directly in iron and steel production without proper compaction. This paper aims to demonstrate the feasibility of mill scale briquetting using organic binders to meet the requirements of hydrogen-based direct reduction. The study will investigate the influence of binder type, binder dosage, moisture content, and compaction pressure on the briquetting process and the briquettes quality. Moreover, the reducibility of optimized briquettes will be examined by hydrogen at 900 °C using a thermogravimetric analyzer coupled with a quadrupole mass spectroscopy (TGA-QMS). The optimal combination for achieving the best mechanical strength and reducibility was a briquette produced with 1% Alcotac® CB6, 1% KemPel, and 2.5% moisture content, compressed at a pressure of 125 kN.