The mass production of synthetic plastics began in the last century and today they have become one of the most abundant man-made materials. The disposal or the beneficiation of end-of-life plastics represent a great challenge for society especially in the case of polyvinyl chloride (PVC). This study is focused on the use of PVC waste as a useful agent for the direct reduction of hematite (Fe2O3) after a thermal treatment at 300 °C for removing the chlorine contained in PVC. Thermal reduction tests were conducted from 600 °C to 1100 °C with (Fe2O3 + PVC + clay) pellet mixtures in which clay was used as plasticizing and binder agent of the pellets. The starting samples and treatment residues were analyzed by scanning electron microscopy through energy dispersive spectroscopy (SEM-EDS) and X-ray diffraction (XRD) to monitor the chemical behavior and reactivity of the pellet constituents during their thermal treatment. The stepwise reduction of hematite up to metallic iron was achieved at temperatures approaching 1000 °C, confirming the capability of using PVC waste for the direct reduction of iron oxides.