Steel-bonded cemented carbide GT35 was fabricated from natural ilmenite by in-situ carbothermic reduction and vacuum pressureless sintering. The effects of C content on the mechanical properties and microstructures of GT35 composites were investigated. As an excellent reducer, carbon provides an impetus for a series of reductive process. C content determines the melting point of the steel matrix, and directly affects the mechanism of dissolving and segregating of TiC particles, forming a netlike microstructure. Besides, the liquid steel whose viscosplasticity is determined by C content was coated on the surface of the composite and refrained the release of CO. The results showed that the good mechanical properties of steel-bonded cemented carbide GT35 composite were obtained with 0.9wt.% C at the same sintering conditions and the density reached 6.12g/cm3, the average bending strength was over 1229MPa after heat treatment, the mean hardness HRC was 69.4. It also showed that in-situ reduction of natural limonite was a feasible way to fabricate good performance GT35 composite with a relatively low cost.