The phosphorus and potassium contents of the char obtained from thermal conversion of forest residues can limit its utilization as an alternative fuel and reducing agent to substitute coal/coke in the steelmaking industry. In this study, ash transformation and release of K and P during single-pellet thermal conversion of different types of forest residues (i.e., bark, twigs, and bark+twigs) were investigated with the aid of a vertical tube furnace (Macro-TGA) at different temperatures (i.e., 600, 800, and 950 °C) and within and after different fuel conversion stages, i.e., devolatilization and char gasification. The residual char before and after full devolatilization, and ash after char gasification were characterized by SEM-EDS, XRD, and ICP-OES with the support of thermochemical equilibrium calculations. The concentrations of K (7970–19500 mg/kg) and P (1440–4925 mg/kg) in the char produced after devolatilization were more than four times higher than in coke and pulverized coal frequently used in metallurgical processes. A low amount of P and K (≤15%) were released from all fuels. K and P were evenly distributed within the char residues, and no crystalline compounds containing K and P were found. In ash residues of bark, K was found in K2Ca2(CO3)3, and K2Ca(CO3)2. K in ash residues from twigs and bark+twigs was mainly found in the amorphous part of ash, most likely in the form of K-Ca rich silicates. Apatite was found as the main P crystalline compound in all ashes at all temperatures. Estimations show that a release of more than 80% is needed for the studied forest residual assortments to reach K and P concentrations typical of blast furnace coals and cokes.