IRON BASED POWDER

A diffusion-bonded powder having an iron powder having 1-5%, preferably 1.5-4% and most preferably 1.5-3.5% by weight of copper particles diffusion bonded to the surfaces of the iron powder particles. The diffusion bonded powder is suitable for producing components having high sintered density and minimum variation in copper content. The iron powder may be produced by providing an atomized iron powder with an oxygen content of 0.3-1.2% by weight and with a carbon content of 0.1-0.5% by weight, and subjecting the atomized iron powder and a copper containing powder to a reduction annealing process in a reducing atmosphere to obtain the iron based powder.