Abstract: A wear resisting steel of the Hadfield-type and method for its production are provided. This iron base alloy contains in its basic composition following alloying carbon, manganese, silicon and optionally chromium, and/or molybdenum, and/or tungsten. The matrix of the steel is formed by the ductile austenite. Carbides appear on the grain boundaries in the form of roundish, hard, separate precipitates. In the grain boundary zone and inside the grains are hard, needle-shaped nitride and carbonitrides to improve the wear resistance especially against abrasive wear. In accordance with the method the steel is solution heat treated at a temperature range below 1100.degree. C. (e.g., 950.degree. to below 1100.degree. C.) so that carbide, nitride and carbonitride precipitates formed in the microstructure following casting are partially but not completely dissolved.