Abstract: Mill scale, iron ore, or taconite is utilized in a powder metallurgy process to form steel articles having approximately the same density as that of conventional rolled steel. Particulate iron is mixed with manganese, carbon, additional alloying ingredients, and a binder to form a particulate admixture. The particulate admixture is then compressed, preferably under extreme pressure until the density of the compressed particulate admixture is from about 0.2408 lbs/in.sup.3 (6.67 g/cm.sup.3) to about 0.2833 lbs/in.sup.3 (7.83 g/cm.sup.3), which corresponds to a density of from about 85% to about 100% of the density of conventional rolled steel. The resultant coherent mass is subjected to sintering and below fusion heating to form an alloyed article which can be swaged, rolled, drawn, or worked at elevated temperature to decrease the grain size of the alloyed article. The resultant end-product will preferably have a density of from about 0.2408 lbs/in.sup.3 (6.67 g/cm.sup.3) to about 0.2833 lbs/in.sup.3 (7.