Abstract: A process for manufacturing fine iron or steel powders includes the steps of providing an iron based, fragmented raw material, finely divided when applicable, providing a brittle material by transforming raw material to nitride by means of ammonia gas, milling the nitridic material to particle sizes desired, when applicable, and denitriding to a fine iron or steel powder. Also disclosed is a plant for manufacturing fine iron or steel powders, fine iron or steel powders and use of powders manufactured thereby.