Abstract: An alloy having two constituents: a crystal structure of orderly solid iron-based solution; a non-metallic phase at least partially soluble in iron including particles which are uniformly dispersed in the volume of the first phase and are of suitable size. In a preferred embodiment, the alloy contains iron with dissolved and bonded carbon as the first phase, which forms the crystal structure, and material partially soluble in iron, for example structurally free molecular carbon, is taken as the second non-metallic phase. The alloy preferably contains the components at the following ratios, % by mass: carbon in a dissolved and in a bonded state: 0.01-1.00; free carbon: 0.01-2.24; iron: balance. The ratio of free carbon to that of carbon in a dissolved and in a bonded state ranges from 0.01 to 20. The alloy Is preferably produced by melting out low carbon semi-product, overheating the semi-product above a liquidus temperature, for example by 20-70° C.