Abstract: Provided is martensitic heat-resistant steel for boiler applications with a unique combination of enhanced creep strength and excellent oxidation resistance upon high temperature exposure in steam containing environments contacts (in wt.-%): C: 0.10 to 0.16%, Si: 0.20 to 0.60%, Mn: 0.30 to 0.80%, P?0.020%, S?0.010%, Al?0.020%, Cr: 10.5 to 12.00%, Mo: 0.10 to 0.60%, V: 0.15 to 0.30%, Ni: 0.10 to 0.40%, B: 0.008 to 0.015%, N:0.002 to 0.020%, Co: 1.50 to 3.00%, W: 1.50 to 2.50%, Nb: 0.02 to 0.07%, Ti: 0.001-0.020%, iron and unavoidable impurities. The steel is normalized for about 10 to about 120 minutes at a temperature of 1050-1170° C. and cooled down in air or water to room temperature, and then tempered for at least one hour at a temperature of 750-820° C. The steel has a martensitic microstructure with average ?-ferrite content of less than 5 vol.-%.