Abstract: Iron powder of high compressibility and low bulk density is made by atomizing a stream of molten steel by means of a conical jet of water at a rate in excess of 10 cubic meters water per metric ton of steel, the half cone angle is between 40.degree. and 60.degree., preferably 45.degree.; and air suction is provided in a region upstream from the cone, adjacent to the stream at a pressure of 0.02 to 0.20 bars below ambient, by means of a length adjustable tube extending down from the nozzle chamber. The powder is reduced at 1,000.degree. C. to 1,200.degree. C., and the resulting cake is broken up to obtain a powder having a particle size distribution with a higher content of larger particles than the powder immediately resulting from the atomization.