Iron powder has several uses; for example production of magnetic alloys and certain types of steels.

Iron powder is formed as a whole from several other iron particles. The particle sizes vary anywhere from 20-200 μm. The iron properties differ depending on the production method and history of a specific iron powder. There are three types of iron powder classifications: reduced iron powder, atomized powder, and electrolytic iron powder. Each type is used in various applications depending on their properties. There is very little difference in the visual appearances of reduced iron powder and atomized iron powder.