To increase the coercive force of the alloy and to improve the workability thereof by allowing it to have a specified compsn. contg. Cr, Co, and the balance substantial Fe.

This alloy preferably contains 40 to 55% (the boundary is not included) Cr and 10 to 20% (the boundary is included) Co. In this way, magnetic properties of ≥1000 Oe coercive force can be obtd., and its workability is improved as well. For obtaining such characteristics, the alloy is subjected to heat treatment in which it is held at about 1150°C for 30 min, is thereafter cooled in water and is held at about 600°C for 6 hr. Moreover, in the alloy, the precipitation of a σ phase is not recognized after hot working. The effect of heat treatment in a magnetic field is not recognized. Furthermore, by adding this alloy with Ti, Zr, Hf, V, Nb, Ta, Mo, W, Mn, Si, Al, Ni or the like by about 0.1 to 5% as residual effective components, the magnetic characteristics thereof can be improved.