To obtain a high magnetic characteristic, by mixing a soft-magnetic alloy powder with a binder, compacting it, hardening the binder, crushing the obtd. compact, and re-molding the obtd. alloy powder covered with the binder.

The dust core manufacturing method is such that, at molding, a soft-magnetic alloy powder is molded with the major axes of the alloy powder arranged in a fixed direction by 'the deposition effect of fallen leaves', a binder is hardened to form a molding, the obtd. molding is crushed into specified grain size to obtain an alloy powder covered with the binder, and the obtd. powder is charged in a die for obtaining desired shaped dust core to re-mold it in a magnetic field for raising the permeability of the core, thereby orienting the alloy powder in a main magnetic path direction. The soft-magnetic alloy powder uses an alloy powder mainly contg. an Fe-Si-Al having an aspect ratio of 5 or more and minor axis length of 50 μm or less.