PURPOSE: To manufacture a compressed powder core having superior magnetic characteristics by carrying out both primary and secondary calcination stages in nonoxidizing atmospheres when Fe-Si-Al alloy powder is subjected to primary calcination, press molding and secondary calcination to manufacture a compressed powder core.

CONSTITUTION: Magnetic Fe-Si-Al alloy powder consisting of 4W13% Si, 4W7% Al and the balance Fe is prepd. The powder is primarily calcined at 700°C in a reducing atmosphere such as hydrogen for 1hr. To the calcined powder is added 1.5% sodium silicate as a binder, and the powder is press-molded. The molded body is secondarily calcined at 800°C in a similar reducing atmosphere such as hydrogen to manufacture a compressed powder core. This compressed powder core having superior magnetic characteristics comparable to those of a compressed powder core of molybdenum-"Permalloy" can be manufactured at a low cost.