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Sintered steel for structural PM component is often used after heat treatment like through hardening or case carburizing in order to improve mechanical strength and wear resistance.Many of structural PM components need to be machined either for making undercut shape or horizontal hole or for fulfilling tight dimensional tolerances.From these two needs,a lean alloy having good as-sintered machinability and good mechanical properties after heat treatment is expected.Due to easiness of heat treatment using ordinary gas heat treatment furnaces,Mo,Ni and Cu were selected as alloying elements.Various Lean Mo containing alloys were prepared and evaluated the mechanical properties and microstructures.