The iron-silicon-aluminum alloys (especially Sendust) have been widely used for the application requiring high saturation flux density, low coercive force and high electric resistivity. For this reason they have been appreciated for magnetic thin film heads. However, they are too hard and brittle to be made into thin film by rolling or to prepare three dimensional complex-shaped products by mechanical work or conventional powder metallurgy process. The reduction in the size and weight of apparatus that can be accomplished by its use should have an important effect on technical developments. Previous study showed that the powder metallurgy process with spray drying method using gas atomized Sendust powders was an excellent process for producing near-net-shape parts with high performance and high precision in dimension after sintering. The high price of gas atomized powders, however, makes us consider to use low price powders. In this report the combined powders of carbonyl iron powder, iron-silicon powder crushed and iron-aluminum powder crushed can promise to reduce the cost and maintain the high performance.