FIELD: powder metallurgy. SUBSTANCE: method involves preparing powder mixture containing components of steel and bismuth powder added in an amount of 0.1-1.8% by weight; performing static cold pressing of powder mixture in closed mold to produce briquette with residual porosity of 20-30%; heating briquette in shielding atmosphere to temperature of 1.000-1.100 C; holding briquette at such temperature for 6-20 min; providing hot pressing by upsetting in closed mold to produce pore-free ready material, with value of specific power consumed for compression process being equal to 200-220 K/J/cub m. EFFECT: increased efficiency, simplified method, improved physical and mechanical properties of steel and high cutting processibility. 4 tbl
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