Metallurgical powder compositions of the present invention include an iron based powder combined with a master alloy powder, as a mechanical property enhancing powder. The addition of master alloy powders has been found to enhance the mechanical properties of the final, sintered, compacted parts made from metallurgical powder compositions, especially at low sintering temperatures. Metallurgical powder compositions include at least about 80 weight percent of an iron-based metallurgical powder and from about 0.10 to about 20 weight percent of a master alloy powder. Master alloy powders include iron and from about 1.0 to about 40 weight percent chromium, and from about 1.0 to about 35 weight percent silicon, based on the weight of the master alloy powder.