Influences of machining on magnetic properties of soft magnetic composites (SMC's) with addition of two kinds of binder, i.e., organic binder and inorganic one, were investigated. Machining does not affect DC magnetic properties of the SMC compacts. This can be ascribed to their particular structure in which the ironpowder particles are highly isolated by the binder. On the other hand, decrease in resistivity and resultant increase in eddy current loss was confirmed in the machined compacts containing inorganic binder. It is supposed that the brittleadditive binder existing between the iron particles is partly broken, and iron-to-iron contact is formed on the machined surface.

Improvement of the strength is one of the most important subjects on soft magnetic composite (SMC) to increase the applica ble items. In this study, lubricants for inner lubricating SMC, which can be produced in lower cost than die wall-lubricatin g SMC, varied to investigate their effect on the strength. The newly developed SMC with self-lubricating resin shows high st rength equivalent to that of SMC obtained by die wall lubrication.