Numerical simulations of the powder extrusion need an appropriate pressure-dependent constitutive model for densification modeling of the magnesium powders. The present research investigated the effect of representative powder yield function of the critical relative density model. We could obtain reasonable physical properties of pure magnesium powders using cold isostatic pressing. The proposed densification model was implemented into the finite element code. The finite element analysis was applied to simulation of powder extrusion of pure magnesium powder in order to investigate the densification and processing load at room temperature.