Seasonal changes have been recognized in particle characteristics and forming characteristics of iron powder with insulated coating for a compacted magnetic core because of its high hygroscopicity, due to its phosphate coating and resin binder additives. For this reason, particle characteristics and molding characteristics of the powder with diverse water absorbtivity have been studied. The result shows that the higher the volume of absorbed water, the worse the fluidity becomes, resulting in the reduction in both springback during the molding process and expansion reduction after the heat treatment. The requirement on dimension accuracy for the finished product can be satisfied with an additional drying process on the material powder, which contributes to maintain its water volume constant.