We reported a P/M soft magnetic material with core loss value of , which is lower than that of 0.35mm-thick laminated material, by using high purity gas-atomized iron powder. Lack of mechanical strength and high cost of powder production are significant issues for industrial use. In order to achieve both low core loss and high strength by using inexpencive powder, the improvement of powder shape and surface morphology and binder strength was conducted. As the result, the material based on water-atomized powder with 80 MPa of TRS and 108 W/kg of core loss (W10/1k) was achieved.