Both plastic and elastic properties change dramatically from the beginning to the end of the compaction phase. Previous investigations have shown that powder transfer and high powder flow during initial compaction at low density affects the strength of the final component significantly. Investigated here are shear failure and elastic shear modulus in the low density range for hard metal powder and for pre-alloyed water atomized iron powder. Direct shear test equipment for sand and clay has been modified to measure the shearing properties of powder for an axial loading between 1 kPa and 500 kPa.