13Cr-1.5Nb-Fe alloy powder was fabricated by water atomization method, and ring-shape specimen of this composition was fabricated by oil press, and then sintered in the vacuum furnace. Powder shape, size distribution, composition (C, N, O, S) analysis and saturation magnetization of as-prepared 13Cr-1.5Nb-Fe alloy powder were investigated. Ac permeability and power loss was measured after forming and sintering process. Saturation magnetization and contents of oxygen of the alloy powder is160 emu/g and about 6000 ppm, respectively. 50 % volume fraction indicate particle size of 70$mu$m. The ac permeability of sintered specimen increases with increasing sintering temperature and forming pressure. The power loss is 107 W/cc at sintering temperature of 1200 $^{circ}C$, 12 ton/$ extrm{cm}^2$ forming pressure, and 20 KHz. It is the lowest among the prepared specimen.