Mixed powders of Fe + 0.7% C, Fe + 0.7% C + 1.6% Cu, and Fe + 0.7% C + 0.3% MnS were pressed in a mold so that the green-compact densities were 6.3, 6.5, 6.7, and 6.9 g/㎤, respectively. Then, the compacts were sintered at $1125^{circ}C$ for 30 minutes and subsequently steam treated at $600^{circ}C$ for 60 minutes. From the results, it was found that the overall properties of the steam-treated compacts, such as the weight gain of the sintered compacts, the diffusion of oxides into the sintered compacts, the surface hardness, and the formation of surface oxide layer, were primarily influenced by the density of the compacts and the oxides that were formed on the surface of the compacts by the steam treatment.