The T23 steel, whose composition was Fe-2.3%Cr-1.6%W, was arc-melted, and oxidized between $600^{circ}C$ and $900^{circ}C$ in air for up to 7 months. The amount of precipitates in the arc-melted microstructure was as large as 11.4 vol.%. The precipitates increased the oxidation rate of the arc-melted T23 steel. Owing to the low amount of Cr in the T23 steel, breakaway oxidation occurred after a few hours during oxidation above $700^{circ}C$ in both arc-melted and as-received T23 steels. The scales that formed on arc-melted and as-received T23 steels were similar to each other. They consisted primarily of the outer $Fe_2O_3$ layer and the inner ($Fe_2O_3$, $FeCr_2O_4$)-mixed layer. The precipitates increased the microhardness and the oxidation rates.