A process is disclosed for using an iron oxide and alumina catalyst with no more than more than about 55 wt % of the alumina in the diaspore phase or in the alpha phase in SHC. Alpha alumina is less effective catalyst component for slurry hydrocracking in terms of TIOR conversion. Drying procedures should avoid more than about 51 wt % of the alumina change to the alpha phase. The SHC catalyst is for converting heavy hydrocarbon feed into lighter hydrocarbon products.