The invention concerns a powder metallurgical composition containing, preferably a coarse, soft magnetic iron or iron-based powder, wherein the particles are surrounded by an insulating inorganic coating and as lubricant at least one non-drying oil or liquid having a crystalline melting point below 25° C., a viscosity (η) at 40° C. above 15 mPas and wherein said viscosity is temperature dependent according to the following formula: 10 log η=k/T+C wherein the slope k is above 800 T is in Kelvin and C is a constant in an amount between 0.05 and 0.4% by weight of the composition.