A powder metal material comprises pre-alloyed iron-based powder including carbon present in an amount of 0.25 to 1.50% by weight of the pre-alloyed iron-based powder. Graphite is admixed in an amount of 0.25 to 1.50% by weight of the powder metal material. The admixed graphite includes particles finer than 200 mesh in an amount greater than 90.0% by weight of the admixed graphite. Molybdenum disulfide is admixed in an amount of 0.1 to 4.0% by weight of the powder metal material, copper is admixed in an amount of 1.0 to 5.0% by weight of the powder metal material, and the material is free of phosphorous. The powder metal material is then compacted and sintered at a temperature of 1030 to 1150° C. At least 50% of the admixed graphite of the starting powder metal material remains as free graphite after sintering.