A bonded metallurgical powder composition including: an iron-based powder having a weight average particle size in the range of 20-60 μm, in an amount of at least 80 percent by weight of the composition, graphite powder in an amount between 0.15-1.0 percent by weight of the composition, a binding agent in an amount between 0.05-2.0 percent by weight of the composition, a flow agent in an amount between 0.001-0.2 percent by weight of the composition; wherein the graphite powder is bound to the iron-based powder particles by means of the binding agent, and wherein the powder composition has an apparent density of at least 3.10 g/cm3 and a hall flow rate of at most 30 s/50 g. Also, a method for producing a sintered component with improved strength from the inventive composition, as well as to a heat treated sintered component produced according to said method.