A method of producing

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PROBLEM TO BE SOLVED : To improve water resistance or oxidation resistance of an alloy powdery by allowing it to have a specified compsn. composed of rare earth elements including Y, one or more kinds of elements among Fe, Co and Ni and N and S. SOLUTION : This alloy powder is expressed by the general formula of Rx T100-x-y-z Ny Sz , where r denotes at least one kind selected from the group of rare earth elements including Y, T denotes one or more kinds among Fe, Co and Ni, and, by atom, 3<=x<=30%, 5<=y<=15% and 0.001<=z<=15% are satisfied. As for the compsn. of the R componental elements, in the case of less than the lower limit, soft magnetic phases largely contg. transition metal components such as Fe are separated to redicue its coercive force, in the case it execces the upper limit, rare earth elements are precipitated to made the alloy powder unstable in the air and reduce its redisual magnetization, and a practical permanent magnet can not be obtd. in both cases. As for N, in the case of less than the lower limit, coercive force is not revealed therein, and in the case it exceeds the upper limit, remarkable deterioration in the coercive force and residual magnetization is caused. As for S, in the case of less than the lower limit, oxidation resistance can not be revealed therein, and in the case it exceeds the upper limit, remarkable deterioration in the coercive force and residual magnetization is caused.