Easy-to-cut water atomized steel powder and production method thereof

The invention provides free-cutting water atomized steel powder and a production method thereof. The free-cutting water atomized steel powder comprises the following specific chemical compositions: more than 0.30 to 0.40 percent of S, and 0.10 to 0.30 percent of Mn. The method for producing the free-cutting water atomized steel powder comprises the following steps: a process of smelting in an electric arc furnace, a process of refining in a refining furnace, a process of atomizing by water and a process of secondary reducing, wherein in the process of the refining, the content of S of molten steel is improved and stabilized over 0.30 percent by the mode of adding high sulfurous iron alloy in the molten steel, thereby ensuring the content of S in steel powder is controlled at more than 0.30 percent but not exceeds the range of 0.40 percent. Free-cutting elements added in the process of the refining ensures evenness and stability of compositions of the molten steel, particularly an operation mode of adding Mn-Fe alloy first and then adding S-Fe alloy is an important prerequisite of producing steel powder with excellent cutting performance.