A ferromagnetic powder composition is provided comprising soft magnetic iron-based core particles having an apparent density of 3.2-3.7 g/ml, and wherein the surface of the core particles is provided with a phosphorus-based inorganic insulating layer and at least one metal-organic layer, located outside the first phosphorus-based inorganic insulating layer. A process further is provided for producing the composition and a method for the manufacturing of soft magnetic composite components prepared from the composition, as well as the obtained component.