Oxide dispersion strengthened steel was manufactured utilizing gas atomization processing from alloyed Cr-steel powder. Investigated material represents results on utilization of the processing root, which does not require mechanical alloying step, as high oxygen affinity elements are used. The surface oxidation of the powder particles and HIP consolidation of this precursor powder were investigated. The effect of hot working to the microstructure and mechanical properties were studied. High degree of hot moulding resulted in finer grain size than as-HIPed steel, without visible prior grain boundaries and with a uniform yttrium oxide dispersoids distribution. Results on punch tests are also presented.