Abstract-The aim of this study was to assess the basic magnetic properties of a mixture composed of a commercial lubricant and soft magnetic iron particles, where the particle content is significantly higher than in conventional magnetic fluids, due to the fact that the particles verge on the sedimentation level. This so called magnetic slurry can, then, be regarded as a highly ductile magnetic conductin material for tentative use in magnetic circuit that can cgange shape under operation. The high particle content results in high saturation field densities that extend the application field towards electric power en ineering. This paper, therefore, focuses on properties life relative permeability, losses, the Q-factor and the efficiency for the power fre uencies 50 and 400 Hz. It shows that the relative permea%ilities are low (below 10). The values of the efficiency and the Q-factor decrease considerably above 0.5 T. That limit$ the application of the studied slurry in electric power engineering. In such applications, the powder properties must be improved