In the process of producing metal alloy parts by the reduction of powder metal oxide compacts, it has been discovered that single phase alloy parts may be produced by an agglomerated mixture of metal oxides without a separate annealing step. The metal oxide mixture is formed into agglomerates by spray drying a solution of metal salts which are subsequently decomposed, or other techniques, compacted to the desired shape, and then reduced in a hydrogen atmosphere at high temperature. In the case of alloys that would otherwise segregate, a quenching step follows the reduction of the metal oxide shape. As only oxides are involved prior to reduction, problems with surface oxidation are avoided. A sintering step in air can be used to give the oxide compact structural integrity before reduction.