This invention is of a process and an intermediate alloy for making an oriented-low-alloy iron (primarily recrystallized) which obtains maximum (110) [001] texture and improved magnetic properties by controlling the sulfur, carbon, manganese, and oxygen contents in the intermediate alloy to certain critical narrow ranges. With alloys containing the 0.01-0.15 percent manganese normally found in commercially available iron, the optimum intermediate (prior to final anneal) sulfur level has been found to be 0.004-0.008 percent. This sulfur level is appropriate for such manganese contents for a wide variety of silicon and chromium content. Similarly an intermediate carbon level of between 0.002 and 0.020% has been shown to give the maximum texture and best properties. The oxygen level must be 0.005 percent or lower and should be held as low as practicable. With these levels of sulfur, carbon, manganese, and oxygen, the alloy can be processed by hot rolling at 900.degree.-1200.degree. C. (usually between 1000.degree.-1100.degree. C.), followed by either two or three cold rolling stages with the final cold rolling providing a 50-75 percent reduction, and with annealing at between 750.degree. C. and the A.sub.Cl temperature of the material between cold rollings. The alloy can also contain 0-3% cobalt and up to total of 2% chromium and silicon.