In this paper, the effect of processes occurring during the sintering of four powder metallurgy steel grades on the resulting properties were investigated. This included three grades prepared from plain iron powder with admixed graphite, one grade alloyed also with elemental copper and another with Fe-Mn-Si masteralloy. One further grade was prepared from Cr-Mo pre-alloyed powder with admixed graphite. The effect of the sintering processes was examined in the temperature range of 700–1300 °C in an inert atmosphere (Ar). In order to study oxygen removal, DTA/TG runs linked with mass spectrometry (MS) as well as C/O elemental analysis were performed. Charpy impact tests and fractography studies were performed to study the effect of the temperature on the formation and growth of sintering contacts. Characterization also included metallography, dimensional change, sintered density, and hardness measurements to describe the dissolution of carbon and alloying elements during the process. Physical properties that were measured were electrical conductivity and coercive force. The results showed that, in all steels, the reduction of oxides that occur during the heating stage plays a key role in the formation and growth of the sintering contacts as well as in the completion of alloying processes. In the chromium alloy steel, the presence of the stable chromium oxides delays these processes up to higher temperatures, while in the other steels that are based on plain iron powder, these processes take place earlier in the heating stage, at lower temperatures. Compared to the standard Fe-C and Fe-Cu-C grades, the Cr-Mo steel requires more sophisticated sintering to ensure oxygen removal, but on the other hand it offers the best properties. The masteralloy variant, finally, can be regarded as a highly attractive compromise between manufacturing requirements, alloy element content, and product properties.