The present invention relates to improved metallurgical powder compositions, methods for the preparation of those compositions, and methods for using those compositions to make compacted parts. The metallurgical powder compositions comprise a base metal powder, such as an iron-based or nickel-based powder, to which is added or blended an organometallic lubricant. Organometallic lubricants are monomers or polymers having a metal-carbon bond or metalloid-carbon bond on the polymer backbone, which degrade into physical property enhancing compounds upon heating. The metallurgical powder compositions can also comprise small amounts of other commonly used alloying powders, binding agents, and lubricants.