Abstract: The Fe₂O₃ recovered from pickling liquor of steel sheet is a major source of magnetic ferrite. In present work, the preparation of Fe₂O₃ recovered from pickling liquor followed a process of neutrali-zation-oxygenation-sedimentation -filtration, in which the addition of iron powder to the system neutralized the dissociative acid. And the sol was created by passing it through air, furthermore adsorbed the impurities such as colloidal silicic acid and other complex in the system. The high purified Fe₂O₃ was produced after co-sedimentation and filtration of the mixture, by which as kind of magnetic ferrite with high inductivity was obtained. They meets the standards of SJ/T10410-1993(Y32).