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Quenching experiments are carried out on α‐Fe and Cr 25%‐type steel alloy by using magnetic susceptibility, magnetic coercivity, and magnetic anisotropy. A value of (0.75 ± 0.05) eV is determined for the carbon–vacancy binding energy. Two recovery stages are observed after quenching in the temperature range 75 to 500°C. The first stage is inferred to the decoration of carbon–vacancy pairs with carbon atoms with the possible dissociation of polycarbon–vacancy complexes by spitting‐off of carbon atoms at higher annealing temperatures. The second annealing stage is attributed to the formation of precipitated cementite particles by nucleation of carbon atoms released from polycarbon–vacancy complexes and the subsequent dissociation of carbon–vacancy pairs at higher annealing temperatures.

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