Hi Tuptus,
I found a one page article on your process. Its source was ASM Handbook, Volume 4, Heat Treating, pp. 229-236, "Heat Treating of Powder Metallurgy Steels" (1991) published by ASM Int.
It also said, additional information can be found in a paper, "Mechanical Properties of Steam Blackened P/M Materials" by L. F. Pease III, in Modern Developments in Powder Metallurgy: Proceedings of the International Powder Metallurgy Conference, [published or sponsored by?} Metal Powder Industries Federation (1988). I found the website
which claims "This website is the world's most comprehensive resource for information about Powder Metallurgy (P/M)"
Re steam blackened parts, as you have said, the steam causes magnetite to fill the surface porosity, which improves wear resistance, corrosion resistance and sealing capacity. The article cautions that the treated parts are very brittle (can fracture if dropped on the floor), and it gave a limit (max.) for carbon content of 0.5 wt% to minimize this brittleness.
I would expect that, based on my knowledge of carbon steels where the heterogeneous microstructure (e.g., ferrite + carbide) causes ready--made galvanic corrosion sites and limits the formation of a continuous protective iron oxide surface, that the same situation applies for your parts: Better corrosion resistance at lower C content due to a better magnetite coverage.
I also did an Internet search for 'Steam Treatment of Powder Metal.' Lots of vendors. One mentions that the Fe3O4 layer is about 0.004 mm thick, another refers to a book: Powder Metallurgy Design Solutions, 1999, Metal Powder Industries Federation 105 College Road, East Princeton, NJ USA, 2001.
The following site says "Steam oxidation ... is also used before painting, plating and coatings to increase salt spray test hours, up to 1,000 hrs. Steam Treating is replacing resign impregnation due to the fact that oxide will not bleed out from high temperature and friction in the use of this type of product that is used for these purposes. Other characteristics of Steam Treating oxides are: increased hardness, corrosion resistance, increased density, wear resistance, fitness to galvanic, plus porosity sealing and the control of sizes and oxide thickness for the automotive industry, lawnmowers, furniture, electrical fixtures, toys, combustion-furnace, water heaters, and many other types of burner parts, etc."
I hope this is useful to you. I have learned about a process application that previously I only knew for treating gun barrels.
Ken