The alloy powder capable of producing compression stress in the fused-on layer consists of Cr 6.0-12.0 wt%, Ni 5.0-11.0 wt%, Mn 0.5-1.8 wt%, Mo 0.1-0.9 wt%, Nb 0.1- 0.9 wt%, Ti 0.1-0.9 wt%, Si 0.1-0.9 wt%, except Fe. It has grain size of 50-200 microns, solid phase change temperature after melting and solidifying of 100-300 deg.c, and structure comprising martensite in 50-90 % and austenite in 10-50 %. The present invention is used in raising the fatigue resistance, stress corrosion resistance, safety and service life of iron and steel material, mechanical structure and equipment. The method and material of the present invention may be used in producing composite material product with compression stress in the surface.