The recent development of advanced rheometers for dry powders characterization has opened opportunities to accurately determine a variety of powder properties to be related to function in specific powder processes. In this study, steel powders aimed for additive manufacturing (AM) were exposed to various types of measurements such as basic flow ability, compressibility, aeration response and shear using a powder rheometer. The results showed that different batches of the same quality of stainless steel (316L) powders, with similar particle size distribution, vary significantly regarding the dry flow properties with critical impact on the function in AM. Differences in specific surface areas indicated variation in particle shape/roughness that could be correlated to rheometer data. Low compressibility, high aeration response and low shear resistance related to low degree of powder cohesivity was identified as favorable characteristics. Hence, powder rheology provides a powerful tool for powder quality control and to confirm processing performance.