In the iron–carbon system (i.e. plain-carbon steels and cast irons) it is a common constituent because ferrite can contain at most 0.02wt% of uncombined carbon. Therefore, in carbon steels and cast irons that are slowly cooled, a portion of the carbon is in the form of cementite. Cementite forms directly from the melt in the case of white cast iron. In carbon steel, cementite precipitates from austenite as austenite transforms to ferrite on slow cooling, or from martensite during tempering. An intimate mixture with ferrite, the other product of austenite, forms a lamellar structure called pearlite.
While cementite is thermodynamically unstable, eventually being converted to austenite (low carbon level) and graphite (high carbon level) at higher temperatures, it does not decompose on heating at temperatures below the eutectoid temperature (723 °C) on the metastable iron-carbon phase diagram.
Mechanical properties are as follows: room temperature microhardness 760–1350 HV; bending strength 4.6–8 GPa, Young's modulus 160–180 GPa, indentation fracture toughness 1.5–2.7 MPa√m.