The continuously operated Mechanically Spouted Bed (MSB) dryer of high evaporative capacity can be advantageously used to produce fine powder from paste-like materials, slurries, suspensions and sludges. Due to the thin layer formed on the surface of the spherical inert particles intensive heat and mass transfer occur and the drying process takes place in the constant rate period. Steady state drying conditions can be achieved when the total operational time of partial processes of inert bed drying does not exceed the cycle time of the inert particles.