In this paper, the rapid simple shearing flow of a dry cohesionless soft‐ferromagnetic metal powder is studied in an externally applied magnetic field. An annular shear‐cell apparatus was used to test the powder. Dry metal powder is contained in the annular channel. The powder is rapidly sheared by rotating one of the shear transmission surfaces while the other shear transmission surface remains fixed. Various magnetic fields are applied to the metal powder during the shearing motion. At present this field effect on the flow is not well understood. The shear stress and normal stress on the stationary surface are measured as a function of the following parameters: fractional solids content, shear rate, shear‐cell gap thickness, and the magnitude and direction of the magnetic field strength. Both the fractional solids content and the shear‐cell gap thickness are kept at prescribed values during stress measurements. The shear stress and normal stress are observed to increase with the application of a magnetic field. A framework is developed that explains the magnetic field effect in shear flow applications.