Free-cutting tool steel

A free-cutting tool steel containing Fe as a major component and C in an amount of 0.001 to 0.6 wt %;

• and
• further containing Ni in an amount of 6 wt % or less, Cu in an amount of 5 wt % or less, and Al in an amount of 3 wt % or less;
• wherein such tool steel further contains:
• Ti and/or Zr so that X (wt %)=WTi+0.52WZr amounts to 0.03 to 3.5 wt %, where WTi represents Ti content (wt %) and WZr represents Zr content (wt %);
• at least any one of S, Se and Te so that Y (wt %)=WS+0.4WSe+0.25WTe amounts to 0.01 to 1 wt %, where WS represents S content (wt %), WSe represents Se content (wt %) and WTe represents Te content (wt %);
• and
• having dispersed in a texture thereof a machinability improving compound phase;
• said machinability improving compound phase comprising a metallic element component having Ti and/or Zr as major components, and a binding component for such metallic element component essentially containing C and also containing any one of S, Se and Te.