The ultrafine iron oxide powders were successfully synthesized using the plasma dynamic synthesis method, based on the use of a coaxial magnetoplasma accelerator with the iron electrode system. The synthesis was implemented in the high-speed iron-containing plasma jet, flowing into the space of the sealed chamber, filled with the gaseous mixture of oxygen and argon at different ratios. The XRD investigations showed that the synthesized products were heterophase and consisted of three main phases such as magnetite Fe3O4, hematite α-Fe2O3 and ε-Fe2O3. The SEM data confirmed the presence of three particle types: the hollow spheroids with sizes about hundreds of micrometers (magnetite), the particles with sizes up to 100μm from the porous material of sintered submicron particles (hematite), and nanoscale particles (ε-phase). We found that at the higher oxygen concentration the content of ε-Fe2O3 is increased up to ~50% at the same time with decreasing the Fe3O4 phase. The magnetic properties of the products are mainly determined by magnetite characteristics and are significantly reduced with decreasing its content in the powder. In order to investigate the synthesized ε-Fe2O3 on the ability to absorb the electromagnetic radiation in the millimeter wavelength range, we separated the product with the higher ε-phase concentration. The fraction mainly, consisting of ε-Fe2O3, showed the occurrence of the natural resonance at frequencies of 8.3GHz and 130GHz.