Metal powder compaction is a crucial process in powder metallurgy, significantly affecting the final properties of compacts. However, the quantitative characteristics of multi-scale mechanical structures and the microscopic densification behavior, taking into account the influence of friction conditions, remain unclear. This study utilises a two-dimensional multi-particle finite element method to analyse the ferrous powder compaction. The evolution of powder densification, powder deformation and multi-scale mechanical behaviour under different friction coefficient conditions are analyzed quantitatively and qualitatively. Results reveal that powder densification occurs in distinct stages, with lower friction coefficients promoting greater powder densification, as observed from relative density and coordination number. Additionally, as the axial strain increases, plastic strain gradually rises whilst roundness decreases. Higher friction coefficients are associated with higher equivalent plastic strain but lower powder roundness. The Von Mises stress exhibits different stages of increase with the increment of axial strain. Powders with lower friction coefficients exhibit lower levels of Von Mises stress. As axial strain increases, the number, length, strength and direction coefficient of force chains undergo different evolution processes. Force chains exhibit longer length, fewer numbers, lower strength and lower direction coefficients at lower friction coefficients.