A novel method of the hot consolidation metal powders with shear deformation is proposed. The powders were encapsulated into tight containers and compacted after short-term heating in a furnace preheated to 900 °C. The method prevents powder oxidation, peripheral spalling and ensures the removal of the oxide films from the powder surfaces. Commercial titanium powders of different dispersivities and impurity concentrations were hot-compacted. The microstructure, hardness and bending strength of the compacts were investigated. The compacts from fine PTOM-1 powder, containing 0.32% of hydrogen, reveal the greatest values of the hardness and bending strength. Additional annealing results in 60% increase in the bending strength.