The effects of ferrite-pearlite and ferrite-martensite starting microstructures on ferrite grain sizes and carbide particle sizes after cold rolling and prolonged annealing treatment have been investigated. Ferrite-martensite starting microstructures showed finer grain and particle sizes and improved tensile properties after cold rolling annealing cycle compared to ferrite-pearlite starting microstructures. A 'fibrous' martensite morphology developed by intermediate quenching treatment is more beneficial in that respect compared to the 'blocky' martensite morphology obtained from the step quenching treatment. © 2012 Institute of Materials, Minerals and Mining.