The melt structure of Al-0.99 wt.% Fe alloys in the AC magnetic field have been studied with thermoelectric power by the four-point probe technique and microstructure with the liquid quenching method. The melt temperature is in the range of 913 K-1013 K. The thermoelectric power increases due to the AC magnetic field and decreases after the AC magnetic field stops, then keeps stable. Some characteristic parameters of thermoelectric power in the recovery process are used to represent the variation of melt structure. The α-Al phase refinement in the AC magnetic field is attributed to the persistent variation of melt structure. The persistent variation of thermoelectric power can be used to characterize the variation of the α-Al phase size. The hardness increases and the diffraction peaks of some planes reduce, which can reflect the uniform and disorder melt structure in the AC magnetic field.