Water atomization is widely used for producing FeSiCr alloy powder, in which melt delivery conditions strongly influence jet breakup and powder refinement. In this study, a coupled volume of fluid-discrete phase model (VOF-DPM) was established to investigate the effect of delivery tube diameter (3, 4, 5, and 6 mm) on flow characteristics, interfacial instability, and droplet evolution at a constant water pressure of 120 MPa, and the simulation results were validated by industrial trials. As the tube diameter increased from 3 to 6 mm, the melt mass flow rate rose from 0.100 to 0.368 kg/s, the primary breakup position shifted downstream from 94.6 to 236.5 mm, and the peak negative pressure along the centerline decreased from -41.12 to -31.65 kPa. The simulated average particle size increased from 9.176 to 22.791 μm, while the experimentally measured mean particle size increased from 9.0 to 19.6 μm and the fine-powder yield decreased from 43.77% to 22.28%. Although the 3 mm tube produced the finest powder, it showed a higher tendency for clogging and unstable melt delivery. Overall, the 4 mm delivery tube provided the best balance between powder refinement, size uniformity, and production stability.