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I use 416 stainless rods in 3/16 diameter, available from most knife supply house. I do not peen them because the method of installing them, if done correctly, makes it very unlikely they will ever move.
Stainless cannot be HTed properly in a coal or propane forge as built by most knife makers. However, 416 does not harden to the extent that a blade quality stainless does so I think you can get the job done well enough with your coal forge. Just heat to a very bright red and let it air cool, no tempering. With a little luck that should be hard enough to take the teeth off a hacksaw blade so you'll need to cut it with a cut off blade of some sort (die grinder, angle grinder, Dremel etc) ...
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