12L14 is normally called "free machining" or "leaded" steel.
It's quite soft, and I'd offer that it's not what you're looking for.
I've done about 500 8mm axle conversions, most with annealed 4140 CrMo.
Do you have a lathe or access to a lathe? if you simply face the ends of your hangers and straighten the stock HEAT TREATED axles you've got, that's 98 percent of the advantage of an 8mm conversion.
If a standard 5/16" axles were actually 5/16" or .3125, it would be perfect. 8mm is .315", and for a nice bearing fit I'd say .0025" clearance is about right.
The machine titanium axles I make for the
DH guys are typically .313.
As for straightness, the straightness of the stock is immaterial, as the last step is to align the ends of the axle once it's installed.
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