John – might you not be in danger of getting in a bit technical.
Certainly if you are planning to use these collets on an industrial/production basis, then you would be well advised to make them out of a good hardenable steel. Take your pick – I don’t use the old EN numbers. And if you want to do it right, you should machine, harden and then finish grind.
But if genuinely you are a model engineer, and you want, as you indicated, collets for occasional use in larger sizes, – particularly as plain drawbar collets which don’t have to accommodate much compression (unlike ER collets) – then I am surprised that you would consider anything other than dear old free cutting mild – 220M07.
I have various fittings and holders, some for a GHT VDH, which I use pretty regularly which are still absolutely sound after nearly 30 years. All from free cutting mild – they remain true, to size, release well and don’t mark the job.
I accept – wouldn’t stand up to production wear and tear, but most of us model engineers don’t even have machinery that would stand such loadings?
Another case of the best being the enemy of the good?