Here in Canada we have a great source of stainless steel tool steel in the form of discarded skate blades. Go to your local Canadian Tire store or where they repair ice skates and ask for some worn out blades. These are usually discarded or recycled, so they will likely give you some free.
Cut with abrasive wheel cutters to the shape you want, make a handle and there you are. This one is a great parting tool since the blade is slightly tapered and thus is wider at the cutting surface/edge. The metal band is a piece of bicycle tubing, heated before slipping it on the Elm wood handle.