Brownells has two products for eliminating the scale during heattreat on the link below, Brownells Non-Scaling Compound is a powder and the ATP Anti Scale Coating is a liquid. I had good luck with the powder but other folks swear by the liquid, I think there limit is around 1600 deg F. They pop...
A spheroidized annealed state ( spheroidal cementite ) would allow the greatest ease of cold working, it is more than a simple anneal and requires special consideration when heattreating steel in that state. This is the state most purchased flat ground or drill rod tool steel is in for ease of...