The set screw of interest in this thread is obviously not stainless! It is rusted in place. Stainless set screws are _not_ common, they will work harden if touched with a dull cutter. As far as annealing a high carbon set screw it definately can be done! I've used quite a few to make stripped thread repairs. I line them up on the bench vise on wire butts and heat them with a propane torch and let them cool naturally. They will then be capable of machining. No problem. They can be re-hardened after too..........if you want..... Grader blades are a manganese alloy steel, work hardening, but can also be annealed, if treated properly. Why would set screws be made of a manganese alloy? I don't think so.....;>)}