Seems to be decent steel although I don't like the plastic handle a bit. It just feels slightly to me, as if it could be thin and hollow. (They say it's a lifetime warranty.) Other than that, the design is good and the price is really good. You're not actually going to hit that little chisel, so it should be fine. I bought this to complete a set of much better chisels because they don't sell small ones. It seems to be a good entry-level woodworking tool. After using this tool a little more, I want the pen to have a flat side so it doesn't roll off the table or project. Otherwise this is a VERY good chisel for the price. Sharpens well and handles quite well from the start. It doesn't take much effort to get a nicely polished back and bevel.
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