Rust is no problem to have on the metal,here where I live everything rusts fast due to humidity and thus all my metal has a surface rust on it anyway.Now if there are any deep pits that is another story.Keep any metal that has a deep pit in it on the outside of the billett or the pit will become a shut as you thin the bar out.You will know that you got a pit welded in the billet after a couple of folds as you will get a blister raise up on the billet when you bring it up to heat,It will flatten down,but won't weld.To fix this either take a grinder like a side grinder and grind into the blister and smooth it out,this works great on random pattern but not if you want a ladder pattern or something like that.The other way is to take a cutoff wheel on the grinder or saw of some kind and cut through the middle of the blister then heat the two pieces and weld from the opposite end of the bar that the blister is at so that way you will weld it pushing the flux out the end.then stack it back together and weld the billett up again and keep going,using scrap metal is really fun but just becarful for the pits..
Now I have a question,Is all banding material 1095....and what steel is in the metal cutting bandsaw blades?
Bruce