To make a material better than steel, just make its various _YIELD and _FRACTURE values higher than steel's values.
I'll do that now, and check the arena results.
Edit: still just deflecting off of steel
Current stats:
[INORGANIC:EBONSTEEL]
[USE_MATERIAL_TEMPLATE:METAL_TEMPLATE]
[STATE_NAME_ADJ:ALL_SOLID:ebonsteel]
[STATE_NAME_ADJ:LIQUID:molten ebonsteel]
[STATE_NAME_ADJ:GAS:boiling ebonsteel]
[DISPLAY_COLOR:0:0:0]
[BUILD_COLOR:0:0:0]
[MATERIAL_VALUE:100]
[SPEC_HEAT:500]
[MELTING_POINT:12718]
[BOILING_POINT:14968]
[ITEMS_WEAPON][ITEMS_WEAPON_RANGED][ITEMS_AMMO][ITEMS_DIGGER][ITEMS_ARMOR][ITEMS_ANVIL]
[SOLID_DENSITY:3000]
[LIQUID_DENSITY:4980]
[MOLAR_MASS:55845]
[IMPACT_YIELD:3805000]
[IMPACT_FRACTURE:3720000]
[IMPACT_STRAIN_AT_YIELD:200]
[COMPRESSIVE_YIELD:4505000]
[COMPRESSIVE_FRACTURE:4520000]
[COMPRESSIVE_STRAIN_AT_YIELD:240] 160
[TENSILE_YIELD:730000]
[TENSILE_FRACTURE:820000]
[TENSILE_STRAIN_AT_YIELD:85] 200
[TORSION_YIELD:630000]
[TORSION_FRACTURE:720000]
[TORSION_STRAIN_AT_YIELD:215]
[SHEAR_YIELD:430000]
[SHEAR_FRACTURE:720000]
[SHEAR_STRAIN_AT_YIELD:115] no data, used 200
[BENDING_YIELD:630000]
[BENDING_FRACTURE:920000]
[BENDING_STRAIN_AT_YIELD:215]
[MAX_EDGE:65000]
[ITEMS_HARD]
[ITEMS_METAL]
[ITEMS_BARRED]
[ITEMS_SCALED]
[STATE_COLOR:ALL_SOLID:BLACK]
Extra Edit: I accidentally left the game running. There are teeth
EVERYWHERE.