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Austenite is the key to the versatility of steel and the controllable nature of its properties. It is the parent phase of pearlite, martensite, bainite, and ferrite. This chapter discusses the importance of austenite, beginning with the influence of austenitic grain size and how to accurately measure it. It then describes the principles of austenite formation and grain growth and examines several time-temperature-austenitizing diagrams representing various alloying and processing conditions. The chapter concludes with a discussion on hot deformation and subsequent recrystallization.

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