I would cut a small piece and see if it will harden,If so just flatten it out and make a knife,If not,It is still usable for a blade.All you will have to do is cut a length of the barrel off then split it into two halves,Then heat and flatten them.Now slide a 1/8 inch thick piece of high carbon known steel like 1095 or O1 or something like that inbetween the two layers and weld this together making a San-Mai blade.You might want to use thinner stock of the high carbon bepending upon how close to shape you want to forge it or how much of the carbon layer you want to show in the bevels 1/6 inch will work also...
Now you can grind and heat treat it and make a knife from it and use any scrap pieces for bolsters or guards and buttcaps..
Good luck,show us some pictures when you are finished..
Bruce