Hi,
Most steels that we use for knives today have been around for a while. Most tool steels were originally developed for making, well tools. In other words, mankind's need to work other metals faster, better and longer. Their use in knives is mostly a secondary application. Even plain high carbon steels, (the first tool steels), like 1095 were first developed to make better cutting tools for manufacturing.
Some 20th century steels like M2/M4 HSS appeared shortly after the turn of the 20th century. They were developed for better cutter life at higher speeds and feeds during machining processes. They will hold their temper to a red heat and return to as tempered hardness when cooled. Though those two are no longer industry standards. Having been replaced by M42. Though they still find use in the cheap China made HSS drill bits and in HSS hand taps and dies.
D2 steel is from a family of hot-work die steels. Developed between WW1 and WW2. Often used for punches and dies in drop forging. They also get used in roller mills.
Stainless Steels appeared shortly after WW1. Though mostly as non-hardening alloys. I'm not really sure, but I don't think high carbon SS became popular for knives until the late 1950's or early 1960's.
Even the powered metals are primarily developed to speed production of complex shaped cutting tools like end-mills. The sintering process allows a part to be made to near-net shape. That they also provide improved tool performance is a double bonus.
With the rise of the mini-mill foundry and the ability to do small batch making, we are just starting to see "custom" knife steels appear. Like Sandvik's 14C28N. Which is an exclusive for Kershaw for the next year I think. Then it will be released for anybody to use. But if it doesn't find a bigger market, it most probably will be gone.
As for costs, well that mostly depends on how much you buy and to an extent, what shapes you want. As a machinist, I'm often amazed at the high price many knife makers pay for their steel. For example HSS like M2/M4. Go to a machine tools catalog like MSC and look up the price of a 3/4" endmill. That's about a pound of M42 HSS, ( a superior HSS compared to M2/M4). And made in a far more complicated shape and then ground and polished to +/- .0005" size. Compare that price to a knife blade, (a far simpler to make product), of about the same weight. The cost difference lies in the tons per week of HSS that a manufacturer like Niagara Tool will use vs. the Ton(s) per year that say, Benchmade might need. And custom makers get an even worse deal.
dalee