Hi Ksor,
I would have thought using steel might not be your best alternative, you see it all depends on what type of material your spindle is made of.
The part was made of cast iron for its bearing properties, surely a similar type of material would be best, if you don't want to use Cast Iron, why not try some Aluminium Bronze, it is a lot stronger than CI and still has its bearing qualities.
Just my couple of Denarius' worth...