Or Perhaps Not

Nine years ago I was thinking that you could use magic to get around heating up the metal to make a good quality sword.  "Good" being the default GURPS weapon quality.

I am thinking that shape metal, while it would mix things up to get the correct percentages of impurities to make iron into a steel; it would not give the crystalline structure required.

So you're still going to have to heat it up.

But magic would certainly allow you to make your initial block with the correct proportions.