Mana Steel can be used to make useful tools and armor but only really comes into its own when you can carry Mana around with you. Manasteel Armor has the same properties as Iron armor but it's more enchantable, also if you are carrying a Mana Tablet (which has Mana) the armor will not take durability damage but will instead drain the Mana Tablet. When a full set is worn it will reduce the Mana cost on all Mana using tools and rods by 10%.
Manasteel Tools work in a similar fashion as the Manasteel Armor but also have a secondary function when Right-Clicking with them:
These tools are definitely better than their iron counterparts but not essential.
A bow can also be made from Livingwood, just like the Manasteel tools/weapons the Livingwood Bow is slightly better than the standard bow and can also repair itself with Mana