But, I have found that if you use a Master Salvage Kit on an item, you can get rare crafting materials. So I was wondering if it was that way for the Ingots and Damask.
Sorry, you can't get these from drops or salvaging armor. But, you can get them crafted at various material artisans in Prophecies. The easiest one I've found to get to is in Tangle Root, south of the Henge of Denravi. (Prophecies)To get there, go straight south from Denravi. Once you cross the second root bridge, look for one going down to the east - there's a group of trolls at the bottom of it. Curl around back to the north and follow the path to the end and you'll find the rare material artisan.
For deldrimore steel, you'll need 10 Iron ingots, 1 lump of charcoal, and 5 glittering dusts + 200g per ingot crafted. For the Damask, it takes 5 plant fibers, 5 glittering dusts, and 200g.