Doug -
Hard to tell without a close inspection, but it's possible that something happened during processing. A dull/ broken tool or interruption in machining coolant could have caused a hot spot or tear in the material. If there was a flaw embedded in the material, and it ended up exposed on the surface (during machining), that would be really bad. Even a ding or nick in handling can start a problem. Tough to tell from far away!
X-ray inspection is great for spotting voids / flaws deep in the material. The surface is tougher for X-ray, because it creates lots of shadows. That's where magnaflux steps in and shines. You can see surface flaws or cracks that extend up near the surface very clearly with a magnaflux inspection. Deeper than about 1/8", I was taught, magnaflux is not effective.
I'll let the real experts chime in, because I haven't done this stuff in almost 30 years. Been mostly on the design side since then...
Edit: Turbohunter- The striations radiate away from the flaw - the epicenter. Imagine all of those rings surrounding a point, in this case on (or near) the surface. The crack started at that tiny point, and grew as the rod was cycled. The striations are witness marks from the crack growing.
- Bill