Since using a steel dent hammer is not a good idea with the magnets close by, would a plastic hammer work well enough to remove dents while holding the steel ball in place using the magnet then tapping the dent with a hammer?

A dent hammer that works very well and not attracted to the MDRS™ are the ones made by Votaw tools.  These hammers are stainless steel and aluminum with a Delrin handle.  They work great for all types of dent work and are perfect in this instance.

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