Can you give some clarification on a few details of your build?
You say the burn tunnel and heat riser will be surrounded by refractory cement. How thick will this be, what kind of refractory, and what will be around it to contain it?
What are the overall lengths of feed tube, burn tunnel and heat riser? Where will you exit the barrel space, and what will follow? What sort of chimney are you planning?
You speak of rocket stoves, but these are distinctly different in operation from rocket mass heaters. A
rocket stove will generally exit straight up, likely after heating a cooktop or pot, while a RMH must push the exhaust through a horizontal duct or similar. Rovket stoves have been shown to work as small as two or three inch diameter, while 4" RMH systems are notoriously tricky to get right, and smaller than that is relatively useless and unlikely to work in most conditions.
You have a 3" diameter feed connecting to a 4" square burn tunnel, connecting to a 5" diameter riser. The feed filled with pellets is obviously not going to allow enough airflow for good combustion, so I presume you have air entering the end of the burn tunnel... is this correct? Other experiments I have seen with pellet feeds have described the grate burning out quickly even when made with heavy stainless steel bars, so I think you are not getting the high temperatures a RMH is known for. 1500F is on the low side of typical, and at that temperature, steel will be glowing orange and softening. The fact that it has not for you indicates that you are radiating so much heat that the steel, and the gases next to it, are much cooler and likely not reaching full combustion. When the steel core is insulated well enough that the gases are burning completely, you will see the deterioration described elsewhere.