Improved Tools
RAFT: Original Survival Game Guide
Iron Hammer
Similar to the Wooden Hammer. The Iron Hammer isn't used actively but passively. It is required for some of the more advanced crafts. Similar to the Wooden Hammer, you just have it in the inventory while you craft the item and it doesn't get used up.
Oddly enough though, you still need the Wooden Hammer for the previous items so if you plan on crafting the items that use the wooden hammer, you still need the wooden hammer in your inventory. Maybe in a future patch, they would fix it.
Axe
The axe is oddly enough just used to break anything you have built. It CAN be used to attack but it does very little damage. Craft it and place it in a chest. Take it out just when you are going to break some stuff.
Do take note though that once you break a station, you lose it and get a few materials for it. Hopefully in a future patch, you have an option to break stuff to rearrange them.
Metal Spear
An improved version of the spear. It does significantly more damage to enemies than the wooden spear.
Raft Original Survival Tip: If you find combat difficult, craft this immediately. This weapon will improve your combat performance significantly.
Improved Hook
An improved version of your trusty hook. This better version has longer reach than the normal hook. This means you would have an easier time going after the further ones or potentially catch objects that are drifting away.
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