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When you have completed Scorpion Catcher, you can take this staff to Thormac and pay him 40,000 coins to make a Mystic steam staff. Note it will only cost you 27,000 coins after completion of the Hard Seers' Village Task set.
If you just wish for a cosmetic upgrade, you can use the Shade skull (at 85 Crafting) to create a Skeletal battlestaff of steam.