Smelting Steel
Steel smelting is not as difficult a process as one might think. Some people say it is dangerous, but the extra heat involved just means that one must be very careful.
Steel is smelted by taking a high quality refined ore, and melting it in a forge with some fine carbon powder and adding some extra heat.
To make a small brick of high quality steel, take a small brick of refined high quality ore, melt it, add a single measure of high quality carbon powder and add three gnomish heat sources to stoke the fire hotter.
A large brick is similar, except that you will start with a large brick of high quality ore, use three measures of high quality carbon powder, and throw in six gnomish heat sources.
To get a block, you will have to take three large bricks, and heat them with three gnomish heat sources to get them soft enough to work with and meld into a larger block.
For two small pieces, simply breach a small brick down with a smithing chisel.
You can combine three smaller pieces to make a large piece, you will just need varying amounts of extra heat to get the job done.
This new steel will do you well.