Steel is only used for two things.

  1. Making an Anvil (Medium-Small Building Plot)
  2. Making a Steel Warhammer (with the Anvil)
Steel is made in a Furnace by combining Iron and Iron or Iron and Coal.Fun Fact:

Steel is the only alloy in the game

Could be used to be used to make a steel helmet, now it is only obtainable by gifts.

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