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[HammerDave]

So steel is now created by crucible or blast furnace, that's cool.
But both of them require steel to build?!
Where does the steel come from to make more steel?

[Meph]

The crucible makes crucible steel, which is a more efficient process of steel making. You can make steel, just like any other alloy in the game, in the metallurgist.

So it's Smelter => Metallurgist => Crucible/Blast Furnace. That's the progression of your metalworks.