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Steel Ingots are produced by the Blast Furnace from one Iron Ingot and either two Coal Coke or four Charcoal. They are used in a number of RailCraft recipes, most notably the H.S. Rail and the Bore Head, and, indirectly, the Tunnel Bore via the production of Steel Blocks.
It can also be used to make 2 Minecarts instead of using iron to get 1 and also makes double of any RailCraft item which can be made with iron.