Good idea, but you should create a new misc' item : coal. Because steel is coal + iron in real life, if you can do it that should be more realistic =D . With coal added in vendor's lvl list of course.^^
@Rasitiln Yeah, as wmrojer said this will be compatible with everything. As this is adding rather than modifying anything, unless they just happened to use the same formID as I did (which is highly unlikely) it will be impossible for it to conflict.
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http://www.skyrimnexus.com/downloads/file.php?id=5155
You normally use Corundum and iron Ore for Steel ingots.
This mod allows you to use Corundum and iron Ingots instead
@darciaa edit: or not... http://www.skyrimnexus.com/downloads/file.php?id=5155