Every Survival Crafting game relies on some form of tier-based progression to keep you playing for a long time, and this is no different for Sengoku Dynasty. While you might stay on the stone or copper tier for a long time, you'll eventually have to progress to bronze, iron, and then steel.
However, steel is not one of the resources that you can simply mine in the open world. You'll have to go through a hefty process to start making this item, and it'll also take a long time. Here's what you'll have to do.
Before you think about getting steel, you'll first have to progress to the Bronze tier of equipment so that you can start mining Iron. It's recommended to even get the Iron Pickaxe alongside the Efficient Miner perk so that you can mine it in bulk. Once you have the Iron, the next step is to liberate the Eastern Swamps Region.
This requires you to defeat a few Outlaws and the Outlaw leader along with fixing the Eastern Swamps Large Bridge, which requires ten workers and many resources. Upon meeting all these requirements, you can create the Smithy building and a Small Tatara Furnace in it, which will make steel for you by consuming iron ore and charcoal.
Charcoal can be made in a Charcoal Kiln using firewood. You can buy the outdoor Kiln through the village buildings menu.
Alternatively, you can buy the indoor Kiln through the furniture menu of Forge and Smithy, though it costs three times the outdoor one.
Making steel with this method can take quite a long time, and you'll get a lot more steel if you assign a villager to work the furnace for you. Of course, you'll need a constant supply of Iron Ore and Charcoal for this as well.
Much like every other metal in the game, steel is mainly required to make the next-tier weapons, tools, and arrows. This can be done through the smithy and hunter's hut respectively, and they increase your efficiency massively.
There are also a few new structures that unlock once you acquire your first Steel, and you'll see these unlocks pop up on the bottom left of your screen as you acquire the item.
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