how do i make steel ?

[opiscoward]

can't find a producing building or progression mention of it. i bought the steel sword from military progression

[CaPOruS]

you need buy this item, not is posible make

[NanoGrrl]

Quite so. I worried about this, myself, once. Someone may have implied it came as a reward after a military quest? But I think it must be traded for, once you have the fourth or so Kingdom level (where you get pole arms and steel swords, and better bows. ) No use for it until then.

[Madredor]

Both from trade and military missions. As soon as you get your first steel as a mission reward i doubt that you need to import it.

While youre in that part of the game: Be aware that you can change the weaponry of your batallions. Im not talking about "sword to bow" or "Bow to AK47", but the tier of their respective weaponry (theres 3 levels, the frist two can be produced, t3 you get on the same hard mission where you get the steel)
Im not 100% sure but i think if you set their weaponry to a higher level they would automatically even upgrade to t2 weapons if available, even if you set it to t3. Youd have to control that yourself.