Harvest Granum and Calx, I suggest gathering both in the town of fabernum.
After obtaining Granum you have the chance to either crush it outside of town or throw it in the furnace (Furnace gives 110 more bloodore)
After gathering the materials you'd want to hold onto the bloodore.
Next gather Calx, Normally along the fab river (white rock), After gathering that you'd want to throw it in the Crusher to obtain Coal & Calx Powder
After gathering enough coal you'll now want to make some Coke, etc 10k coal / catalyst of 600coal
Get around 7200 coke.
Now that you got a nice supply of coke *snort* you will then need to mix the Blood ore & Coke in the furnace.
example extraction yield, 10k bloodore / catalyst coke 390
You'll get around 4000pig iron
After getting pigiron you will then need to throw the Pigiron/coke/calx-powder into the refiner
(3 slots will need to be filled)
Yields will need to be a 2:1:1 ratio.
eg Pigiron 2000: Coke 1000: Calx-Powder 1000
Tada you got yourself some Grainsteel
Now the annoying part....you're gonna need some Saburra which is normally in meduli
Gather some saburra and grind it up and stock up on as much powder so you never set foot in that town again, Take it back to fabernum
Now you got the saburra powder.
Refine it again with the same ratio.
2:1:1
Grainsteel 2000: Coal 1000: Saburra powder 1000
Tada steel.
painful but rewarding process.