Steel is like iron, but stronger. In fact, it's made of iron but it has something else called coal added to it.
Jagex got close enough on that oneEdit
The logic of this is that coal makes the iron hotter when it is smelted, and therefore takes more impurities out. This, surprisingly, has one or two elements of truth in it. (One of those elements is iron, though, so it doesn't count.)
In real life, making iron hotter actually DOES take out more impurities. This is about as close to reality as jagex gets, though, because coal probably wouldn't make it hot enough to turn it into steel (I wouldn't know, I'm not an engineer).
Consequences of smelting iron into steel and creating steel itemsEdit
- Drastically lowering the value of your iron and coal. Actually, only if you actually make stuff out of steel, like armor. If you just make the bar, it goes up slightly, but you'd need to make about OVER 9000! 200 steel bars to get enough cash to buy the ingredients for 201 bars. Thus explaining why the economy is so f---ed up.
- Using up coal, a non-renewable resource.
- The possible creation of steel robots that will destroy runescape. (It hasn't happened yet, but keep your eyes peeled...)