This is mostly based of of experience from since I played early modpacks. And having iron turn into another metal by simply smelting is a bad idea. Buildcraft and it's successor industrialcraft used to make Refined Iron in the same way, and it caused issues with other mods that did the same for steel. Causing a certain level of headaches for modpacks makers.

Perhaps making a Blast Furnace or/and Alloy smelter, or grind iron and coal together (making it unique to the mod if grinding multiple type of stuff together) to make a steel compound dust. ...Universal Grinder has a nice ring to it.

just remove the recpie of the steel

That was anticlimactic.

Would it be possible to make it so if it detects steel from other mods to disable itself? (just yes or no will suffice for this one.)