And you would power that compressor HOW?
For that matter, make it out of what?
... remember, this is a discussion of using steel to replace refined iron.
OP's referring to the Gregtech changes; I would guess that the server he's on has the Gregtech configs set to expensive and he's previously been playing with cheap recipes (I believe that expensive was made the default config not so long ago).
The refined iron/steel change doesn't apply to compressors and basic T1 IC2 machinery. Those still use refined iron, as does the basic Generator.