If configured correctly, GregTech makes the steel dust only smeltae in an industrial blast furnace.
This should always be so, steel was balanced for this point in the tech tree, and changing that breaks progression.
The rail craft blast furnace requires nether fortress access, so often I skip it entirely.
It's also ungodly slow.
I'd love to agree with you... but sadly in the newest version of stuff, you require steel to make a flint and steel.. and as im sure we know, you need that to open a portal to the nether... and the nether gives you progression items for Thaumcraft and jetpack and such... and its rediculous to have to wait until you're making "steel" to get into the nether with the gregtech configs...
However, i suppose it is generally accepted that you'll find at least 1 bar of steel in a chest or something early in... i was just surprised...<thats what i did at least>