Steel mills are typically located in close proximity to ore and coal. Within in-game provinces, they coincide with deposits.
I don't know about Sweden but in Germany the most heavily industrialized areas Ruhr and Saar are (were) above coal mines.Tell that to Germany and Sweden
In Germany, at least in the area I grew up in, it was standard school stuff: steel making needs coal : iron ore = 2 : 1, so if you have to choose where to build your steel mills, it's not where the iron ore but the coal is located.