Mine has seen nothing but (Federal) LC XM193 and LC XM-855 NATO-spec ammo, both of which is bought in case lots.
Of the two, XM-855 can usually be counted on to be the most accurate in my particular Mini-14. "Usually" meaning that the difference in the two aint all that great to start with, so variances between a specific lot of one and a specific lot of the other has sometimes flipped my test results.
So how accurate is "accurate"?....My particular Mini can be counted on to place 5-shot groups of either some where between 2-3 MOA, (again) depending. Yeah, I know that that don't sound like much. On the other hand (and all the wild claims from the AR crowd not withstanding), that is about all that can one can expect from NATO-spec ammo because that's about all it's capable of.
As for your "steel ammo" question.....FWIW I don't use it, aint going to use it, and Ruger says not to use it. But hey, I aint you. If you've got a use for it, give it a whirl.
Hope this helped.
DGW