The album was recorded at ABBA's Polar Studios in Stockholm with Steve Lillywhite producing.

Steeltown is the band's only UK number 1 album, topping the chart for 1 week in October 1984.

Critic Fred Schruers of Rolling Stone gave the album a glowing review, writing: Clanging and crackling with energy, this second album from Big Country rings natural evolutionary changes on the band's stirring twin-guitar sound even as it frames still better news: bandleader Stuart Adamson has rapidly matured into a songwriter capable of bringing meticulous craft to his obvious passion.

[citation needed] The album's relative failure has been attributed to the fact that many American and international fans couldn't relate to its themes and lyrics, which dealt with the misfortunes of Scottish workers and contained references to British politics.

[citation needed] James Dean Bradfield from Manic Street Preachers has cited the album as being one of his all-time favourites.