Do i need to make it and if i do what lv smithing do i need?

To craft one, you need an Ancient Nord Sword (can be looted off Draugr), 2 leather strips and 2 steel ingots. You also need the Steel Smithing perk (you can get this perk on any level, since it's the very first Smithing perk), and the Companions questline completed.

prefer the skyforge steel myself ; )