Production of Steel takes place via two main routes: BF-BOF route i.e. the blast furnace-basic oxygen furnace route and electric arc furnace or EAF route. The BF-BOF route accounts for 71% of the steel produced, whilst the EAF route accounts for 29% of the steel produced in the world.
Coal being a reducing agent serves as the key raw material for the production of pig iron during the blast furnace iron-making process. Although 54% of the steel produced in India is produced via the EF/EIF route, the majority of steel produced in the world (around 70%) is through the BF-BOF route using coal.
Each tonne of steel produced via the BF-BOF route requires about 0.77 tonnes of coal.