2. Iron ore is smelted down to pig iron using the coke from step 1. Into a continous hot mixture of iron ore, coke, and limestone (in approximate proportions of 4:2:1) oxygen or air is introduced. The carbon in the coke provides the combustible fuel which is kept at a temperature of about 1600 degrees Celsius. These high temperatures are necessary for smelting and steel making, and coke burns at more than 1000°C higher than coal. Most of the carbon from the combustion of coke in smelting iron ore is emitted as carbon dioxide, though the pig iron itself ends up with up to 5% carbon content.
3. Pig iron, and recycled steel are then further heated in a blast furnace, with some of the carbon from the pig iron, and some additional coke used as fuel. Again, virtually all of the carbon ends up as carbon dioxide, even in the production of "carbon steel".
Virtually all of the carbon in coal used for steel production ends up in the atmosphere, as carbon dioxide.