Up to 1709, furnaces could only use charcoal to produce iron.
However, wood (which is what charcoal is made from) was becoming more
expensive, as forests were being cleared for farmland and timber.
Coal was a possible alternative to wood, but although it was cheap
and plentiful, it wasn't a feasible fuel for making iron, because it
contained sulphur, and this made the iron too brittle to be of any use.
However, in 1709, a man called Abraham Darby finally succeeded in
smelting iron using coke as fuel.
In this animation you can realize the process of obtaining steel.