Manufacturing peritectic steels is considered to be problematic due to crack formation during continuous casting as compared to non-peritectic steel grades. The crack formation is believed to come from either variations in contraction and/latent heat compared with other grades. In order to understand the source of these defects, it is essential to study the contraction behavior in real-time conditions during solidification of steels. The contraction measurements were carried out in graphite and water-cooled copper molds using a laser measurement apparatus. It was observed that the initial contraction of steel solidified in copper mold is higher than with graphite mold, this was coupled with a thermal imaging camera to give local and global temperature information. Further, confocal scanning laser microscope (CSLM) studies were performed to investigate an effect of latent heat on the microstructure evolution during solidification.