Here is the ancient way in which iron/steel was made from ore (iron oxides):
The ore is first roasted in a fire to make sure it is completely coverted to an oxide and to fracture it into smaller bits, then it is heated in the smelting furnace with charcoal. Hot carbon monoxide gases from the burning charcoal rob the oxygen from the iron oxide thereby reducing the ore to pure iron bits. These bits migrate down to the base of the furnace where they gradually build up into a "bloom" that sits in a pool off molten ferrous silicate slag. When it is time to harvest the bloom the slag is drained off and the furnace is dismantled to get to the steel. The bloom, which is full of slag, is then consolidated into a bar by repeated forging at welding heat. The carbon content varies greatly in these blooms. This is the method most backyard stel makers use.
At some point it was learned that by increasing the heat by increasing the blast to the fire the steel would accumulate in a molten pool and large ingots of cast iron with carbon content up around 3 and 4 percent could be tapped. That cast iron would then have to be "fined" to reduce the carbon content and make steel or wrought iron that was workable through forging.
This is a fascinating area of study and something I want to do soon as well!