Concept:
The blast furnace is the first, massive, foundational step in the steelmaking industry. Its sole chemical purpose is smelting—extracting elemental metal from raw, rocky ores mined from the ground.
Step 1: A blast furnace is fed from the top with raw iron ore (iron oxides like hematite), coke (carbon fuel), and limestone (flux).
Step 2: A blast of hot air is blown into the bottom. The carbon burns to form Carbon Monoxide ($CO$). This $CO$ acts as a reducing agent, physically stripping the oxygen atoms away from the iron oxide rock ($Fe_2O_3 + 3CO \rightarrow 2Fe + 3CO_2$).
Step 3: The result is a pool of liquid metal at the bottom called "pig iron" or molten iron.
Step 4: This pig iron contains about 4% carbon, making it brittle. It is not steel. Converting pig iron to steel (by removing that excess carbon) happens later in a different machine called a Basic Oxygen Furnace.
Step 5: Therefore, the blast furnace does not make steel; it reduces raw iron ore into impure molten iron.