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This is a game and not reality.
Sorry but quoting from google when searching for "how is steel made" returns the following
Which is the opposite of what you have said of reducing the carbon content, instead adding carbon. Which is exactly what the game does add carbon to iron ore to produce steel.
Edit: When I typed this the 2 above replies didn't exist.
But yes, this IS a game after all, and there are many nodes around the map. https://satisfactory-calculator.com/en/interactive-map#2;50302;0|gameLayer|coalPure;coalNormal;coalImpure
If you want realism then don't play games ;)
EDIT: and coal is basically carbon.
Go find more coal.
SHOTS FIRED
https://en.wikipedia.org/wiki/Carbon
Yes, and historically iron was discovered and used first, mostly due to lower working/smelting point and very basic techniques.
Truly fascinating actually!
TL;DR version:
Ah, here's the thing. Iron is the base element. You add carbon to iron to get steel. Pig iron, or low quality iron, is when you use inferior quality heating sources so you get too much carbon (unintended).
A little extra carbon=good. Too much extra carbon = bad. That little extra carbon is from the coal.
"Pig Iron" and "Cast Iron" are not pure iron. Cast Iron is a very high carbon content alloy. That's not what you're making when you make iron ingots, you're making pure iron.