The blacksmithing competition

When the group reached the location of the next round, they found themselves in a giant room. Around the room were thousands of forges waiting for them.

The old man who led them stood in the middle of the room. As soon as their attention landed on them, he started to speak again. "Welcome to the second round of the blacksmithing competition."

"In this round, what you have to do is pretty simple. Your task is to refine the ores you have collected. You have twenty four hours to do. You must refine at least one nascent soul level material to a satisfactory level to pass." 

"What is a satisfactory level of refinement?" One participant asked.