I kept glaring at my smith wondering why he wouldn't smelt iron ingots even though the menu says he can. So I figured out why. Essentially, I thought I had enough ingredients because iron ingots production s not greyed out, but in truth I didn't have enough ingredients. I realise that it's consistently doing this for specific items, iron ingots is one, sausages is the other. Basically, the formula for greying out the production of iron ingots should require at least 3 hematite ore and 1 coal, but it only greys out when you don't have ANY hematite instead. I'm guessing the devs changed the formula how many units of hematite ore is needed to produce but didn't change how many it needs for greying out.
Logged as OC-5937, and I think this is more difficult than one might imagine. Both of these recipes can be fulfilled by multiple commodity types, ie. Hematite Ore + Scrap Iron both are "ore" and "iron". The problem is that the job wants a character to collect a stack of 3x of the thing before starting the job, so it's got to be 3x Hematite Ore OR 3x Scrap Iron. Such is my theory anyway, we'll test it and see what can be done.
Hmm, i am quite sure that my last save showed a labourer picking up scrap iron first (2x) and 13x hematite ore for the rest...