Blacksmithing is one of the professions I have neglected in Legion. There is really no reason for this however, as it has some very nice potential for profits.
I have found that the item level 850 crafted profession gear has been great throughout the expansion. Even at rank 2 recipes it is often profitable.
My experience so far
About 3 weeks ago I crafted up some Demonsteel bracers and gloves. I made a TSM group and started posting them to the AH before I forgot all about them. Interestingly they have pretty much all sold at profit margins above 70%-150%. So it’s about time I industrialized my setup in this market.
Why do I need to go to Highmountain?
Blacksmithing is very similar to tailoring for the 850 gear. You need to craft an intermediate material, in this case Demonsteel Bars. These can only be crafted at the Firmament Stone in Ironhorn Enclave in Highmountain. You will know where it is as you do the Blacksmithing quest line.
Unlocking rank 2 recipes
Before we unlock the rank 2 recipes we obviously need to get the rank 1s. The rank 1 recipes for all the demonsteel recipes are unlocked from completing the blacksmithing questline. I suggest checking out the Wowhead blacksmithing guide for an overview of the quests and help in completing them.
The rank 2 recipes are received from quests you get from Muirn Ironhorn. The quests open up as soon as you craft the rank 1 version. Muirn is hanging out at the Firmament Stone, which is the only place you can craft the recipes, so finding the quest should be fairly simple.
Buying ore or bars?
The crafting time for the Demonsteel bars is a very significant factor in this market. Because of this I will heavily advocate searching for both bars and ore on the Auction House. On my realm the bars are priced at about crafting cost, so I am more than happy to buy those and save some time. The crafting time of 2 seconds per bar will rack up very quickly, and makes this a time sink.
Going to the Firmament Stone
As you need to go somewhere special when restocking you need to bring a lot of materials with you. Minimizing travel time will make sure you can spend your time doing other profitable activities as well. I generally restock 20 items for each stock for Tailoring and Leatherworking 850 gear, but I could see myself doing more with blacksmithing to minimize the trips. There are no mailboxes in the Ironhorn Enclave so you need to go to one of the other outposts in Highmountain to mail your finished crafts and gather new materials.
TSM group and setting
I use the same auctioning operation as my other 850 groups. This operation has been virtually unchanged since October last year, and it still works like a charm. The TSM group import contains all known variations of the demonsteel items, and should cover all your auctioning needs. As always you can find it in my Pastebin (Alongside all my other TSM settings).