The iron has its magnetic properties at ordinary temperatures. Where the high temperature bit comes in is that any iron will lose its magnetic properties at a high temperature. With soft iron like this, the permeability will drop at a high temperature, but it will regain it when cooled. With hard irons like permanent magnets, they will become demagnetised at a high temperature, and will remain demagnetised when they cool. The temperature this happens at is called the Curie temperature, and is the same temperature you want to attain for hardening things like silver steel, eg Cherry red, or more usefully, about the colour of a boiled carrot. This all happens because this is the temperature at which all the crystalline structure gets disrupted by the heat. It is not really a difficult temperature to reach, a propane torch will do it nicely.
John