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But it became an accepted custom because women weren't allowed to show interest in men prior to this.
Iron is also a military asset so the politics involved will limit your available market, you did mention neighboring counties but I don't want to spoil anything here.
Now for the core topic, oversupply in moderns times comes from abundance of resources but in this medieval setting it will come from the shortage of manpower (no industrial machinery). I don't know if Dmitriy ironworks is operating at capacity, I would imagine they have a stable supply line going and that raw materials isn't their most relevant bottleneck.
The thing is you would be correct that there would never be a shortage of raw material on the world stage, but their true margins lies in their domestic products.
Even if another savior were to sacrifice themselves for our sins, nothing ever changes. :C
The current setting only makes sense if a higher being is monitoring her, but that's a really uninspired plot-line. Putting the blame on the universe is also just a get out of jail free card for any future plot holes.