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When a magnet or iron piece is watched under a powerful microscope we will obseve that a magnet or iron is made up tiny tiny pieces which cannot be further divided realistically such small pieces are known as domains.

In a magnet all domains are in the same direction due to which it attracts iron.

While in a iron these domains are arranged randomly which nullify its magnetism.

When a magnet is brousht near an iron matrial all the domains get attracted to the magnet due to which domains in iron get arranged in a particular direction due to wich at that time they act as magnets but as soon as the magnet gets farther the domains again arrange them selves randomly due to which tey do not remain permanent magnets

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Q: Why aren't all iron materials permanent magnets?
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