The iron, in "Agua Viva", represents the reality in which the main character, Alfredo Gonzalez lives. Alfredo is involved with the iron most of the time, having mountains of iron parts and iron "junk" scattered through his house; His body, full of iron dust and grease shows us that iron is part of his appearance; We get to know that collecting, counting, cataloging and working with iron was the only thing he did, for many years long. The iron, in the end, is the only thing Alfredo had.
Through the history we get to know that Alfredo, who is a lonely man among the iron, had a son and a family in the past, but we don't know where they are (Maybe even he doesn't know). Alfredo has gone to a institution, probably a mental institution, and since being released, he has lived like that, with the iron as his only "partner".
After being in contact with another material (the clod the boys have thrown at him) it seems like Alfredo is now in contact with another reality, and finally looks himself in the mirror, seeing only iron in him and in his house and in his life. That is a point of change in his life, it seems to be, when he accepts the help of the neighbor.