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Before, it was not unusual for a smith to receive metal from a customer, either as an old sword to be completely reworked or simply as nails etc. It was also not unusual to buy iron/steel from caravans, including those from China and India.
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Wouldn't one technology eventually replace the other? If you had a good source of steel coming along a trade route wouldn't that soon replace local steel production? Keep in mind that every time you switch steels the smith has to experiment to find the correct hardening and tempering process.
n2s