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You might have used a smithing potion while making your steel sword.
Is it a skyforge steel sword? They are on par with elven.
no idea why its doing this, but hey i wont complain, its a god-tier sword early on and looks fairly cool to boot xD
In terms of smithing, I have steel, elven, and dwarven perks unlocked, but I do qualify for advanced and orcish perks. The highest smithing quality I can currently go for most armor and weapons I own is exquisite quality, which is above superior (that is above fine). I haven't improved any of my weapons until I qualify for enchanted smithing perk. Also because it's harder to come by good armor when you do first encounter them.
Going up both sides of the Smithing tree just kills perk points tbh. Even on heavy armor files I usually go the left side; Steel Armor and Steel or Elven weapons carry you early just fine, Advanced Smithing gets you Plate Steel and Nordic Carved, which are pretty good armor boosts and Nordic Carved weapons are Elven quality with even less weight. Top of the tree you get Dragonbone armor/weapons. Less points spent the whole way too.
Light armor character, I don't really need to explain why I go up the left side, though I get really comfy in Scaled armor + Nordic weapons.
Right side, Dwarven is honestly awful, very heavy for almost no benefit. Orcish is actually good, around the same weight as Iron with pretty solid defense, and is a must on my Orc. Ebony is too big of a gap after Orcish, and really no point in making as you can easily wait till Daedric for armor and grab Ebony weapons off Draugr Deathlords (plus the guaranteed spawn for an Ebony Shield at any level in a certain crypt). Daedric is the only reason to go right side imo. Any archer character loves having Dragonbone Bow + Arrows and its less points to go left.
Elven weapons are 30 skill and are better than Steel, Dwarven, and Orcish too.
Going right is easier to power level, but that's about the only reason.
Plus if you have the Anniversary Upgrade (or the individual CC items for them), there are light armors ((light armor versions of dwarven, orcish, and daedric) added in that also benefit from those heavy armor smithing perks. So with light or heavy armor, you benefit from going up the right hand branch.
Even without those added armors, however, I always still go the right branch only. Yeah, its 1 more perk point you need to spend to get to dragon stuff, but leveling up with dwarven bows is far easier than trying to gather the materials to level up using the left branch.
Yeah it is easier to smash Dwarven bows, I forget at times I have a mod that lets me melt down Elven Light Armor into Moonstone Ingots so I usually melt down Thalmor patrols into Elven Arrows.