I think the question of quantity might play a major role here.
Looking at a modern industrial city's output of waste and comparing it to a plate- / weaponsmith or two somewhere might be a problematic thing.
I mean, yes modern processes are more efficient and less wasteful, but the quantities for industrial steel fex. are gigantic compared to any medieval (RL or phantasy) produce - maybe not counting Saruman's production?
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Upon the hearth the fire is red
Beneath the roof there is a bed;
But not yet weary are our feet...
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