At one point this was considered a bug ( http://forums.play.net/forums/DragonRealms/Lore/Smithing%20Skill/view/2580 ). I assume it was never fixed, as I was messing around with making brass, and my copper ingots came out at 34 quality after smelting them all together, when all nuggets started at 50 quality.
Any chance this is going to get looked at?