I have a level 26 main that is feeding a level 3 alt with weapons and armor so she can level her blacksmithing. All was going well until I started collecting steel items. Iron items deconstruct with no issues. I get iron bars and other crafting materials through deconstructs. However, when I deconstruct steel items, I never get any steel bars. If I let my level 26 character deconstruct steel items, they get steel bars.
To summarize: A level 26 character (level 4 blacksmith) can deconstruct steel items with no problem. A level 3 character (level 11 blacksmith) receives no steel bars (or anything else other than an odd crafting style component) when deconstructing steel items. Everything else works fine. She receives exp from crafting steel items, and can craft everything up to her skill level.
Is anyone else seeing this?