I imagine it going like this: first, blades from a certain region start making a name for themselves for superior quality (thanks to the ore). Then a few things happen side by side, augmenting each other:
- higher prices allow smiths to spend more time per blade
- blades from that region become a status product, giving them almost exclusive access to the market segment that is willing to spend extra on fancy craftsmanship, resulting in even more time per blade
- export markets get flooded with fakes that only claim to be from the high reputation region, some of the fancy craftsmanship ends up serving as a sign of authenticity