Just found that out :/ Kinda wasted a lot of time playing on the second highest lvl. Ill have to remember that when i eventually go through as a summoner mage type.
Its a heck of a lot more fun on master.
Dont forget its only 'bent metal' that you can smelt.
I just smelted a load of different dwemer parts. Decorative handles, solid metal, dwemer scrap meetal etc