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Hi,
I'm not 'picking on you',
but you seem to have made the most recent posting on this concept.Repeated folding and hammering reduces the number of grain boundaries in a piece of steel. The alloying process of iron principally with carbon, and other metal atoms, some as impurities, some deliberately added to improve physical properties, gives rise to micro crystals. Each boundary between these crystals reduces the density of the steel and the strength. All iron-working civillisations deduced that repeated hammering of raw steel gave better more durable implements.
This was my understanding too. Logically it makes sense. You're talking about a time where people were digging lumps of rock and cooking them.
As far as I understand it's not a question of modern tech not being capable. It's that there is absolutely no need to fold pieces of impure steel with highly varying structure (air, sand, other metals, etc.) loads and loads of time to make each layers impurities negligible.