Akbitanian weapons are made only in the city, but they are renowned far and wide for their quality so who knows where a rare specimin might turn up? It is perfectly reasonable to jack up the price of Akbitan steel outside of the city.
As for where the city is, well... :roll: Maps of Hyboria are notoriously inacurate. AFAIK Howard never drew a detailed map of his own, only a few quick, free hand rough sketches. Most maps you see are the work of others trying to piece together the world from the spotty clues left behind by Howard. I, and I think most other people, would place Akbitan in western Shem (the meadow lands). I think that this is as good a place as any for thematic reasons. It seems obvious (to me at least) that Akbitanian steel is meant to be an analogue for Toledo steel. And the culture of the meadow shemites seems to be rooted more or less in Moorish culture, which makes it the likelest place to locate Toledo culturally aside from Zingara (and we know Akbitan isn't in Zingara). Either way the idea of Toledo steel being produced in a country whose theme is "degenerate classical city-states" seems incongrous to me.
Just my two silver.