High Quality Metal Bits, much like their predecessor, Metal Bits are used in a bunch of different Smithing and Tailoring recipes. You'll be making these items much the same way you make the regular Metal Bits, except, you'll be using High Quality Ore to make these which you can't purchase from a vendor.
In order for you to obtain the High Quality Ore we need you'll need to farm Fine Steel Weapons and combine them in a Forge with a Water Flask. Doing this will break down the weapon into a certain type of ore, which depends on the weapon you break down. For more information on all of this follow the Small Piece of High Quality Ore link below.
High Quality Metal Bits (Trivial 20)
Fine Steel Spear, Fine Steel Short Sword, Fine Steel Two Handed Sword, Fine Steel Warhammer are all of the different types of Fine Steel Weapons that you can combine in a Forge with a Water Flask for the Small Piece of High Quality Ore. For a better formatted list and other recipes follow the link below.