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It could be rusted or kinked, further up inside of the cable jacket where you can't see. Does the engine pivot freely when the cable was removed ? Does the steering wheel spin easily w/the steering cable disconnected ? Does the steering cable go through the "TILT TUBE" where the cable hook's up to the engine ? or is their a "Stand Off" bracket on the stern where the cable connect's to the engine ? If the steering cable goes through the "Tilt Tube" on the engine, it should be well greased. A "Steersman" nut ($20 marine store) will extend the "Cable" life by keeping the grease "IN" and the water "OUT". It simply screws on the end of the steering cable where the "Wiper Brush" (which does nothing) exit's the "Tilt tube" (if you have through tilt tube steering, and not the "stand off" bracket).