How scrap steel recycling actually works
Steel is the most-recycled material on earth by tonnage. North American mills source roughly 65–70% of their feedstock from recycled scrap, run through electric arc furnaces (EAFs) that melt and re-cast the metal into new product. The economics work because melting scrap costs a fraction of what producing virgin steel from iron ore does.
For sellers, the practical chain looks like this:
- Collection — your load goes to a yard
- Sorting and sizing — material is graded into ferrous categories
- Shearing or shredding — large pieces are sized for the mill's furnace charge
- Mill consumption — sorted scrap is loaded into the EAF and remelted
Common steel grades on the buy side
- #1 prepared (HMS 1) — cleanest, sized to fit a furnace charge
- #2 prepared (HMS 2) — mixed thickness, light contamination
- Shred steel — crushed and shredded auto bodies and appliances
- Plate and structural — heavy structural sections, easier to load
- Tin (cans) — separated for de-tinning before remelt
Prep that pays
Mills pay more for material they don't have to process. Practical wins:
- Cut to length — anything over 5 feet typically gets discounted
- Remove contaminants — concrete, dirt, wood, plastic
- Drain fluids — required for any tank or vessel
- Separate stainless — it pays multiples more than carbon steel; mixed loads default to the lower price
When to drop off vs. arrange a haul
Below roughly half a ton, most sellers come out ahead with self-transport. Above that, scrap metal removal services (covered in Scrap Metal Removal) become competitive once you factor in fuel and time.