How Is Steel Recycled? The Process from Scrap to New Steel

Steel is unique among materials because it is one of the few that can be recycled repeatedly without any loss of quality. This inherent recyclability makes steel an essential part of the circular economy, where materials stay in use for as long as possible to minimize waste and environmental impact.

On average, recycling one ton of steel by using an electric arc furnace (EAF) conserves 2,500 pounds of iron ore, 1,400 pounds of coal and 120 pounds of limestone from mining and producing new steel that would be used in a traditional blast furnace–basic oxygen furnace (BF-BOF). The EAF offers a more sustainable approach that uses scrap metal recycling to reduce the demand for raw materials like iron ore and coal, resulting in steels with lower embodied carbon and helping to divert waste from landfills.

As demand for green, low-embodied carbon materials increases, scrap recycling remains a fundamental strategy for closing material loops, creating a more sustainable future and building a circular economy.

What is Scrap Metal?

Scrap metal refers to discarded metal materials that can be collected, processed and recycled into new products. It comes from a few primary sources that contribute to a sustainable material supply chain:

• Post-Consumer Scrap
  This includes end-of-life items no longer in use, such as vehicles, household appliances, plumbing fixtures, electronics and construction materials. Typical examples are old cars, washing machines, copper wiring, aluminum siding and everyday objects like laptops or string lights.
• Post-Industrial Scrap
  This type includes excess metal created during manufacturing such as off-cuts, punch-outs and defective parts. Usually managed through closed-loop recycling systems, this scrap is sent directly back to steelmakers or processors for reuse, reducing waste and improving operational efficiency.
• Demolition Scrap
  Metals recovered from the job sites of end-of-life structures, such as buildings or bridges, can be recycled after demolition. Typical items include steel beams and rebar, which companies can sell to generate revenue and offset demolition costs.

All forms of scrap are essential to producing lower-embodied carbon steel and support the transition to a circular economy.

Nucor’s closed-loop recycling process starts and ends at our steel recycling facilities.

Scrap metal is classified into two types: ferrous and non-ferrous, impacting how it is processed and valued.

• Ferrous metals contain iron and are usually magnetic. This includes steel, cast iron and wrought iron, all commonly found in cars, construction materials and machinery. They are durable and recyclable for reuse in construction and manufacturing.
• Non-ferrous metals lack iron and include aluminum, copper, brass, stainless steel*, zinc and lead. They are lighter, more corrosion-resistant and more valuable per pound, making them important for electrical wiring, electronics and other specialty uses. *Stainless steel contains iron, but its additional non-ferrous elements make it non-magnetic, so it is classified as non-ferrous.

The U.S. steel industry depends largely on ferrous scrap as its primary raw material input. According to the World Steel Association (worldsteel), ferrous scrap recycling constitutes the largest recycling activity worldwide, continually transforming end-of-life products into valuable manufacturing inputs. For this reason, Nucor owns and operates scrap recycling subsidiaries nationwide to ensure a reliable and consistent supply of recycled material to feed its mills across the country.

How Is Steel Recycled?

Every year, over 80 million tons of steel are recycled in North America. Scrap metal recycling reclaims valuable materials and re-integrates them into the production cycle, therefore minimizing the need for new raw material extraction and promoting resource efficiency.

Steps of Scrap Metal Recycling:

• Sorting and Processing
  To begin the process of recycling steel, scrap metal is sorted by type, size and whether it is ready for shipping. Metal recycling companies use magnetic separation, visual identification and advanced technology to sort materials efficiently for shipment to mills.
  
  For example, after metals are separated into ferrous and non-ferrous categories and cut or shredded, they are sent to mills to be made into new steel. The remaining materials that would typically be sent to landfills are now sent to Nucor’s advanced material recovery facility in Bushnell, FL to be processed further to reduce waste and recover materials as small as 0.2mm in size.
• Grading
  After separation, ferrous materials are graded based on the type of steel (like light gauge or heavy structural steel), which affects value and recyclability. Proper sorting and grading ensure clean feedstock for EAF mills, which improves the quality of recycled materials and enables steelmakers to produce consistent, high-performance products.
• Shredding
  Next, scrap metals are placed in shredding machines to be broken down into smaller pieces for easier processing. Shredding or cutting ferrous pieces reduces the bulk of scrap metal for transportation and improves melting efficiency at mill sites.
• Melting
  Since Nucor scrap recycling facilities are strategically located nationwide, shredded scrap can be sent directly to nearby EAF mills, where it is melted down and transformed into new steel, resulting in a quick turnaround time from scrap to finished product.
• Manufacturing
  At EAF mills, the steelmaking process involves multiple steps, including refining and alloying to meet performance specifications for new steel products. Common products made from recycled steel include rebar, beam, sheet and plate

EAF steel, made primarily from recycled scrap materials, offers the same performance and quality as steel made from raw or extracted materials, but with significantly lower environmental impact. At the end of a steel product’s useful life, it can be recycled and reintroduced into the recycling loop to become new steel again.

The Benefits of Scrap Recycling

Environmental Benefits
Recycling scrap metal significantly reduces the environmental impact of steel production. Because it relies on scrap instead of mining and processing virgin ore for its primary feedstock, Nucor’s EAF steelmaking process on average emits less than one-third of the GHG intensity compared to the global average of BF-BOF emissions.

In addition to reducing GHG emissions and preserving natural resources, EAF steelmaking diverts scrap from landfills, reducing waste and supporting a circular economy. For companies and industries with aggressive sustainability goals, scrap-based steelmaking provides a regenerative pathway that aligns with carbon reduction targets and long-term environmental commitments.

Economic and Supply Chain Benefits
Beyond environmental benefits, scrap recycling bolsters the domestic economy and enhances supply chain resilience.

• The scrap industry supports creating local jobs in collection, processing and resale.
• Individuals can bring scrap to recycling facilities in exchange for cash, whether as a primary or supplemental income source. After major events like hurricanes, tornadoes or floods, scrap recovery often provides communities with immediate financial relief and supports clean-up efforts after natural disasters.
• By recycling materials domestically, industries reduce their reliance on imported raw materials.
• Using locally sourced scrap helps stabilize material costs and ensures more consistent access to steel inputs, which improves supply chain stability.

These advantages demonstrate that scrap recycling is both environmentally beneficial and a wise, strategic investment in the future of sustainable manufacturing and economic resilience.

Innovations in Scrap Metal Recycling

Recent advancements in metal recycling include enhanced sorting and smelting technologies, as well as the emergence of urban mining, a practice that involves retrieving valuable materials from decommissioned buildings and used products, rather than extracting them from natural resources.

By the Numbers:

• Nucor and its subsidiaries recycle approximately 1,390 pounds of steel every second, every day.
• Nucor’s steel products contain approximately 77% recycled content on average, with some products containing 99% recycled content.
• Additionally, steel is 100% recyclable at the end of its useful life. · Nucor’s large-scale, 100,000-square-foot advanced metal recycling facility in Bushnell, Florida, is operated by Trademark Metals Recycling (TMR). The facility uses advanced technology to recover materials.

These recent innovations enable companies to meet low-embodied carbon and sustainability requirements more efficiently, support compliance with growing environmental regulations and contribute to certifications like environmental product declarations (EPDs) and LEED credits, giving companies a competitive edge in meeting sustainability goals.

Can You Recycle Steel?

Recycling scrap metal is crucial because it reduces the need for raw materials, thereby lowering GHG emissions and conserving energy across various industries.

Did you know that individuals and businesses can sell scrap metal to recycling centers, where it is weighed, evaluated and purchased based on current market rates?

With a network of over 70 scrap recycling facilities in the U.S. through Nucor’s Raw Materials Group, including Advantage Metals Recycling (AMR), Metal Recycling Services (MRS), River Metals Recycling (RMR), Texas Port Recycling (TPR), Trademark Metals Recycling (TMR) and Western Metals Recycling (WMR), you can find the facility nearest you to sell scrap for cash.

See the recycling facilities list here.

Below is a list of the types of materials that can be recycled at our facilities:

• Aluminum
  • Aluminum Gutters
  • Aluminum Wheels
  • Cans
  • Extrusions (Pool Cages)
  • Radiators
  • Sheet Aluminum
• Copper
  • Aluminum Copper Radiators
  • Christmas Tree Lights
  • Copper Pipe/Tube
  • Insulated Copper Wire
  • E – Scrap
  • Central Processing Units
  • Circuit Boards (motherboards, high-grade, mid-grade, low-grade)
  • Laptops
  • Memory Cards
• Electric Motors
• Lead
• Steel
  • Appliances
  • Cars

Turn Your Scrap into Cash

Whether you're a business with industrial cut offs, a homeowner cleaning out old appliances or looking for a new form of income, recycling scrap metal is a smart, sustainable choice that pays. Many facilities accept a wide range of ferrous and non-ferrous metals, from copper and aluminum to steel. All you need is a valid driver’s license to sell steel scrap.

Here's how:

• Call or visit your local scrap recycling center to find out what materials are accepted, learn more about pricing, and see how easy it is to sell your scrap.
• With convenient locations nationwide, you can reduce waste, support a circular economy and walk away with a check in hand.

Find a location near you and discover the value of your scrap today.