Iron ore is extracted from the ground. The steel is then shipped to a buyer, such as a stamping plant or screw machine shop, to be fabricated. Scrap metal is also produced by the ultimate user at the end of the steel product's useful life. The obsolete product enters the recycling system at that point. After processing the scrap metal, the scrap processor will sell the processed scrap to a mill, foundry, or other concern that will use the metal to make new products.
Ferrous scrap is scrap iron and steel.
This includes scrap from old automobiles, farm equipment, household appliances, steel beams, railroad tracks, ships, and food packaging and other containers. Ferrous scrap accounts for the largest volume of metal scrapped. Metal alloys are made from a combination of two or more metals. Nonferrous scrap metal is scrap metal other than iron and steel. While the volume of nonferrous scrap is less than ferrous scrap, it is more valuable by the pound.