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MRS Trading

Scrap Trading · 2 October 2026

What Is Scrap Metal? A Beginner's Guide

A plain explanation of what scrap metal is, where it comes from, and how it is handled once it is collected.

A working definition

Scrap metal is metal that has reached the end of its first use and is sent for recovery rather than disposal. It comes from construction, manufacturing, workshops, demolition, ships, vehicles, equipment and household items.

The two main families

  • Ferrous metals contain iron, are usually magnetic, and include steel and cast iron.
  • Non-ferrous metals contain little or no iron, and include copper, aluminium, brass and stainless steel.

This distinction is the starting point for valuation, because the two families are processed differently and are worth different amounts.

Where scrap comes from

A large share of scrap is generated before a product reaches a customer: offcuts, turnings, defective parts and packaging from factories and workshops. The rest arrives when equipment, buildings and vehicles are replaced or dismantled.

What happens after collection

Material is weighed, inspected and sorted by type and grade. Contamination is removed where possible, and the sorted material is prepared for the next stage, which may include shredding, baling or furnacing.

Why quality at the start matters

The cleaner and better sorted the material is when it arrives, the more of it can be recovered. That is why buyers ask for separation at source and clear photographs before quoting.

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