Scrap Metal Recycling

Ferrous and non-ferrous segregation

Ferrous scrap is iron-based and includes materials such as carbon steel, structural steel, plate, tube, castings and rebar. Non-ferrous scrap includes metals such as aluminium, copper, brass, lead and zinc alloys. The grades are separated because they follow different recycling routes and are valued differently.

Useful separation starts at the point where the metal is generated, not at the skip. A fabricator cutting mixed sheet will produce a mixed offcut pile unless there are separate bins at each machine or bay. Practical measures that hold grades apart include:

• Labelled containers or stillages at the point of production, sized to the volume each grade actually generates.
• Keeping coated, painted or plated material apart from clean bare metal, since coatings affect recovery.
• Removing non-metal attachments such as rubber seals, plastic handles, cables and composite panels before the metal goes in.
• Storing non-ferrous grades under cover where practical, because theft risk is higher and wet mixed scrap is harder to grade.

Stainless steel is iron-based, so it is a ferrous alloy, although some grades are only weakly magnetic or non-magnetic in practice. A magnet is therefore not a reliable grade test on its own. Different stainless grades may be valued differently, so they should be identified correctly before being combined.

Metal swarf and cutting fluid

Swarf, turnings and milling chips can contain cutting fluid, coolant or neat oil. Free liquid affects storage and transport and needs to be contained so it does not escape to the yard, drains or road.

Where appropriate, separating free liquid from the metal can reduce carry-over and make the stream easier to handle, but the method must suit the site and the fluid involved. Draining does not, on its own, decide the waste classification. Whether oily swarf is hazardous depends on the oil, the additives, the concentration and the metal involved, and that has to be assessed rather than assumed from the name. The Environment Agency’s waste classification technical guidance sets out how that assessment is done, and it is a job for someone competent in hazardous waste classification.

Two points are worth stating plainly. First, draining swarf does not make the remaining solid automatically non-hazardous. Second, a waste acceptance criteria test is not a substitute for classification. They answer different questions. Where swarf is genuinely hazardous, the separate controls for hazardous waste apply, including the requirements described in the government’s hazardous waste guidance.

Containers, collection and site access

The container needs to suit the material and the collection method. Swarf, small offcuts and thin sheet may need a contained or lidded unit, while heavier sections may be suitable for an open skip or larger container. Oversized or unusually heavy items can require a different vehicle or lifting arrangement, which should be confirmed from the actual dimensions and weight.

Access decides what is possible. Overhead cables, low bridges, tight yard entrances, weight limits on internal roads and the turning circle available all affect which vehicle can reach the collection point. It is worth checking these before a container is ordered, because a failed collection costs time and sometimes a wasted journey charge. Ground conditions matter too: a loaded skip on soft ground can sink or become unstable.

For sites producing metal continuously, the container size and collection frequency should match the generation rate. A container that fills in three days but is collected weekly becomes an obstruction and encourages material to be stacked beside it. Where space is tight, a waste compactor or baler may suit lighter grades better than an open skip. Related collection options are set out under industrial waste collection.

Payment, licensing and traceability

Scrap metal has a resale value, and industrial collections are often handled on a rebate basis: the value of the recovered metal is offset against the cost of the container, transport and processing. The net position depends on grade, weight, contamination and market prices at the time. A firm figure requires a real quote based on the material actually present, not a published rate.

The Scrap Metal Dealers Act 2013 changed how payments can be made in England and Wales. Cash payments for scrap metal are not permitted, and payment must be made by a traceable method such as bank transfer or cheque. Dealers must hold a licence, and sites that receive metal are subject to record-keeping requirements. This applies to industrial transactions as much as to any other.

Waste documentation supports traceability. A waste transfer note or hazardous waste consignment note records what moved, when and between whom, and it is part of the evidence trail for the duty of care. It does not, by itself, prove that everything was handled lawfully. The duty of care applies to anyone who produces, carries, keeps, treats or disposes of controlled waste, as set out in the waste duty of care code of practice, and it applies across the whole chain.

Rules that differ across the UK

Scrap metal licensing and payment rules are not identical in all four nations. The Scrap Metal Dealers Act 2013 applies in England and Wales. Scotland operates its own licensing regime under separate legislation, and Northern Ireland has its own arrangements. Hazardous waste controls also differ: the consignment note system and regulator requirements in Scotland and Northern Ireland are not the same as in England and Wales. If a business operates across borders, the rules of each nation apply to the movements that take place there.

Workplace recycling rules under Simpler Recycling took effect in England on 31 March 2025, with micro-firms given until 31 March 2027. Dry recyclable materials, including specified metal items, must be separated from food waste and non-recyclable waste before collection. The Simpler Recycling guidance explains when dry recyclables can be collected together and the separate requirements for paper and card. Scotland, Wales and Northern Ireland have their own recycling requirements. Industrial scrap grading remains a separate commercial and technical issue.

Getting a workable arrangement in place

A scrap metal recycling arrangement works when the grades are kept apart, the containers match the material, the access suits the vehicle and the paperwork is complete. The most common problems are mixed containers that destroy value, wet swarf that leaks, and collection schedules that do not match production. Sorting those out usually costs less than the value lost by ignoring them.

We can help with ferrous and non-ferrous segregation planning, metal swarf recycling, redundant plant recovery and ongoing scrap metal collection for industrial sites. If you would like to discuss a specific stream, you can contact us with details of the material, volumes and site access.