3 November 2023

Recycled Steel vs. New Steel: Which Should You Use?

Recycled Steel vs. New Steel: Which Should You Use?

Recycled Steel vs. New Steel: Which Is Best For Your Project?

Strength: A Non-Issue

Get this out of the way first, because it’s the objection that stops people considering recycled steel at all. Recycled steel isn’t a lesser material, it’s steel that’s been melted down and reformed, and once it’s rolled into a beam, plate or bar, its mechanical properties match new steel of the same grade. If your structural engineer specs a grade, recycled steel in that grade meets the same spec. This isn’t a compromise decision.

Cost

Recycled steel is generally cheaper, because producing it uses less energy and fewer raw inputs than mining and refining virgin ore. How much cheaper varies with the market and the specific product, so treat “recycled is cheaper” as a rule of thumb rather than a fixed discount, and check current pricing for your specific order rather than assuming a set percentage.

Sustainability

This is where recycled steel pulls ahead by a wide margin. Independent estimates put the energy saving from recycled versus virgin steel production at roughly 60-70%, with a corresponding 70-80% cut in CO2 emissions (source: Stalatube, industry comparison data, worth confirming against a source you’re comfortable citing publicly). Steel is also one of the most recyclable materials there is, it doesn’t degrade in quality through the recycling process the way some materials do, so this isn’t a one-off saving, it compounds every time the same steel gets reused.

Availability And Consistency

Here’s the real trade-off. New steel from virgin ore gives you predictable, consistent supply in whatever grade and quantity you need, because it’s made to order rather than sourced from whatever scrap happens to be available. Recycled steel supply depends on what’s come through the recycling stream, which can mean longer lead times or limited availability for less common grades. If your project has a hard deadline and needs a specific, less-common specification, that’s when new steel earns its place.

Disadvantages Of Recycled Steel

There are a few downsides to recycled steel, including availability, it can be harder to source depending on your location and the type of steel required. Recycled steel may also contain impurities from the scrap metal it’s made from, though these are typically removed during processing.

So Which One Should You Order?

Default to recycled unless one of these applies: you need a grade or quantity that’s genuinely hard to source recycled, your timeline can’t absorb any supply uncertainty, or the application is visible/decorative and needs a guaranteed consistent finish. For most structural work, floors, beams, framing, recycled steel does the job at a lower cost and a smaller footprint. If you’re not sure which applies to your project, get in touch and we’ll talk through what’s actually available for your grade and timeline rather than guessing on your behalf.

So, Which Is Best For Your Project?

The right choice depends on your budget, sustainability goals, and project requirements. If sustainability or budget is the priority, recycled steel is usually the better choice. If you need a specific grade that isn’t readily available in recycled form, or consistent quality is critical, new steel may be the better option.

Application matters too. Structural applications may call for new steel for its superior, predictable strength characteristics (see our guide to types of steel and their properties for more detail), while visible or decorative applications may favour new steel for a consistent finish. Cost can also vary for both options depending on current market conditions, so it’s worth checking pricing at the time of your project rather than assuming recycled is always cheaper.

Contact AST: The Steel Professionals

If you’re sourcing steel for your project, get in touch with us. Whether you’re sourcing for your next build or looking to bring steel into Australia, we’re here to make the process straightforward.

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