How Much Is Scrap Steel Worth Per Kg in Melbourne? Full 2026 Price Guide

Quick Answer

Scrap steel in Melbourne is generally worth about $0.05 to $0.45 per kilogram in 2026, depending on the grade. Heavy Melting Steel and structural steel sit at the top of the range at roughly $0.20 to $0.45 per kilogram, which is about $200 to $450 per tonne. Light and mixed steel such as sheet, appliances, and thin offcuts usually returns $0.05 to $0.20 per kilogram. Cast iron typically falls between $0.10 and $0.20 per kilogram, and scrap iron is in a similar band. Steel is worth far less per kilogram than copper, brass, or aluminium, but because it is heavy and usually available in volume, a full trailer, skip, or bin can still add up to a worthwhile payment.

Scrap Steel and Iron Prices in Melbourne 2026

Indicative ranges are compiled from publicly available Melbourne market data, including West Metal Recycling, Metro Copper Recycling, Vic Star Metals, Metal Force Recycling, and Union Metal Recycling, cross checked against Sky Scrap Metal’s 2026 Melbourne price guide. West Metal Recycling lists Heavy Melting Steel at about $420 per tonne, and Vic Star Metals lists steel from about $0.30 per kilogram, in line with the ranges above.

EDITOR NOTE: Price ranges in this guide are compiled from publicly available Melbourne and Australian market data (accessed June 2026) and are indicative only. They are not Sky Scrap Metal’s buying rates and do not constitute a quote or an offer. Scrap metal prices change daily with the global market, the grade of your metal, and the volume you bring. For an accurate, current price, call Sky Scrap Metal on 0402 757 290.

How Much Is Scrap Steel Worth Per Kg, Per Tonne, and Per Pound?

Steel is priced by weight, and yards quote it both per kilogram and per tonne. The two are simple to convert: one tonne is 1,000 kilograms, so a Heavy Melting Steel rate of $0.40 per kilogram is the same as $400 per tonne. Australia prices scrap in kilograms and tonnes rather than pounds, but if you have seen a per pound figure online, remember that one kilogram is about 2.2 pounds, so you divide a per kilogram rate by 2.2 to get the rough per pound equivalent. A per kilogram rate of $0.44 is therefore about $0.20 per pound.

What is steel worth by weight?

To give you a feel for real loads, here is roughly what common quantities of Heavy Melting Steel return at a midpoint rate. Lighter steel returns less, so treat these as an upper guide.

These are indicative only. Your actual payout depends on the grade, how clean the steel is, the daily market, and the yard. Call 0402 757 290 with an estimate of your weight for a current figure.

Steel and Iron Grades Explained

Heavy Melting Steel (HMS)

Heavy Melting Steel is the premium ferrous grade. It covers thick, clean steel such as structural beams, plate, heavy brackets, and machinery frames, usually more than 6 millimetres thick. Because it melts down efficiently with little contamination, it earns the highest ferrous rate and is what scrap yards mean when they quote a strong steel price.

Light and mixed steel

Light steel includes sheet metal, whitegoods such as washing machines and dryers, fencing, brackets, and thin offcuts. It is very recyclable, but the lower density and higher chance of contamination mean a lower rate per kilogram. This is the most common steel that households bring in.

Cast iron and scrap iron

Cast iron is heavy and brittle, found in engine blocks, pipes, old baths, machinery, and cookware. It usually sells for about $0.10 to $0.20 per kilogram. Scrap iron more broadly, including wrought iron from gates and railings, sits in the same band. Keeping cast iron separate from light sheet steel helps you get the right rate for each.

How Much Do Scrap Yards Pay for Steel, and How Much Do You Get?

What a yard pays comes down to grade, cleanliness, weight, and the day’s market. As a guide for 2026, expect around $0.20 to $0.45 per kilogram for heavy clean steel and $0.05 to $0.20 per kilogram for light or mixed steel. A licensed yard with strong wholesale relationships, such as Sky Scrap Metal, can usually pass on a better rate than a casual buyer, and larger loads often attract a higher per tonne price. You receive payment after the steel is weighed on the weighbridge and inspected, and at Sky Scrap Metal payment is made on the spot.

Is Recycled Steel Worth Money?

Yes. Recycled steel has real value because steel can be melted down and reused almost indefinitely without losing quality, and recycling it uses far less energy than making new steel from iron ore. That is why scrap yards are always willing to pay for it, and why Victoria’s construction recovery and major infrastructure projects keep steel demand firm through 2026.

What About Stainless Steel?

Stainless steel is a different, more valuable product and is priced separately, usually around $0.75 to $2.00 per kilogram for 304 and 316 grades. If your scrap is stainless rather than mild steel, do not lump it in with ordinary steel, because you will be underpaid. See our stainless steel scrap page for grades and details.

What Affects the Steel Price You Are Paid

• Grade and thickness. Heavy, clean steel is worth more per kilogram than thin or mixed steel.
• Contamination. Rubber, plastic, concrete, timber, and dirt reduce the rate, because the yard has to process them out. A load with non metal attachments can be downgraded to the lowest grade in the mix.
• Volume. Larger loads often attract a better per kilogram or per tonne rate and may qualify for collection.
• Global steel demand. Iron ore and international Heavy Melting Steel benchmarks move local prices, and Victoria’s infrastructure pipeline has supported steel through 2026.
• The yard itself. A licensed yard with strong wholesale relationships usually pays more than a casual buyer.

How to Recycle and Sell Scrap Steel in Melbourne

1. Separate your grades. Keep heavy steel, light steel, and cast iron in separate piles so each is priced at its own rate rather than as one mixed load.
2. Strip non metal attachments. Remove rubber, plastic, timber, and concrete where it is safe and practical.
3. Build up volume. Steel is low value per kilogram, so it pays to accumulate a worthwhile load, or book a collection for bulk.
4. Call ahead for the current rate. Steel prices move daily, so a quick call before you load up avoids surprises at the weighbridge.
5. Bring photo ID. Licensed Victorian yards record valid photo identification for every transaction, so bring your driver licence.

For ongoing trade and factory volumes, an arranged collection is usually more profitable than ad hoc drop offs. We explain this in our guide on how Melbourne manufacturers save thousands through scrap steel recycling, and you can read more about our process on our scrap metal recycling page.

Frequently Asked Questions

Q. How much is scrap steel worth?

In Melbourne in 2026, scrap steel is generally worth about $0.05 to $0.45 per kilogram depending on grade. Heavy clean steel is at the top of the range and light or mixed steel at the bottom. Call 0402 757 290 for a current rate.

Q. How much is steel per kg?

Heavy Melting Steel is roughly $0.20 to $0.45 per kilogram, and light or mixed steel is about $0.05 to $0.20 per kilogram, in Melbourne in 2026.

Q. How much is scrap steel worth per tonne?

Heavy Melting Steel is broadly $200 to $450 per tonne in Melbourne in 2026, while light steel returns about $50 to $200 per tonne. Prices change daily.

Q. How much for scrap steel per pound?

Australia prices scrap per kilogram, not per pound. One kilogram is about 2.2 pounds, so a heavy steel rate of $0.44 per kilogram is roughly $0.20 per pound.

Q. How much does scrap iron sell for?

Scrap iron and cast iron generally sell for about $0.10 to $0.20 per kilogram in Melbourne. Keep cast iron separate from light steel for the best rate.

Q. How much is cast iron worth in scrap?

Cast iron is usually worth about $0.10 to $0.20 per kilogram. It is dense and melts down well, so it often matches or slightly beats light steel.

Q. How much do scrap yards pay for steel?

Licensed Melbourne yards pay around $0.20 to $0.45 per kilogram for heavy clean steel and $0.05 to $0.20 for light or mixed steel, with better rates for larger, sorted loads.

Q. How much do you get for scrap steel?

Your payout is the weight of your steel multiplied by the grade rate. As an example, 500 kilograms of heavy steel at about $0.30 per kilogram returns roughly $150. You are paid after weighing and inspection.

Q. Is recycled steel worth money?

Yes. Steel can be recycled almost indefinitely and recycling uses far less energy than new production, so yards always pay for it. Recycled steel sells at the same grade rates as other scrap steel.

Q. How do I recycle steel in Melbourne?

Sort your steel by grade, strip non metal attachments, bring photo ID, and take it to a licensed yard such as Sky Scrap Metal in Dandenong, or book a collection for large loads. You are paid on the spot after weighing.

Q. Why is steel cheaper than copper or brass?

Steel is a ferrous metal that is abundant and inexpensive to produce, so it sits at the bottom of the price scale. Copper, brass, and aluminium are non ferrous and far more valuable per kilogram. The value in steel comes from selling it in volume.

Sell Your Scrap to Sky Scrap Metal in Dandenong

Sky Scrap Metal is a licensed scrap metal buyer based at 297 Hammond Road, Dandenong, in Melbourne’s south east. We buy all grades of ferrous and non ferrous metal from homeowners, tradies, demolition crews, and businesses, and we pay on the spot after weighing and inspection. Call or send a photo for a quick estimate, drop in to the yard, or book a collection for larger loads.

Call: 0402 757 290 or 03 8753 6373

Yard: 297 Hammond Road, Dandenong, VIC 3175

Hours: Monday to Friday 8:00 am to 5:00 pm, Saturday 8:00 am to 12:30 pm

Get a quote: Request a price for your scrap