Scrap steel recycling has become a crucial part of the Australian metal economy, supporting sustainability while offering a source of extra income for individuals and businesses. Whether you’re clearing out a workshop, demolishing a building, or simply wondering what to do with old metal, understanding the value of scrap steel is essential. But how much is 1 tonne (1,000 kg) of scrap steel really worth in Australia?
The answer depends on several factors: market demand, the type and condition of the steel, location, and more. In this blog, we’ll break down what drives scrap steel prices, current estimated values, and how you can maximise your return.
Before diving into price tags, let’s explore the key factors that influence how much money you can get for a tonne of scrap steel:
| Factor | Why It Matters |
| Type of Steel | Not all steel is the same. Thick structural beams are more valuable than thin sheet metal or mixed scrap. |
| Cleanliness / Contamination | Scrap with rust, paint, plastic, or non-metal parts is often downgraded or rejected. Clean steel gets a better price. |
| Quantity | Large hauls (several tonnes) are more appealing to buyers than small pickups and usually fetch a better rate. |
| Location | Proximity to scrapyards or ports can reduce transport costs and improve pricing. Regional areas may see lower offers. |
| Market Demand | Scrap prices fluctuate with global steel demand, export volumes, and raw material shortages. |
| Scrapyard Policies | Different yards offer different rates and may apply handling fees or impose minimum weight requirements. |
As of late 2025, the going rate for scrap steel in Australia varies depending on the type and quality. Here’s a rough breakdown:
| Type of Scrap Steel | Typical Price Range (AUD per tonne) |
| Heavy Melting Steel (thick, clean structural steel) | $220 – $300 |
| Light Gauge Steel (sheet metal, whitegoods, thin profiles) | $150 – $210 |
| Mixed or Contaminated Steel | $100 – $180 |
A fair average for general, reasonably clean scrap steel is around $200 per tonne.
This is not a fixed price, yards may offer more or less depending on your specific haul, your location, and market conditions at the time.
Let’s explore a few examples to show how different types of scrap could be priced:
Many scrap dealers list prices per kilogram because it’s easier to calculate for small loads:
This makes it easier for sellers who don’t have an exact tonne to calculate their expected return. For instance, if your load weighs 500 kg and the going rate is $0.18/kg, you can expect to earn around $90.
Even if you’re quoted $200 per tonne, that’s not always what you’ll take home. Here are a few things that can reduce your payout:
To get the best possible price for your scrap steel:
In 2025, prices have remained relatively stable after a few years of fluctuation during and after the global shipping and supply disruptions. However, international demand from construction and manufacturing sectors can drive prices up or down in the short term.
Seasonal demand, economic conditions, and policy changes, such as restrictions on scrap metal exports, also affect what local yards are willing to pay.
In Australia today, the price of 1 tonne of scrap steel typically ranges between $150 and $300, depending on the type, condition, and your location. For general planning, you can expect around $200 per tonne as a realistic average for clean, mixed steel scrap.
For those with large volumes or consistently clean material, the return can add up quickly and it’s a win for your wallet and the environment.
If you’re considering selling scrap steel, take the time to compare rates, clean your materials, and negotiate where possible. A few small steps can make a big difference in what you earn per tonne.
