Scrap recycling is important to create a more sustainable or circular economy that uses much less energy. The waste recycling industry is a major source of employment, from collection and processing to production from recycled materials, and has a much lower environmental impact than producing metal from ores.

Recycling of metals, including structural steel, ships and used industrial goods such as vehicles and household appliances, is a major industrial activity involving a complex network of scrap yards, sorting facilities and recycling factories.

The industry encompasses both formal organizations and a wide range of informal roles, with waste pickers and others working in the informal economy around the world playing key roles in waste sorting.