Scrap metal refers to metal fragments and debris discarded by industries and metal processing, as well as metalware discarded after equipment upgrades. It also includes metal packaging materials, scrap cars, and other metal items collected from municipal waste. Scrap metal is a resource, and specialized companies worldwide specialize in scrap recycling. Scrap metal is primarily used for smelting and reuse, with some used in the production of industrial equipment and parts, tools, and consumer electronics. The main sources of scrap metal are as follows:

1. Internal Scrap Metal
This is scrap metal generated within manufacturing companies and reused as raw material for their own production. Typically, this scrap metal does not enter the market.

2. Processed Scrap Metal
This is scrap metal generated by domestic metal manufacturing companies and returned to metal recycling plants for reuse as raw material. Typically, this scrap metal returns to recycling plants within a few weeks of its generation, hence the name "short-term scrap metal."

3. Depreciated Scrap Metal
This is scrap metal generated when metal products reach the end of their useful life and are scrapped. Since the formation of depreciated scrap metal requires several life cycle stages such as metal production, manufacturing of metal products, use, scrapping and recycling, which generally takes several years or even more than ten years, depreciated scrap metal is also called "long-term scrap metal".

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