Scrap Steel Prices in Melbourne
Scrap steel in Melbourne currently pays from $0.05 per kilogram for light steel up to $0.07 for heavy melting steel (hms). As the capital of Victoria, Melbourne has the densest scrap yard network in the state.
Steel grades and payouts in Melbourne (per kg)
Estimated yard payouts for each grade, based on the current LME spot ($0.42/kg) and Melbourne's 0.98× regional adjustment. Actual offers vary by yard, load size, and material quality.
| Grade | Payout rate | Est. mid (AUD/kg) | Range |
|---|---|---|---|
| Heavy Melting Steel (HMS) Steel at least 6mm thick. Standard ferrous grade for export markets. | 18% | $0.07 | $0.06 – $0.09 |
| Light Steel Thinner sheet steel, appliance cabinets, light gauge profiles. | 12% | $0.05 | $0.04 – $0.06 |
Price history
Local Melbourne prices track the national steel series — multiply by 0.98 for Melbourne equivalents. View the full 30-day chart on the national steel page.
Where these numbers come from
| Figure | Value | Source | Type | Checked |
|---|---|---|---|---|
| Steel spot price | A$0.42/kg | Fixed site estimate of A$0.42/kg | Fixed estimate, not a market feed | |
| Melbourne regional factor | 0.98× | Our model (freight distance and yard rate differences) | Our estimate | |
| Steel grade payout rates | 18% / 12% | Our estimate from published yard rate cards | Our estimate |
Spot prices are converted to Australian dollars per kilogram. Yard payouts are our estimates (spot × grade payout rate × regional factor), not quotes from any yard. Set when the site launched on 2026-05-16 and not updated since. No live steel scrap price feed is used. Full detail: methodology.
Steel in Melbourne
Melbourne's scrap industry is concentrated in the western and northern suburbs — Laverton, Brooklyn, Sunshine, Campbellfield. The Port of Melbourne handles a large share of Australia's metal exports, keeping wholesale prices competitive.
As a capital city, Melbourne has the densest scrap yard concentration in Victoria, with active buyers for all common steel grades. Industrial demolition, residential renovations, and trade volumes from electricians, plumbers, and panel beaters provide consistent supply.
Scrap yards in Melbourne that buy steel
87 scrap yards listed in the Melbourne area. Browse all yards in Melbourne →
Frequently asked questions
What's the current price for scrap steel in Melbourne? +
Today's estimated payouts in Melbourne range from $0.05 per kilogram (light steel) up to $0.07 (heavy melting steel (hms)). Prices update daily and reflect Melbourne's 0.98× regional adjustment from the Sydney benchmark. See the grades table above for all payouts.
Where can I sell scrap steel in Melbourne? +
Check the Melbourne yard directory for addresses and phone numbers, then call 2-3 yards before transport. Most Melbourne yards accept steel in all common grades, though smaller yards may have minimum weight requirements.
Why does Melbourne pay 2% less than Sydney for steel? +
Transport cost. Steel sold in Melbourne eventually travels to a smelter or export port — typically via the state capital — and yards price the freight cost into their offer. The 0.98× regional adjustment models this transport drag based on observed yard rates and distance to processing facilities.
How is steel graded at Melbourne yards? +
Melbourne yards use the same grading system as the rest of Australia: Heavy Melting Steel (HMS), Light Steel. The grade depends on cleanliness, alloy purity, and contamination. See our complete <a href="/metals/steel/">Steel grading guide</a> for what each grade means, examples, and how to identify it.
Do Melbourne scrap yards require photo ID? +
Yes, for every scrap sale. When buying scrap metal the dealer must record the seller's name, address and identification details. Second-hand dealers accept one photo ID (passport, driver licence, a photo document issued by a statutory authority, a tertiary student card or a firearms licence) or two non-photo documents such as a birth certificate, citizenship certificate, marriage certificate or a Commonwealth health or pensioner card. (No stand-alone scrap metal Act. Scrap metal dealers and auto wreckers are regulated under the Second-Hand Dealers and Pawnbrokers Act 1989 and its regulations; last checked 2026-09-02.)
Can I be paid cash for scrap metal in Melbourne? +
Cash is banned, in force since 30 May 2018. A dealer must not pay or receive cash for scrap metal. Payment can only be by a cheque that is not transferable or payable to cash, or by electronic funds transfer, and e-currency such as bitcoin is not allowed. Penalty up to 200 penalty units, or a 12 penalty unit on-the-spot fine. (Last checked 2026-09-02.)
Is it worth driving from Melbourne to a bigger city for higher steel rates? +
Melbourne rates are already at or near the national best (0.98× regional adjustment). Driving to another city is unlikely to produce a meaningful upside for steel sales.