How Recycled Steel Is Changing Canada’s Construction Industry

What if the steel from old bridges became the backbone of new skylines?
Across Canada, that’s already happening and it’s changing how we build.

Construction faces a tough mix of high material costs, carbon targets, and tight deadlines. Builders need strong, affordable, and sustainable options.

Recycled steel delivers all three.
It cuts emissions by up to 75%, meets LEED standards, and helps projects stay on budget.

This article shows how recycled steel is transforming Canada’s construction industry with real examples, simple steps, and insights you can use on your next build.

Canada’s Construction Revolution: Built on Recycled Steel

Imagine the steel beams from a decommissioned bridge being cleaned, melted, and then rising again as the skeleton of a new high-rise in downtown Toronto. That’s the kind of story we’re seeing unfold in Canada’s construction industry.

Quick stat

Steel is one of Canada’s most recycled materials: for example, the recycling rate for structural steel in some provinces is reported at over 90%.

Additionally, steel recycling is so energy-efficient that using recycled steel saves about 74% of energy compared to virgin steel production.

Why this matters for developers, architects, and builders

  • Sustainability demands are growing. From net-zero goals to LEED certifications, decision-makers now require materials that reduce carbon and waste. Using recycled steel is a strong step in that direction.
  • Material costs and supply chains are under pressure. Rather than relying purely on virgin steel (with its associated ore extraction, transport, and manufacturing), recycled steel introduces circularity and local sourcing options.
  • Branding and market differentiation. Projects that visibly incorporate recycled steel send a signal to investors, tenants, and the public: you’re building smart and responsibly.
  • Regulatory and environmental compliance. With regulations tightening around embodied carbon, choosing recycled steel helps stay ahead of the curve.

Beyond Green Steel: The Rise of Recycled Steel in Canada

What is recycled steel?

Recycled steel is steel that has been melted down and re-used rather than made entirely from new iron ore. In Canada, this process often uses an electric arc furnace (EAF) that can use 95% or more recycled steel scrap.

It differs from “green steel,” which may refer to steel produced with lower carbon emissions (for example via new technologies or low-carbon energy), but recycled steel is a strong part of that equation.

How recycled steel complements green steel & LEED compliance

  • Since recycled steel uses less new raw material and less energy, it fits well with low-embodied-carbon goals. For instance, steel is “100% recyclable and the most recycled material in the world.”
  • For building-standards like LEED or other green codes, specifying high recycled content gets you points: e.g., steel building products in Canada have a minimum ~25% recycled content (for BOF-based) and >95% for EAF-based.
  • Using recycled steel signals a circular economy approach with less waste, fewer new materials, more reuse which increasingly appeals to clients and regulators.

Industry trend in Canada

  • One study indicates Canada already recycles about 16–18 million tonnes of steel each year across sectors. 
  • According to a metal-recycling summary: “Canada recycles 90% of structural steel from construction sites,” making structural steel among the most recycled materials in Canadian construction.
  • The mature steel recycling industry is complemented by an emerging “reuse” market (reusing structural steel members rather than remaking them) which can cut embodied carbon by up to 97% versus virgin steel. 

How Recycled Steel Is Transforming the Canadian Construction Industry

Here’s how using recycled steel is changing the game in Canada’s construction sector environmentally, economically, and culturally.

Environmental Transformation

  • Using recycled steel (via scrap-based electric arc furnaces) drastically cuts CO₂ emissions. For example, one study says that steel reuse can reduce embodied carbon by up to 97% compared to conventional steel production. 
  • The broader Canadian steel industry notes that steel is 100 % recyclable and that using scrap reduces reliance on raw iron ore or coal. 
  • In terms of energy, recycling steel consumes significantly less than producing virgin steel meaning fewer raw-material extractions, less waste, and a smaller environmental footprint. 

Economic Transformation

  • Shorter supply chains: By sourcing recycled steel locally (or regionally) rather than importing raw materials, projects in Canada can see improved logistics, fewer delays, and potentially lower transport costs.
  • Cost savings: Reduced embodied-carbon design, streamlined material sourcing, and sustainable branding can translate into fewer unexpected costs and higher project value. For example, research indicates that carbon-conscious building design in Canada can cut embodied emissions by up to 41% while also saving hundreds of thousands of dollars in material costs.
  • Long-term asset value: Structures built with sustainable materials often command higher market value, have better tenant appeal, and may benefit from government incentives tied to green construction.

Cultural Transformation

  • Sustainability branding: Developers and architects in Canada increasingly highlight the use of recycled steel as part of their ESG (Environmental, Social, Governance) strategy. It’s a signal to clients and communities that the project is “doing the right thing.”
  • Industry mindset shift: The shift from “virgin steel only” to “recycled steel acceptable (and preferred)” is gaining traction. The industry is embracing circular economy principles more visibly.
  • Regulatory alignment: As more jurisdictions require embodied-carbon reporting, specifying recycled steel becomes a competitive advantage for winning bids and meeting code/green-building standards.

Case Studies: Recycled Steel Projects Changing the Game

1. Centre Block Rehabilitation — Ottawa

Centre Block Rehabilitation

In 2023, the major rehabilitation of Centre Block on Parliament Hill in Ottawa was highlighted as “a prime example of structural steel reuse”.

Rather than simply demolishing the existing steelwork, the project prioritized reusing structural steel components where feasible. This shows that even high-profile, sensitive heritage buildings can embrace recycled/reused steel.
The key takeaway: reuse isn’t just for new builds, retrofit and landmark projects can benefit too.

2. Canadian Structural Steel Reuse Industry

An industry-wide study titled “Building the structural steel reuse industry in Canada” examines how structural steel is being reused and recycled across Canada. 

Key findings:

  • Reclaimed steel from demolished buildings can significantly reduce embodied carbon.
  • Barriers include supply-chain friction, documentation, quality control and cost uncertainty.
  • Where those barriers are addressed, reuse and recycled steel become competitive with new steel in cost and schedule. This shows the market momentum rather than just isolated projects.

3. Additional Research on Steel Re-Use & Recycling in Canada

Research conducted by Natural Resources Canada (NRCan) and other Canadian institutions highlights how steel recovery and reuse supports circular economy goals in Canada. 

For example: studies show that reuse can cut GHG emissions by ~29-33% in the production stage compared with new steel. 

These broader data points back the case studies with solid research.

The Business Advantage of Recycled Steel

Using recycled steel isn’t just about being “green” it delivers clear business benefits for builders, developers and investors. Here are the major advantages and how you can capitalise on them.

Lower Embodied Carbon = Higher Marketability

  • Recycled steel helps projects significantly reduce embodied-carbon footprints, a key metric for modern clients and regulators.
  • Builders can market a high recycled-content building as a premium, differentiating it in a crowded construction market.
  • The fact that steel is “100% recyclable and the most recycled material in the world” underscores its appeal in circular-economy messaging.

Simplified Green Building Certification & ESG Score

  • Using recycled steel aligns with many green building standards (such as LEED), helping you earn credits for recycled content and material reuse.
  • Sustainability-themed projects attract users, tenants and investors looking for ESG (Environmental, Social, Governance) credentials recycled steel supports those goals.

Cost, Waste and Supply-Chain Efficiency

  • Prefabricated and recycled steel systems often lead to faster construction times, less waste and fewer surprises on site.
  • With shorter supply chains local scrap steel, local processing you reduce transport costs, risk of delays and exposure to raw-material inflation.
  • Because recycled steel uses less virgin material, you can hedge against rising commodity prices and tighter access to raw-material supply.

Higher ROI and Long-Term Value

  • Durable, recyclable steel buildings are likely to require less maintenance and have longer useful life, which improves total cost of ownership.
  • As sustainability becomes non-negotiable in property value and tenant decisions, buildings with documented recycled steel may command better rents or resale value.
  • Public-sector and private tenders increasingly favour low-carbon materials , using recycled steel can open new business opportunities and tenders.

What’s Holding Builders Back and How to Overcome It

Using recycled steel has big potential, but some real-world barriers still exist in Canada. Understanding these challenges and knowing how to tackle them can help you move confidently into your next project.

Key Challenges

  1. Misconception: “Recycled steel is weaker”
    Some design teams and owners hesitate because they believe reused or recycled steel may not meet structural performance standards. In fact, research reveals that one major barrier in Canada is uncertainty about the structural properties of reused steel. 

This fear leads to conservative choices and missed opportunities.

  1. Concern: Availability & consistency of supply

Even when recycled steel is acceptable, builders worry about whether the right sizes, grades, and volumes will be available when they need it. Extraction, processing, and supply-chain readiness for recycled components still lag behind virgin-steel supply. 

  1. Documentation & Standardization Issues

Many projects struggle with the documentation required for recycled-content materials: traceability, certifications, and compliance with building codes or green-building standards. The lack of standard methods just for recycled steel complicates the process.

  1. Design & Scheduling Constraints

Projects often don’t allow for the extra time needed to de-construct and salvage steel, adapt design to material availability, or integrate recycled steel into pre-engineered systems. Time pressure leads to choosing the easiest option (often virgin steel).

How to Overcome These Challenges

  • Address the performance myth upfront: Require material test reports, structural certificates, and third-party verification for recycled steel. Communicate these to engineers and owners early.
  • Secure supply chain early: Engage a supplier who offers certified recycled-content steel and has a reliable inventory or sourcing strategy. Build this into your procurement schedule.
  • Use documented recycled-steel systems: Prefer pre-engineered systems and suppliers who provide full recycled-content documentation , this simplifies LEED or carbon-reporting requirements.
  • Incorporate time for de-construction or selective salvage: If re-use of existing steel is in the plan, allocate schedule and budget accordingly. Design for deconstruction from Day 1.
  • Standardize specs & terminology: Work with your team to adopt consistent definitions (e.g., “recycled content”, “reused structural steel”, “certified recycled”) so everyone interprets the same way.
  • Choose qualified partners: Select fabricators and suppliers experienced with recycled steel. They’ll be familiar with the extra checks and certifications needed.

Step-by-Step: How to Adopt Recycled Steel in Your Next Project

Follow this simple path. It keeps carbon low and paperwork clean.

1) Check if your project is a good fit

  • Start with scope and timing.
  • Recycled steel works for retrofits, new builds, and prefab.
  • Confirm structural specs against CSA G40.21 early. This avoids redesigns later. 

Quick win: Add a line in your Basis of Design: “All structural steel to conform to CSA G40.21. Recycled content and EPDs required.”

2) Pre-qualify a certified supplier

Shortlist mills and fabricators that can prove recycled content and provide EPDs.
Canada has verified industry-average EPDs for hot-rolled and cold-formed steel, plus plant-specific EPDs (e.g., Gerdau Selkirk, MB). 

Ask for:

  • Current EPD (valid dates, product scope).
  • Mill Test Reports (MTRs) for heat numbers and grades.
  • Statement of recycled content and production route (EAF/BOF). 

3) Bake requirements into your drawings and specs

In the specs, require:

  • CSA G40.21 compliance for all shapes and plates. 
  • Recycled content documentation. LEED v4 allows a default 25% post-consumer for steel when exact data is not available, but project-specific EPDs are stronger.
  • EPDs to support embodied-carbon reporting and procurement.

Tip: Include a submittal log item for “Steel EPD + MTR bundle” so the GC cannot miss it.

4) Align with LEED or the Zero Carbon Building Standard

For LEED v4/v4.1 (MR credits), recycled content and EPDs contribute to Sourcing of Raw Materials and Building Product Disclosure and Optimization. Use v4.1 substitutions if your project is registered under v4.

For CaGBC Zero Carbon Building (ZCB), track whole-life carbon and use verified data (EPDs, transport distances) in your LCA. 

5) Lock the supply chain and traceability

Before fabrication, confirm:

  • Heat numbers match drawings and MTRs. 
  • EPD versions are valid through your procurement window. 
  • Recycled content claims tie to the actual mill route (EAF often has very high scrap content). 

Document it in a simple Steel Submittal Matrix (item, standard, EPD, MTR, status).

6) Install with verification in mind

During delivery and erection, keep:

  • Bills of lading with heat numbers.
  • Any change orders that affect steel source or grade.
  • Photos of member tags for QA.

These make LEED/ZCB reviews smoother and speed up closeout. 

7) Close out and market the win

At the end, issue a one-page summary: recycled content %, EPD references, and estimated embodied-carbon savings.
Use CSPA and supplier language to support your narrative that steel is highly recyclable and central to circular construction in Canada. 

Build Your Next Project with Certified Recycled Steel

Every new building is a chance to do better to build smarter, cleaner, and stronger.
At Metal Pro Buildings, we make that easy.

We provide pre-engineered, LEED-compatible steel building systems made with certified recycled steel, helping Canadian builders meet sustainability goals without sacrificing performance or profit.

Why Partner with Metal Pro Buildings

  • Certified Recycled Steel: Verified recycled content and mill documentation for your LEED or ESG reporting.
  • Modular Efficiency: Faster assembly, lower waste, and shorter timelines.
  • Sustainable ROI: Reduced embodied carbon, fewer maintenance costs, and long-term durability.
  • End-to-End Support: Our experts handle design specs, documentation, and certification paperwork for you.

Start Building the Future Today

Whether you’re designing a new commercial space, industrial facility, or agricultural structure, Metal Pro Buildings can help you make sustainability a cornerstone of your project not an afterthought.

Get a Sustainable Steel Quote

Because Canada’s strongest buildings are built on a sustainable foundation and Metal Pro Buildings is ready to help you create yours today.

FAQ

What are the challenges of sourcing recycled steel for construction in Canada? +

The main challenges include availability, certification, and documentation. Not all suppliers provide verified recycled content or environmental product declarations (EPDs), which are required for LEED and green building certifications. Working with trusted suppliers like Metal Pro Buildings ensures consistent quality, traceable materials, and proper documentation to meet sustainability standards and project deadlines.

What cost savings can builders expect when choosing recycled steel in Canada? +

Recycled steel can help reduce overall construction costs by 10–20% through shorter supply chains, less material waste, and faster installation. Because it’s produced locally, recycled steel also protects builders from global price fluctuations and shipping delays. Its durability and low maintenance needs further reduce long-term costs, making it a smart investment for both commercial and industrial projects.

How much recycled steel is used in Canadian building projects today? +

Over 90% of structural steel used in Canadian construction comes from recycled sources. This makes steel one of the country’s most sustainable and reused building materials. Most of it is produced through electric arc furnaces (EAFs), which melt down scrap metal to create new, high-quality steel for modern structures.

What role does recycled steel play in Canada’s construction industry? +

Recycled steel is at the heart of Canada’s move toward sustainable construction. It’s used in everything from commercial buildings to industrial warehouses, offering the same strength and performance as new steel but with far lower environmental impact. By using recycled steel, builders help reduce carbon emissions, cut down on landfill waste, and support Canada’s growing circular economy.

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