Scrap iron is partially oxidized at elevated temperatures to produce iron oxide and a dense residual metal of high purity. Investigation of the process was confined to converting automobile hulks into useful products. In one test series, compressed, sheared automobile scrap was processed at 1,000 deg c in a 36-foot-long rotary kiln at feed rates ranging from 300 to 1,200 lb/hr. Less fuel was required to maintain the temperature at the higher feed rates because of the heat generated from the burning of the combustibles and the oxidation of the iron. In an attempt to lower the quantity of contaminants in the residual metal, another test was designed using automobile hulks that had been prepared by ripping, a low-cost method of scrap fragmentation. Before oxidizing the ripped scrap, approximately 62 percent of the total copper was removed in a tumbling, screening, magnetic separation, and hand-sorting system. Cast iron made from the residual metal obtained by selective oxidation contained 0.15 percent copper; iron oxide scale obtained from the kiln averaged 0.13 percent copper. Pellets made from the scale demonstrated compressive strengths necessary for blast furnace reduction; lead and zinc were removed by volatilization when the induration was performed in a reducing atmosphere.