This study examines the environmental and economic benefits of waste recovery in steel plants using life cycle assessment (LCA), metallurgical analysis, and economic feasibility studies. The LCA, conducted with GaBi software, indicates that recycled steel reduces carbon dioxide emissions by 80%, energy consumption by 70%, and water usage by 60% compared to virgin steel. Waste recovery assessment identified key recyclable fractions from steel melting shops, blooming mills, and rolling mills. A comparative analysis with virgin steel, aluminium, and copper indicates that recycled steel has the lowest carbon footprint and exhibits superior recycling efficiency, particularly in well-managed industrial processes using electric arc furnace technology. The techno-economic study demonstrated 40% cost savings in material procurement, with a return on investment under two years and an internal rate of return of 35%. Long-term durability studies confirmed that recycled T22-grade steel maintains its structural integrity, fatigue strength, and corrosion resistance over time. These findings support global sustainability targets, including the Paris Agreement and India’s National Steel Policy, and highlight the role of artificial intelligence, blockchain, and predictive analytics in optimising waste recovery. This study reinforces the potential of sustainable steel manufacturing to enhance cost efficiency, reduce emissions, and promote circular economy practices.