Short answer: No, rusty steel and iron are bought as scrap all the time, because the metal underneath is still steel, so heavy rust does not make an item worthless, although very badly corroded material may weigh less than it did, and attached dirt, soil, concrete or other non-metal parts can lead to deductions.
Want real numbers? Compare current offers from verified buyers.
List Free →Why rust is not the problem
Rust is simply oxidised iron, and scrap steel is melted down and refined, so surface rust is not something buyers usually worry about.
What buyers do care about
Contamination such as soil, concrete, rubber and plastic is more of an issue than rust, since it reduces the amount of usable metal in the load.
What to do before selling
Knock off loose dirt and remove obvious attachments, but do not spend time scrubbing rust that the buyer will not pay extra to see removed.
How ScrapTrade Fits In
ScrapTrade buyers quote on rusty steel as a matter of course, so you can list it as it is.
Facts beat folklore when you sell. ScrapTrade shows current prices and connects you with verified buyers, transparent weighing and escrow-protected payments.
List or Find Scrap on ScrapTrade →