The invention is directed to a method for processing asbestos-containing steel scrap into useful products, which products can be handled in a safe manner. In accordance with the present invention the asbestos-containing steel scrap is melted in a furnace, which results in destruction of the asbestos fibers. It has been found possible to carry out such a process in an economically feasible manner. In accordance with the invention asbestos-containing steel is heated to high temperature so that the steel melts. As a result the asbestos will be converted into harmless material, which allows for safe handling and processing of the resulting products.