Pieces of steel scrap are charged into a ladle by a magnet on a crane so that the central part of the charge is substantially denser than the peripheral part. A cover having a plurality of natural gas-oxygen burners mounted around its periphery is then placed on top of the ladle to obtain a substantially gas tight container except for a flue opening and some small openings due to a non-tight fit between ladle and cover adjacent the top. The burners direct their flames downwardly parallel to the sidewall of the ladle and the combustion gases are discharged through the flue opening. The flames are reducing in nature and the container is under a positive pressure. The heating is continued until the scrap is at a temperature of at least approximately 1,500.degree.F and preferably approaching the melting point of the scrap. Molten iron in substantially greater weight that the scrap and having a substantially higher carbon content is then poured into the ladle so that the majority of the scrap is melted. The mixture is then easily poured from the ladle into the oxygen converter.