Hi! :)

 Are there any specific machinery that can be used to recycle steel at the community or city level. All I see here are industrial-sized steel producing plants. A smaller system could  boost  recycling  at the grass-roots level. Thanks. :)
 

Yes it is true, the smaller one can go (and still have a profit) the more one can get done on grass root, and this is where one must start. If one starts small community organizations/companies, it is easier to have more people get serious about it.

 In the past I had this linked i looked at some small scale (as well as large scale) equipment. Have a look and you might find something that can assist your community in getting going.

http://www.eriez.com/Products/Markets/Recycling/

 Interesting site. Thanks. I already see some equipment that might prove useful, like the drum separators.

Your right about community involvement,  if waste processing is brought down to their level rather than some distant gargantuan plant, people will be more active in recycling. :)