Burnt Scrap Metal is an item that can be aquired and sold to Shipyards and Station Parts Stations. It can be aquired by mining wrecks.

In order to mine the wreck, simply shoot it with your ship's main weapon (Spacebar). With every shot landed, there is a chance that a piece of scrap will break off.   Be careful when collecting Scrap Metal, if you come in contact with the wreck, your ship will take damage and may be destroyed.

To pick the Scrap Metal up, click on it and then click the <E> key to send your Grappler out to retieve it.  Click <E> again to return the Grappler to your ship.   You will need to have 2 units of cargo free, it will be added to your inventory.