Yeah. It's indeed about the labels. However, even scrap has little value compared with actual resources. That's why we call it upcycling in jargon.

Take the best wood, FSC certified wood. If you saw it in two it should be shortened wood. But no. As soon as it lands in the trash, it's scrap as you say. It has some value as fuel. But that'a not a lot of value. If you could have used it as a shorter beam for building it would be worth much more...

Also, as soon as something is labeled waste, you are not allowed to reuse it often. Many laws in our country forbid it. Too bad for sustainability, because often it's very usable stuff for upcycling.