Mill scale, often shortened to just scale, is the flaky surface of hot rolled steel, consisting of the mixed iron oxides iron(II) oxide (FeO, wüstite), iron(III) oxide (Fe2O3, hematite), and iron(II,III) oxide (Fe3O4, magnetite).

Mill scale is formed on the outer surfaces of plates, sheets or profiles when they are produced by passing red hot iron or steel billets through rolling mills. Mill scale is bluish-black in color. It is usually less than 0.1 mm (0.0039 in) thick, and initially adheres to the steel surface and protects it from atmospheric corrosion provided no break occurs in this coating.

Mill scale becomes a nuisance when the steel is to be processed. Any paint applied over it is wasted, since it will come off with the scale as moisture-laden air gets under it. Thus mill scale can be removed from steel surfaces by flame cleaning, pickling, or abrasive blasting, which are all tedious operations that consume energy. This is why shipbuilders and steel fixers used to leave steel and rebar delivered freshly rolled from mills out in the open to allow it to 'weather' until most of the scale fell off due to atmospheric action. Nowadays, most steel mills can supply their product with mill scale removed and steel coated with shop primers over which welding or painting can be done safely.

More Info: en.wikipedia.org