Hi,
Thank you for this great mod idea. Unfortunately, there seems to be an incompatibility with the most recent stable version of Factorio (2.0.41). Scrap can be manually placed into a recycler, but inserters will not transfer scrap into a recycler.
Just wanted to let you know about this issue :)
To confirm, this issue persisted when I had only the following modules enabled:
base
blueprint-sandboxes
elevated-rails
quality
RecyclersEraseQuality
space-age