The method relates to metallurgical recycling of waste products, preferably titanium alloys chips scrap. Accordingly after crushing and cleaning, the chip scrap is subjected to vacuum-thermal degassing (VTD); the chip scrap is pressed into briquettes; the briquettes are placed into a mould allowing sufficient remaining space for the addition of molten metal alloy; the mould is pre-heated before filling with the molten metal alloy; the mould remaining space is filled with molten metal alloy. After cooling, the electrode is removed from the mould. The method provides a means for 100% use of chip scrap in producing consumable electrodes having increased mechanical strength and reduced interstitial impurities content leading to improved secondary cast alloys.