A lot of things exist in three states, solid, liquid, and gas. Transitioning between these states as the temperatures go higher. Water goes from ice, to liquid, to gas as the temperature increases. So does iron, aluminum, . . . , etc. When a space crat “burns” up, it’s just the material turning into a liquid or a gas and being dispersed. The tons of metal just turn into tons of gas or liquid.
As it burns, the spaceship turns into smoke particles. These particles will generally slowly settle back down to earth as dust. Most of the metals will turn into metal oxide atoms (burn and combine with oxygen). Other parts of the spaceship such as carbon fiber or plastic may turn into a gas like CO2 instead of dust.
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