Resource efficiency and circularity in the context of sustainability are rapidly gaining importance in the steel industry. One concept regarding circular economy is “repurposing”. In the context of this work, worn-out machine circular knives are used to produce new chisels for woodturning. The chisels can be extracted parallel or perpendicular to the rolling direction of the primary production process, resulting in an associated carbide orientation of the repurposed tool. The rolling direction, and therefore carbide alignment, will influence the wear resistance and the thermophysical properties, whereby the thermal conductivity will determine the temperatures at the tip of the chisel. Therefore, the thermal conductivity was investigated with the dynamic measurement method, where the specific heat capacity, density and thermal diffusivity of the extracted chisels and industrial reference chisels were measured separately. Moreover, the electrical resistivity was measured in order to calculate the electronic thermal conductivity according to the Wiedemann–Franz–Lorenz law. It was shown that all of these parameters exhibited different degrees of variability with rising temperature. In a detailed analysis, the thermal diffusivity could be identified as an essential parameter of thermal conductivity. By taking two conventional chisels with different chemical compositions and heat treatments into account, it can be seen that the microstructure determines the thermophysical properties. Considering the carbide direction, the chisels that were extracted parallel to the rolling direction showed differing thermophysical properties. Therefore, the carbide orientation is shown to play a significant role regarding the heat dissipation at the cutting edge, because differences, especially in the electronic thermal conductivity in the parallel and perpendicular extracted chisels, can be measured. In addition to the wear resistance factor, the thermal conductivity factor now also supports the removal of the repurposed chisels parallel to the rolling direction.