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Drop rate increases dramatically after you defeat the boss at the top of the castle from most regular enemies.
I managed to get some scrap iron as a drop from the little gremlins in rice field hats shortly after the Horse riding boss. They are directly right of the arena
they are "rats"/spies/ninjas When you reach that point of the game it's a really good point to farm money and exp
"I managed to get some scrap iron as a drop from the little gremlins in rice field hats shortly after the Horse riding boss. They are directly right of the arena" same here
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Adalace

Joined: Thu May 04, 2017 9:30 pm
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Yes those Rat enemies can rarely drop Scrap Iron. That fact is now listed in the 'where to find' section. Thanks :)
I don't know if this was pure luck but I started dropping a lot more of the stuff after beating the boss of Ashina Castle.

RoshDrozzley

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100% drop rate for battle monks just outside Senpou Main Hall idol with demon bell rung
Easy way to farm would be to start from the idol after the drunkard and go to where he was. The enemies have a high drop rate and you get around 1-2 per run+some black gun powder