Iron scrap

Iron scrap is generally categorized into Heavy Melting Steel (HMS 1 & 2), Cast Iron Scrap, and Shredded Steel Scrap. HMS 1 consists of wrought iron or steel scrap ≥1/4 inch in thickness, while HMS 2 contains galvanized and blackened steel. For industrial casting, Cast Iron Scrap is preferred due to its high carbon content, whereas Shredded Scrap is ideal for electric arc furnaces (EAF) because of its high density and purity levels.

Quality validation should focus on chemical composition and impurity levels. Buyers must request a Chemical Analysis Report to check for elements like sulfur, phosphorus, and copper, which can affect the quality of the final steel product. It is critical to ensure the scrap is free from hazardous materials, explosives, and radioactive contaminants. We highly recommend hiring third-party inspection agencies like SGS or CCIC to conduct a Pre-Shipment Inspection (PSI) to verify the grade and weight.

Importing iron scrap requires strict adherence to international environmental regulations. The most important is the Basel Convention, which governs the transboundary movement of hazardous wastes. Buyers must ensure the supplier provides a Certificate of Origin, a Radiation-Free Certificate, and a Non-Explosive Certificate. Depending on the destination country, a Waste Import License or specific environmental permits may be required to clear customs legally.

Pricing is primarily driven by the LME (London Metal Exchange) indices and the yield recovery rate. Buyers should calculate the Net Yield, which is the weight of usable metal after melting. Factors like excessive rust, oil contamination, or non-metallic attachments (dirt, plastics) will decrease the yield and should lead to price deductions. For large-scale procurement, sourcing from Made-in-China.com allows buyers to compare FOB prices across multiple verified yards to find the most competitive market rates.

The most significant risks include weight discrepancies and quality substitution. Some dishonest suppliers may load heavy 'dead weight' (like concrete or sand) at the bottom of containers or mix lower-grade scrap with HMS 1. To mitigate this, always use Verified Suppliers on Made-in-China.com and insist on drafting a contract that specifies penalties for moisture and impurity content exceeding agreed percentages.

For new supplier relationships, avoid 100% advance payments. The safest method is a Letter of Credit (L/C at sight) or Escrow services. A common industry standard is a 30% deposit via T/T with the remaining 70% payable against the presentation of the Bill of Lading (B/L) and a third-party inspection report. This ensures the supplier only receives full payment once the goods are verified and loaded.

Iron scrap is typically shipped in 20ft heavy-duty containers or via Bulk Carriers for orders exceeding 5,000 tons. When shipping in containers, ensure the supplier uses protective liners to prevent damage to the container walls, which can lead to heavy fines from shipping lines. For international trade, FOB (Free On Board) is often preferred by experienced buyers to maintain control over freight costs and insurance.

Many countries impose export duties or quotas on ferrous scrap to protect their domestic steel industries. Buyers must stay updated on Anti-Dumping Duties (ADD) and specific Green Customs policies that may restrict the import of 'dirty' scrap. Always confirm that the supplier's HS Code (typically 7204) matches the local tariff schedule to avoid unexpected taxes or customs seizures.