In the scrap business, "Scrap" is not a single product. It is a menu.
If a buyer asks for scrap to make high-end automotive sheets and you send them demolition waste (HMS), you will face a massive claim and lose the client forever.
Understanding the Grades is the first step to survival. Today, we decode the "Big 3" categories of the global scrap trade.
1. HMS 1&2 (80:20): The "Big Mac" of Scrap
HMS (Heavy Melting Steel) is the standard benchmark for global pricing. It is the most traded grade in the world.
- Origin: Demolition sites, old machinery, rails, and structural beams.
- The Mix (80:20): It is rarely sold pure. The standard is a blend:
- 80% HMS 1: Thicker pieces (> 6mm). Provides the "Base Metal."
- 20% HMS 2: Thinner pieces (< 6mm). Provides volume but burns faster.
- ISRI Code: 200 - 206.
- Best For: Producing Rebar (Construction Steel).
2. Shredded (ISRI 211): The Efficiency King
Shredded scrap looks like fist-sized metallic confetti. It is processed through a giant shredder and magnetically separated.
| Feature | Why EAF Managers Love It |
| Density | High Density. It fills the furnace basket efficiently, allowing for a faster melt rate. |
| Impurity | Homogeneous. Since it is magnetically sorted, plastic and rubber are removed. However, beware of Copper (Cu) from old car wiring. |
3. Busheling (Prime): The Filet Mignon
Busheling (also called Prime or Shindachi in Asia) is the premium grade. It is clean, uncoated steel.
- Origin: Industrial Off-cuts. Clean steel clips left over from car manufacturing or appliance factories. It has never been "used" by a consumer.
- Chemistry: Extremely low residuals (Copper, Tin). This purity is essential for chemical control.
- Best For: Producing Flat Products (HRC, CRC) or high-grade special steel.
4. Summary Comparison: The Price Hierarchy
Know the grade, know the price. Here is the hierarchy.
| Grade | Price Level | Impurity Risk | Target Product |
| HMS 1&2 | Benchmark ($0) | Medium | Rebar, Beams |
| Shredded | + $20~30/ton | Low | Wire Rod, Merchant Bar |
| Busheling | + $50~70/ton | Very Low | Automotive Steel |
💡 Trader's Tip: Use ISRI Codes
Contracts with vague descriptions like "Good Quality Scrap" lead to disputes 100% of the time. Always specify the ISRI Code (Institute of Scrap Recycling Industries). For example, don't say "HMS"; say "HMS 1&2 (80:20) per ISRI 200-206". This protects you legally.
Next: Who Controls the Price?
👉 [Scrap #3] Pricing: The Turkey Factor & Fraud Prevention⚖️ Disclaimer & Privacy Notice:
The information provided on Global Steel Insight is for general informational and educational purposes only. It does not constitute professional financial, legal, or engineering advice. Steel prices, standards, and market conditions are subject to change without notice. We are not liable for any losses or damages arising from the use of this information. Always consult with a qualified professional before making business decisions.
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