Ferrous Scrap: Complete Guide for Global Buyers (2026)

What Is Ferrous Scrap?

Ferrous scrap is any recyclable material containing iron as the primary metallic element. It is the backbone of the global steel industry — over 630 million metric tons of ferrous scrap are consumed annually by electric arc furnaces (EAFs) and basic oxygen furnaces (BOFs) worldwide. According to the Bureau of International Recycling (BIR), ferrous scrap accounts for roughly 40% of all steel raw material input globally.

For steel mills, foundries, and industrial manufacturers, sourcing quality ferrous scrap at competitive pricing is critical to profitability. Whether you're buying HMS 1&2 scrap, shredded steel, or used rail scrap, understanding the grades, specifications, and trade terms is essential.

At Nautica Metal Scrap B.V., we export premium ferrous scrap from Rotterdam to steel mills across Asia, Europe, and the Middle East — with monthly capacity exceeding 50,000 MT.

Types of Ferrous Scrap

HMS 1 (Heavy Melting Steel No. 1)

HMS 1 is the highest grade of heavy melting steel scrap. Per ISRI classification, it consists of wrought iron and/or steel scrap with a minimum thickness of 6mm (¼ inch). It must be free of coated or galvanized material.

Common sources: structural demolition, heavy machinery, railroad equipment, industrial plate.

Typical buyers: EAF-based steel mills producing long products (rebar, wire rod).

Learn the full details in our dedicated article: What is HMS 1 Scrap? Specifications & Uses.

HMS 2 (Heavy Melting Steel No. 2)

HMS 2 includes lighter steel scrap such as auto body panels, domestic appliances, and thinner structural steel. Minimum thickness is typically 3mm. HMS 2 is priced at a discount to HMS 1 due to higher contamination risk.

For a detailed comparison: HMS 1 vs HMS 2 Scrap: Key Differences.

Shredded Steel Scrap

Shredded steel is produced by industrial shredding machines that process end-of-life vehicles, appliances, and mixed steel into fist-sized, homogeneous pieces. It offers high density and consistent chemistry — making it the preferred feedstock for many EAFs.

Read our full breakdown: What is Shredded Steel Scrap?

Busheling Scrap

Busheling (ISRI 200) consists of new, clean steel clippings from stamping and fabrication operations. It is one of the highest-quality ferrous scrap grades, with minimal contamination and predictable chemistry.

Full guide: Busheling Scrap: Definition, Grades, and Pricing

Used Rail Scrap (R50/R65)

Used railway rails are sourced from decommissioned rail lines. Grades R50 and R65 refer to the weight per linear meter of rail. Used rail scrap is prized for its consistent chemistry and high density.

Full specifications: Used Rail Scrap: Specifications & Export Guide

Cast Iron Scrap

Cast iron scrap comes from engine blocks, brake rotors, pipe fittings, and heavy machinery. Its high carbon content (2.5–4.0%) makes it ideal for foundry applications.

Global Ferrous Scrap Trade Overview

The global ferrous scrap market was valued at over $400 billion in 2025, with trade volumes exceeding 100 million metric tons across international borders. Key importing regions include:

Turkey remains the world's largest seaborne ferrous scrap importer, consuming 20+ million MT annually. India's rapidly expanding EAF sector is projected to increase scrap imports by 15% year-over-year through 2030.

Export Hubs

The Netherlands — particularly the Port of Rotterdam — is one of Europe's largest ferrous scrap export hubs. Its deep-water terminals, efficient customs processing, and proximity to major scrap yards make it ideal for bulk vessel loading.

Nautica Metal Scrap B.V. ships from Rotterdam with:

Pricing Factors

Ferrous scrap pricing is driven by:

2026 Price Ranges (Indicative)

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*Prices are indicative and subject to market conditions. Request a live quote.*

Import / Export Process

Step 1: Supplier Selection

Identify reputable suppliers with:

Step 2: RFQ and Negotiation

Submit a professional RFQ specifying:

For templates: Scrap Aluminium Email Guide

Step 3: Contract and Payment

Standard payment terms:

Step 4: Inspection

Pre-shipment inspection by SGS, Bureau Veritas, or equivalent:

Step 5: Shipping and Delivery

Loading at Rotterdam or designated European port. Transit times vary:

Logistics and Packing

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Quality Assurance

Every shipment from Nautica Metal Scrap B.V. undergoes:

Why Choose Nautica Metal Scrap B.V.?

Browse our complete ferrous scrap catalog or request a quote today.

Frequently Asked Questions

What is ferrous scrap?

Ferrous scrap is any recyclable metal containing iron — including heavy melting steel (HMS), shredded steel, busheling, used rails, and cast iron. It is the primary raw material for secondary steel production via electric arc furnaces.

What is HMS 1&2 scrap?

HMS 1&2 is heavy melting steel scrap classified per ISRI standards. HMS 1 is minimum 6mm thick wrought iron/steel; HMS 2 is lighter (3mm+). They are typically sold as an 80:20 blend.

How is ferrous scrap priced?

Pricing is based on LME/TSI benchmarks, adjusted for grade, volume, destination, and freight. Most international trades use CIF or FOB terms denominated in USD per metric ton.

What is the minimum order quantity?

At Nautica Metal Scrap B.V., the MOQ for ferrous scrap is 25 MT (container load). Bulk vessel orders start at 5,000 MT.

What inspection is done before shipping?

Third-party inspection by SGS or Bureau Veritas covering weight, grade verification, contamination analysis, and radiation screening.

What payment terms are standard in ferrous scrap trade?

Typical terms are 30% TT advance with 70% irrevocable LC at sight against shipping documents. Learn more: Payment Terms Guide.

Can you supply CIF to India or Turkey?

Yes. Nautica Metal Scrap B.V. offers CIF pricing to all major ports including Nhava Sheva, Mundra, Chennai (India), Iskenderun, Aliaga, Izmir (Turkey), and more.

What is the difference between ferrous and non-ferrous scrap?

Ferrous scrap contains iron (steel, cast iron, rails). Non-ferrous scrap includes aluminum, copper, brass, and other metals without iron content. Read our comparison: Ferrous vs Non-Ferrous Scrap Explained.

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*Ready to source premium ferrous scrap?*

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📧 Email: info@nauticametalscrap.com

Nautica Metal Scrap B.V. — Your trusted European ferrous scrap exporter since 2016.