What is ferrous scrap and how is it classified?
Ferrous scrap is any recoverable iron-bearing material recycled back into steel making — from a scrapped railway coach to a shredded car body to a punch-press stamping offcut. Global trade classifies ferrous scrap under HS code 7204 (ferrous waste and scrap), split into subheadings by grade family: 7204.10 pig-iron scrap, 7204.21 stainless (separate pillar), 7204.29 other alloy steel, 7204.30 tinned steel, 7204.41 turnings and swarf, 7204.49 other. ISRI codes for the volume grades: HMS 1 (Heavy Melting Steel #1) is heavy plate and structural ≥ 6 mm thickness; HMS 2 is lighter plate and structural 3–6 mm thickness; Shredded (ISRI 210/211) is shredder-fragmentised steel from ELV and white goods; Busheling (ISRI 207) is clean uncoated steel offcuts from stamping and fabrication; Bonus (ISRI 232) is heavy structural cut to 60 inches; Plate & Structural is heavier than HMS 1.
HMS 1 & 2 — the workhorse export ferrous grades
HMS (Heavy Melting Steel) is the largest single ferrous export grade globally. HMS 1 (ISRI 200 series) is heavy plate, structural, machinery and pipe ≥ 6 mm thick, ≤ 5 feet in longest dimension, free of coated material, free of stainless, free of copper-bearing motor parts. HMS 2 (ISRI 201) is lighter plate 3–6 mm thick with similar cleanliness caps but permits some coated material. The pair 'HMS 1&2' is often quoted as a 70/30 or 80/20 mix — a container of HMS 1&2 (80/20) contains 80% HMS 1 by weight and 20% HMS 2. Nautica's HMS contract specifies grade percentages, maximum dimensions, cleanliness caps (≤ 0.5% non-metallic) and prohibition of tinplate, sealed containers, radioactive material and hazardous residues. See /hms-1-2-scrap for the full spec.
Shredded steel — the EAF feed of choice
Shredded steel (ISRI 210/211) is fragmentised steel produced by shredder plants processing ELV automobiles, white goods and mixed metallic waste — after magnet separation (ferrous fraction) and non-ferrous ejection (Zorba). Fragment size is typically 100–200 mm. Chemistry is more variable than HMS because of residual copper (from motor windings that escaped separation) and tin (from tinned steel and coated stampings). Shredded is preferred by EAF mills because it charges continuously via conveyor, melts fast and produces predictable furnace chemistry. Nautica's shredded contract specifies Cu ≤ 0.25%, Sn ≤ 0.02%, Cr+Ni+Mo ≤ 0.30%, free-dig fragmentised, ships 20GP at 25–27 MT or break-bulk vessel for large mill contracts.
Busheling — the highest-grade ferrous export
Busheling (ISRI 207) is clean, uncoated, unpainted, low-residual steel offcuts from stamping, punching and fabrication — new industrial arising that never left the factory floor. Typical Fe ≥ 99%, Cu ≤ 0.10%, Sn ≤ 0.005%, chemistry approaches primary steel scrap. Busheling is the highest-grade ferrous export because low residuals allow downstream production of automotive and appliance-grade flat steel from an EAF charge without dilution by primary iron. Physical form is loose steel offcuts up to 300 mm typical dimension. Prices 8–15% above HMS 1 to reflect chemistry premium. Buyers are EAF flat-steel mills — the Indian, Turkish and US mini-mill industry primarily.
Used rails and heavy structural grades
Used rails (ISRI Bonus for cut rails or specific used-rail codes) are R50, R65 or heavier rail sections cut from decommissioned railway track — chemistry Fe balance Mn 0.6–1.4%, C 0.55–0.80%, close to eutectoid rail steel. Used rails trade at a premium over HMS because they can be re-rolled directly into rebar and light structural without full melting, or melted as a clean high-chemistry feed. Nautica supplies R50 and R65 used rail as cut 1.5m sections in 20GP containers at 25–27 MT or break-bulk vessel to Middle Eastern and South Asian re-rolling mills. Contract chemistry follows the parent rail standard (UIC 60, AREMA 136 lb, or equivalent).
Plate and structural — heavy ship-scrapping and industrial demolition
Plate & structural (ISRI 232 Bonus or heavier codes) covers heavy carbon-steel plate ≥ 25 mm thick and heavy structural I-beam, H-column, angle and channel from ship-scrapping, industrial demolition and heavy-machinery decommissioning. Cuts to 5 feet or 60 inches maximum longest dimension for container loading; longer cuts for break-bulk vessel loading. Chemistry is standard structural (Fe balance, C 0.15–0.25%, S/P ≤ 0.05%). Prices 3–5% above HMS 1 because heavier gauge and cleaner arising. Buyers are re-rolling mills producing structural sections and heavy re-rolled plate.
Ferrous turnings and swarf
Turnings, borings and swarf from machining operations trade as a distinct grade — HS 7204.41 — with contract chemistry following the parent stock (typically low-carbon steel from machining bar and forging blanks). Density is much lower than solid steel (0.7–1.2 t/m³ vs 7.85 for solid) and turnings ship in 20GP drummed at 15–18 MT or hydraulically briquetted at 22–24 MT. Cutting oil and coolant are drained under EU regulation before shipment. Prices 20–30% below HMS 1 to reflect recovery loss and low bulk density freight cost. Buyers are foundries producing grey iron and small EAF mills that can charge briquetted turnings.
How ferrous scrap is priced — Platts, TSI and the Turkish HMS benchmark
Ferrous scrap has no LME contract. Prices anchor to published index prices — the most-referenced benchmarks are Platts HMS 1&2 (80/20) CFR Turkey (the deepest and most-liquid global reference for ferrous scrap price), TSI Turkish deep-sea HMS 1&2, and Platts shredded CFR South Asia (India-Bangladesh benchmark). Every Nautica ferrous quotation shows the reference benchmark, the date used and the differential applied (typical premium or discount to Platts Turkey HMS 1&2 80/20 for the specific grade and destination). Because ferrous is a benchmark-anchored (not LME-anchored) market, price discovery is index-driven and daily quotations respond to the previous day's Platts assessment.
Container versus break-bulk vessel loading
Ferrous scrap is the one metal category where break-bulk vessel loading is regularly economic. Container CIF pricing works for medium buyers (25 MT per box, 100–500 MT per month). Break-bulk vessel loading works for large mill contracts (3,000+ MT single grade in one vessel) — the mill charters a Handysize or Supramax bulker at Rotterdam, we load 5,000–35,000 MT in a single loading operation using magnet-grab from stockpile to hold, and freight per MT is USD 8–15 lower than equivalent container CIF. Nautica handles both — container for medium buyers, break-bulk for Turkish and South Asian large mill contracts. See /export-process-shipping-tracking for freight details.
Container loading specifics for ferrous grades
Ferrous is dense and always loads 20GP for road-legal payload — 40HC would exceed weight limits. Target net weights: HMS 1 25–27 MT, HMS 2 24–26 MT, shredded 25–27 MT, busheling 24–26 MT, used rails 25–27 MT, plate & structural 25–27 MT, turnings drummed 15–18 MT, turnings briquetted 22–24 MT. Loading is by magnet-grab for shredded and busheling, wheel loader for HMS and plate, forklift for cut rails. Every container is photographed empty-to-full and sealed with ISO/PAS 17712 bolt seal. Non-magnetic material (residual copper, aluminum) is separated by the magnet at loading — a second pass through the magnet catches anything that dropped from the trucks.
Third-party inspection and destination-country certification for ferrous
Every ferrous container can be inspected by SGS, Bureau Veritas, Intertek or CCIC at our Rotterdam yard. India-bound shredded and HMS require BIS-1 since 2020 (mandatory for ferrous imports); China-bound requires CCIC per AQSIQ/GACC and GB/T 39733 compliance for reclaimed ferrous raw materials; Turkey (the largest single ferrous-scrap import market in the world) does not mandate pre-shipment inspection but most mills nominate it; Bangladesh requires SGS or BV pre-shipment. Radiation clearance certificate is standard on every ferrous container — a portal radiation monitor scan at gate-out is documented for all destinations regardless of mandate.
EU regulatory framework for ferrous scrap
Ferrous scrap is non-hazardous green-listed under EU Regulation (EC) 1013/2006 Annex III (Basel B1010). Non-OECD-destination shipments require Annex VII — Nautica issues Annex VII in the buyer's name for every non-OECD ferrous shipment. Preferential origin (EUR.1) applies to Turkey (the largest ferrous destination), Egypt, Morocco and South Africa. Non-preferential CoO for India, Bangladesh, Pakistan, China. Note that some grades trigger End-of-Waste status under EU Regulation 333/2011 — meeting EoW criteria means the material ceases to be 'waste' at the point of criteria satisfaction, changing its regulatory treatment; Nautica's clean grades (busheling, clean HMS 1) meet EoW criteria as shipped.
End-use industries — who buys European ferrous scrap
Turkish EAF flat and long-steel producers (Colakoglu, Icdas, Habas, Kroman) are the single largest concentrated buyer group for European ferrous scrap, importing tens of millions of tonnes annually from Rotterdam, Amsterdam and other North European ports. Indian EAF mills (Jindal, Tata, JSW, Essar) form the second-largest destination cluster. Bangladeshi mills (BSRM, GPH, KSRM) take large shredded and HMS volumes. Egyptian and North African EAF and re-rolling mills take rails, plate and HMS. US EAF mills occasionally buy specialty ferrous (busheling) from European sources when domestic supply tightens. Foundries worldwide buy turnings and small mixed loads for grey and ductile iron casting.
European sourcing map for ferrous
Nautica sources ferrous from four main European channels. Ship-scrapping and offshore-decommissioning arisings from EU shipyards and licensed vessel dismantlers provide heavy plate and structural. Industrial demolition contractors in the Netherlands, Germany and Belgium provide HMS 1 and 2 from factory and refinery decommissioning. Automotive and appliance shredder operators in Rotterdam-Rijnmond, the Ruhr valley and Wallonia provide shredded 210/211. Stamping and fabrication shops in Germany, Netherlands and Italy provide busheling. Every supplier is licensed and traceable. We do not buy from unlicensed informal operators.
Rotterdam as the European ferrous-scrap export hub
Rotterdam is the largest ferrous-scrap export port in continental Europe by volume, and the closest deep-sea port to the German industrial heartland (the largest single European ferrous-scrap arising region). Weekly container sailings serve every major destination: Nhava Sheva 18–22 days, Chittagong 25–30 days, Mersin 14–18 days, Iskenderun 14–18 days for Turkish deep-sea, Jebel Ali 20–24 days, Alexandria 12–16 days. Break-bulk vessel loading is regular for Turkish mill contracts — a Supramax bulker loads 45,000–55,000 MT of HMS 1&2 in 48–72 hours from our Rotterdam yard direct to a mill's private port at Iskenderun or Aliaga. See /rotterdam-port-operations for the full operational profile.
Payment terms for ferrous — the highest-volume, tightest-margin trade
Ferrous is a high-volume, tight-margin trade — a container of HMS 1&2 at Platts USD 380/tonne represents roughly USD 10,000 in scrap value, well below a copper or brass container. Payment terms reflect the trade profile: 30% TT advance + 70% TT/LC at sight is standard; large break-bulk vessel loadings for established Turkish mills often move to 100% LC at sight against copy documents to eliminate wire-transfer timing risk on a USD 15–20 million cargo. D/P and D/A are more common in ferrous than in copper because trade credit is tighter and buyer bank relationships are deeper. Marine cargo insurance ICC(A) at 110% invoice value included in CIF.
Downloadable specifications and technical data sheets
Every ferrous grade Nautica exports has a dedicated technical product page with the ISRI specification, chemistry envelope, physical form, packaging, HS code, Platts/TSI benchmark and destination-country compliance. The grade pages linked in the sidebar are the canonical downloadable specification — printable, buyer-shareable, always the current contract-binding version. Composite TDS packs and PDF versions for multi-grade contracts available via /contact. For break-bulk vessel contracts we supply a dedicated commercial-quality specification annexed to the charter party.
Logistics from Rotterdam — transit times to Turkey, India, Pakistan, the Middle East and Asia
Ferrous scrap moves in both containers (medium-volume buyers) and break-bulk vessels (large mill contracts), and Rotterdam is the deepest deep-sea ferrous export gateway in continental Europe. Container transits: Rotterdam–Iskenderun 12–15 days on Mediterranean rotation (the single largest lane); Rotterdam–Aliaga 12–16 days; Rotterdam–Mersin 14–18 days; Rotterdam–Nhava Sheva 18–22 days; Rotterdam–Mundra 20–24 days; Rotterdam–Karachi 18–22 days; Rotterdam–Port Qasim 19–23 days; Rotterdam–Jebel Ali 20–24 days; Rotterdam–Sohar 22–26 days; Rotterdam–Dammam 22–26 days; Rotterdam–Alexandria 12–16 days; Rotterdam–Ho Chi Minh City 28–33 days; Rotterdam–Chittagong 25–30 days via Colombo. Break-bulk vessels: Handysize (25,000–35,000 DWT) and Supramax (45,000–55,000 DWT) load from Rotterdam-Botlek berths at 5,000–8,000 MT per day using magnet-grab and clamshell, delivering to Turkish mill ports (Iskenderun, Aliaga, Nemrut Bay) in 8–11 sailing days, Egyptian ports (Alexandria, Damietta) in 7–10 days, Indian ports (Mumbai, Kandla) in 18–22 days. Charter-party terms are typically GENCON with SCRAPCON standard scrap clauses. See /export-process-shipping-tracking and /rotterdam-port-operations.
Third-party inspection and export documentation for ferrous shipments
Ferrous inspection is lighter than non-ferrous because chemistry variability is smaller and Platts pricing is grade-benchmarked rather than chemistry-basis. Standard scope by SGS, Bureau Veritas, Intertek or CCIC at Rotterdam: grade verification, weight verification (weighbridge for containers, draft survey for break-bulk vessels), physical form check for size compliance, radiation portal certificate, seal verification for containers. Chemistry composite XRF is included for shredded and busheling where residual copper and tin matter; for HMS and heavy structural it is optional. Every ferrous container ships with: commercial invoice referencing Platts date, packing list, bill of lading, certificate of origin (non-preferential CoO from Rotterdam Chamber or EUR.1 preferential for Turkey/Egypt/Morocco/South Africa), Annex VII movement document under EU 1013/2006 for non-OECD destinations, pre-shipment inspection certificate, radiation clearance certificate, container-interior photograph pack, weighbridge tickets and ISO/PAS 17712 seal confirmation. Break-bulk shipments substitute mate's receipts, cargo manifest, hatch-cleanliness certificate and stowage plan for the container-specific documents.
China, India and Vietnam — the growing non-Turkish ferrous demand centres
While Turkey remains the single largest destination for European ferrous scrap, three other markets are growing rapidly. India (JSW Steel, Tata Steel BSL, Jindal Steel & Power) has expanded electric-arc-furnace capacity aggressively and now imports significant tonnages of shredded, HMS and busheling through Nhava Sheva, Mundra and Chennai; BIS is not currently mandated for ferrous scrap the way it is for non-ferrous, but pre-shipment inspection by SGS/BV/Intertek is standard on all Indian ferrous contracts. Vietnam (Hoa Phat Group, Formosa Ha Tinh Steel, Pomina) has built new EAF capacity and imports Rotterdam-loaded shredded, HMS and busheling through Haiphong and Ho Chi Minh City; contracts run on Platts CFR Asia benchmark rather than the Turkey benchmark. China's ferrous scrap import market reopened in 2021 after historical restrictions; imports enter as 'recycled iron and steel raw material' under GB/T 39733 equivalents and require CCIC pre-shipment inspection. Pakistan (Amreli Steels, Agha Steel, International Steels) is a substantial container-scale importer of HMS and shredded through Karachi and Port Qasim.
Common impurities in ferrous scrap and the quality standards that police them
The five contaminants that drive downstream EAF melting economics are copper (from motor windings, transformer windings, brass fittings — cap ≤ 0.25% for shredded, tighter for busheling), tin (from tinned steel, coated stamping — cap ≤ 0.02% for shredded), lead (from lead-acid batteries, solder — total exclusion), chromium plus nickel plus molybdenum (from stainless contamination in supposed carbon-steel loads — cap ≤ 0.30%) and sealed pressurised containers (aerosol cans, gas cylinders — total exclusion for explosion safety). Standards: ISRI Scrap Specifications Circular sets the trading names (HMS 1, HMS 2, shredded 210/211, busheling 207, bonus 232). EN 13920-1:2003 covers European ferrous scrap classification. Platts HMS 1&2 (80/20) CFR Turkey is the deep-sea pricing benchmark; TSI Shredded North Europe is the shredded benchmark. Nautica's ferrous intake: radiation portal at gate-in, magnet segregation, XRF composite on shredded/busheling for residual copper and tin, physical dimension check for HMS size compliance, and rejection of any sealed container, radioactive material or hazardous residue.