1. Understanding the European Market Structure
The European scrap market is layered: collection yards aggregate post-consumer and industrial waste, traders consolidate from multiple yards, and exporters handle the international leg. Some companies operate across all three layers (vertically integrated); most operate in one or two.
Importers benefit from working with exporters that have direct yard access — fewer layers between source and ship means better pricing, better grade control and faster resolution of any quality issue.
2. Vetting a European Exporter
Start with the basics: KvK (Dutch Chamber of Commerce) or equivalent registration, EU VAT number, physical office address, bank reference. A registered company with a Rotterdam-area address and a verifiable KvK number is the minimum bar.
Then go deeper: years in business, monthly export volume, list of destination countries served, two existing-buyer references you can actually call, and Basel/1013 compliance evidenced by a recent Annex VII document.
3. Sample Contract Structure
A workable first-shipment contract specifies: material grade (ISRI code), quantity (number of containers and total weight), packing, loading port, destination port, Incoterm, price formula (LME percentage or flat differential), LME reference date, payment terms, inspection nomination, document set, latest shipping date and a clear governing-law clause.
For first trades with a new exporter, 30% advance / 70% against scanned BL copy is the most common payment split. After two or three successful shipments, payment terms commonly migrate to a Letter of Credit at sight or open account against bank guarantee.
4. Pre-Shipment Steps Before Booking
Confirm your local import permit (BIS in India, MONRE in Vietnam, SASO in Saudi Arabia, KEBS in Kenya). Confirm your CHA is registered. Confirm your smelter's receiving criteria so the contract specification matches what will actually be accepted at discharge.
Issue the contract, pay the advance, and the exporter releases containers for loading. Inspection is scheduled with SGS / BV / Cotecna. Loading photos are shared within 24 hours of stuffing.
5. Receiving and Closing Out the First Shipment
On arrival, document handover at the bank releases the original BL. Customs clearance and CHA delivery to the smelter follow standard local procedure. Discharge weight is captured at the smelter weighbridge.
Closeout meeting: reconcile BL weight vs discharge weight (≤ 0.5% is normal), review inspection certificate against actual grade, and document any variance. Successful close-out is the basis for migrating to longer payment terms and larger volumes.
6. Scaling to a Long-Term Contract
After two or three successful spot shipments, convert to a long-term contract: fix the discount percentage, the monthly volume window, the inspection regime and the document set; let the LME number float. Long-term contracts secure both pricing and supply continuity for the buyer, and a predictable order book for the exporter.
This is the model the most stable supply relationships in the industry are built on — and the one this site is built around. The first shipment is a test; the long-term contract is the value.