In the scrap and recycled metals trade, grade is everything. Two containers of scrap metal can look similar on a loading dock yet differ enormously in value depending on purity, preparation, and contamination. Smelters, foundries, and recyclers buy to specification, and mispriced or misdescribed material leads to rejected loads and disputes. This guide explains the most common international scrap metal grades — how they are defined and what buyers and sellers should check — so both sides of a scrap metal deal can trade with confidence.
Why Grading Scrap Metal Matters
Recycled scrap metal competes directly with primary (virgin) metal, and its price tracks global exchange benchmarks such as the LME, discounted according to grade and yield. The cleaner and better prepared the scrap, the closer its price sits to the primary metal it will replace. Grading exists to give buyers and sellers a shared vocabulary for scrap metal quality, so a “Millberry” quote from a supplier in one country means the same thing to a smelter on another continent.
Most of the widely used grades trace back to the specifications published by the Institute of Scrap Recycling Industries (ISRI), whose named grades are the common language of the international scrap metal market.
Copper Scrap Grades
Copper Wire (Millberry)
Millberry is the premium copper scrap grade: bare, bright, uncoated, unalloyed copper wire of high purity, typically 99 percent or better. It must be free of tinned or coated wire, burnt wire that is brittle, and any non-metallic attachments. Because its copper content is so high and consistent, Millberry commands the smallest discount to primary copper.
Berry and Candy
These grades cover clean copper of slightly lower purity or heavier gauge than Millberry, still unalloyed and uncoated. They remain valuable but sit a step below Millberry on price.
Copper Cathode
Strictly speaking, copper cathode is a refined primary product rather than scrap, but it is often traded alongside recycled copper. Cathode is high-purity refined copper (typically 99.99 percent) produced by electrolytic refining and used directly by manufacturers. It is a base input for wire, tube, and alloy production.
Aluminium Scrap Grades
Aluminium Wire
Clean aluminium wire and cable, free of steel core, insulation, and other attachments, is a sought-after grade. Buyers check for the presence of steel-reinforced conductor, which lowers the grade and value.
UBC — Used Beverage Cans
UBC is baled aluminium drink cans, one of the most recycled products in the world. Key quality factors are moisture content, the level of contamination from other metals or rubbish inside the bales, and bale density. Well-prepared, dry UBC bales with minimal contamination fetch the best prices.
Aluminium Ingots
Ingots are remelted, cast aluminium in standardised shapes, a step beyond loose scrap. They offer buyers a known chemistry and are convenient for foundries that want a ready-to-melt feedstock.
Ferrous Scrap Metal Grades
HMS 1 and HMS 2
Heavy Melting Steel (HMS) is the workhorse of ferrous scrap. HMS 1 is clean, thicker steel scrap (generally above a minimum thickness) free of galvanised and blackened material, while HMS 2 allows thinner and galvanised steel. The two are frequently traded as a blended ratio, such as 80:20 HMS 1 and 2, which specifies the proportion of each grade in the load. Buyers should confirm the ratio, minimum piece dimensions, and the absence of prohibited items such as sealed containers, wire, or non-ferrous contamination.
Used Rails
Railway rail scrap (often referred to by codes such as R50 or R65 by weight per metre) is a dense, high-quality ferrous grade valued for re-rolling or melting. Buyers specify rail section, length, and whether the rails are cut, along with acceptable levels of wear and attached fittings.
Contamination and Preparation: The Hidden Value Drivers
Beyond the headline scrap metal grade, three factors quietly determine whether a load meets expectation:
- Contamination — non-target metals, plastics, rubber, dirt, or moisture reduce yield and can trigger price deductions or rejection.
- Preparation — how the material is cut, stripped, or baled affects handling cost and melting efficiency.
- Consistency — a load that matches its description throughout is worth more than one that is clean at the door and contaminated in the middle.
This is why independent inspection and clear photographic and written specifications are standard practice for serious buyers, especially in a first transaction.
Documentation and Compliance
Scrap metal is a regulated cross-border commodity. Compliant shipments typically travel with a commercial invoice and packing list, a certificate of origin, a pre-shipment inspection certificate, and, where required, radiation and cleanliness certificates confirming the material is free of radioactive contamination and hazardous items. Buyers should also confirm that the exporter meets the environmental and export-licensing requirements of the origin country.
How Scrap Metal Is Priced Against the Exchange
Scrap prices do not exist in isolation; they are anchored to the primary metal benchmarks set on exchanges such as the London Metal Exchange (LME). A copper Millberry quote, for instance, is typically expressed as a percentage of the LME copper price, and that percentage — the “recovery” or discount — reflects the grade’s purity and expected yield after melting. Cleaner, higher-purity grades recover a larger share of the exchange price, while contaminated or poorly prepared material is discounted more heavily.
Understanding this relationship helps buyers and sellers negotiate rationally. When the LME moves, scrap values move with it, so quotes are often valid only for a short window. Serious traders track the benchmark daily and agree pricing formulas — a fixed percentage of a named exchange price on a named date — rather than static figures that go stale within hours. This approach keeps deals fair for both sides as the market shifts.
Building a Reliable Scrap Metal Supply Chain
Consistent scrap metal supply depends on relationships as much as on any single load. Collection networks, yard preparation standards, and shipping reliability all shape whether the material that arrives matches the material that was promised. Buyers who invest in a long-term partner — rather than chasing the cheapest spot quote each time — gain more predictable quality and fewer disputes.
When assessing a scrap supplier, look for a verifiable track record, a willingness to accept independent inspection and provide clear photographs of the actual material, transparent pricing tied to a named benchmark and Incoterm, and a complete compliance and documentation package. A supplier confident in their grading will never object to verification, because accurate description is the foundation of repeat business.
Questions Worth Asking Before You Buy
- What is the exact grade, and against which specification is it defined?
- How is the material prepared, cut, or baled, and what is the expected yield?
- What contamination limits apply, and how are they verified?
- Which benchmark and Incoterm underpin the price, and how long is the quote valid?
- What documentation and inspection certificates travel with the shipment?
A Note on Weighing and Moisture
Because scrap is bought by weight, how and when it is weighed matters. Moisture, snow, or attached dirt can inflate a load’s weight without adding any recoverable metal, so contracts often specify weighing at an agreed point — at origin, at destination, or both — and may allow a moisture deduction. Agreeing the weighing method and any tolerance in advance prevents one of the most common sources of dispute in the trade and keeps settlement straightforward once the container arrives.
Related Guides
- Copper Trading Explained: Cathode, Ore, and Scrap
- FOB, CFR and CIF Explained: A Guide to Incoterms
- A Buyer’s Guide to Responsibly Sourced Gold
- Sourcing Agricultural Commodities from East Africa
Source Graded Scrap and Metals With Pitsonel Ltd
Pitsonel Ltd trades ferrous and non-ferrous scrap metal graded for smelters and recyclers — including copper Millberry, aluminium wire, UBC, HMS 1 and 2, and used rails — alongside refined metals such as copper cathode. Every consignment is sourced, inspected, and documented to meet international standards and your exact specifications, then delivered reliably to ports across Asia, Europe, Africa, and the UAE. Request a quote today and partner with a supplier who values quality and consistency as much as you do.