Ferrous scrap: what to verify before you commit

Scrap is the most variable material in the metals book. Two cargoes can carry the same grade name and behave completely differently at the mill. The difference is rarely the steel — it is the preparation, the inspection and the paperwork.

Start from the grade, not the price

Grade A scrap, heavy melting scrap and used or new rail are different products with different chemistry and different mill demand. Rail R50 and R65, for example, is a defined section with predictable length and hardness; it is not interchangeable with mixed heavy scrap. A supplier who quotes a price without a grade sheet has not quoted a product.

The four checks

• Grade definition: dimensional limits, density, presence of non-ferrous material and prohibited items.
• Radiation: a certificate from a licensed surveyor, taken at loading, not at origin three weeks earlier.
• Loading supervision: independent inspection at the yard, with photographs and a loading report.
• Price basis: FOB, CFR or CIF, and the freight assumption behind it — a CFR price is only comparable if the vessel size and port are.

Why the mill cares about preparation

A mill buys melting yield, not tonnage. Oversized pieces, excessive fines or contamination slow the charge and increase consumption. That is why the best-priced cargo is not always the cheapest per tonne: a poorly prepared one can cost more per tonne of usable metal.

Ask for the loading report and the surveyor's name before the vessel sails. After sailing, the only lever left is the letter of credit.