Scrap metal is graded according to its material type, composition, cleanliness and physical form. The first broad distinction is between ferrous metals, which contain iron, and non-ferrous metals such as copper and aluminium. Within these groups, specifications further distinguish material by thickness, alloy, contamination, size and preparation.
The grade provides a common description of what a load contains and how it can be processed. Buyers can then assess its expected metal yield, preparation requirements and suitability for a particular application. The specification used to assign that grade depends on the transaction, so exact definitions can vary between international and Indian trade.
What Factors Determine a Scrap Metal Grade?
Three characteristics have a direct bearing on how scrap is classified: what the material is, what else is present in it and how it has been prepared.
Metal type
Ferrous scrap contains iron and includes materials such as carbon steel and cast iron. Non-ferrous scrap includes metals such as copper, aluminium, brass and lead.
A magnet provides a useful first check, although it does not establish the exact grade. Some stainless steels, for example, have limited or different magnetic responses depending on their composition.
Cleanliness and composition
Scrap specifications place limits on unwanted materials. Paint, insulation, oil, plastics, rubber, attachments and other metals can affect the classification or commercial terms of a load.
The ISRI Scrap Specifications, now published by the Recycled Materials Association (ReMA), are widely used in international scrap trading and describe numerous ferrous and non-ferrous categories. In India, applicable Bureau of Indian Standards (BIS) standards, buyer specifications and contractual terms may also determine how scrap is classified and accepted. Buyers and sellers can agree variations for individual transactions.
Form and preparation
Thickness, dimensions and physical form also influence classification. Furnace-ready material can have different specifications from thin sheet, turnings or mixed scrap. Preparation can therefore affect both the grade assigned to a load and the processing required before it can be used.
What Are the Main Ferrous Scrap Grades?
Ferrous scrap covers a wide range of steel and iron materials. The ISRI ferrous specifications include categories such as No. 1 Heavy Melting Steel, No. 2 Heavy Melting Steel, No. 1 Busheling, Shredded Scrap and machine-shop turnings. In India, IS 2549:2023 sets the BIS code for classifying processed ferrous scrap, which BIS describes as aligned with the ISRI classification.
| Grade | General description under the ISRI specifications |
| No. 1 Heavy Melting Steel | Wrought iron or steel scrap 1/4 inch (6.35 mm) and over in thickness, in pieces not over 60 x 24 inches (ISRI code 200) |
| No. 2 Heavy Melting Steel | Black and galvanised wrought iron and steel scrap 1/8 inch (3.18 mm) and over in thickness, prepared to charging box size (ISRI codes 203 to 206) |
| No. 1 Busheling | Clean new steel clippings and stampings |
| Shredded Scrap | Ferrous material processed into smaller, relatively uniform fragments |
| Turnings and borings | Steel or iron machining residues |
These thresholds belong to the ISRI specifications. A transaction in India may instead reference IS 2549:2023 or a buyer’s own specification, so the exact definition depends on the specification named in the contract. ISRI code 204, for example, allows properly prepared automobile scrap within No. 2 Heavy Melting Steel.
The steel recycling from vehicles stream can therefore produce more than one commercial material category depending on how the vehicle is dismantled and processed.
What Are the Main Non-Ferrous Scrap Grades?
Non-ferrous scrap is generally classified more specifically because alloy composition and purity have a significant effect on its subsequent use.
Copper is divided into categories such as Bare Bright, No. 1 copper and No. 2 copper. The ISRI non-ferrous specifications distinguish these materials according to factors including purity, coatings, attachments and contamination.
Bare Bright copper wire, for example, is defined as clean, uncoated and unalloyed copper wire. No. 1 copper includes clean copper clippings and tubing, while lower grades allow certain levels of contamination or additional materials.
Aluminium is similarly separated into categories according to form and alloy. Extrusions, sheet, castings and other aluminium streams can have different specifications because their compositions and processing characteristics are not identical. In India, IS 2066 (Part 1):2024 sets the BIS coding and classification for aluminium scrap.
This separation is particularly relevant to aluminium recycling in the automotive industry, where vehicles contain both cast and wrought aluminium components.
Why Does the Grade Affect Scrap Price?
A grade helps buyers estimate three commercial variables: material yield, processing requirements and suitability for the intended application.
- Yield: Cleaner and more consistently specified material can provide a more predictable metal output.
- Processing: Cutting, sorting, stripping or otherwise preparing a load adds handling requirements.
- Composition: Elements that remain in a metal during melting can influence the quality and applications of the resulting material.
The third factor is particularly important for steel. Copper, tin and other residual elements can affect the properties of recycled steel. The Transport & Environment assessment of recycled automotive steel identifies copper contamination as a significant constraint when recycled steel is intended for demanding automotive applications.
Price, however, is not determined by grade alone. Market conditions, buyer specifications, location, transportation costs and the composition of an individual load also influence the transaction value.
What Grade Does Vehicle Scrap Achieve?
A vehicle does not become a single scrap grade. It contains steel, aluminium, copper and other materials that can follow different recovery pathways.
The vehicle body contributes substantially to the ferrous stream, while wiring harnesses, electric motors, radiators and other components contain recoverable non-ferrous metals.
This becomes particularly relevant when the vehicle is shredded. Copper-rich components can introduce residual copper into the ferrous fraction. AIS-129 also provides for the removal of metal components containing copper, aluminium and magnesium where the ELV is not going to be treated in a shredder, and identifies removal of other components to promote recycling. (MoRTH AIS-129)
This makes dismantling an important part of material grading. At a registered vehicle scrapping facility, components can be removed and directed towards appropriate material streams before further vehicle processing.
For RVSFs, systems such as AutoLoop can support vehicle-level inventory and dismantling records.
Conclusion
Scrap grading provides a structured way to describe the material entering the recycling chain. Metal type establishes the broad category, while composition, cleanliness, size and preparation provide the detail needed to distinguish individual grades. The specification that applies, whether ISRI, a BIS standard or a buyer’s own terms, sets the exact thresholds.
For end-of-life vehicles, the classification process begins before shredding. Separating copper, aluminium and other recoverable components can create cleaner individual streams while reducing unwanted material in the ferrous fraction.
As demand for higher-quality recycled materials increases, the ability to identify, separate and document scrap before processing becomes increasingly relevant. Formal end-of-life vehicle processing in India provides an upstream framework through which these material streams can be separated and recorded.
FAQs
What is the difference between HMS 1 and HMS 2?
Under the ISRI specifications, No. 1 Heavy Melting Steel is wrought iron or steel scrap 1/4 inch and over in thickness, in pieces not over 60 x 24 inches. No. 2 Heavy Melting Steel includes black and galvanised material 1/8 inch and over. In India, the applicable BIS standard or buyer specification may define the grades for a given contract.
How can I tell whether scrap metal is ferrous or non-ferrous?
A magnet can provide an initial indication. Ferrous metals generally attract a magnet, while copper and aluminium do not. The test does not, however, establish the precise alloy or commercial grade.
Why is clean copper worth more than contaminated copper?
Cleaner copper contains fewer unwanted materials and can meet more specific scrap specifications. For example, ISRI’s definition of Bare Bright copper requires clean, uncoated and unalloyed copper wire.
Does rust reduce the value of steel scrap?
Rust and corrosion can affect the condition and composition of scrap, although the commercial impact depends on the grade specification and buyer requirements. Heavy contamination or deterioration can affect preparation and usable yield.
Why are turnings graded separately?
Turnings and borings are machining residues with different physical characteristics from solid steel scrap. Their size, surface area, oil content and handling requirements mean they are specified separately in scrap classifications.
Should insulated copper wire be stripped before sale?
The answer depends on the quantity, labour involved and buyer specification. Insulated wire and bare copper are separate scrap categories, with value reflecting the recoverable copper and the material’s preparation.
How can RVSFs document metal components removed before shredding?
RVSFs can maintain vehicle-level dismantling and component records as part of their operational and compliance processes. AIS-129 establishes dismantling requirements intended to promote material recovery, while systems such as AutoLoop can support associated inventory and dismantling documentation.
