Scrap Definitions
Steel Market Update offers the following definitions of the various forms of scrap utilizing the basic guidelines described by the Institute of Scrap Recycling Industries (ISRI):
HMS = Heavy Melt Scrap #1 & #2
- HMS #1 steel scrap is steel and wrought iron that is at least .25 inch thick with individual pieces no more than 60 inches by 24 inches.
- HMS #2 steel scrap (common foundry grade) is wrought iron and steel scrap – both black and galvanized (coated) at least .125 inches thick.
Shredded Scrap
- Shredded automobiles with engines, tires and gas tanks removed.
#1 Busheling
- Clean steel scrap not exceeding 12 inches in any direction (such as sheet and stamping clippings or drops).
#1 & #2 Bundles
- #1 Bundles is new black (uncoated) steel sheet scrap, clippings, drops or skeleton scrap which is compressed and hand bundled.
- #2 Bundles is old black (uncoated) or galvanized sheet scrap, drops, etc. which has been compressed and hand bundled.
Steel Market Update follows Heavy Melt Scrap Pricing (HMS) as well as Shredded and #1 Busheling. For many years Bundles was a key component in determining scrap prices but was removed in 2008 when Chrysler stopped publishing (or allowing to be published) the results of their auto bundle auctions.
