In Australia’s scrap steel market, HMS scrap (Heavy Melting Steel) remains a cornerstone material for steel production. For buyers and sellers alike, understanding the differences between HMS 1 and HMS 2 scrap, their respective pricing, and material specifications is critical to maximizing value in 2026.
This guide covers what HMS 1 and HMS 2 are, how they differ, typical prices, and tips for trading efficiently.
What Is HMS Scrap?
HMS (Heavy Melting Steel) scrap refers to steel materials that are thick, heavy, and suitable for remelting in steel mills. HMS is primarily sourced from:
- Construction and demolition projects
- Old machinery and industrial equipment
- Automotive and shipbreaking steel
- Beams, plates, pipes, and structural scrap
HMS scrap is classified into two main grades: HMS 1 and HMS 2.
HMS 1 vs HMS 2: Key Differences
| Feature | HMS 1 | HMS 2 |
|---|---|---|
| Material Quality | Clean, thicker steel | Thinner steel or slightly contaminated |
| Minimum Thickness | 6 mm | 3 mm |
| Contamination Level | Minimal non-ferrous attachments | Accepts light attachments (wood, rubber, concrete) |
| Typical Sources | Structural beams, heavy machinery, industrial scrap | Light structural steel, appliances, mixed demolition steel |
| Price Per Ton (Australia 2026) | AUD $450 – $520 | AUD $380 – $460 |
Summary: HMS 1 is cleaner and thicker, making it more valuable and easier to process. HMS 2 is more forgiving but slightly lower in market price.
Factors Affecting HMS Scrap Prices
The price difference between HMS 1 and HMS 2 is influenced by several factors:
- Grade & Cleanliness – Minimal contamination and thickness increase HMS 1 value.
- Global Steel Demand – Higher demand in steelmaking elevates both HMS 1 and HMS 2 prices.
- Supply Volume & Logistics – Bulk sales and proximity to steel mills can boost returns.
- Buyer Competition – More verified buyers bidding on your scrap increases per-ton pricing.
For up-to-date pricing insights, visit:
Guide to Scrap Metal Prices by Scrap Trade
How to Trade HMS 1 and HMS 2 Scrap Efficiently
1. Separate Your Material
- Sorting HMS 1 from HMS 2 allows buyers to price accurately and improves your revenue.
2. Remove Contaminants
- Clean steel scraps free from concrete, rubber, and plastic command higher offers.
3. Compare Multiple Buyers
- Platforms like Scrap Trade Marketplace allow verified buyers to compete, giving you the best pricing.
Explore Buyers
4. Sell in Bulk Where Possible
- Larger loads attract higher bids and reduce handling costs.
FAQs — HMS 1 vs HMS 2 Scrap
Q1: Which is more valuable: HMS 1 or HMS 2?
HMS 1 is more valuable due to its higher quality, minimal contamination, and thickness.
Q2: Can I mix HMS 1 and HMS 2 when selling?
It’s not recommended. Mixed lots often sell at lower rates as buyers price based on the lower grade.
Q3: How is HMS thickness measured?
HMS 1 must have a minimum thickness of 6 mm, while HMS 2 requires 3 mm. Thickness affects melting efficiency and buyer valuation.
Q4: Do online platforms accept both grades?
Yes. Verified marketplaces like Scrap Trade list both HMS 1 and HMS 2, giving you access to multiple buyers:
Sell HMS Scrap
Q5: Is the pricing consistent across Australia?
No. Prices can vary by state, proximity to ports, and local demand. Online marketplaces help ensure fair competition.
Conclusion
Understanding the differences between HMS 1 and HMS 2 scrap is crucial for both buyers and sellers in 2026. Proper sorting, cleaning, and trading through verified platforms like Scrap Trade ensures you get competitive prices while maintaining compliance and operational efficiency.
Start selling or sourcing HMS scrap today to maximize returns:
Register on Scrap Trade