Every year the world trades hundreds of millions of tonnes of scrap materials in a global recycling economy. It’s a multibillion-dollar industry moving steel, copper, aluminum and more across borders. But these flows are changing fast. Governments want to hold scrap for domestic recycling, and new bans are popping up everywhere. The result: volatile prices, complex customs rules, and rising environmental concerns. This post breaks down scrap trade step-by-step – how materials are classified, what prices and trends we’re seeing for major scrap commodities, who the big exporters and importers are, and what health/environment rules govern scrap handling. By understanding these factors, traders and policymakers can stay ahead of market shifts.
Image: Mixed scrap metal and waste piled at a recycling yard.
Classification of Scrap Materials
Customs and trade authorities classify scrap by material type and purity. Under the UN’s Harmonized System (HS), ferrous (iron/steel) scrap is in Chapter 72 (e.g. HS 7204 covers “ferrous waste and scrap” with subcodes for cast iron, alloy steel, etc.)[2]. Non-ferrous metals have their own HS codes: for example, copper scrap is HS 7404 (copper waste and scrap) and aluminum scrap is HS 7602/7603[2]. Other waste streams include plastics (HS 3915 for “waste, parings and scrap of plastics”), rubber (HS 4002), paper and cardboard (HS 4707), textiles, and electronics.
In UN SITC (Standard International Trade Classification) terms, Category 282 is ferrous scrap and 288 is non-ferrous base metal scrap[3]. These codes let statisticians track trade flows. In practice, customs also care about contamination: many countries distinguish “clean scrap” from mixed or hazardous waste. For instance, the Basel Convention treats e-waste scrap as hazardous if it contains toxic components[4], and new Basel rules (2021) require export permits for most plastic scrap shipments[5]. In short, scrap is not “free” of rules – import/export declarations must match these classifications, and exporters often need licenses or certificates to prove material purity and legal compliance.
Major Scrap Markets and Price Trends
Global scrap prices have been volatile in recent years. After pandemic-era highs, many markets saw softening prices in 2024–2025. Analysts note a strongly bearish market for ferrous scrap in 2025[6]. For example, an industry index showed North American scrap prices falling, with forecasts of roughly 6–10% month-on-month declines in early 2025[6]. Europe saw a slight rise in some grades (stainless scrap in Germany hit about €302.50/ton in early 2025, up 1.7% since late 2024) while North American stainless reached ~$330.50/ton on the US East Coast[7]. However China’s demand was weak: Chinese steel mills cut scrap buying before Lunar New Year, pushing local scrap prices down about 4.5% to ~$325.80/ton[8]. In other words, scrap prices can swing regionally – Europe and US remained relatively firm, while Asia softened in early 2025. These shifts reflect underlying metal markets: when base-metal futures rise, scrap usually follows; when steel production slows or inventories pile up, scrap weakens.
Image: Tugboat carrying a barge piled with crushed scrap cars. Sea shipping is common for international scrap trade.
Longer-term trends point to rising demand for scrap. Industry forecasts estimate global scrap demand growing at ~3.3% per year through 2030, outpacing the ~3% supply growth[9]. This could erase the current surplus (~9 Mt) and create a 15 Mt shortage by 2030[9]. Key drivers are “green steel” targets: countries like China and India plan to massively boost electric-arc furnace capacity, using recycled scrap instead of iron ore. (China aims to raise scrap use from ~215 Mt in 2022 to ~350 Mt by 2030[10], and India from 34 Mt to ~70 Mt in the same period.) If scrap supply lags, prices may rise. A consulting group even predicts higher scrap prices once these deficits materialise[9][11]. For now, recyclers must navigate the downcycle. That means closely watching steel output, metal commodity indexes (see the World Bank’s metal price outlook[12]), and policy changes (see below) that may tighten availability in key markets.
Key Exporters and Importers
Who sends and receives all this scrap? The answer varies by material:
- Ferrous scrap (iron/steel): The European Union (especially Germany, Netherlands, UK) and the United States are top exporters. In 2023 the EU exported about \$6.28 billion of ferrous scrap and the US \$5.59 billion[13] (followed by the UK, Japan, etc.). These regions have large recycling industries and surplus scrap production. Major importers of ferrous scrap are countries with growing steel industries. In 2023 Turkey led with \$7.55 billion (drawing scrap from Europe and elsewhere), India \$4.38 billion (from the US, EU, etc.), followed by Vietnam, South Korea and Italy[14]. This reflects those countries’ need for raw steel input.
- Non-ferrous scrap (copper, aluminum, etc.): Similar patterns hold. For example, in 2021 the top exporters of copper-alloy scrap were the United States and European Union (over \$4–4.5 billion each)[15]. Japan, France, and the UK also rank high. Importers include metal-smelting countries – for instance, East Asian and Middle Eastern countries import plenty of copper scrap. Aluminum scrap exports follow suit (the US, UAE, Canada, UK are big exporters). Key importers often include Asia-Pacific producers and domestic fabricators.
- Other scrap streams: Historically, China was the largest importer of plastic, paper, and mixed metal scrap. Since its 2018 “National Sword” policy banned many low-grade wastes, these flows have shifted. Southeast Asian countries (Malaysia, Vietnam, Thailand) temporarily took up plastic and mixed scrap until they too tightened rules. Today, much plastic scrap formerly bound for China is being recycled domestically or shipped to places like India and Turkey (though policy changes keep redirecting flows). E-waste (electronic scrap): mostly sent illegally. UNEP reports that up to 90% of e-waste (worth ~$12–19 billion annually) is handled through illicit channels[16] – sold as scrap to developing countries instead of safely recycled. This creates a parallel, unregulated trade (often labeled as “secondhand goods”) that experts warn about.
Image: Aerial view of an industrial scrapyard with piles of sorted metal and a grapple crane. Europe and North America are major scrap exporters, serving steel mills worldwide.
In short, scrap trade flows align with industrial demand and policy. The US, EU, and Japan generate and export large scrap volumes. Emerging economies with steelmaking needs (Turkey, India, Vietnam, South Korea, China in prior years) import heavily. Tracking these trade lanes is crucial: disruptions (tariffs, bans, currency swings) can suddenly reroute tons of scrap. For example, recent US-China tensions and sanctions on Russian metals have forced US recyclers to find new buyers (often in ASEAN or India)[17]. Regional trade deals also matter: under USMCA, North American scrap flows have steadied into Mexico and Canada[18].
Regulatory and Environmental Factors
Scrap trading isn’t just economics – environmental and health regulations play a huge role. The biggest changes recently have been on waste shipments:
- Basel Convention: In 2021, most plastic scrap and mixed waste were added to the list of materials requiring prior consent under Basel[5]. Practically, this means exporting “dirty” plastic scrap now needs agreement from the importing country (and any transit nations)[5]. The goal: stop dumping plastics in countries without recycling capacity. Many nations (including the US, as Basel party) now enforce this, restricting exports of mixed or contaminated plastics and e-waste.
- National import bans: China’s 2018/2020 import bans (“National Sword”) on plastics, paper, and unsorted scrap radically cut global scrap markets. More recently, countries in Southeast Asia have followed suit. For example, Malaysia in early 2026 banned e-waste imports altogether, citing toxic risk[19]. Malaysia already enforced strict purity standards for metal scrap imports (no hazardous mix allowed)[20]. Vietnam now only allows defined scrap categories under Decision 13/2023, and requires technical checks on contamination[21]. Indonesia, Thailand, the Philippines and others have similarly tightened metal scrap controls, insisting on clean, sorted loads free of electronics or other wastes[22][23]. Even Singapore (though it imports little scrap) enforces Basel permits for any electrical/electronic waste[24]. The upshot: scrap exporters must now verify their material meets stringent foreign regulations, or risk being turned away or fined.
- Domestic health & safety: Within countries, scrap yards and processors face environmental laws too. Exposure to lead, cadmium or PCBs in scrap is a health hazard. Proper disposal of oils, dust control, and recycling of waste fluids are often mandated. For example, workers dismantling electronics or old machinery must use PPE and follow toxic waste protocols. Unfortunately, where regulations are weak, illicit scrap handling can pollute air and soil – another reason global rules are tightening.
- Trade policy measures: Some countries apply export taxes or bans to keep scrap at home. The EU is moving to ban most scrap exports to non-OECD countries by May 2027[25], encouraging recycling within Europe. Many countries (e.g. Uzbekistan) are introducing scrap export duties or quotas as they build up domestic recycling capacity[26]. These measures can sharply shrink global scrap flows: research finds that from 48 countries imposing export restrictions on ferrous scrap, 38% now ban exports outright[27]. All told, regulators around the world are recasting scrap from a throwaway into a strategic resource[27][26].
Image: Workers sorting metal scrap in a recycling yard under hot sun. Many Asian scrap-processing hubs now require strict controls on contamination and contamination-free shipments[20][23].
FAQs
- What are the main types of scrap traded internationally?
Scrap is grouped by material. The biggest categories are ferrous metals (iron/steel scrap), non-ferrous metals (copper, aluminum, stainless steel, lead, etc.), plastics, rubber, paper/cardboard, and electronic scrap. Ferrous scrap often dominates trade volume, but plastics and e-waste have gotten headlines due to bans and controls. Each category has its own trade code (HS or SITC) and regulations. - How do regulations like Basel affect scrap exports?
Basel and related rules mean most hazardous or contaminated scrap needs special permission. Since 2021, nearly all plastic waste exports require “prior informed consent” – in practice, that has nearly stopped dirty plastic scrap shipments[5]. Likewise, e-waste (old electronics) is often listed as hazardous, so it too needs Basel permits. Many countries now refuse any shipment that looks like mixed or unprocessed waste. The upshot: exporters must clean and sort scrap, and get paperwork, or they’ll face refusals and legal trouble. - Which countries lead the scrap trade?
For ferrous scrap: European countries (notably Germany, UK, Benelux) and the United States top the export list[13]. Top importers of steel scrap include Turkey and India[14] (and formerly China, though its imports are down). For non-ferrous scrap (like copper and aluminum), the US, EU and Japan are major suppliers[15], while China, Turkey and some South Asian countries are big buyers. In plastics, most Western exporters used to ship to China; now Southeast Asia (and hopefully domestic recyclers) handle more of that flow. - How can traders cope with scrap price swings?
Given volatility, smart traders hedge their bets. They watch global metal markets, inventory levels, and currency moves closely. Long-term contracts and diversification of buyers/sellers help. Importantly, traders must stay on top of regulatory news: a sudden ban or new tariff can cut off a market overnight. Networking through industry groups and using modern sorting/quality-check tech (like XRF analyzers or AI sorting) can ensure material meets customer specs – avoiding rejections that eat into profits. Staying agile (e.g. pivoting from one market to another if a country restricts imports) is now part of doing business.
Conclusion: Strategies for Traders and Policymakers
To succeed in scrap trade today, information and compliance are everything. Traders should map out the major markets (e.g. Europe → Southeast Asia, North America → Gulf, etc.), and watch for policy shifts (Chinese inspection tightness, EU waste rules, etc.). Investing in quality control (ensuring scrap grades meet global buyers’ specs) and in logistics can reduce costly delays at customs. Policymakers should note: recycling targets and circular-economy goals often mean keeping scrap at home to build local industry. The data already show most scrap (≈85%) is consumed domestically, with only ~15% crossing borders[28].
As environmental pressure grows, handling and shipping scrap safely becomes a competitive advantage. For businesses aiming to turn waste into value, Sands Industries offers expertise in sustainable materials handling. Check out our sustainable packaging solutions page to see how we help companies minimise waste through smarter design and recycling. Contact our team for tailored advice on materials and logistics – we know how to keep your supply chain efficient and green.
Sources: Global scrap trade data from UN and WTO (UN Comtrade, WITS)[13][14][15]; industry analysis from recycling associations and research firms[27][6]; regulatory info from UN/EPA/Basel[5][16]. (Data updated to early 2025.)
[1] [7] [8] [9] [10] [25] [27] [28] International Scrap Metal Trade: A Guide to New Trends, Regulations & Export Bans | Okon Recycling
[2] UNSD — Classification Detail
https://unstats.un.org/unsd/classifications/Econ/Detail/EN/32/7204
[3] DimSitcRev3Products_Official_Hierarchy
https://unctadstat.unctad.org/EN/Classifications/DimSitcRev3Products_Official_Hierarchy.pdf
[4] Microsoft Word – NC1161E1-P.doc
[5] New International Requirements for the Export and Import of Plastic Recyclables and Waste | US EPA
[6] [17] [18] Current Scrap Metal Price Trends: Everything You Need to Know | Okon Recycling
https://gmk.center/wp-content/uploads/2025/04/Scrap-Restrict-2025_eng-2.pdf
[12] Metal prices set to remain high in 2024-25
https://blogs.worldbank.org/en/opendata/metal-prices-set-to-remain-high-in-2024-25
[13] Ferrous waste and scrap, iron or steel, nes exports by country |2023
[14] Ferrous waste and scrap, iron or steel, nes imports by country |2023
[15] Waste and scrap, copper or copper alloy exports by country |2021
[16] Illegally Traded and Dumped E-Waste Worth up to $19 Billion Annually Poses Risks to Health, Deprives Countries of Resources, Says UNEP report
[19] [20] [21] [22] [23] [24] Import Policy Trends for Industrial Metal Scrap and Metal-Bearing Waste in Southeast Asia – VietNam Metal Recycling