Exporting Scrap Metal to the US — US Steel Mills and Secondary Smelters

Scrap metal is the backbone of the US steel industry, supplying roughly 70% of the raw material for domestic steel production through electric arc furnace (EAF) mills and secondary smelters. With US steel consumption rebounding and global scrap demand rising, Latin America has emerged as a critical source of high-quality ferrous and non-ferrous scrap for American buyers. This page provides a comprehensive guide for suppliers and buyers navigating the US scrap metal import market.

Scrap Metal Grades and Specifications

Scrap metal grades and specifications matter enormously to US steel mills and secondary smelters. The Institute of Scrap Recycling Industries (ISRI) publishes the standard specifications used across the industry. Key ferrous grades include HMS 1 & 2 (heavy melting scrap), shredded scrap, busheling, and plate and structural scrap. Non-ferrous grades such as copper #1 and #2, aluminum used beverage cans (UBCs), and brass scrap are also in high demand for secondary smelters. US buyers typically require scrap to be free of contaminants, properly sized, and certified to ISRI guidelines to ensure consistent melt quality. Mills often impose additional restrictions on residual elements like copper, nickel, and chromium in ferrous scrap to avoid compromising steel chemistry.

LATAM and Africa Supplier Landscape

Latin America and Africa supply a growing share of US scrap imports. According to USITC trade data, Mexico, Brazil, and Colombia are the top Latin American suppliers of ferrous scrap to the US, with volumes exceeding 2 million metric tons annually. African suppliers, particularly from Egypt and South Africa, also export significant quantities of HMS and shredded scrap to US ports. The supply landscape is fragmented: large exporters like CMC and Sims Metal operate alongside hundreds of smaller recyclers and brokers. Key advantages for Latin American suppliers include proximity to US Gulf Coast ports, competitive logistics costs, and established trade relationships. However, quality consistency remains a challenge, as US mills increasingly reject cargoes that fail to meet ISRI specs or contain excessive shredder fluff or non-ferrous residuals.

US Buyer Types and Procurement

US steel mills and secondary smelters are the primary buyers of imported scrap. Integrated mills like Nucor, Steel Dynamics, and US Steel operate EAFs that consume shredded and busheling scrap, while secondary smelters such as OmniSource and SA Recycling process non-ferrous scrap for remelting. Procurement is typically done through long-term contracts, spot purchases, and monthly tenders. Buyers prioritize scrap with low copper content (below 0.25% for prime grades), minimal dirt and moisture, and consistent sizing. Mills also increasingly demand environmental certifications to meet corporate sustainability goals. The US scrap market is price-transparent, with ferrous scrap prices indexed by publications like American Metal Market and Fastmarkets, while non-ferrous prices track LME and COMEX benchmarks.

Certifications and Import Requirements

Certifications and import requirements are critical for smooth entry. All scrap shipments must comply with US EPA regulations under the Resource Conservation and Recovery Act (RCRA), which governs hazardous waste. Non-hazardous scrap is exempt but must be free of prohibited materials like PCBs, mercury switches, and radioactive elements. The US Customs and Border Protection (CBP) requires importers to file an ISF (Importer Security Filing) and provide a commercial invoice, packing list, and bill of lading. For non-ferrous scrap, the US requires compliance with the Lacey Act for certain materials. Additionally, many US mills now require suppliers to be certified under the Responsible Recycling (R2) or e-Stewards standards for electronics scrap. For ferrous scrap, a certificate of analysis showing elemental composition is often mandatory.

Pricing and Lead Time Context

Pricing and lead times vary by grade and origin. As of early 2025, shredded scrap prices in the US range from $380 to $450 per gross ton delivered mill, while HMS 1 & 2 trades at a discount of $30 to $50 per ton. Non-ferrous scrap like #1 copper commands $3.80 to $4.20 per pound, and aluminum UBCs trade around $0.90 to $1.10 per pound. Lead times from Latin American suppliers to US Gulf ports average 2 to 4 weeks for containerized shipments and 4 to 6 weeks for breakbulk cargo. Ocean freight from Santos, Brazil to New Orleans runs approximately $1,200 to $1,800 per container, while from Veracruz, Mexico it is $800 to $1,200. Price volatility is driven by LME metal prices, US steel production rates, and global trade flows. Suppliers should monitor the US scrap export index published by the US Census Bureau for real-time market signals.

How Coppermont connects suppliers to buyers:

Coppermont provides end-to-end advisory for scrap metal exporters targeting US steel mills and secondary smelters. Our team vets suppliers for ISRI compliance, environmental certifications, and logistics readiness. We match Latin American and African scrap exporters directly with US buyers through our verified network, handling contract negotiation, quality assurance, and trade finance. For buyers, we source consistent, spec-compliant scrap at competitive prices, reducing supply chain risk. Whether you are a recycler in Colombia looking to enter the US market or a US mill seeking reliable scrap feedstock, Coppermont bridges the gap. Contact us today to explore partnership opportunities.

Ready to export scrap metal to the US? Coppermont helps Latin American and African suppliers connect with US steel mills and secondary smelters. We provide market intelligence, compliance support, and buyer introductions. For US buyers, we source high-quality scrap that meets your specifications. Reach out to our team to start a conversation.