Scrap metal, waste paper, and recycled plastics move across borders every day

Recovered materials—including scrap metals, waste paper, recycled plastics, and processed textiles—form the backbone of secondary raw material supply chains globally. For the United States and Latin America, this trade represents a multi-billion-dollar opportunity to reduce landfill dependency, lower industrial input costs, and meet growing environmental compliance mandates. As Latin American economies industrialize and urbanize, their demand for cost-effective, high-quality recovered materials continues to rise, while US exporters seek reliable buyers who can absorb consistent volumes. This page serves procurement managers, sustainability officers, and trading desks who want to navigate the regulatory, logistical, and quality challenges inherent in cross-border recovered materials trade.

Product Grades and Specifications in This Cluster

Recovered materials are not a single commodity but a diverse set of product streams, each with its own grading system and quality requirements. For ferrous scrap, the Institute of Scrap Recycling Industries (ISRI) guidelines define grades such as No. 1 heavy melting steel (HMS 1), shredded scrap, and busheling, each commanding different price points based on cleanliness, density, and alloy content. Non-ferrous scrap includes aluminum (extruded, sheet, and cast), copper (bare bright, No. 1 and No. 2), and brass, which are typically sorted by purity and contamination levels. Waste paper grades range from old corrugated containers (OCC) to mixed paper, de-inked pulp substitutes, and high-grade sorted office paper, each suited to different end uses such as containerboard, tissue, or printing and writing paper. Recycled plastics, particularly PET, HDPE, and PP, are sorted by resin type, color, and cleanliness, and often require baling or granulation before export. Processed textiles, including pre-consumer cutting room waste and post-consumer garment clippings, are graded by fiber content and color sorting for use in shoddy, wiper manufacturing, or insulation. Each product stream demands strict adherence to specifications, as contamination can lead to rejected shipments and costly demurrage. Buyers typically require certificates of analysis, photos of representative bales, and third-party inspection reports before committing to purchase orders.

Latin American and Global Supplier Landscape

Latin America is both a significant generator and consumer of recovered materials, with production volumes varying widely by country and material type. Brazil, as the region's largest economy, produces substantial quantities of ferrous and non-ferrous scrap from its automotive, construction, and manufacturing sectors, with annual scrap steel generation estimated at over 10 million metric tons. Mexico, driven by its maquiladora industry and automotive assembly plants, is a major source of aluminum and copper scrap, as well as waste paper, with OCC generation exceeding 4 million tons per year. Argentina and Chile contribute significant volumes of copper scrap from mining and electrical infrastructure, while Colombia and Peru are growing sources of recycled plastics and waste paper as their recycling infrastructure develops. Beyond Latin America, Africa presents emerging supply opportunities, particularly in South Africa (ferrous and non-ferrous scrap), Nigeria (recycled plastics and aluminum scrap from used beverage cans), and Egypt (ferrous scrap from demolition and shipbreaking). However, suppliers in these regions often face challenges related to inconsistent quality, limited processing technology, and complex export documentation. For US buyers, sourcing from Latin America offers logistical advantages—shorter transit times, lower freight costs, and overlapping time zones—compared to trans-Pacific or trans-Atlantic routes. The US remains the world's largest exporter of recovered materials by value, with Canada, Mexico, China, and Turkey as top destinations, but Latin American buyers increasingly compete for US-sourced OCC, scrap metal, and recycled plastics to feed their domestic mills and manufacturing plants.

US Buyer Profiles and Procurement Needs

US buyers of recovered materials span a wide range of industries, each with distinct procurement requirements. Steel mills and mini-mills, such as those operated by Nucor, Steel Dynamics, and Gerdau, consume millions of tons of ferrous scrap annually, sourcing through long-term contracts with brokers and processors who can guarantee consistent volumes and grades. Aluminum smelters and secondary refiners purchase sorted aluminum scrap for remelting into billet, sheet, and extrusion ingot, with strict limits on magnesium content and surface contamination. Paper mills producing containerboard, newsprint, and tissue rely on waste paper suppliers who can deliver OCC, mixed paper, and sorted office grades with low moisture and minimal non-fiber contaminants. Plastics reclaimers and compounders buy baled PET, HDPE, and PP from sorting facilities and MRFs, requiring resin purity above 98% and consistent color sorting. Textile recyclers and wiper manufacturers source post-industrial and post-consumer textile waste, grading by fiber type (cotton, polyester, blends) and condition (cut, whole, or baled). Beyond these industrial buyers, trading companies and commodity desks act as intermediaries, aggregating shipments from multiple suppliers to fill container loads and meet mill specifications. Procurement professionals in these sectors prioritize supplier reliability, quality consistency, and compliance with environmental and customs regulations. They often require suppliers to register with platforms like ISRI, provide material safety data sheets where applicable, and demonstrate chain-of-custody documentation for materials that may contain hazardous components. Price volatility, freight rate fluctuations, and changing tariffs (such as Section 232 on steel and aluminum) add layers of complexity that demand experienced trade advisory support.

Certifications and Compliance Requirements

Cross-border trade in recovered materials is heavily regulated to prevent illegal waste dumping, protect public health, and ensure fair market practices. The Basel Convention, an international treaty, governs the transboundary movement of hazardous and non-hazardous wastes, including many recovered materials. The United States, while not a party to the Basel Convention, has bilateral agreements with certain countries that facilitate trade in recyclables under specific conditions. For exports from the US to Latin America, suppliers must comply with the US Environmental Protection Agency's (EPA) regulations under the Resource Conservation and Recovery Act (RCRA), which classify materials as solid wastes or recyclable commodities based on their intended use and processing. Many Latin American countries, including Mexico, Brazil, and Colombia, require import permits, prior informed consent letters, or environmental impact assessments for specific recovered material streams. For example, Mexico's SEMARNAT imposes strict requirements on the import of waste paper and scrap metals, including registration as an authorized importer and submission of a waste management plan. Brazil's IBAMA mandates environmental licensing for facilities handling recyclable materials and may require proof of decontamination for certain plastic and metal scrap. Additionally, customs authorities in both regions scrutinize shipments for misclassification—for instance, labeling mixed scrap as a higher grade to avoid duties or restrictions. Industry certifications such as ISRI's Scrap Specifications Circular, the Recycled Materials Association's quality standards, and the Global Recycled Standard (GRS) for textiles provide frameworks for quality assurance and traceability. Suppliers should also be prepared to provide certificates of origin, bills of lading, and packing lists that clearly describe the material composition and intended end use. Non-compliance can result in shipment hold, fines, or outright rejection, making it essential for both buyers and sellers to work with advisors who understand the evolving regulatory landscape.

How Coppermont Advisory Supports Recovered Materials Trade

Coppermont provides end-to-end trade advisory services tailored to the unique challenges of the recovered materials sector. Our team combines deep knowledge of commodity markets, logistics, and regulatory compliance to help US buyers and Latin American suppliers execute transactions with confidence. For US buyers seeking reliable sources of scrap metal, waste paper, or recycled plastics, Coppermont conducts supplier vetting, including on-site audits of processing facilities, review of quality control procedures, and verification of export licenses and environmental permits. We negotiate contract terms that address grade specifications, contamination allowances, pricing mechanisms (such as monthly index-based or fixed price), and dispute resolution protocols. On the logistics side, we coordinate container loading, inland transportation, port handling, and ocean freight, ensuring that shipments meet carrier requirements for weight, sealing, and documentation. For Latin American and African suppliers looking to enter the US market, Coppermont provides market intelligence on demand trends, price benchmarks, and buyer preferences, as well as assistance with export documentation, customs clearance, and compliance with US import regulations. We also facilitate connections with end-users and trading partners through our network of mills, reclaimers, and processors across North and South America. By combining advisory, sourcing, and logistics support under one roof, Coppermont reduces the friction and risk that often derail cross-border recovered materials deals. Whether you are a steel mill sourcing ten thousand tons of HMS 1 per month or a Mexican MRF exporting baled PET to US reclaimers, we structure transactions that create value for both sides.

Engage with Coppermont to Build Your Recovered Materials Supply Chain

Whether you are a supplier of recovered materials in Latin America or Africa seeking reliable US buyers, or a US-based procurement professional looking to diversify your feedstock sources, Coppermont can help you navigate this complex and rewarding market. We invite you to reach out for a confidential consultation on your specific needs—volume targets, material grades, preferred trade terms, and compliance requirements. Our advisors will work with you to develop a tailored strategy that aligns with your business goals and risk tolerance. The recovered materials trade is growing, driven by circular economy mandates, rising virgin material costs, and increasing consumer demand for sustainable products. Don't let regulatory hurdles or market uncertainty hold you back. Contact Coppermont today to explore how we can support your next transaction and build a long-term partnership that drives mutual growth.