Scrap Metal Dealers and Salvage Companies Industry Terminology

Alloy

A metallic material made by combining two or more elements (at least one metal) to achieve desired properties. In scrap, alloy identification determines value, meltability, and contamination risk.

Brass (copper-zinc) used in fittings - 6061 aluminum extrusion - Tool steel alloy with chromium and molybdenum

ASR (Auto Shredder Residue)

The non-metallic fraction (fluff) left after shredding and metal recovery, consisting of plastics, foams, glass, rubber, and fines. Managed under environmental rules and often targeted for further recovery.

Shredder fluff consisting of plastics and foam - ASR fines routed to landfill - Post-shred ASR used in energy recovery trials

Assay

An analytical test to determine the precise content of metals in a lot (e.g., platinum group metals in catalytic converters or purity of chopped wire). Assays drive settlements, deductions, and refining charges.

PGM assay of decanned catalytic converters - Copper chop assay to confirm 99%+ purity - Lead-acid battery paste assay for lead content

Auto Shredder (Fragmentizer)

A high-energy hammermill system that tears apart end-of-life vehicles and light scrap into smaller fragments. Outputs include ferrous shred, mixed non-ferrous (e.g., Zorba), and ASR.

3,000 HP shredder processing ELVs - Producing ISRI 211 ferrous shred - Downstream separating Zorba and ASR

Bale/Baling

Compacting scrap into dense, tied blocks for handling, storage, and transport. Bale density, size, and integrity affect acceptance and freight efficiency.

Baled UBC shipped to smelter - Baled aluminum siding for export - Baled light iron for mill feed

Bare Bright (Copper)

Very clean, uncoated, unalloyed copper wire and busbar (typically shiny, thicker than a specified gauge). Among the highest-value common copper scrap grades.

Stripped copper wire thicker than 16 AWG - Shiny copper bus bar with no solder - Clean copper grounding wire without insulation

Bill of Lading (BOL)

A legal shipping document acknowledging receipt of goods, detailing shipper/consignee, material description, and terms. Used for custody transfer and freight claims.

Straight truck BOL for domestic shipment - Ocean BOL for export container - BOL used to file a freight damage claim

Catalytic Converter

An emissions-control device containing platinum group metals (Pt, Pd, Rh) in a ceramic or metallic substrate. Requires strict compliance with theft-prevention and recordkeeping laws.

OEM ceramic honeycomb converter - Aftermarket metallic core converter - Decanned monolith sent for PGM refining

Contamination

Unwanted materials mixed with scrap (e.g., dirt, wood, plastics, fluids, non-conforming metals) that reduce value, create safety risks, or cause rejections and penalties.

Plastic and wood mixed into HMS - Oil and coolant on steel turnings - Lead attachments on stainless scrap

Deductions (Moisture/Nonconforming)

Reductions in payable weight or price for moisture, foreign material, dirt, radiation holds, or other spec violations. Governed by contracts and receiving inspection.

2% moisture deduction on shredded steel - Price deduction for plastic contamination in Zorba - Penalty for radiation hold and disposal fees

Demurrage

Charges billed by railroads or terminals when containers or railcars are held beyond the free-time allowance. A logistics cost risk in export and rail movements.

Port demurrage for container held past free time - Railcar demurrage accumulating at destination yard - Unexpected demurrage due to customs delay

Eddy Current Separator

A machine that uses a fast-rotating magnetic rotor to induce eddy currents in conductive metals, repelling them from non-conductive material. Key for non-ferrous recovery post-shred.

Separating aluminum cans from plastics - Recovering non-ferrous from shredder residue - Upgrading Zorba by ejecting conductors

ELV (End-of-Life Vehicle)

A vehicle that has reached the end of its useful life and is processed for parts and scrap metal. Handling requires title verification, depollution, and regulatory reporting.

Received junk vehicle with signed title - Depolluted ELV with fluids drained - Reported ELV purchase to NMVTIS

Ferrous

Iron-containing metals such as carbon steel and cast iron. Usually magnetic; common grades include HMS, P&S, and shredded scrap. Priced by regional indices and mill demand.

HMS 1/2 cargo to mill - ISRI 211 shredded scrap - Cast iron breakage from machinery

Gross-Tare-Net (GTN) Weights

The standard method of determining shipment weight: Gross (loaded), Tare (empty), and Net (payable). Critical for settlements, freight, and inventory control.

Gross 80,000 lb, Tare 20,000 lb, Net 60,000 lb - GTN values printed on scale ticket - Dispute resolved by reweighing tare

Hammermill

A mill with swinging hammers that pulverize scrap. The core of auto shredders and also used for reducing turnings and light scrap to improve handling and separation.

Auto shredder main mill with swinging hammers - Hammermill used to downsize light iron - Turnings hammermill to improve density

HMS (Heavy Melting Scrap)

A ferrous scrap grade defined by thickness and size; HMS 1 is thicker, cleaner steel, HMS 2 allows thinner gauge and some coatings. Widely traded with standard specs.

HMS 1 1/2 80/20 blend shipment - ISRI 200–206 grade material - Cut plate and beam meeting 60x24 spec

Hot Work Permit

A safety authorization required for torch cutting, welding, and other ignition-producing tasks. Specifies controls like fire watch, gas testing, and area prep.

Permit issued for torch cutting in yard - Fire watch assigned during welding repair - Gas testing documented before hot work

Incoterms (FOB/CFR/CIF)

International commercial terms defining responsibilities, risk transfer, and costs between seller and buyer. Common in export scrap trades (e.g., FOB, CFR, CIF).

FOB Long Beach: risk passes on ship's rail - CFR Nhava Sheva: seller pays freight only - CIF Jebel Ali: seller covers cost, insurance, and freight

ISRI Specifications Circular

The industry-standard specification book published by ISRI that defines recognized scrap grades and codes for ferrous and non-ferrous materials.

Using code 'Zorba 95/5' for export - Grading aluminum as 'Taint/Tabor' - Meeting ISRI 211 spec for shredded ferrous

KYC/AML

Know Your Customer and Anti-Money Laundering practices to prevent theft, fraud, and illicit finance. Includes identity verification, recordkeeping, and suspicious activity reporting.

Scanning seller ID at scale house - Limiting cash payments and filing CTRs - Flagging suspicious catalytic converter sales

LME (London Metal Exchange)

The global exchange for base metals (aluminum, copper, zinc, etc.). Provides reference prices, futures, and hedging tools that influence scrap metal values.

Pricing copper scrap at LME minus formula - Hedging aluminum exposure with LME futures - Using LME official prices for month-average settlements

LOTO (Lockout/Tagout)

A safety procedure to isolate and disable energy sources before servicing equipment. Prevents unexpected startup and injuries.

Applying locks to shredder motor disconnect - Tagging out shear hydraulic power - Verifying zero energy before maintenance

Magnet (Overband/Drum)

Magnetic separators used to remove ferrous metals from material streams. Overband magnets sit over conveyors; drum magnets rotate to capture and discharge steel.

Overband magnet pulling steel off conveyor - Drum magnet recovering ferrous from fines - Magnetic head pulley removing nails

Moisture Deduction

An adjustment reducing payable weight to account for water in the load. Common in shredded, turnings, and baled packages, with thresholds set by contract.

Snow and ice on incoming shred load - Wet aluminum turnings with coolant - Water pockets trapped in dense bales

NMVTIS

The U.S. National Motor Vehicle Title Information System. Dealers must report junk, salvage, and total loss vehicles to help prevent theft and title fraud.

Reporting junk vehicle purchase within 30 days - Checking VIN status before dismantling - Correcting NMVTIS record for a total loss vehicle

Non-Ferrous

Metals other than iron and steel, such as aluminum, copper, brass, lead, and zinc. Typically higher value per weight and sorted by alloy and purity.

Aluminum extrusion 6063 - Copper tubing #2 - Yellow brass solids

NORM (Naturally Occurring Radioactive Material)

Low-level radioactive material that occurs naturally (e.g., scale in oil and gas equipment). Can trigger radiation alarms and requires special handling.

NORM scale inside oilfield tubing - RPM alarm from NORM-contaminated separator - Disposal coordinated with licensed facility

PGM (Platinum Group Metals)

Metals including platinum, palladium, and rhodium. Critical value drivers in catalytic converters and some electronics recycling streams.

Rhodium-rich converter pricing - Recovering palladium from automotive catalysts - Monitoring PGM market for buy quotes

Plate and Structural (P&S)

A ferrous scrap grade of heavy steel plate and structural shapes (e.g., beams), cut to specified maximum dimensions and free of unacceptable attachments.

Cut I-beams from demolition - Heavy plate offcuts from fabrication - P&S prepared to mill size limits

Prompt Scrap

New production scrap generated during manufacturing (e.g., offcuts, stamping skeletons). Typically clean, consistent chemistry, and high value.

Stamping press skeletons from auto plant - Aluminum extrusion tails from saws - New steel trim from coil cutting

Radiation Portal Monitor (RPM)

A drive-through radiation detection system used at yard entrances and shipping points to screen loads for radioactive materials.

Drive-through RPM at yard entrance - Exit RPM screening outbound loads - Alarm investigation log for positive hits

Recovery Rate (Yield)

The percentage of usable metal recovered from an input stream after processing and removing contaminants. A key profitability and quality metric.

Twitch yield percentage from Zorba upgrade - Copper recovery after granulating insulated wire - Melt yield improvement from drying turnings

RIOS (Recycling Industry Operating Standard)

An integrated management system standard (quality, environment, health and safety) tailored to recycling operations and promoted by ISRI.

Facility certified to RIOS standard - Conducting internal audits for RIOS compliance - Documented procedures for EHS and quality

Scale Ticket

A printed or electronic record from a certified scale showing gross, tare, net weights, time, material description, and other transaction details.

Ticket showing GTN and time stamps - Including material code and deductions - Ticket number referenced on invoice

Shear (Guillotine Shear)

A hydraulically powered cutting machine that slices heavy scrap (plate, beams, rebar) to size using a moving blade against a fixed blade.

Shearing plate to 5x2 specs - Cutting rebar bundles to length - Stationary shear processing structural beams

Shred (Shredded Scrap)

Ferrous scrap produced by shredding light iron, autos, and appliances. Traded to mill specs for size, density, and residual chemistry.

ISRI 211 shredded shipped to EAF - Shred density averaging 70 lb/ft3 - Shred chemistry within residual limits

Smelter

A facility that melts and refines non-ferrous scrap into an intermediate or finished metal (e.g., anode, ingot), often with assays and treatment/penalty terms.

Secondary aluminum smelter purchasing Twitch - Brass smelter turning solids into ingot - Copper smelter charging black copper material

Stainless 304/316

Common stainless steel grades. 304 contains chromium and some nickel; 316 contains more nickel and molybdenum, improving corrosion resistance and changing value.

304 stainless sinks and appliances - 316 chemical process piping - XRF confirming Mo in 316

SWPPP (Stormwater Pollution Prevention Plan)

A required plan in many jurisdictions detailing controls to prevent stormwater contamination at industrial sites, including scrap yards.

Installing berms and oil-water separators - Weekly stormwater inspections and logs - Training employees on spill response

Taint/Tabor

An ISRI aluminum grade for clean, mixed aluminum sheet (typically free of cast, foil, and coated materials). Value depends on cleanliness and alloy mix.

Mixed clean aluminum sheet scrap loads - No cast, foil, or coated stock included - Prepared to ISRI Taint/Tabor spec

Torch Cutting

Cutting scrap with oxy-fuel or plasma torches to meet size specifications. Requires hot work permits and strict safety controls.

Oxy-fuel cutting heavy plate to size - Plasma torch trimming stainless - Fire watch maintained during torch work

Turnings

Chips and swarf generated by machining. Often oily, lower density, and may require drying or briquetting to minimize melt loss and fire risk.

Oily steel turnings from lathes - Aluminum swarf briquetted for remelt - Drying turnings to reduce melt loss

Twitch

A clean aluminum fraction produced by further processing Zorba (typically via sink-float and sensor sort) to remove heavies. High aluminum purity.

High-purity Twitch from sink-float line - Twitch 99/1 specification shipments - Sold to secondary aluminum smelters

UBC (Used Beverage Cans)

Post-consumer aluminum cans collected, sorted, and baled for remelting. Valued for high recycled content in can-to-can loops.

Post-consumer UBC bales for remelt - De-lacquered UBC furnace charge - Deposit system UBC collections

VIN (Vehicle Identification Number)

A unique 17-character code identifying vehicles. Used for title verification, theft prevention, and regulatory reporting in ELV processing.

Decoding VIN to verify year and engine type - Recording VIN on scale ticket - Cross-checking VIN against theft database

XRF Analyzer

A handheld or benchtop X-ray fluorescence device that identifies alloy chemistry quickly and non-destructively. Essential for accurate grading of non-ferrous and stainless.

Identifying 304 vs 316 stainless - Sorting aluminum 6061 vs 6063 - Verifying nickel content in superalloys

Yard Management System (YMS)

Software platform that manages scale operations, inventory, tickets, pricing, dispatch, and compliance in a scrap yard.

Creating scale tickets and GTN records - Tracking commodity inventory by location - Dispatching roll-off pickups and deliveries

Zorba

Mixed non-ferrous shredder scrap, predominantly aluminum, recovered from auto shredder downstreams. Traded to ISRI specs (e.g., 90/10, 95/5).

Zorba 90/10 domestic sale - Zorba 95/5 export to Asia - Upgrading Zorba to Twitch via sensor sort

Zurik

A shredded stainless/non-ferrous fraction (often 300-series stainless dominant) separated from Zorba via sensor/sorter technology, traded to ISRI specs.

Sensor-sorted stainless fraction from Zorba - Sold to stainless processors - Upgraded using induction and X-ray sorters