By the Scrap Bhai team · Updated 13 November 2026
Quick answer
The main types of Scrap are ferrous metal (iron and steel: HMS 1, HMS 2, cast iron, turnings, stainless steel), non-ferrous metal (copper, brass, aluminium, lead, zinc), paper and cardboard (gatta, newspaper, office paper), plastic (PET, HDPE, LDPE, PP, PVC and others) and e-waste. The grade decides the rate, so correct identification is the most valuable skill in the Scrap trade.
The main groups of Scrap
| Group | Examples | Rate per kg |
|---|---|---|
| Ferrous | Iron, mild steel, cast iron, stainless steel | Low (stainless higher) |
| Non-ferrous | Copper, brass, aluminium, lead, zinc | High |
| Paper | Cardboard (gatta), newspaper, office paper, books | Low |
| Plastic | PET bottles, HDPE drums, PP crates, LDPE film | Low to medium |
| E-waste | Circuit boards, phones, computers, cables | Varies by item |
| Others | Rubber and tyres, glass, textiles, wood | Low |
Iron and steel (ferrous) grades
- HMS 1 (heavy melting steel): thicker iron and steel, generally about 6 mm and above, such as beams, plates and heavy structures. Better rate.
- HMS 2: thinner and lighter steel, including black and galvanised sheet. Lower rate than HMS 1.
- Cast iron (CI): engine blocks, pipes, machine bodies. Brittle: it breaks rather than bends.
- Turnings and borings: lathe and machining chips. Oil and rust lower the rate.
- Sheet cuttings and bundles: clean new Scrap from factories, often pressed into bundles.
- Shredded Scrap: material cut into small pieces by a shredder, popular with furnaces.
Furnaces and rolling mills buy most ferrous Scrap. Dirt, rust, attachments and wrong mixing bring deductions, so sort HMS 1 and HMS 2 separately.
Stainless steel grades
- SS 304: the most common grade, about 18% chromium and 8% nickel. Mostly non-magnetic.
- SS 316: contains molybdenum for better corrosion resistance; used in chemical and marine equipment. Pays more than 304.
- SS 202: lower nickel and more manganese. Cheaper, and easy to mix up with 304.
A magnet cannot reliably separate 304 from 202. Traders use chemical test kits, and big buyers use XRF analysers. Paying a 304 rate for 202 is one of the most common losses.
Copper and brass grades
Names differ from city to city, but the logic is the same: the cleaner and purer the copper, the higher the rate.
- Bright bare copper wire: clean, shiny, uncoated wire. Usually the top rate.
- Armature: enamelled winding wire from motors and transformers.
- Birch/Cliff and Berry/Candy: international names for No. 2 and No. 1 copper, used by bigger buyers and exporters.
- Mixed copper: pipes, sheets and parts with paint, solder or plating. Lower rate.
- Copper cable: priced on the copper recovery inside the insulation.
- Brass honey: clean yellow brass such as taps, valves and fittings.
- Mixed brass and brass turnings: brass with iron or other attachments, and machining chips.
Always refuse copper and cable without a clear source. Stolen cable is a frequent police case in the Scrap trade.
Aluminium grades
- Section: clean extrusions such as window and door frames.
- Utensil (bartan): old pots and pans.
- Cast aluminium: engine parts, gear boxes and castings; alloy wheels are often sold separately.
- Wire: electrical conductor wire, a high grade when clean.
- Cans (UBC): used beverage cans, light and sold in bulk.
- Mixed sheet and Zorba: mixed old sheet and shredded non-ferrous mixes for bigger buyers.
Paper and cardboard
- Gatta (OCC): old corrugated cartons from shops and factories. The biggest paper grade.
- Newspaper (akhbar): old newspapers, sold separately from other paper.
- Office and white paper: printouts and white record, a better rate when clean.
- Books and copies, and mixed paper: lower rates.
Keep paper dry: buyers cut for moisture. Paper Scrap carries 5% GST; see GST on Scrap.
Plastic types
Most plastic items carry a recycling code from 1 to 7. Sorting by type is where the money is.
| Code | Type | Common items |
|---|---|---|
| 1 | PET | Water and soft-drink bottles |
| 2 | HDPE | Oil cans, drums, milk and shampoo bottles |
| 3 | PVC | Pipes, cables, window profiles |
| 4 | LDPE | Films, carry bags, wrappers |
| 5 | PP | Crates, chairs, buckets, woven sacks |
| 6 | PS | Disposable cups, packing foam |
| 7 | Other | ABS, polycarbonate and mixed plastics |
E-waste and batteries
- Circuit boards (PCB): high grade (computer motherboards, mobile boards) and low grade (TV and power-supply boards).
- Computers, phones and parts: RAM, processors, hard disks, chargers.
- Cables and wires: priced on their copper.
- Batteries: lead-acid and lithium batteries must go to registered recyclers.
E-waste and batteries have strict rules; read the e-waste business guide before you trade them.
Simple tests to identify Scrap
- Magnet test: sticks to iron and most steel; does not stick to copper, brass, aluminium, lead or most 304 stainless steel.
- Scratch and colour: scratch the surface to see the real colour: red for copper, yellow for brass, white-silver for aluminium.
- Weight in hand: lead and copper feel heavy for their size; aluminium feels light.
- Break or bend: cast iron breaks; mild steel bends.
- Spark test: the sparks from a grinder differ between types of steel. Use with safety glasses.
- Water float test for plastic: PP and PE float in water; PET and PVC sink.
- Test kits and XRF: chemical kits and XRF analysers confirm alloys such as 304 and 202.
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The Scrap Bhai Scrap Business Course guides you through all of this, step by step, in short Hindi lessons: material identification, rates, buying, selling, fraud safety and a weekly live doubt session. For rates, training and a network together, see the Scrap Business Franchise.
Common questions
What are the main types of Scrap?
Scrap is grouped into ferrous metal (iron and steel), non-ferrous metal (copper, brass, aluminium, lead, zinc), paper and cardboard, plastic, e-waste, and others such as rubber, glass and textiles. Each group has its own grades and rates.
What is HMS 1 and HMS 2 Scrap?
HMS means heavy melting steel. HMS 1 is thicker iron and steel Scrap, generally about 6 mm and above, and gets a better rate. HMS 2 is thinner and lighter material, including black and galvanised sheet, and gets a lower rate.
Which Scrap is the most valuable?
Per kg, copper is usually the most valuable common Scrap, followed by brass and then aluminium and stainless steel. High-grade circuit boards from e-waste also carry value, but must go to registered recyclers.
What is gatta in Scrap?
Gatta is the common trade name for cardboard Scrap, mainly old corrugated cartons (OCC). It is sold in bulk to paper mills, and dry, clean gatta gets the best rate.
How can I tell copper from brass?
Copper is reddish-brown and turns dark or green with age; brass is yellow or gold. Scratch the surface to see the true colour. Both are non-magnetic, so a magnet only tells you whether iron is mixed in.
This guide is general information, not legal, tax or investment advice. Rules and rates change, so confirm the details with a CA or your local office before you act.