Freight Is 18 Percent of a Ferrous Cargo and 0.5 Percent of a Copper One

Freight is 10 to 18 percent of a ferrous cargo’s value and under half a percent of a copper cargo’s. That single ratio explains the entire structure of the scrap export trade: ferrous moves in bulk vessels on short routes because the freight eats the margin, while copper and brass travel anywhere in containers because the shipping cost barely registers. A 20 foot container of ferrous is worth about $8,267 at our board; the same box filled with copper is worth about $254,854.

Scrap Price Today market analysis, written from exchange settlement data, mill and refiner pricing practice and published policy documents. Figures are examples; today’s numbers are on the live scrap price board.

Understanding that difference is what separates a domestic seller from an exporter, and it decides which markets can ever bid for your material.

The freight ratio, which decides everything

Published trade reporting gives real freight rates on the main routes.

Now set those against cargo value at our board.

When freight is a fifth of the cargo value, a few dollars a tonne decides whether a shipment happens at all. When it is half a percent, it does not enter the conversation.

That is why a rise of $8 a tonne on the US to Turkey route makes headlines in the ferrous trade and passes unnoticed in copper.

What fits in a container

A 20 foot container has a payload limit around 28 tonnes, and in practice ferrous loads to about 25 tonnes and non-ferrous to about 20, because density and stowage differ.

A single container of copper is worth thirty times a container of ferrous. That is the whole reason non-ferrous theft is organised and ferrous theft mostly is not.

Where the price is actually set

Export scrap does not trade on one global number. It trades against published index prices for specific routes and grades.

The reference the ferrous world watches most is the Turkish import assessment for HMS 80/20 delivered cost and freight, which underpins cash-settled futures on both major exchanges. Alongside it sit index-based contracts for scrap delivered into India and Taiwan and for rebar out of Turkey.

That structure matters to a seller because it means the price at your local dock is a derived number: the Turkish or Indian import index, less freight, less the exporter’s margin. Our steel analysis works that arithmetic through with real cargo figures.

Why import markets pay more, and by how much

Countries that melt more than they generate have to bid material in. Countries with more supply than demand, or with export restrictions, do not.

Our own market factors express that: Turkey sits at 1.04, the United States at 1.00, India at 0.92, Bangladesh at 0.88 and South Africa at 0.85. The spread between the strongest and weakest is 22.4 percent for the same metal on the same day.

Those are not arbitrary. Turkey is the world’s largest ferrous scrap importer and bids against everyone. South Africa operates a price preference system requiring scrap to be offered domestically below export parity, which holds local prices down by design. The mechanism is set out country by country in our local prices analysis.

Why long routes stop working

The freight ratio also explains why trade flows reorganise when shipping costs move.

Trade reporting from one period of rising rates described sellers finding UK to Bangladesh shipments increasingly difficult, requiring a premium of $25 to $28 a tonne over the Indian import price to make sense. The result was that material diverted to India instead, and the flood of containerised offers pushed Indian prices down.

So a freight rise on one route does not simply raise costs; it redirects cargo and moves prices in a third market. That is the mechanism behind a lot of otherwise inexplicable local price movements.

What this means if you are not an exporter

Most readers will never load a container, and the practical takeaways are still direct.

• Your local ferrous price is a freight calculation. Distance to the nearest mill or export dock is most of the gap between two yards, which is why our yard selection guide treats location as a pricing factor rather than a convenience.
• Non-ferrous prices are national, ferrous prices are local. Copper barely notices freight, so copper quotes converge; ferrous quotes diverge with geography.
• Import market sellers should watch the exchange rate as closely as the metal. In markets where the board is a converted dollar price, currency moves the local number without the metal doing anything.
• Volume changes access. Container-scale non-ferrous is a different market from walk-in trade, with different buyers and terms, as our accounts and contracts analysis covers.

The compliance layer

Exporting scrap is a regulated trade rather than a shipping exercise, and the requirements sit on both ends.

Exporters need trade registration, correct commodity classification for each material, and documentation that satisfies the importing country’s inspection regime. Importing countries increasingly apply quality standards to incoming scrap, and consignments that fail can be rejected at the port at the seller’s cost.

There are also outright restrictions to check before quoting anyone. Several countries limit or prohibit scrap exports to protect domestic supply, and the recommended measures on high-quality copper scrap in the United States, discussed in our copper analysis, would fall into this category if enacted.

What this metal pays around the world

Scrap is a global market priced in US dollars, but what reaches a seller depends on trade position, freight to the nearest consumer and how many buyers compete locally. The table below converts the same grade into each market’s own currency and units at the day’s exchange rate, and shows the factor we apply.

Method

Freight rates and route commentary are taken from published trade press reporting and are historical examples rather than current quotes; ocean freight moves constantly and should be checked at the time of shipment. Container payload figures are standard limits, and practical load weights vary with density, stowage and road weight restrictions at each end.

Cargo values are our own board prices converted to tonnes, documented on the editorial policy page with live figures on the board. They are indicative reference levels rather than achievable FOB prices, which depend on grade, contract and destination.

We do not trade scrap, broker cargoes or take referral fees.

Questions people ask

Why does ferrous scrap move in bulk vessels and copper in containers?

Because of the freight ratio. Freight is 10 to 18 percent of a ferrous cargo’s value and under half a percent of a copper cargo’s. Ferrous needs the cheapest possible shipping on short routes, while copper can travel anywhere because the shipping cost barely registers against the metal.

How much is a container of scrap worth?

At our board, a 20 foot container holding 25 tonnes of ferrous is about $8,267, while 20 tonnes of number 1 copper is about $254,854. Brass comes to roughly $155,205 and aluminium about $37,479 for the same box.

What price do exporters actually trade against?

Published index assessments for specific routes and grades rather than one global number. The most watched ferrous reference is the Turkish import assessment for HMS 80/20 delivered cost and freight, which underpins cash-settled futures, alongside indices for scrap into India and Taiwan.

Why do import markets pay more than export markets?

Countries that melt more than they generate have to bid material in, while countries with surplus supply or export restrictions do not. Our market factors put Turkey at 1.04 and South Africa at 0.85, a 22.4 percent spread for the same metal on the same day.

Can a freight rise on one route change prices somewhere else?

Yes, and it regularly does. Trade reporting has described rising rates making UK to Bangladesh shipments unviable without a $25 to $28 a tonne premium, which diverted cargo to India and pushed Indian containerised prices down. Freight redirects flows rather than simply raising costs.

Does any of this matter if I sell to a local yard?

Yes. Your local ferrous price is largely a freight calculation, which is why two yards at different distances from a mill or dock quote differently. Non-ferrous prices converge nationally because freight barely affects them, while ferrous prices diverge with geography.

How much can a 20 foot container legally carry?

The payload limit is around 28 tonnes, but ferrous typically loads to about 25 and non-ferrous to about 20 because density and stowage differ. Road weight limits at either end frequently bind before the container limit does.

What compliance applies to exporting scrap?

Trade registration, correct commodity classification for each material, and documentation meeting the importing country’s inspection regime. Importing countries increasingly apply quality standards, and failed consignments can be rejected at the port at the seller’s cost. Some countries also restrict scrap exports outright.

Frequently asked questions