# HMS 1 and HMS 2 Scrap: Meaning, Specifications, 80:20 Blend and Price Drivers > What HMS 1 and HMS 2 heavy melting scrap mean, ISRI specifications, the 80:20 blend used in imports, how HMS is priced in India and abroad, and what Purvanchal mills and sellers should know. Source: https://kabadi24.com/blog/hms-1-2-scrap-guide.html Publisher: Kabadi24 (B2B scrap marketplace, HQ Ramnagar, Varanasi, India) · Updated: 2026-10-21 ## Quick answer & key takeaways - HMS stands for heavy melting scrap, the most widely traded ferrous scrap grade in the world. - HMS 1 is heavier, cleaner steel, generally at least 6.35 mm thick; HMS 2 allows thinner and coated material. - International trade often uses an 80:20 HMS 1:HMS 2 blend. - Indian mills compare domestic MS scrap prices with landed imported HMS prices. - Correct description and inspection avoid disputes in both domestic sales and imports. If you buy or sell ferrous scrap in India, you will hear "HMS" constantly. Steel mills quote for HMS, importers book containers of "HMS 80:20", and buyers describe domestic material as "HMS-type". Yet many sellers are not sure what HMS actually means or why their structural steel is or isn't counted as HMS 1. This guide explains HMS grades, specifications, blends and pricing, with notes for mills and sellers in Varanasi and Purvanchal. ## What does HMS mean? HMS stands for **heavy melting scrap** (also called heavy melting steel). It is a broad grade of recycled steel suitable for melting in electric arc furnaces, induction furnaces and other steelmaking processes. The grades are defined in international specifications, most commonly those published by ISRI (Institute of Scrap Recycling Industries). ## HMS 1 (ISRI 200 / 201) HMS 1 is the heavier, cleaner grade. Key features: - Wrought iron and/or steel scrap. - Thickness generally **1/4 inch (about 6.35 mm) and over**. - Individual pieces typically within set dimensions (often up to 60 × 24 inches, prepared to fit charging boxes). - Free from galvanised or blackened (coated) material in the strict definition. - Free from non-ferrous metals, non-metallics and excessive rust or dirt. Examples: thick plates, heavy structural sections, heavy pipes and beams, cut to size. ## HMS 2 (ISRI 203 / 204) HMS 2 allows lighter and coated material. Key features: - Wrought iron and steel scrap, black and galvanised. - Thickness generally **1/8 inch (about 3.2 mm) and over**, in some specifications lighter. - Prepared to similar size limits. - May include auto body scrap in some definitions, but free of non-ferrous metals and non-metallics. Examples: lighter structural pieces, thinner pipes, sheets of moderate thickness. ## The 80:20 blend In international trade, HMS is often sold as a blend, most commonly **HMS 1:HMS 2 in an 80:20 ratio**, meaning 80% HMS 1 and 20% HMS 2 by weight. Other ratios such as 70:30 and 50:50 also trade. Higher HMS 1 content means better yield and a higher price. ## Why HMS specifications matter Steelmakers rely on predictable scrap. Thick, clean HMS 1 has higher melting yield, fewer impurities and less slag. Thin, rusty or contaminated scrap reduces yield, increases power consumption and may introduce unwanted elements such as copper, tin or zinc. That is why specifications are strict and why buyers inspect consignments closely. ## HMS in the Indian domestic market Domestically, many buyers use HMS terminology loosely. A domestic seller's "HMS" might simply mean heavy MS scrap. When selling, describe your material accurately: - Thickness range. - Types of items (plates, beams, pipes). - Coatings (galvanised, painted). - Rust level. - Attachments. - Whether it is cut to furnace-ready size. This allows the buyer to price fairly and avoids disputes at delivery. ## How HMS is priced ### International prices HMS prices are quoted in US dollars per tonne, typically CFR (cost and freight) to a destination port. Turkey's import market is a widely watched global benchmark for HMS 80:20. South and Southeast Asian import prices, including India, follow their own dynamics but are influenced by global trends. ### Indian domestic prices Indian mills compare: - Domestic HMS/MS scrap prices. - Landed cost of imported HMS (CFR price + duty if any + port and inland freight). - Sponge iron and pig iron prices. - Finished steel and billet prices. When imported HMS is cheaper on a landed basis, mills buy more imports and domestic scrap prices soften; when imports become expensive, domestic scrap rises. ## Importing HMS into India Importing HMS into India requires compliance with metal scrap import rules, including a pre-shipment inspection certificate (PSIC) from an agency recognised by DGFT, radiation checks, and conformity with environmental rules. Importers must also hold an IEC and comply with customs procedures. The list of recognised inspection agencies is updated from time to time, so importers should check the current DGFT list before booking. See our detailed guide on scrap import in India for more. ## HMS for Purvanchal mills and foundries Induction furnaces and rolling mills in eastern UP and neighbouring states use both domestic and imported scrap. For mills in Varanasi, Chandauli and nearby districts, imported HMS usually arrives via eastern ports such as Kolkata and Haldia, or via western ports with longer inland freight. The choice depends on: - Landed cost comparison against domestic MS. - Consistency of grade. - Availability of working capital, since imports require larger lots and advance payments. - Lead times. ## Inspection tips for buyers - Check thickness distribution with a gauge. - Look for excessive rust and soil. - Check for non-ferrous attachments, sealed containers and hazardous items. - Verify radiation clearance for imports. - Compare against photos and the contract specification. ## Preparation tips for sellers - Cut material to furnace-ready dimensions. - Separate heavy material (HMS 1 type) from lighter pieces. - Remove non-ferrous attachments, rubber and plastics. - Keep coated material separate. - Avoid dragging material through soil. ## HMS vs other common ferrous grades | Grade | What it is | Typical use | |---|---|---| | HMS 1 | Heavy steel, 6.35 mm+, cut to size | EAF/IF melting, high yield | | HMS 2 | Lighter and coated steel, cut to size | Melting, lower yield | | Shredded | Fragmented steel from shredders, dense and uniform | EAF charging, consistent | | P&S (plate and structural) | Clean cut plate and structural | Premium melting scrap | | Bundles | Compressed light steel | Melting, higher loss | | Busheling | Clean new production steel clippings | Premium, low residuals | | Turnings | Machining chips | Lower value, needs briquetting | Understanding these alternatives helps mills choose the best mix for their furnace, and helps sellers see why heavy, clean, cut-to-size material earns a premium. ## A practical comparison for a Purvanchal mill Suppose an induction furnace near Varanasi compares domestic heavy MS with imported HMS 80:20. Domestic MS arrives quickly by road in small lots with little working capital, but quality varies between suppliers. Imported HMS needs larger lots, LC or advance payments, port clearance and longer inland transport, but offers more predictable yield. The mill calculates cost per tonne of liquid steel, not just cost per tonne of scrap, factoring in yield and power consumption. In many months, a blend of both proves best: domestic MS for flexibility and imported HMS for consistency. ## HMS preparation checklist for domestic sellers - Cut to furnace-ready size. - Separate heavy (6 mm+) from light material. - Keep galvanised and painted steel apart. - Remove non-ferrous parts, rubber and plastics. - Avoid soil, concrete and water. - Photograph lots and record weights. ## Common HMS disputes and how to avoid them - **Thickness disputes:** The buyer finds a large share of thin material in an "HMS 1" lot. Agree a minimum thickness share in writing (for example 80% at 6 mm and above) and photograph representative pieces. - **Oversize pieces:** Material that does not fit the charging box must be re-cut, at a cost. State maximum dimensions in the contract. - **Hidden contamination:** Closed pipes, tanks and cylinders can hide water, oil or gas and are dangerous in a furnace. Cut them open before dispatch. - **Galvanised content:** Zinc fumes and residuals are a problem for some mills. Declare galvanised material and keep it separate. - **Weight differences:** Agree whether loading or receiving weight is final and the tolerance allowed. Most disputes disappear when both sides share the same specification sheet, photos at loading and weighbridge slips. ## How Kabadi24 works with HMS Kabadi24 buys heavy and light MS scrap from units across Varanasi and Purvanchal, prepares it to furnace-ready sizes with our gas-cutting crew, and grades it accurately. Through our trade desk at the Ramnagar head office, we also help mills source imported HMS and other ferrous grades, coordinating documentation, port routing and inland delivery. ## Conclusion HMS is the backbone of the ferrous scrap trade. Knowing the difference between HMS 1 and HMS 2, understanding blends like 80:20, and describing material accurately lets both buyers and sellers price fairly. For Purvanchal mills, comparing domestic MS with landed imported HMS is a routine part of raw material planning. ## Frequently asked questions ### What is HMS scrap? HMS stands for heavy melting scrap, a widely traded grade of recycled steel suitable for melting in steel furnaces. It is divided mainly into HMS 1 and HMS 2. ### What is the difference between HMS 1 and HMS 2? HMS 1 is heavier steel scrap, generally 6.35 mm thick and above, and usually uncoated. HMS 2 allows thinner, black and galvanised steel. HMS 1 commands a higher price. ### What does HMS 80:20 mean? It is a blend of 80% HMS 1 and 20% HMS 2 by weight, commonly used in international scrap trade. ### How is HMS scrap priced in India? Indian prices follow domestic steel, sponge iron and billet prices and are benchmarked against the landed cost of imported HMS at Indian ports. ### Can Kabadi24 help source imported HMS for a mill in Purvanchal? Yes. Kabadi24's trade desk in Ramnagar coordinates imported scrap supply, documentation, port routing and delivery to mills in Varanasi and Purvanchal.