You packed a container to ISRI 200 spec. Your material is clean, sorted, and over 6mm thick throughout. It arrives at Nhava Sheva, clears customs, and gets trucked to an induction furnace in Jalna or Nagpur. Then the gate man walks around the load and says there’s a problem.
This happens more than it should. And it happens because ISRI codes – the North American standard that most of the world uses to describe HMS – and Indian mill expectations are not the same thing. Close in most respects, different in a few that matter.
Understanding where those differences lie is the difference between a clean gate acceptance and a rejected load 8,000 km from home.
ISRI Codes – What the Global Standard Says
The Institute of Scrap Recycling Industries defines HMS through six codes covering two grades. These are the descriptions that appear on almost every international scrap contract, bill of lading, and LC document.
| ISRI Code | Grade | Thickness | Max Piece Size | Notes |
|---|---|---|---|---|
| 200 | HMS 1 | 6.35mm (¼ inch) min | 1,524mm × 610mm | Standard HMS 1 |
| 201 | HMS 1 | 6.35mm min | 914mm × 457mm | Smaller cut HMS 1 |
| 202 | HMS 1 | 6.35mm min | 1,524mm × 457mm | HMS 1 five foot |
| 203 | HMS 2 | 3.175mm (⅛ inch) min | Charging box size | Black and galvanized included |
| 204 | HMS 2 | 3.175mm min | 914mm × 457mm | Automotive scrap included |
| 205 | HMS 2 | 3.175mm min | 914mm × 457mm | Auto scrap, thinner gauge |
| 206 | HMS 2 | 3.175mm min | 1,524mm × 457mm | Extended length HMS 2 |
The international trade standard for most bulk shipments to India is HMS 1&2 (80:20) – meaning 80% HMS 1 (ISRI 200-202) and 20% HMS 2 (ISRI 203-206) blended. This is what most exporters quote. It’s also what most Indian purchase orders ask for. But the contract description and the mill gate acceptance criteria are two different things.
What Indian Induction Furnaces Actually Need
Indian induction furnaces have specific technical requirements driven by furnace geometry, not international trade conventions. Most Indian IF units run on 5 to 20 tonne capacity crucibles. The critical physical constraints are:
Piece size: No piece should have any single dimension exceeding 33% of the furnace diameter – and no dimension exceeding 50% of the furnace diameter. For a standard 10-tonne Indian IF furnace with a 900mm crucible diameter, that means no piece longer than approximately 450mm in any dimension for ideal charging. The ISRI 200 standard allows pieces up to 1,524mm. That’s the gap.
Density: Indian IF operators specifically require charge material density of not less than 1.3 tonnes per cubic metre for optimum furnace performance. HMS 1 typically achieves around 0.7 – 0.9 tonnes/m³ loose. Shredded scrap achieves 0.9 – 1.1 tonnes/m³. Neither hits 1.3 t/m³ loose – which is why Indian mills constantly push for denser, more compact material and pay premiums for shredded over loose HMS.
Bridging risk: Long pieces that extend above the furnace mouth create bridging – the scrap locks across the top of the furnace without dropping into the melt pool. This interrupts the heat, wastes power, and forces manual intervention. Indian operators are acutely sensitive to this problem and will reject or heavily dock material with excessive long pieces even if it meets ISRI thickness specs.
The Key Differences – ISRI vs Indian Mill Reality
| Specification Point | ISRI Standard (Global) | Indian Mill Expectation |
|---|---|---|
| Max piece length | 1,524mm (ISRI 200) | 600 – 800mm preferred |
| Min thickness HMS 1 | 6.35mm (¼ inch) | 6mm – broadly same |
| Min thickness HMS 2 | 3.175mm (⅛ inch) | 3mm – broadly same |
| Galvanized in HMS 1 | Not permitted | Not permitted – strictly enforced |
| Galvanized in HMS 2 | Permitted (ISRI 203) | Permitted but docked |
| Charge density required | Not specified by ISRI | Min 1.3 t/m³ preferred |
| 80:20 blend definition | 80% ISRI 200-202, 20% ISRI 203-206 | Same ratio, stricter size enforcement |
| Non-ferrous attachments | Minimized | Zero tolerance at serious mills |
| Radioactive material | Not covered by ISRI | PSIC/self-declaration mandatory |
The piece size gap is the most operationally significant difference. An American scrap yard packing ISRI 200 to maximum dimension – pieces up to 60 inches long – is sending material that Indian IF operators will struggle to charge efficiently and may reject or dock on size grounds even though it meets the contracted specification.
IS 2549:2023 – India’s Own Scrap Classification
India’s Bureau of Indian Standards updated its domestic scrap classification to IS 2549:2023, which defines processed ferrous scrap grades using Indian terminology and Indian technical requirements. Major mills and large import contracts are increasingly referencing this standard in purchase orders alongside ISRI codes.
The IS 2549:2023 framework broadly aligns with ISRI but with tighter size specifications matching Indian IF furnace requirements. When an Indian purchase order references IS 2549:2023, the size limits in that standard – not the looser ISRI dimensions – govern acceptance at the mill gate.
If your contract references both ISRI 200 and IS 2549:2023, the IS 2549 limits on piece size apply. Always check which standard takes precedence in your contract’s technical specification clause.
The Galvanized Material Question
ISRI 203 – the standard HMS 2 code – explicitly permits galvanized steel. That’s normal in Western scrap markets where galvanized sheet, old fencing, and coated structural material routinely enters the HMS 2 stream.
Indian IF operators have a different view. Galvanized steel introduces zinc into the furnace. Zinc vaporises at around 907°C – well below steel’s melting point. That zinc vapour attacks the furnace refractory lining, reduces refractory life, creates zinc oxide fume that requires extraction, and can push the heat chemistry out of specification. Indian mills cap the galvanized content in their furnace burden tightly – typically 5 – 10% maximum across the entire heat.
If your HMS 2 is heavily galvanized – old roofing sheet, corrugated iron, fence posts – expect either a rate deduction or a refusal to take large volumes at Indian IF units. Some yards in Maharashtra and Gujarat handle galvanized separately, processing it for specific buyers who can manage the zinc load. But routing heavily galvanized material as standard HMS 2 to a mainstream Indian induction furnace creates gate problems.
The detailed picture of how Indian buyers test for contamination – including zinc from galvanized material – is covered in the iron scrap purity testing guide which explains exactly what mill gate staff check before a load gets accepted.
Shredded Scrap vs HMS – The Indian Premium
Indian mills consistently pay ₹3,000 – ₹4,000/MT more for shredded scrap than for HMS 1. The reason connects directly back to the density problem.
Shredded scrap achieves 0.9 – 1.1 t/m³ bulk density. HMS 1 loose achieves 0.6 – 0.9 t/m³. The denser material charges faster, runs hotter, and produces more usable steel per furnace cycle. For a mill running 3-4 heats per day, the difference in productivity is measurable in tonnes of finished billet per month.
That productivity premium is what the ₹3,000 – ₹4,000/MT price spread reflects. For US and UK exporters with access to shredded material – ISRI 210-211 Shreddable Scrap or processed shredded – the Indian market pays a meaningful premium over global averages for HMS grades. It’s worth separating shredded from HMS in your inventory before quoting to Indian buyers.
What to Tell Your Indian Buyer Before Shipping
Before booking a vessel, have this conversation with your Indian buyer explicitly:
Piece size: Confirm their maximum acceptable piece length. If they’re running 10-tonne IF furnaces, ask for a 600mm max piece length specification in the contract. If your material exceeds that, you need to either cut it or adjust the grade description and price.
Galvanized content: If your HMS 2 contains significant galvanized material, declare the approximate percentage upfront. Buyers who can handle it will factor it into their rate. Buyers who can’t will tell you before the container ships – not after.
Density: If you’re shipping loose HMS rather than shredded, confirm the buyer’s furnace can accept the lower density material. Some smaller IF operators specifically prefer tighter-cut, denser material and won’t pay HMS 1 rates for loose long material regardless of thickness.
Contamination zero tolerance items: Copper wire, stainless steel, sealed containers, rubber – confirm your pre-dispatch checklist covers all of these. The scrap rejection reasons guide covers every contamination issue that causes Indian mill gate rejections, from the exporter’s perspective as much as the domestic seller’s.
The Grade Premium Table – What Indian Mills Pay for Each Grade
Understanding the rate hierarchy helps you position your material correctly before quoting.
| Grade | Indian Rate (Feb 2026) | vs HMS 1 Base |
|---|---|---|
| Shredded (ISRI 210-211) | ₹35,000 – ₹36,000/MT | +₹3,000 – ₹4,000 |
| HMS 1 (80:20) (ISRI 200-202) | ₹31,500 – ₹32,000/MT | Base |
| HMS 2 (ISRI 203-206) | ₹30,500 – ₹31,000/MT | -₹500 – ₹700 |
| Bundles (ISRI 230-233) | ₹31,000 – ₹32,500/MT | ±₹500 |
| Turnings (ISRI 240-247) | ₹29,000 – ₹29,500/MT | -₹2,000 – ₹2,500 |
| Mixed unsorted | ₹27,500 – ₹29,000/MT | -₹3,000 – ₹4,500 |
Check the live iron scrap rates in India before finalising any CIF quote – these are indicative February 2026 numbers and the domestic rate is what determines whether your landed price makes commercial sense for the buyer.
One Practical Adjustment That Pays for Itself
If you’re currently shipping ISRI 200 at full dimension – pieces up to 60 inches – to Indian IF buyers, consider running your material through a shear to reduce maximum piece length to 600 – 700mm before shipping.
The cost of cutting is roughly USD 3 – 8/MT depending on your equipment and labour. The Indian premium for tighter-cut, denser material ranges from USD 5 – 15/MT on the CIF price. That’s a positive return on the processing cost – and it removes the single most common technical complaint Indian gate staff raise on HMS consignments from North American and European yards.
Grade specifications and rate premiums are indicative as of February 2026. ISRI Specifications Circular 2022 is the current global reference for North American grade definitions. IS 2549:2023 governs Indian domestic processed scrap classification. Always confirm specific buyer requirements in writing before finalising container specifications.
