Ferrous waste and scrap; n.e.c. in heading no. 7204

HS code 720449 covers a crucial segment of the global recycling industry - the trade and processing of ferrous waste and scrap materials. This industry plays a vital role in the circular economy, as it enables the reuse and repurposing of valuable metal resources, reducing the need for energy-intensive primary metal production. The ferrous waste and scrap trade is an important contributor to the broader 72 Iron and steel industry, supplying essential raw materials for steel mills and foundries worldwide.

The main production techniques involved in the ferrous waste and scrap industry include collection, sorting, shredding, and processing. Scrap metal is gathered from various sources, such as construction sites, automotive dismantlers, and industrial facilities. The collected materials are then sorted by metal type, grade, and purity, often using advanced sensor-based technologies. The sorted scrap is then shredded or compacted to reduce volume and prepare it for further processing, which may involve melting, refining, or other metallurgical techniques to extract and purify the valuable metal content.

The key inputs required for the ferrous waste and scrap industry include the raw scrap metal itself, as well as specialized equipment for collection, sorting, and processing. This includes shredders, balers, and other machinery used to handle and prepare the scrap for downstream use. Additionally, the industry relies on a skilled workforce, transportation infrastructure, and access to energy sources to power the various processing steps.

The primary output of the ferrous waste and scrap industry is processed, high-quality scrap metal that can be used as a raw material for the production of new steel and other iron-based products. This scrap is consumed by 7201 Pig iron and spiegeleisen in pigs, blocks or other primary forms and 7202 Ferro-alloys producers, as well as 7203 Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having a minimum purity by weight of 99.94%, in lumps, pellets or similar forms and 7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel industries.