ScrapTrade Community Council
Official Publication · Moderator Council Approved
Official Trading Guidelines
Published 2025 · Version 3.2 · Applies to All Platform Members
All members agree to follow these guidelines upon registration. Violations may result in listing removal, trade suspension, or permanent account termination.
Introduction
The ScrapTrade Community Council publishes these trading guidelines to establish a universal standard for safe, transparent, and legally compliant scrap metal transactions conducted through the ScrapTrade platform. These guidelines represent the collective experience of thousands of completed trades across more than 50 countries and have been developed in response to real-world trade failures, scam incidents, and disputes observed on the platform.
The global scrap metal trade is a high-value commodity market — individual transactions routinely involve hundreds of thousands of dollars. This creates an environment where bad actors attempt to exploit buyers and sellers through misrepresentation, fraudulent documentation, and payment fraud. These guidelines exist to protect all parties by establishing clear, enforceable standards.
10,000+
Trades Completed
50+
Countries Active
97%
Dispute Resolution Rate
Compliance with these guidelines is mandatory for all platform members. Sellers who fail to complete video verification, misrepresent material specifications, or attempt to solicit off-platform payments will have their listings suspended and may face permanent account termination. Buyers who attempt to circumvent the escrow system or file fraudulent disputes will likewise face removal.
The Complete Scrap Trade Cycle
Every trade on ScrapTrade should follow these 8 steps in sequence. Skipping any step voids the platform's buyer and seller protections.
Listing Creation & Verification
The seller creates a listing with complete and accurate information: material type, grade, quantity (in MT), location (country, region), condition, and packaging details. Clear photos of the actual material must be uploaded — stock images are prohibited. Upon creation, the listing enters the video verification queue for admin review.
Buyer Discovery & Due Diligence
Buyers browse the marketplace and evaluate listings. Before engaging, buyers should check the seller's platform rating, number of completed trades, verification badges, and country of origin. Buyers may request additional photos or documents from the seller through the platform's messaging system.
Offer / Negotiation
The buyer submits a formal offer through the platform's offer system, specifying the offered price, quantity, preferred incoterm (EXW, FOB, CIF, CFR), and proposed payment terms. All negotiations must occur on-platform. Off-platform communication is prohibited and voids ScrapTrade's dispute protection.
Trade Confirmation
Once both parties agree on terms, a formal trade confirmation is generated on the platform. Both buyer and seller must digitally accept the trade confirmation, which sets out all agreed terms in writing. This document is binding and is used as the basis for any dispute resolution.
Escrow & Payment
The buyer deposits the full agreed amount (or a negotiated deposit) into the ScrapTrade escrow account. Funds are held securely and cannot be released to the seller until all delivery conditions are met. Direct bank transfers to sellers outside the escrow system are never permitted and will void all buyer protections.
Pre-Shipment Inspection
A mutually agreed third-party inspection company (SGS, Bureau Veritas, Intertek, or similar) conducts a pre-shipment inspection at the seller's yard or container stuffing point. The inspector verifies material grade, net weight, and condition, issuing a weight certificate and inspection report. The buyer receives copies of all inspection documents.
Shipping & Documents
The seller arranges shipment according to the agreed incoterm. Required export documents include: Bill of Lading (BL), Packing List, MSDS (Material Safety Data Sheet), Certificate of Origin (COO), and any applicable export permits. All documents must be shared on the platform within 5 business days of vessel departure.
Delivery & Release
Upon arrival and customs clearance at the destination port, the buyer inspects the delivery and confirms receipt on the platform. If the material conforms to the agreed specification, the buyer confirms delivery and the escrow funds are released to the seller. Both parties post reviews within 7 days. Any non-conformities trigger the platform's dispute resolution process.
Seller Responsibilities
All sellers on ScrapTrade are bound by the following responsibilities. Failure to comply may result in listing suspension, negative review, or account termination.
Buyer Responsibilities
Buyers who follow these responsibilities are fully protected by the platform's escrow and dispute resolution systems.
Anti-Scam Framework
Scam activity in the global scrap trade is a significant and growing problem. The following red flags have been identified through real incidents on ScrapTrade and across the broader industry. If you encounter any of these signs, stop the transaction immediately and report it.
Request to pay outside the platform
Any seller requesting a direct bank transfer, Western Union, crypto, or any payment outside the ScrapTrade escrow is almost certainly a scammer. This is the #1 red flag.
Listing has no Video Verified badge
If a seller's listing has not been video verified, you have no proof the material exists. Always insist on verification before committing to a trade.
Price significantly below market rate
If a price appears too good to be true, it almost certainly is. Check the platform's live market price index before evaluating any deal.
Urgency pressure tactics
Scammers often create artificial urgency: 'This deal expires today' or 'Another buyer is ready.' Legitimate sellers have no reason to pressure you into skipping due diligence.
New seller account with no trade history
Be cautious with sellers who have zero completed trades and a recently created account. Always request video verification before any commitment.
Requests to move communication off-platform
If a seller asks you to continue via WhatsApp, WeChat, or email to avoid platform records, decline immediately. This voids all dispute protection.
Inability to produce export documentation
A legitimate exporter can readily provide export license numbers, port details, and document templates. Inability to produce these is a serious warning sign.
Inconsistent photos or copied images
Scammers often use photos from Google Images or other listings. Reverse image search any listing photos you find suspicious.
Video Verification Explained
ScrapTrade's video verification system is a core platform feature that provides buyers with independent proof that the listed material exists at the stated location. It is mandatory for all listings and must be completed within 5 business days of listing creation.
How Sellers Complete Verification
- 1Admin sends verification request to seller's email
- 2Seller visits the secure verification link
- 3Seller enables GPS location on their device
- 4Seller records a live video at the scrap yard
- 5Video shows the actual material, quantity, and surroundings
- 6GPS coordinates are captured and geotagged automatically
- 7Seller uploads the video through the platform
- 8Admin reviews within 24–48 business hours
GPS Geotag Verification
The seller's GPS coordinates are captured at the time of recording and cross-referenced with the declared collection location. A discrepancy of more than 50km will trigger a manual admin review.
After Verification
Approved listings receive the green "Video Verified" badge on the listing page. This badge signals to all buyers that an admin has personally reviewed proof of the material's existence and location.
Review Timeline
Admin review is completed within 24–48 business hours of video submission. Sellers receive an email notification on approval or rejection, with notes explaining any issues.
Case Studies
All cases anonymized. Case identifiers used for internal reference only.
Material
HMS 1&2 Mixed, 500 MT
Resolution
5 business days
A buyer from Melbourne negotiated a purchase of 500 MT of HMS 1&2 from a seller in Gujarat. Upon receiving the inspection report after loading, the buyer found the material grade had been misrepresented — actual material was 40% HMS 2 when the listing stated 100% HMS 1. The buyer filed a non-conformity dispute within 48 hours of receiving the inspection report.
ScrapTrade's mediation team reviewed the inspection report and seller's original listing. The dispute was resolved within 5 business days. The buyer received a $14,000 partial refund from escrow for the grade differential, with the transaction completing at the corrected price. The seller received a formal warning.
"The escrow system saved me from a $40,000 loss. Without it, I would have had no recourse once the container left port."
— Buyer A, Melbourne, Australia
Material
Zorba, E-Scrap, HMS 1
Resolution
Ongoing relationship
A scrap dealer from Tamil Nadu, India began using ScrapTrade in early 2023 with zero international trade experience. He completed the video verification process for each of his listings, built a 4.9-star rating over 12 months, and successfully completed 52 verified trades with buyers across Australia, Japan, South Korea, and Germany.
By consistently following the platform's trading guidelines — video verification for every listing, fast document upload, and prompt buyer communication — the seller built a trusted reputation that attracted repeat buyers at premium prices, achieving 8–12% above the spot market average.
"Following the guidelines strictly was the best business decision I made. Buyers pay premium prices for verified, trustworthy sellers. My business grew 3x in one year."
— Seller B, Tamil Nadu, India
Material
Shredded Scrap, 800 MT
Resolution
3 business days
A large trade between a US scrap yard and a South Korean steel mill encountered a dispute over contamination levels discovered at destination — the buyer alleged elevated non-ferrous content above the agreed 2% tolerance. The seller disputed the claim, stating contamination occurred during vessel transit.
ScrapTrade's dispute resolution team engaged both parties, reviewed loading inspection certificates, destination inspection reports, and vessel transit records. An independent assessment confirmed that contamination was within acceptable limits and likely within measurement tolerance. The trade was marked complete.
"The platform's structured dispute process gave both parties a fair hearing. We were prepared to litigate but the mediation saved us months of legal costs."
— Operations Manager, Trade Dispute CS-2024-088
How ScrapTrade Enforces This
These guidelines are not aspirational — they are enforced through a combination of platform technology, admin moderation, and community reporting. The following tools are in active use:
KYC Verification
All sellers must complete identity verification before their first listing is approved. Business sellers require ABN/company registration documentation.
Escrow Payment System
All transactions are processed through the platform's secure escrow. Direct seller payments outside the platform are technically blocked and contractually prohibited.
Admin Moderation
Every new listing is reviewed by a human admin before going live. Video verification is reviewed by a trained moderator who checks GPS coordinates and material visibility.
AI Listing Analysis
An AI model reviews listing descriptions for inconsistencies, copied text from other sources, and pricing anomalies that suggest fraudulent intent.
Trade Checklist System
Both parties must complete checklist milestones at each trade step before the next step is unlocked. This enforces sequential completion of the 8-step process.
Dispute Resolution
A dedicated disputes team handles all trade disputes. Mediation is typically completed within 5 business days. Unresolved cases are escalated to binding arbitration.
Rating System
Both buyers and sellers are rated after every completed trade. Ratings below 3.0 trigger automatic account review. Ratings are verified and cannot be gamed.
Video Verification Badge
Only listings with admin-reviewed video evidence receive the Video Verified badge. This badge is clearly visible to all buyers on the listing page.
Report a Violation
If you observe any activity that violates these guidelines — including scam attempts, off-platform payment requests, fraudulent listings, or document forgery — report it immediately. The ScrapTrade safety team operates 7 days a week and treats all reports as high priority.
Anti-Scam Hotline
antiscam@scraphobart.com
Monitored 7 days, response within 4 hours
Your report is confidential. ScrapTrade does not reveal the identity of reporting members. Reports can be submitted anonymously. We encourage the community to actively report suspicious behavior — together we protect the integrity of the global scrap trade.
These guidelines are reviewed quarterly by the ScrapTrade Community Council. Last updated: July 2025. Version 3.2.
For questions about these guidelines, contact council@scraphobart.com