What is it?

As material is processed in mills and processing locations (vendor), some portion of the steel becomes unusable for additional processing. This portion is then recycled (scrapped) by a recycling company who purchases the scrapped material from the vendor at a particular price. The value of recycling the materials is often times issued as a credit to the customer by the vendor (unless the customer decides to recycle the material on their own, working directly with the recycling company), lowering the customers’ payable amount to the vendor.

Scrap Credit