It looks as if this character is a scrap-dealer who has spotted a potentially more lucrative market for factory-clearance metal, but has no idea how to look after it, or more likely, just does not care.
It’s not the material that is faulty, but the dealer, who “stores” the stuff so badly he spoils it.
Selling sheared material as “strip” suggests he does not really understand materials and metalworking, too, except as something he can sell.
Dave – Point 5. Off-cuts and rolling-mill ends may be all the buyer needs as long as he can extract what he wants from it. It is not a reflection of the metal’s grade and quality.
However, your more general point about many companies’ unwillingness to sell to private individuals does often mean our only choice is the hobby’s own suppliers. They presumably buy in trade quantities, as a factory would, but we pay not only a pro-rate share of the retail metal cost but also for cutting, packaging and carriage.
When I operated a factory materials-store I noticed that the steel stockholder MacReadys’ Ts-&-Cs specifically said it will not sell to private customers. I don’t know how common that is, but some firms might simply refuse us even if not in a formal load of legalese.