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Inside: Market Reports from Around the Globe........................ pg 06 Coca-Cola Collects PET bottles in Kenya....................... pg 18 Supply Issues Are Hot Topic at EPRC ............................ pg 24 Nonferrous Sorting Strides Forward ......................... pg 28

serving the international market for secondary raw materials / november-december 2010 / www.RecyclingTodayGlobal.com

fading

away A lack of material has challenged many recyclers in 2010, but time and distance have helped some autumn 2008 memories fade away.

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D EPA RT M ENTS Editor’s Letter Global Market Reports >> Ferrous Global Market Reports >> Nonferrous Global Market Reports >> Recovered Fibre Newsworthy

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FEATURES Fading Away.......................................................... 20

A lack of material has challenged many recyclers in 2010, but time and distance have helped some autumn 2008 memories fade away.

Actions and Reactions......................................... 24

Paper recyclers are staying active and striving to react to dynamic changes in the global economy.

Chasing Value.......................................................28

Automated sorting technology allows recyclers to harvest more metal and sort it to a higher value.

Viable Option........................................................32

A report from Germany’s UBA contends recycling need not suffer when lower-grade materials are converted to energy.

Datebook Equipment Report Product Spotlight Ad Index The Numbers

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WEB SPOTLIGHT • PODCASTS: New at www.ReyclingToday.com, listen to podcasts of ferrous, nonferrous and fibre market reports from around the globe.

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editor’sLetter A Common Concern

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ttendance at three recycling conferences in a two-week span revealed a common concern of recyclers and brokers of different materials in many different parts of the world: trade restrictions. At three November events—the European Paper Recycling Conference (EPRC) in Frankfurt, the China Metals Recycling Association (CMRA) World Forum in Ningbo and the World Scrap Congress in Shanghai—questions and comments about trade restrictions were voiced. At a session at the EPRC, David Barrio of Spanish paper industry group Aspapel commented that consuming recovered fibre closer to its point of origin is a solution “toward making recycling more efficient.” Barrio said there is an imbalance, with Asia consuming 50% of the world’s recovered fibre while only generating 38% of it. “The problem [is] hampering new investments in recycling opportunities,” said Barrio. “Who is going to make an investment in a new mill [if] they cannot be guaranteed of the supply?” The viewpoint was met with disagreement from audience members such as Cees van Berkel of Holland’s CVB EcoLogistics. He said Spain’s paper industry “should not have a problem buying its scrap paper—there is enough available.” Van Berkel said buyers in Asia have become an important part of a vibrant, global market and that Europeans in general favor being able to reach export markets, so why should recovered fibre be an exception? “That’s the market,” said van Berkel. At the metals industry conferences in China, similar concerns were expressed by traders who have seen export tariffs or outright restrictions put in place by some nations attempting to “protect” their scrap supplies—or keep prices clamped down for the sake of domestic metals producers. Protectionism is at the center of British business journalist Alan Beattie’s 2009 book False Economy. Beattie offers numerous examples of governments acting to protect the interests of a few business owners at the expense of its own citizens’ freedom of choice and pocketbooks. Whether protecting wool producers in 18th century England, catfish farmers in the United States several years ago or business owners in Argentina for the past several decades, the short-term (and narrow interest) gains from protectionist measures are soon more than offset by lost opportunities and a hidden “tax” on household consumers, Beattie contends. In words that may be relevant to scrap protectionist advocates of today (including those in Spain), Beattie writes of Argentina’s post-World War II decisions, “Argentina had a visceral fear of the free market [and] capitalism in Argentina was caged. In 1950, the average Argentine income was twice that of Spain; by the early 1980s, that ratio had reversed.”

BRIAN TAYLOR

Publisher James R. Keefe, Publisher jkeefe@gie.net editorial Brian Taylor, Editor-in-Chief btaylor@gie.net Dan Sandoval, Senior Editor & Internet Editor dsandoval@gie.net DeAnne Toto, Managing Editor dtoto@gie.net Kristin Smith, Associate Editor ksmith@gie.net Larry Sax, Editorial Consultant lsax@giemedia.com Creative Andrea Vagas, Creative Director avagas@gie.net Karen Angus, Art Director kangus@gie.net Michelle Wisniewski, Advertising Production Coordinator mwisniewski@gie.net Helen Duerr O’Halloran, Director, Production hduerr@gie.net Sales Diana DiRienzo, Account Manager ddirienzo@gie.net Marty Smith, Account Manager msmith@gie.net Jen May, Account Manager jmay@gie.net Ed Gallo, Account Manager egallo@gie.net cIRCULATION Jeannette Veselko jveselko@gie.net CORPORATE Richard J.W. Foster, CEO Chris Foster, President & COO Daniel Moreland, Executive Vice President Melody Berendt, Director, Circulation Kelly Roop, Director, Accounting Corporate Offices 4020 Kinross Lakes Pkwy., Suite 201 Richfield, Ohio 44286 USA Phone: 001 330 523 5400 • Fax: 001 330 659 0823 www.RecyclingTodayGlobal.com Member Bureau of International Recycling Institute of Scrap Recycling Industries, Inc.

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global market reports FERROUS, NONFERROUS SCRAP >> SCANDINAVIA Bjorn Grufman, M.V. Metallvarden We are very optimistic and all the metalworks and all of the steel mills are operating at full capacity. But there is a [different] sentiment to bear in mind among the people responsible for purchasing in the

dream situation and maybe I will never experience that again. That is the European problem at the moment, and especially now for the Scandinavian market. We had been spoiled with nice supply

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2010-bg.aspx companies and among the scrap dealers about the future. The krona has strengthened quite a lot for the last six months against the other currencies in Europe and that is, of course, hurting our exporting industry. And as you might know, the steel industry and the metalworks in Sweden are today very much dependent on their export markets, so it is a bit of a worry. Someone in Brussels a couple of weeks ago at the Bureau of International Recycling conference said that the word is uncertainty. And I think that goes for this market as well for the moment. We are probably in better shape than the rest of Europe, Germany excluded. I think Germany is mostly in good shape. Southern Europe and the major parts of northern Europe are not doing well at the moment. Ferrous and nonferrous scrap intake is getting better. It’s not as good as it was three years ago, but it is much better now than it was six months ago and especially 12 months ago. So it’s improving. The autumn has been even better than summer, but still we are many percentages away from the amount of scrap that we could collect in 2007 and early 2008. But that was a

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from Russia. Lately–not so much with the nonferrous but the stainless steel scrap and the ferrous scrap–there has been a substantial amount coming out of Russia. But suddenly nothing is coming, so I think that is one of the reasons why we experience a low availability– that our eastern neighbors are not exporting the amount they used to. On the other hand it is nice to have a fairly empty scrap yard, so we don’t need to finance so much scrap. But then, we would appreciate having a larger volume. It is not back on the level we had in 2007, 2008 but it is much, much better than last year. The good thing with the high prices on the terminal markets is that a lot of material is coming forward and it is leaving the barns, coming out of the woodwork. On the other hand there is a problem, and that is that we have to safeguard our scrap yards and our warehouses so well because the theft in this area is a big, big problem. We have daily reports internally in Scandinavia here that thieves have been stealing mainly copper, because that is what they know, but a lot of scrap has been stolen in this area. And I can tell you I am spend-

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ing a fortune on electric fences, alarm systems, cameras and everything like that, but it doesn’t keep them out. What we are trying to do right now in Sweden and the whole of Europe is to get away from the cash trade and use transfer payment only. That makes it much less attractive to steal if you don’t pay cash for it. We have actually tried to get that into law–that you are not allowed to use cash. On the nonferrous side, what is moving very much right now is aluminium because the car industry is working well in this country and it’s generating aluminium to a larger extent. Berry is a good export market. Indian buyers are looking for material up here. There are a lot of easy ways to ship overseas containers. We have a healthy domestic consumption as well. I think that in this area, we are used to snow. The funny thing that happens on the traditional scrap yard is that the ferrous side is slowing down heavily and you bring the stock indoors and you sort metals instead. So what is happening is that the yards will be more or less empty of steel scrap right now and you’re taking the scrap indoors and you sort metals instead. And then you have your equipment for treating nonferrous that you have indoors, so it doesn’t hurt the nonferrous side but the ferrous side is hurt by the snow. That has been the case for years.

Bjorn Grufman can be contacted at bjorn. grufman@metallvarden.se.

www.RecyclingTodayGlobal.com

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global market reports FERROUS SCRAP >> EUROPE/ITALY Ruggero Alocci, Alocci Rappresentanze Industriali Concerns about the sustainability of the economic recovery and question marks about China's growth momentum come into play now. The relatively uncertain China outlook, coupled with the tentative recovery in the developed world, is expected to weigh negatively also on the price of steel. The small increases of scrap prices, foreseen before the end of the year, will lift the sale of ferrous products. All that is helped also by

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the seasonal weather conditions. There is nothing new here in Italy, where only the mills involved in automotive and engineering steel production are covered with two months orders, while the profile, beam and rebar order books are nearly blank. It means lower scrap mill demand well balanced with lower domestic scrap arisings. During October, the contracts from France and Germany have been settled around ¤40 to ¤60 less

than the previous month. Also, on the domestic market, the prices continued their fall, which started the second week of September until the middle of October. Then, they slowly re-started to move up by around ¤10 to ¤20. The mills’ inventories are well recovered, even if some transport limitations by rail occurred.

Ruggero Alocci can be contacted at mail@ alocci.com.

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global market reports METALS INDUSTRY OVERVIEW >> GLOBAL Robin Bhar, Metals Analyst with Credit Agricole CIB The most dramatic impact metals are currently having is in the way of much higher prices. We look across the board at nonferrous metals and everything from copper to tin is a lot higher, accompanied by the weaker dollar against most major currencies. Because commodities are priced in dollars, if the dollar weakens then commodity prices tend to be higher in dollar terms. That has been a major factor. In mid-October we had an interest rate increase in China, the first time in nearly three years. That took the market by surprise because the central bank in China was indicating it wouldn’t raise rates. But in the event, it did raise rates because of still a very strong economy that was becoming inflationary and perhaps in danger of overheating. That caused a bit of a correction in metal prices most recently, but the upward trend is still pretty much intact. LME Week was held in London in October, which is a sort of main industry event. If you went to most of the meetings, cocktail parties and seminars, you couldn’t help but come away with a very bullish outlook, particularly for the rest of this year and most of 2011. Most participants were thinking along

world: China, India and Brazil. The industrializing countries continue to be the powerhouse for commodity markets, and industrialization and rapid development is sucking in a lot of more materials. So it is very difficult to find any bears on the ground. Nine times out of ten, most everybody we spoke to was very positive, very bullish for higher prices, particularly focused on those metals where there are some concerns about supply or there are constraints on supply because of lack of investments in new mines—metals like copper and tin and to a lesser extent lead. These are the metals that people were the most bullish on. Aluminium and nickel where the supply demand balance is not as tight and where there is still oversupply and idle capacity, people were a lot less positive. In the case of nickel, people were pretty negative for the outlook for next year, with more supply coming through with the commissioning of new mines in New Caledonia and in Brazil for nickel. Generally I would say LME Week was very bullish in terms of its outlook and I think that fed through to a lot of investor speculative buying on the metal exchange.

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2010-rb.aspx the lines of higher metal prices next year because of a weaker dollar [and] also because the global economy is strengthening, particularly with strength coming out of emerging markets or the developing

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From what we have been hearing, the scrap situation in China certainly for copper does seem to be better from a supply standpoint now than three months ago. If anything, that means imports of re-

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fined metal could be lower for the remainder of this year, which may be slightly more negative simply because there’s more scrap than the smelters can buy and that the fabricators can use as some of their raw material feed. So if anything, that could displace some of the refined copper that they were having to buy simply because scrap was a lot tighter three to six months ago. If anything, that’s eased a bit. Whether this is going to ease for the medium to longer term or whether it is a temporary easing remains to be seen. Other than that, I have to say we have seen a lot of investments, speculative buying of metals because of the weaker dollar and because of the fact that where do your fund managers put their money in order to get performance? There is a lot of uncertainty going forward. Commodities are seen as an asset class that has done well, that can do well because of the developing world demand because of supply constraints. Metal prices right now are trading above fundamentally justified levels. There may be scope for some correction to take place between now and the end of the year simply because if there were to be some disappointments about growth or metals demand in November and December, that would feed into maybe prompting a correction in prices.

Robin Bhar can be contacted at robin.bhar@ ca-cib.com.

www.RecyclingTodayGlobal.com

11/24/2010 2:05:13 PM


global market reports NONFERROUS SCRAP >> WESTERN EUROPE, ITALY Fernando Duranti, Leghe & Metalli Business has not improved but stayed on the stale side. The export market has completely died out. There is no possibility of exporting brass or copper out to the Far East because prices are not there. With there being a weaker dollar against the euro, it is impossible to buy scrap in Europe and export it at the price the Far Eastern guys are quoting. The strange thing is that copper has moved up $2,000 but they haven’t changed the price. So consequently with this effect in

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2010-fd.aspx course, we just can’t buy. In fact domestic consumers over here are paying higher prices than what the Chinese are paying for brass. Brass has not moved in price for the last two to three months. Industries have to buy copper, but they can’t sell their finished product with copper content at the [current] prices of the LME. So consequently they have to rely on cheap prices or else stop their production. In fact, brasses and coppers are still going very low. There is not any demand. Italian consumers are buying, but they are buying bits and pieces. 10 tons, 15 tons, 20 tons­– what they require. They are not buying 100 tons at a time. This shows you that the industry is not meeting or proceeding at the same rate as the increase in the price of copper. Bronze ingots are going quite well. This means there is more demand for finished products which require copper alloys. There is strong demand for bronze ingots on this market. Imports are coming from the United States, I hear, because it is cheaper probably to make the ingots. Obviously domestic prices on tin and bronze scrap are lower for the domestic producers than what they are for people importing in euros. Aluminium scrap is going quite strong. There is very little around. Consumption is quite high and I believe the aluminium market is going well at the moment. Lead is probably recovering a bit because of all the battery producing units getting ready for the winter. The amount of stainless steel scrap available is not that great and I think suppliers are keeping pace with the demand by the industry. We cannot export because our domestic prices are high and consequently this means that the local industry is supplying. Titanium is not moving much. Prices went up for a while and then they weakened down, We have very little demand for titanium. Titanium scrap has weakened as well. The high nickel and cobalt are going strong because of the demand for the aerospace industry. On that side, scrap dealers are doing quite well. Also, we don’t have enough scrap available for all the uses the industry demands.

Fernando Duranti can be contacted at fernandoduranti@leghemetalli.it.

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NONFERROUS SCRAP >> RUSSIA Ildar Neverov, Scrap Market Ltd. We’ve been importing nonferrous scrap from neighboring countries because of very high domestic demand in scrap. We can easily import any type of scrap and we can easily pass it through our bureaucratic system now, so it is very good for us. It is a huge improvement for us. This goes for all nonferrous scrap: copper, brass, aluminium. There are only a few deals done, but I hope importation will be great for our business. Frankly speaking for consumers it is quite hard to deal with the logistic procedures. The consumers like the quality. It is just as good as domestic scrap. Russia is not competing with the Chinese and the Indians yet. Maybe in one or two years, we will be like one of these huge markets. There is a lot of supply available. We need more but we can see various tonnages moving around. There is nothing to complain about. The stainless steel side is more effective in terms of export. The major tonnage is exported by sea containers.

Ildar Neverov can be contacted at siberiametals@bk.ru. Listen to a podcast from this report at www.recyclingtoday. com/nov-dec-2010-in.aspx

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global market reports NONFERROUS SCRAP >> CHINA Eric Deng, Ling Tong Metal, www.lingtongmetal.com The copper rally was extended in early November as LME copper hit a fresh 27-month peak of $8,884 per ton. The Federal Reserve’s stimulus package may have caused skepticism over the value of the U.S. dollar. On the demand side, workers went on strike in Chile, the world's largest copper miner. Shanghai copper futures also maintained the upward trend, with November-delivery copper touching a 31-month high of 68,970 yuan per ton on Tuesday 9 November. Most investors in China are optimistic about the market outlook, but very few are willing to chase the prices higher. “Greater liquidity, expectations of inflation and recovering economies will continue to lead prices higher,” an investor in Nanhai said. According to market research, most copper manufacturers and fabricators in Nanhai (Guangdong province, Southern China) prefer to buy enough scrap materials to replace what they’ve used and are reluctant to purchase too much. These people feel quite confused at these price levels and are not inclined to risk a loss. “For the most part, we stayed sidelined in October and turned to use our own stockpiles. Now, we have to buy some to maintain operations. But prices are so high and full of uncertainties,” a copper producer in Nanhai said. Some traders are seen to make purchases, but the volume is not large. These people say they buy tentatively, and if copper corrects further they will purchase

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more. Since copper broke the level $8,000, most copper consumers and traders started to use their own stockpiles and stayed away from the market. But the more cautious they are, the higher the prices seem to move. Also, importers, processors and recyclers have become quite frustrated with this price surge. First of all, due to strong LME prices, many have already sharply reduced their orders for copper scrap materials from overseas. If LME prices continue to outpace Shanghai prices, there will be nothing left in their yard or warehouses. Thus, the whole physical market is in short supply at present, and some recyclers in China are facing closures at the moment. Yet they are all bullish about the market exhibiting rising prices, so they have to be very cautious in making purchases. Some domestic importers are trying to re-export their copper scrap materials to other Asian countries such as Korea, Japan, Singapore and India. That’s largely because they cannot sell the scrap materials at better levels in the domestic market as of early November. The copper price in China has fallen far behind those overseas. Some recyclers have chosen to sell part of their stockpiles at this time. The short-term upside will be quite limited, but they sold to lock in profits and cover funds. “Isn’t it better to sell to take profits and prepare for better levels to buy in?” a Nanhai recycler asked. Many insiders forecast cop-

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per will continue the uptrend, and could soon test the record high of $8,940 per ton. The market tightness, sufficient liquidity and improving global demand will push the price higher, they say. “With a low interest-rate environment and a weak dollar, I expect copper will break $10,000 per ton,” a market analyst in Nanhai said. “The correction is due, but the downside is limited.” But some think copper will fall and the uptrend could last at most to mid-November. First, prices of agricultural products and bulk commodities are surging these days as a large amount of hot money flows into market. Another scenario has inflation pressure on the rise and efforts to decrease hot money inflows being ineffective. Additionally, the U.S. dollar has been on a weak trend for long time and has already touched a 2010 low of 75.613 (versus the euro). It needs a technical rebound, and that will put pressure on a dollarpriced commodity such as copper. Finally, the market fundamentals cannot sustain prices at such high levels. The high prices (of raw materials) are keeping many physical buyers away from the market. “I remain bullish for the medium or long term, but I also won’t be surprised if copper falls to $8,000 per ton in late November,” another market analyst in Nanhai says.

Eric Deng of metals news and pricing service Ling Tong Metal can be contacted at tungshuzhi@hotmail.com.

www.RecyclingTodayGlobal.com

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global market reports NONFERROUS SCRAP >> THE NETHERLANDS Johan van Peperzeel, Van Peperzeel What we are seeing in the lead acid battery recycling business is that at the moment, prices have gone up like crazy in the Netherlands and there is a big fight between several huge players to try to keep the market share or they want increase their market share. The market in lead acid batteries is calm. At the end of October, I cannot say the market was catching up due to the season. It still more or less felt like summer. The demands for battery recyclers are high but not too high, but there is a huge fight going on for the batteries. In the Netherlands there is just one [desintation]. We have a lot of unfair trade in the Netherlands at the moment and a lot of theft in batteries. They are buying the batteries and selling them to scrap dealers who pay them cash. This is the part that the players that do things by the book are facing. I am not allowed by my French shareholder to restart cash payments. With cash payments, you are not increasing, but you are decreasing your level of performance and are going back to a practice that we have gone away from. It is not something you want to go back to. In this ingot field, you are not going to buy lead acid batteries without any documentation. And if the police will stop you, then it could cost several thousand euros. The problem is, there are not that many police on the road to stop these kinds of activities. This is one of the things we and others are fac-

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ing as a problem. This problem is not only affecting battery recycling, but other recycling as well. Due to the high level of lead, there are huge volumes traded in Europe right now. You see big smelters in the Netherlands and

China and India are weekly sending e-mails to buy scrap; there is a huge demand. In the short term there is no demand but in the longer term it’s difficult to say. What we see is that the real economy in the Netherlands is not

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2010-jp.aspx other countries are already stopping accepting lead until the first of January of next year. On top of that, last year, we had a very strong winter and if there is a very strong winter, it means the construction companies do not work. And the construction companies need sheets to put on the roof. We have a big sheet producer in the Netherlands that had huge stocks last year because nobody was buying their material. And they learned also from this period and they stopped to because they have enough volume to produce for November and already for part of December. This is on the short term situation. Germany, where a lot of lead is also going, is now also starting to get full. Facilities are slowing down deliveries and slowing down contracts. We also see it in the aluminium market. Traditionally the aluminium market in Germany is for the European car producers. Their stock is full of raw material. And you see it also happening in the aluminium and in lead, that they are slowing down buying. If you want to sell, you can sell on delivery in January but nobody who wants to do that.

catching up as it should be catching up. The real economy means that in the aluminium market and the lead market, we don’t see huge orders coming soon. So we expect that 2011 will not be the year we are waiting for. The bigger market will be, [and it] is not that big of a market at the moment, for those cars that will have lithium ion batteries. There is not a high demand for lithium today. These batteries are highly explosive. There is huge work and a huge program that has to be set up for these batteries. And our company is also in the middle of trying to be involved because of all the knowledge we have of logistics, safe transportation and dismantling. These batteries will be in the next years’ market and we want to be in this market. In 2011 the sheet market will start slow. Based on the Dutch data available, I don’t see much progress and much demand. There is not much lead scrap available. Right now with the LME going crazy, no one wants it.

Johan van Peperzeel can be contacted at jh@peperzeel.nl.

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global market reports NONFERROUS SCRAP >> NORTH AMERICA Steve Solomon, Solomon Metal Corp. Right now the copper market in particular has been rising just the same way as all the commodities. Futures markets and commodities and all seem to be the hard investment these days, and copper is riding that storm. Nobody knows if it is just going to keep going. The big

terminal markets. There seems to be a big disconnect between what the markets are saying the value should be and what scrap can be sold for. China right now is buying much smaller amounts of scrap than they were, as are the domestic mills that han-

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2010-ss.aspx money that seems to be pushing prices higher is going to pull the plug at some point, and then we could potentially be sitting on a bubble. There seems to be plenty of aluminium out there. It is available to consumers. The consumers seem to be able to get all the material they can process. That doesn’t seem to be the problem. The problem that seems to be, not just in aluminium and copper, but really all metals, is the rising prices seem to have consumers and the industry a little spooked right now. The rise in prices [has met with resistance] from consumers. In the export markets, prices have just gotten so high that the Chinese are only purchasing absolutely what they have orders for and not a pound more. They are buying month to month. They don’t want to buy too far ahead. We’re not seeing a shortage of scrap coming into the yard. We are finding that there is a supply of metal out there. The hard part for the larger processors selling into the export markets and into the mills is being able to get orders that have some relevance to the

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dle it as well. We find that the higher prices are drawing excess material into the markets. We’re less likely to want to be sitting on this material at these prices. In the old days, scrap dealers would hold onto material waiting for higher prices. We have higher markets so they are more likely to be getting metal in and out on a more frequent basis than maybe historically they would have. The seasonality of the business has changed. That is less of a factor now. The flow of metal is dictated more on pricing rather than the season or the end of the year. At these prices at the expense of carrying metal, we’re finding that most dealers can’t get rid of their metal fast enough. For the larger processors like ourselves, we are being offered material on a regular basis. The issue is that as the market goes higher the spread at which we can sell material relative to the COMEX or the LME becomes wider and wider, and especially now with China not buying as much as they had been. It becomes a lot more difficult moving metal at what we

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feel are the right prices. It is going to be dependent on prices whether there will be a December slowdown. If the pricing remains strong, the flow of material will continue. We saw very strong volumes during the month of October. The first week of November, things have been steady. In September/October, we saw actually relatively strong activity and availability and we’re in the belief that things will continue at this pace. We think that is positive. There seems to be more availability of scrap than consumers can take at this time. Here we are at the beginning of November and most consumers seem to be bought out for the rest of this year. What they have in the books up to now is all well and good. Getting them to buy additional material for the next couple months is going to be a challenge. What used to be normal isn’t normal anymore. At the end of ‘08 and beginning of ‘09, consumers went thorough a phase where they had hedged up material, bought it and then, because of the financial crisis, there were a lot of orders that never materialized and they got caught on the wrong side of the hedge. It cost many consumers a lot of money and put many at risk of even staying in business, so they are looking at prices to see if there is a possibility of that happening again.

Steve Solomon can be contacted at steve@ solomonmetal.com.

www.RecyclingTodayGlobal.com

11/24/2010 2:05:28 PM


global market reports NONFERROUS SCRAP >> CHINA TopRecycle, www.TopRecycle.com The continuation of high and fluctuating prices was seen in the aluminium market this month. If prices rise sharply, it could be followed by a large number of smelters re-starting. As learned from the Henan Nonferrous Association, in the last three months of this year in Henan Province the electrolytic aluminium industry will cut capacity with a maintenance shutdown and the implementation of holiday shift

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running at 30 percent of capacity. Once the western provinces have also seen an increase in administrative pressure to implement energy savings, aluminium production will be even further suppressed. Spot market trading sentiment in aluminium ingots has improved. Holders generally raised aluminium prices sharply, while the aluminium manufacturers have been a little cautious to accept the goods,

except to replenish their stocks. Market sentiment has remained bullish, with some holding ingots to increase their value. Some spot aluminium holders have increased their desire to sell, and some buyers, being optimistic about the aluminium market, were also willing to accept material.

This report has been prepared by TopRecycle, a market information company found on the Web at www.TopRecycle.com.

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global market reports RECOVERED FIBRE >> EUROPE Ranjit Baxi, J&H Sales International Ltd. Europe achieved an unprecedented paper recycling rate of 72.2% in 2009 in reprocessing a total of 58 million tonnes of secondary fibre, it has been confirmed in a report from the European Recovered Paper Council. This all-time record is attributed not only to the paper industry’s continuing recycling efforts but also to a recession-driven reduction in paper consumption to a level last seen in 1998. In 2010, however, the recycling rate is expected to return below 70%. With the severe winter conditions of late 2009/early 2010 still fresh in the memory, similarly harsh weather in the fourth quarter of this year could have major implications for recovered paper consumers both in Europe and in its leading export markets. Looking at some examples of where supply has failed to satisfy demand, it is reported that collection volumes in Finland improved slightly in September but remained below the levels witnessed prior to the financial crisis in 2008, with the most significant decline evident in the newspapers and magazines/deinking sector. Given the seasonal drop-off in collection volumes during the summer months, some of the country’s mills have been unable to achieve 100% production capacity utilisation owing to an often-severe lack of raw material. In Sweden, tissue grades have been particularly difficult to source owing to a combination of low collection volumes and consuming mills running at full capacity. Meanwhile, the sharp drop-off in deinking and high grade collection volumes in Spain has led to some historically elevated prices: for example, white woodfree ledger has exceeded ¤300 per tonne to reach a level last achieved 15 years ago. The country’s stocks of white grades are said to be close to zero. And latest statistics from the United Kingdom indicate that collections of corrugated and kraft suffered a decline of 9.5% in the first seven months of 2010 compared to the same period in 2009. The Czech Republic has bucked the trend witnessed in many other parts of Europe by recording a 14.6% increase in recovered paper collections so far this year, as well as a 21% increase in exports. China and several other Asian countries appear to have switched their focus to more local sources of fibre as a means of reducing raw material import costs. However, a number of leading importers–among them Indonesia, India, Taiwan, South Korea, Vietnam and Thailand– have continued to buy from Europe. * Elements of this report are based on information provided to the latest Paper Mirror produced by the Bureau of International Recycling world recycling organisation for the benefit of its members.

Ranjit Baxi can be contacted at rsbaxi@jandhsales.com.

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RECOVERED FIBRE >> UNITED STATES, CHINA Susan Choi, America Chung Nam The OCC (old corrugated containers) grade has been volatile this year. It has been on a roller coaster ride. For this quarter, domestic mills are running well and their demand for OCC has been very consistent. On the export side, sales of finished containerboard have been stable, so demand for OCC has been fairly strong going into October. In recent weeks, the mills have expressed their concern with United States OCC becoming too expensive. Demand has been steady for both mixed paper and ONP (old newspapers). Both grades have moved up in smaller increments than OCC without the quick drops and price push OCC experienced. On the export side, one of the reasons for the stronger demand for mixed paper is the importing permit the government issued to the paper mills. Most of these permits will expire by end of the year. Paper mills are trying to get the mixed paper through customs before they expire. Domestic newsprint mills are running near capacity, so ONP has been a grade to see a steady increase in demand. With the Asian Games starting, China has also been increasing its purchase of ONP in the last month.

Susan Choi can be contacted at SusanChoi@acni.net

www.RecyclingTodayGlobal.com

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global market reports RECOVERED FIBRE >> NORTH AMERICAN EXPORT MARKET Patty Norris, International Forest Products Corp. There’s big demand everywhere. You’ve got such a small pie and everyone wants a piece of it. I think it is mostly with the bulk grades: OCC, news and mixed. But certainly the deink and the pulp as well. There’s just not enough supply. There’s limited supply, plenty of demand. You are going to have peaks and valleys like with any commodity market, but I think we

are going to see new highs sustain themselves. I don’t see the market taking any big dips down unless generation picks up very quickly. Until the economy improves, until unemployment picks up, you are just not going to have a lot of shoppers out there. I think the other thing that we really have to be concerned about is the ocean freight. I think the

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2010-pn.aspx

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steamship lines did a good job last year–although it hurt exports–of pulling capacity out of the market. With lower capacity, there was a lot of demand, the rates went up sky high. If there are no containers coming in there’s not going to be a huge need for containers going out, and they’ll be able to charge whatever they want for them, which is what they did last year.

Patty Norris can be contacted at PattyN@ ifpcorp.com.

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11/24/2010 11:26:43 AM


Newsworthy >>SCRAP INDUSTRY NEWS

>>NONMETALLICS

BIR Ferrous Committee Reports Steel Production Expected to Grow

SITA UK, Cynar Sign Agreement to Build Plastics Recycling Facilities in U.K.

The Bureau of International Recycling (BIR) Ferrous Division heard how steel production was to increase and prices had rebounded in the steel market during the round table and trading session held in Brussels Oct. 26 during the organiStephan Schilbe of HSBC Trinkaus & zation’s fall convention. But that optimism was Burkhardt addresses BIR members. followed by picture of weak growth in the United States and Europe painted by an economist’s keynote address. Blake Kelly of Sims Metal Management, New York, told attendees that the World Steel Association (Worldsteel) predicted world steel consumption would increase 13.1 percent in 2010 to 1.27 billion metric tons and by another 5.3 percent in 2011 to 1.34 billion metric tons, “so conditions seem to support the probability for a new production record.” Based on a nine-month projection of Worldsteel data, Blake told attendees that in 2010 the WSA predicts the world will produce 201 million metric tons more raw steel, produce 139 million metric tons more iron and potentially consume 62 million metric tons more purchased scrap compared with 2009. “If production continues at this rate through year end, 2010 will set a new annual record for raw steel production,” said Kelly. As for current market conditions, he said prices were on the rebound from their $30 to $40 drop at the beginning of October. Prices were up $25 from these levels with additional gains expected for November, he said. He attributed inadequate supply and low collection rates as likely reasons for the rebound. “Steel producers simply did not initially buy all they wanted, and when they re-entered the market for more, supplier attitudes changed,” he said. He noted that the U.S. economy was improving slowly and that the U.S. dollar was at a 15-year low against the yen. He said recent prices had been higher prices and expectations that steel production in China would be reduced by a government edict to reduce electricity could be offset as new capacity and increased EAF (electric arc furnace) production offset the shutdown of older, less efficient plants. Tom Bird, president of European Ferrous Recovery and Recycling Association (EFR), Brussels, said the market had been difficult to predict in Europe. Following market reports from division members, economist Stephan Schilbe of Germany-based HSBC Trinkaus & Burkhardt, who just returned from a trip to Asia, provided his prospective on the global outlook for the major economies in 2011. Schilbe said, “The U.S. economy will not be the major economy of the world anymore.” China’s economy had already overtaken the U.S., as incomes were rising and supporting private consumption, he said. Schilbe pointed out a correlation between China’s industrial production and the demand for commodities. Schilbe said smaller U.S.-based companies were still very cautious and even more so than during the recession of the 1990s. He also said that U.S. households were stuck in a “balance-sheet recession,” noting that consumers in the U.S. would have limited access to credit throughout the next couple of years and he estimated a 17% unemployment rate. In Europe he talked about the large sell-off of the euro and the indebtedness of the government in Spain. He predicted slower growth in Europe as well, but Germany, he said, “seems to be bucking the trend.”

SITA UK, a subsidiary of the French waste management firm Suez Environnement, has signed a technology agreement with Cynar Plc to build a facility in the United Kingdom that will recycle end-of-life plastic scrap into diesel fuel. According to a Suez Environnement announcement, the objective is to build 10 plants in the U.K. that will handle a total of 60,000 metric tons of mixed plastic scrap per year. The goal is to commission the first plant in London by the end of 2011. Cynar, which is based in the United Kingdom, has developed a conversion technology process that converts various types of scrap plastics into fuel. SITA UK says that it plans to build two to three plastic-to-diesel conversion plants each year, depending on market conditions. Each facility is designed to convert about 6,000 metric tons of mixed plastic per year that might otherwise be land-filled. Suez Environnement’s venture fund Blue Orange, along with SITA UK, will provide the financing to build the facilities. SITA claims that the fuel qualities of the recycled diesel will be on a par with conventional diesel without the need for further refining, and therefore suitable for commercial use.

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newsworthy >>SCRAP INDUSTRY NEWS

>>NONMETALLICS

Toyota, Sumitomo, Primearth Begin Battery-to-Battery Recycling Project in Japan

Indonesian Paper Mill Receives BIR Papyrus Award

Toyota Motor Corp., Toyota Chemical Engineering Co. Ltd., Sumitomo Metal Mining Co. Ltd. and Primearth EV Energy Co. Ltd. (PEVE) have jointly announced the launch of what the four companies claim is the first business to recycle nickel in used hybridvehicle nickel-metal hydride batteries for use in new nickel-metal hydride batteries. A release by Toyota Motors says that previously, nickel-metal hydride batteries that were recovered were subjected to reduction treatment, with scrap containing nickel recycled as a raw material for stainless steel. Now, Toyota notes, with the development of high-precision nickel sorting and extraction technology, materials can be introduced directly into the nickel refining process, achieving what the four parties are calling battery-tobattery recycling. Toyota Motors has established the Toyota HV (hybrid vehicle) Call Center to help recover the batteries. The company also has constructed recycling facilities designed for mass production in cooperation with Toyota Chemical Engineering, and is receiving support from Sumitomo Metal Mining on refining nickel for use in batteries. Toyota Motors will receive support from PEVE in regard to quality assurance in the manufacture of hybrid vehicle nickel-metal hydride batteries. The new recycling system is being established in Japan, although Toyota Motors says it is conducting research on the possibility of introducing a similar system in other countries.

The Bureau of International Recycling’s (BIR) paper division awarded the Papyrus Award to Asia Pulp & Paper’s (APP) Indah Kiat Serang mill in Indonesia during the BIR World Recycling Convention. The prize is conferred on an individual or organization deemed to have made a significant contribution to paper recycling. Indah Kiat is a producer of paper and packaging products that are distributed throughout the world. The business was praised by Ranjit Baxi, BIR paper division president, for its established practice of using recovered paper from around the world as its staple raw material. “The mill has substantially increased its recovered fibre use over the last five years and has worked hard to promote sustainability and partnerships with the recovered paper industry,” he said during the award presentation. The mill achieved ISO 9001 certification in 1995 and the ISO 14001 environmental management stamp of approval some nine years later. In addition to its established environmental and recycling emphasis, the business is also engaged in a number of staff/ local community health and education initiatives.

>>NONMETALLICS

Coca-Cola Launches PET Bottle Collection Program in Kenya According to the website The East African (www.theeastafrican.co.ke), CocaCola has started an initiative to address the issue of plastic bottle scrap in Africa through a recycling project in operation in Kenya. Coca-Cola, along with two companies involved in the beverage industry – Safepak and the Highlands Mineral Water Co. – have formed a new company called PET Recycling Co. of Kenya to manage the PET plastics recycling project. The goal of the project is to recycle 70 percent of PET plastic containers sold by 2015. The recycling company will work with Greenplast International, a recycler near Nairobi, Kenya, to bale the collected plastic and export the material to China. Greenplast currently operates several drop-off centers around Nairobi where people can take plastic bottles for recycling. Representatives from the three companies, along with others, are supporting the recycling project. The joint initiative has a target of collecting 4,200 metric tons at the Greenplast facility by 2015.

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The 2010 Papyrus Award was presented to Dewi P. Bramono, right center, APP’s deputy director for sustainability and stakeholder engagement, and to fibre procurement specialist Susanna Agus, far right, by BIR paper division president Ranjit Baxi, left center, and BIR world president Dominique Maguin, far left.

www.RecyclingTodayGlobal.com

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Newsworthy >>nonmetallicS

>>SCRAP INDUSTRY NEWS

EPRC Panelists Find ‘A Common Endeavour’

Russian Steel Company Acquires Scrap Metal Recycler for $28M

Merchants and packers and paper mill buyers are on opposite sides of many transactions, but they share a common pursuit of maintaining good customer relations and offering their market a quality product. Fibre traders connected with three different global companies agreed on that common ground at a mill buyers’ panel convened at the 2010 European Paper Recycling Conference (EPRC). The panel, hosted by paper and recycling industry consultant Bill Moore of Moore & Associates, Atlanta, included Kurt Martens of Norske Skog subsidiary Reparco, Nuno Messias of Spain-based Europac and Jim Pope of United Statesbased Smurfit-Stone. After the topic of nations preventing recovered fibre from being exported was presented to panelists, Pope said the notion does not gain much support in the United States. “The export business is critical to support the collection infrastructure,” he commented. “Without export [markets], there would be a negative effect on overall recovery.” Pope urged attendees to be less focused on the distance of where shipments are heading and more focused on attentiveness to customers. “We don’t do business with countries, we do business with customers,” Pope stated. Asked about mill companies operating recycling collection arms, panelists said their companies are committed to it. Messias said Europac is likely to continue to do so because “we worry about having sources of raw material.” Martens cited a similar philosophy for Norske Skog. “It is a matter of supply security,” he commented. Recovered fibre quality was a common concern of all panelists, and referred to by Pope as a “shared responsibility” among mills and packers. Said Martens, “I think if you care about quality, in the long run you will win. Even when the market gets softer, [quality suppliers] will still get orders.” Messias said quality manufacturing cannot take place without good supply. “There is no way we can produce quality paper without quality raw material.” The 2010 European Paper Recycling Conference was Nov. 3-4 at the Sheraton Congress Hotel in Frankfurt, Germany.

>>SCRAP INDUSTRY NEWS

Lihua International Breaks Ground on Second Copper Smelting Facility Lihua International Inc., a China based developer, designer and manufacturer of secondary copper, has broken ground on its second copper smelting facility. The new recycling and smelting facility, expected to open by the second half of 2011, is being built on 30 acres adjacent to Lihua’s existing copper smelting plant in Danyang, China. The facility will initially house two smelters and will increase Lihua’s annual refined copper production capacity to 100,000 tons.

Novolipetsk Steel (NLMK) has announced the acquisition of Russiabased LLC VMI Recycling Group (VMI) for $28.4 million. VMI owns four scrap collection and processing facilities in the Moscow region, including one auto shredder,

which the company commissioned this past March. The sites are located in Liubertsi, Kotelniki, Mytishchi and Reutov. Equipment at the sites include Lindemann, Oberlander and Sierra press shears as well as Liebherr and Fuchs loading machines. The Mytishchi facility is where VMI is operating a shredder, which is capable of processing up to 120,000 metric tons of ferrous scrap per year. In total, VMI’s scrap yards are capable of processing close to 500,000 metric tons of scrap metal per year. Russian regulatory authorities have approved the transaction. In announcing the acquisition, NLMK says that the acquisition is in line with the company’s goal of becoming self sufficient in regard to raw material supply. According to a press release announcing the deal, the purchase of VMI will allow NLMK to optimize scrap deliveries to its main production site in Lipetsk, as well as at its 1.5 million-metric-ton-per-year electric arc furnace, which is currently under construction near Moscow.

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cover story by brian taylor

Fading Away A lack of material has challenged many recyclers in 2010, but time and distance have helped some autumn 2008 memories fade away.

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ortunately for most recyclers, the turmoil of late 2008 began appearing more distantly in the rearview mirror throughout 2010. For some recyclers the autumn 2008 damage was very direct, in the form of orphaned shipments where payment arrangements disappeared completely or payments were negotiated down to a fraction of the original value. Even for those who were not directly affected by non-payments, the lingering effects of severely deficient credit availability and then reduced manufacturing output provided one challenge after another in late 2008 and early 2009. During the remainder of 2009, and again in 2010, most processors and traders of secondary commodities have been able to dust themselves off and rebuild their businesses—though in most cases not to the peak volumes that were achieved pre-financial crisis.

WAKING BACK UP

To a large extent, the dilemma for secondary commodity traders based in Europe and North America has involved the lack of material generated since the financial crisis of late 2008. Although some international trading relationships were damaged in the fall of 2008, the resurgence of demand for secondary commodities in East Asia and South Asia has provided an important “critical mass” aspect to scrap demand that has not always been present in North America and Europe in the past two years. On the scrap generation side, construction activity in both North America and Europe had begun to ta-

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per down from peaks reached in 2007, even before the Lehman Brothers collapse of September 2008. Since then, however, construction activity has dropped severely, with the construction index compiled by Eurostat for the European Union (EU) trending downward to a low point in the first quarter of 2010. In mid-2010, construction activity began rising again, according to Eurostat, but the agency’s third quarter numbers are indicating another downturn, from an index number of 93 in June 2010 to 88 in September. (On this index, the number 100 signifies 2005 activity levels.) A slow construction market yields a smaller flow of scrap from demolition sites, construction sites, building materials factories, appliance factories and appliance trade-in sources, among other generation points. The automotive sector was likewise a victim of the credit crunch and increased unemployment, particularly in 2008 and early 2009. Government automobile trade-in incentive programs provided temporary upticks in certain nations at certain times in some nations in 2009. In 2010, vehicle sales (and production) are expected to rise slightly in North America. In Europe, new passenger vehicle registrations have been up and down on a monthly basis in 2010, but yearto-date at the end of October, some 5.5 percent fewer vehicles had been purchased in the EU compared to the first 10 months of 2009. The difficulty for scrap recyclers and brokers in Europe to gather sufficient material with these two indus-

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tries limping along has been evident in the market reports of contributors to Recycling Today Global Edition. “The difficulty is in getting the scrap, because there is nothing coming forward,” Bjorn Gruffman of M.V. Metallvarden in Sweden told Recycling Today Global Edition in April of 2010. “The new scrap we usually get is not coming the way it usually comes, so that is quite a big problem for us—to find the material. The demand is much bigger than the availability of scrap.” At that same time, nonferrous scrap company co-owner Johan van Peperzeel was reporting from the Netherlands, “What is really happening today is everyone is searching for secondary raw material. There is not much available and what is available, there are a lot of flies on it, like honey. There is not much scrap [being] produced and there are a lot of smelters with low inventory.” The situation has been and remains similar for traders of paper and plastic scrap. (For more on the state of the global recovered fibre market, please see “Actions and Reactions,” starting on page 24.) The vast majority of these same recyclers have had less difficulty on the sell side, especially if they are actively engaged in exporting material to Asia.

FORWARD PROGRESS IN ASIA

The financial industry turbulence of late 2008 was felt in most Asian nations, and China’s government in particular responded with a sizable stimulus package that was heavy on infrastructure spending—and thus good news for metal producers.

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cover story by katie morris

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cover story The quick recovery of China, coupled with the comparative lack of financial industry exposure in India, helped East Asia and South Asia stay on target with significant GDP growth and basic materials production and consumption. Several speakers at two November 2010 events in China—the China Nonferrous Metals Industry Association Recycling Branch (CMRA) forum in Ningbo, China, and the World Scrap Congress in Shanghai—provided statistics adding metals industry context to the economic growth in China, India and other Asian countries. “In the first three quarters of 2010, China has imported 5.37 million tons of [nonferrous] scrap metals, an increase of 11.6% year-on-year,” said Wang Gongmin, president of the CMRA at that organization’s event. Of that total, “copper-containing scrap is 3.22 million tons [and] aluminium-containing scrap is 2.15 million tons, up 7.7% and 18.0% respectively,” Wang added. The output of secondary metals has increased by similar amounts, Wang reported. “From January to September 2010, gross output of secondary nonferrous metals in China [was] about 5.5 million tons, an increase of 17% over

the same period last year,” said Wang. “The average annual growth rate of secondary nonferrous metals shall be about 12.6% during the Eleventh FiveYear Plan,” he added. The Eleventh Five-Year Plan in China concludes with 2011, which means aspects of the Twelfth Five-Year Plan were discussed in several presentations, including Wang’s. In that plan, said Wang, China’s Ministry of Industry and Information Technology is setting as its goal that “by 2015, nonferrous metals production shall reach 11.1 million tons, of which secondary copper is 3.8 million tons, secondary aluminium 5.8 million tons and secondary lead 1.5 million tons.” Steel production in China is currently using far more iron ore and virgin materials than scrap compared to the virgin vs. scrap percentages of the copper or aluminium industries there. At the World Scrap Congress, presenter Ozan Bekci of Turkish steelmaker Erdemir pointed out that the sheer size of China’s steel industry still makes it a significant importer of ferrous scrap. Statistics presented by Bekci indicate that China imported some 13.7 million tons of “seaborne” ferrous scrap in 2009, nearly as much as Turkey’s 15.6 million tons.

The Scene in ASEAN The opening up of China’s economy in the past three decades has provided a boost to many of the countries making up the ASEAN (Association of South East Asian Nation) trading area, according to Tan Ah Yong. Tan is Secretary General of SEAISI, the South East Asia Iron and Steel Institute, based in Malaysia. Malaysia is one of 10 member nations of ASEAN, along with Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand and Vietnam. “When China opened up, ASEAN [nations] invested and benefitted early on,” Tan told attendees of the 2010 World Scrap Congress, held in Shanghai Nov. 11-12. While China has been growing its GDP, in some cases, by more than 10% per year, nations such as Indonesia, Malaysia and Vietnam have been growing in the 4.5% to 6.8% range in the past three years. Tan said SEAISI statistics indicate that ASEAN nations that imported 1.3 million tons of ferrous scrap in 1998 imported more than 9 million tons just a decade later in 2008. Much of the steelmaking in the region uses the scrap-intensive electric arc furnace (EAF) method. Within that total, Vietnam is emerging as a major importer, bringing in some 1.8 million tons in 2009.

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However, with scrap demand and pricing rising in 2010, China has backed away to some extent, and the nation may end 2010 having imported only 7 million tons of ferrous scrap. “Chinese mills stepped up to the plate and increased purchases [in 2009],” said Bekci. “This was the saving grace, stabilizing the market.”

INDIA’S STEADY MARCH

Another destination that has provided stability to scrap markets is India. In the ferrous scrap sector, India is developing a growing presence as an export destination. In a presentation at the World Scrap Congress, Arti Lunaya of Steel Authority of India Limited (SAIL), New Delhi, noted that “India is the fourth largest scrap importer after Turkey, China and South Korea.” The nation may be poised to move farther up that list. “Indian consumption of ferrous scrap is set to increase from its current level of 15 million tons to 22 million tons in 2015,” said Lunaya. India has reached its current level of more than 15 million tons consumed through steady annual growth. The nation consumed 11.8 million tons in 2007, 12.9 million tons in 2008 and 13.9 million tons in 2009 before reaching the 15.5 million mark. Lunaya estimated that in India, EAF steelmaking has a 24% market share. The nation’s scrap consumption could be even greater except that it also has access to affordable pig iron and directreduced iron (DRI). For steelmaking overall, Lunaya and SAIL see Indian production growing from its present 53 million tons per year to more than 90 million tons by 2015. “India’s intensity of steel production growth will surpass China’s in 2010 and 2011,” said Lunaya, referring to 8% steelmaking growth in 2010 and 13.6% in 2011. She also noted that since “domestic scrap generation [meets] only 50% of demand, the import of scrap is a crucial source.” The author, editor-in-chief of Recycling Today Global Edition, can be reached at btaylor@gie.net.

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commodity focus by brian taylor

Actions and Reactions Paper recyclers are staying active and striving to react to the dynamic changes in the global economy.

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he paper manufacturing industry in Western Europe and the United States has, for the most part, not been testing the limits of its mills’ capacity for the past two years. However, while demand for recovered fibre from mills has been tempered in these two regions, demand from the developing nations of East and South Asia remains strong. Subsequently, since the financial industry crisis of 2008, the equation has gone something like this: Reduced generation + Steady demand = Relatively tight supply. This perceived equation provided a key topic at the 2010 European Paper Recycling Conference (EPRC), held Nov. 3-4 at the Sheraton Congress Hotel in Frankfurt, Germany. The event is organized by the Recycling Today Media Group and Pira International.

WORKING THROUGH IT

At the EPRC’s opening session, Per Ove Nordstrom, a McKinsey & Co. global basic materials analyst based in Sweden, offered a forecast predicting more slow growth for the economies of Western Europe. Nordstrom predicts average annual GDP growth of 1.7% in the European Union (EU) between 2010 and 2015. That rate of growth is below the 2.7% GDP growth projected for the United States and well below the 8.6% average annual DGP growth Nordstrom predicts for the nations that make up “developing Asia.” A large factor in the slow growth prospects for the EU is debt load, says Nordstrom. “Both governments and households need to de-leverage from current levels in many European countries,” he remarked. “From start to end,

this might take six to seven years,” Nordstrom said of Europe’s belt-tightening process. Also working against the EU economies, said Nordstrom, is the aging demographic of its population. “The average age is getting older and older in Europe.” Regarding the paper industry in particular in Europe, Nordstrom listed declining newspaper readership, antijunk mail legislation and trends toward greater electronic invoicing and electronic medical records as cutting into paper demand. At the same time demand for paper is flat or decreasing, “The cost of closing a paper mill in Europe is €50-to€100 million, and you just don’t get any return on that,” said Nordstrom. The result has been more mill capacity than needed. “Margins for Eu-

Delegates had much to discuss at the 2010 European Paper Recycling Conference.

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commodity focus

ropean paper producers have been in the decline for a decade,” he remarked, offering attendees a look at a chart demonstrating the lackluster returns for paper companies in both Europe and North America compared to those in Asia and South America. Recyclers in Europe are likely to continue to have access to Asian markets, as long as corrugated boxes made in Asia continue to be sent to Europe with exported products inside. “It is difficult to increase the recovery rate in China while a large share of corrugated boxes are exported,” said Nordstrom.

PEAKS AND PLATEAUS

On the home front for Europeans, several factors are combining to put ceilings on newsprint and printing and writing paper demand there, but tissue and packaging grades prospects are not as gloomy. Presenters at an EPRC session titled “The Future is Far from Paperless” offered statistical roundups and forecasts on past and future demand for the different paper grades. Graham Moore, Head of Strategic

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Consulting with Pira International, Leatherhead, United Kingdom, commented that several factors have combined to put pressure on newsprint consumption in Europe. Moore said the “three Es” of economics, e-technology and the environment have combined to put limits on Europe’s hunger for newspapers and other print products. Readers have found the Internet to be a more economical way to receive their daily news, while some publishers have likewise found models to communicate electronically and save on paper costs. Moore said the proliferation of etechnology “has grown tremendously even in the six years that this conference has been held,” with GPS systems having replaced maps or directions printed on office paper and the iPad beginning to take market share away from books and magazines. The environment has played a role with some consumers, government agencies and corporations. Some readers believe they are making a wise carbon-emissions choice by avoiding

ink-on-paper publications, and some potential newsletter and print advertising publishers have switched to an electronic format for the same reason. Moore said packaging grade producers have held steadier to their market in Europe. He gauges paper packaging as having 38% market share in Europe. “Our view is it will remain a dominant packaging material,” said Moore. On the packaging side, John Dryden of Paccess, a United Statesbased company that designs consumer product packaging for manufacturers such as Nike, said Paccess’ customers are working on using less material by weight on each package. Among the examples offered by Dryden was a new Nike shoe box design that is allowing the company to use 10,000 metric tons less packaging board annually. On the encouraging side, customers such as Nike, Wal-Mart and Target are specifically requesting the use of paper grades made with recovered fibres that can be labeled that way to appeal to eco-conscious consumers.

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commodity focus Tony Waring, head of recovered fibre buying for United States-based Kimberley-Clark, told attendees that the tissue and hygiene products company consumes some 2.1 million metric tons per year of recovered fibre, predominantly office paper.

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Waring, who is based in the United Kingdom, says he sees higher per capita tissue use in Asia propelling global demand for tissue to grow 50% from 2010 to 2030. Currently, Waring noted, high grades such as office paper “are the only ones suitable for tissue

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PERILOUS SEA VOYAGE Operators of ocean shipping lines endured a seasick-inducing 2009, but recovery has taken shape in 2010. That was the message from presenters at a 2010 European Paper Recycling Conference (EPRC) session on freight and logistics. Michiel Messchert of Danish shipping line Maersk told attendees, “We had days [in 2009] when we lost $9 million per day.” In 2009, said Messchert, Maersk’s volumes declined by 14 percent compared to the year before, a plunge that Messchert called “unknown.” A reluctance by shipping line competitors to lose volume, which led to overcapacity, caused Maersk revenue to decline even more—by 30 percent. Summarized Messchert, “The whole industry lost a whole lot of money.” “We think the worst is over for shipping,” Messchert continued, who added that rates bottomed out in mid-2009. After the plunge of 2009, Maersk is predicting that shipping volumes will begin to rebuild on a 3.2 percent annual average between 2010 and 2015. Presenter Hans Muelenberg of global freight and warehousing firm Kuehne + Nagel, Hamburg, Germany, said another trend that has been developing in 2010 is a greater amount of container shipping from Europe to Latin America. Volumes on that route have risen by 47 percent in the first quarter of 2010 and by 56 percent in the second quarter of the year, he said. Overall, said Muelenberg, “Carriers are making money again, so they can provide the services that you and I require.” The 2010 European Paper Recycling Conference was Nov. 3-4 at the Sheraton Congress Hotel in Frankfurt, Germany.

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commodity focus production,” but that companies such as Kimberley-Clark “have to develop technologies to access some of the other grades.”

RISKS AND REWARDS

Several views on globalization as it concerns the recovered fibre business were offered by presenters at a session titled “One World, Several Markets.” Richard Getkate of the Netherlandsbased CVB EcoLogistics acquired his global viewpoints from having lived in Tanzania and Sri Lanka and having been involved in hotel management throughout the world. The company Getkate now works for ships about 70 percent of its supply to Europe and 30 percent overseas, although at times the overseas percentage has been higher, he noted. China and India represent two major overseas markets, but two very different ones, Getkate commented. China contains many newer, larger mills while Indian mills tend to be smaller and running older machinery. Getkate said demographics that favor India are slowly beginning to gain ground on China in terms of GDP growth and paper production. If current trends continue, India’s population will be larger than China’s in 2030. Michael Belus, director-international trading for United States-based GP Harmon Recycling, presented a list of 11 new paper mills or paper machines being installed in India. His forecast for India has it doubling its paper and paperboard production capacity between 2004 and 2014, from 6 million to 12 million tons per year. This will likely also double the nation’s recovered fiber consumption, from 3 million tons per year to 6 million. Bob Kovich of Jordan Trading provided an overview of market conditions in the United States. He referred to challenges in single-stream processing that have affected paper quality, including broken glass and plastics. Thanks to continued global demand for recovered fiber and positive attitudes toward recycling, said Kovich, “the recycling business is definitely on the right side” in the current market. Paper and recycling industry con-

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sultant Bill Moore of Moore & Associates, Atlanta, provided some statistical snapshots on containerboard overcapacity in Europe and the United States and other factors affecting the market. Moore predicted stable to slowly rising pricing for most recovered paper

grades. “World demand will continue upward through 2011, boosted by the start-up of more recycled-contentbased mill capacity,” he stated. The author, editor-in-chief of Recycling Today Global Edition, can be contacted at btaylor@gie.net.

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processing point by brian taylor

Chasing Value Upgrades in automated sorting technology are allowing recyclers to harvest more metal and sort it to a higher value.

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dvances in automated metals sorting technology have brought together equipment makers and recyclers in a common effort to keep more metal in the recycling loop. Several different types of technology are being used at auto shredding plants, electronics recycling facilities and at material recovery facilities (MRFs), where aluminum cans are among the materials in that sometimes very mixed stream.

DOWNSTREAM OF THE AUTO SHREDDER

There are currently between 280 and 300 metal shredding plants in the United States large enough to shred an automobile. While some of these are idle and many, in the current market, are not running five days per week, the own-

ers of these auto shredding plants have continued to invest in equipment that deploys technology and automation to sort through the shredded metal. Producers of secondary nonferrous metals, led by the copper and brass industry in China, are hungry for raw material and keeping prices high even in a lackluster global economy. Shredding plant operators who can upgrade their nonferrous scrap grades will quickly be able to cover the costs of the technology they purchase. They have all done the math, and most have chosen to invest in new technology. Plant operators can make very different decisions about how to best produce clean steel, copper, brass, aluminum and stainless steel scrap grades from the mixed shredder stream. Plant operators and their equip-

ment suppliers make decisions based on: which and how many grades of scrap do they wish to produce; how many size fractions they want to split the stream into; how many times do they want the same material to pass through a system; to what extent do they still wish to have people remain involved in hand-picking material; and, of course, how much product purity do they want to achieve. The answers to these questions help dictate which pieces of equipment are purchased, how many units to buy, and in what order they are arranged to create a system. Although systems can be configured very differently, there are types of equipment that are commonly used within them. These include: • size classification screens; • eddy current separators; • sensor sorters; • X-ray sorters/optical sorters; and • density sorters (sink/float; sand). Size classification screens are not a new technology, but they remain relevant. They come in many forms—such as trommels and vibrating tables or conveyors with drop-through screens. They separate the mixed nonferrous and nonmetallic downstream material into separate size fractions. This allows the separating equipment that will be next in line to do its job better. Eddy current separators also are by no means “new” technology, but remain vital. Larger shredding plants may have four, six, or even eight eddy current separators on the job. These machines use magnetic force to help nonferrous metal pieces jump off the end of a conveyor belt while the non-

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processing point

metallic part of the stream drops down in a different direction. Recycling Today guest author Mark Ridall, who works for United Statesbased equipment supplier Wendt Corp. (www.wendtcorp.com), helped explain some of the newer sorting technology in an article in the April 2009 edition of Recycling Today. Ridall noted that sensor-based technology has been used in shredding downstream systems for about 10 years. These devices use electromagnetic sensors to identify nonferrous metals and are particularly adept at isolating stainless steel scrap from the mixed stream. Optical sorting, including the use of Xray technology, has provided another method of extracting nonferrous metal

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at shredding plants. X-ray fluorescence (XRF) machines use technology that is also used in hand-held analyzing units. These machines can quickly analyze the surface of a piece of metal and identify the alloy composition, according to Ridall. X-ray transmission (XRT) units transmit energy through pieces of metal that pass beneath them. The XRT units are calibrated to identify certain metals (by atomic weight). The unit then creates and receives an image of those pieces and shoots them away from the rest of the material with an air nozzle. Another optical technology that has been used involves charge-coupled devices (CCDs). These optical units

detect differences based on color, yielding red, yellow (honey) and white fractions. They are recommended for use on mixed metals that have already passed through the previously-mentioned separation equipment or have passed through a density sorting system, says Ridall. Density or heavy media systems remain part of the technology used in North America and Europe. Fluids and sands that can separate metals based on their specific gravity attributes can both serve to remove nonmetallic contaminants and separate some nonferrous metals from one another.

ELECTRONIC SCRAP SORTING

Automated sorting technology has also

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processing point become a key part of systems in which electronic scrap is shredded in North America and Europe. As with auto shredders, electronic scrap shredding plants are set up in many different ways—operators are often willing to try something new if they believe it can help them capture the most metal and separate it more thoroughly for higher market value. Much of the technology deployed is similar to what is used at auto shredding plants, with automated sorting equipment that separates by size, magnetic qualities, density or readings produced by optical scanning equipment. Material is first shredded, perhaps by a low-speed, high-torque shredder or by a wire and cable chopper. The mixed stream that leaves the shredder is then on its way to the downstream system designed by the plant operator in cooperation with key vendors.

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United States-based shredding system consultant Peter Prinz operated and helped design auto shredding systems before applying what he learned to electronic scrap shredding plants. In an article he prepared for Recycling Today for the November 2009 edition, Prinz recommended that, after drum and cross-belt magnets catch the steel content, a method to capture aluminum should be considered next. According to Prinz, “Aluminum makes up from 4 percent to 8 percent of the input material” at an electronics shredding facility. Prinz recommends having one or two people at sorting stations to remove aluminum capacitors downstream from the magnets but before automated aluminum separation. Prinz recommends an eddy current separator with a high gauss strength— the higher the better—to catch alu-

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minum before it passes through and becomes essentially a contaminant if it stays mixed with the precious metals. The stream that remains includes mixed plastics, copper, stainless steel, gold, silver and other metals. Prinz recommends a sophisticated sensor sorter as the right piece of equipment to recover additional metallic material. After a vibrating conveyor spreads out and disperses the material into an even flow, a sensor sorter (or more than one at larger plants) and a series of air nozzles will separate the remaining metals from the plastic. Prinz concluded his story with a reminder that while automated equipment is impressive, business owners and managers should never forget the importance of people as they undertake their plans. Wrote Prinz: “The most important part of your system is your shredder crew. When the first

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processing point piece of equipment arrives, you need to have some of your crew there to help in the set-up and installation. And as more pieces arrive, you add to your crew until you have the whole crew in place, from the person who will be charge to the pickers, helping with the installation. They need to be trained from the ground up and to help not only with the installation of the system but with its start-up and testing. They need to be involved. They need to feel that it is their system. If they feel that way, they will take care of the system and see that it runs smoothly with few or no problems.” His comments are a reminder that investments in automation offer no guarantee of success. The right people must also be on hand to manage and maintain the process and think critically about how to make it better.

SORTING AT THE MRF

MRFs that handle mixed residential recyclable materials provide yet another example of sorting that is done using size classification, magnetic separation and optical units. The predominant nonferrous grade heading into MRFs is aluminum used beverage containers (UBCs). Eddy current separators are used to identify and separate UBCs from the other cans and containers in the plant. Single-stream plants have grown in number and size in the United States, and operators of these plants have gained much experience in extracting UBCs from this mixed stream. However, the UBC recycling rate in the United States remains below 60 percent, with the rest of those aluminum cans being thrown into garbage bins rather than recycling bins. One effort to capture more UBCs in the United States is being undertaken by Envision Holdings and aluminum company Novelis, both based in the United States. The two companies have partnered on research and development and pilot programs to extract UBCs at landfill sites and waste transfer stations. Envision’s research found that even in cities where recycling programs try to capture UBCs, there are still many of them heading instead to waste transfer stations and landfills. The MiniMRF system that Envision has developed is “positioned downstream to recover materials that have already eluded traditional recycling programs and are otherwise destined for landfills,” according to the company. “Currently, the technology targets aluminum cans, steel and a variety of other reusable materials.” The magnetic technology used is not revolutionary or different from what is used at MRFs. But it has been designed to be easily installed or even portable. The other key is for it to be affordable and to quickly return the investment made by concentrating on aluminum and steel—materials with established markets and sometimes high value. The MiniMRF is one more new tool in a very large toolbox with an important job to do: To find the nonferrous metal for which metals producers throughout the world are searching. The author is editor-in-chief of Recycling Today Global Edition and can be contacted at btaylor@gie.net.

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residuals to energy

Viable Option A report from the German Federal Environment Agency (UBA) contends recycling need not suffer when lower-grade materials are converted to energy.

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arious press reports on waste management in Germany have drawn attention to a supposed contradiction between waste incineration and waste prevention. This paper by the German Federal Environment Agency (Umweltbundesamt, UBA) provides an analysis of the situation and 10 arguments on this issue. It seeks to clarify the facts and put the discussion on a more factual basis. (Editor’s note—The UBA report has been edited to fit on pages 32-34.)

CLIMATE ASPECTS

Waste incineration not only serves the purpose of safely disposing of waste, it also makes considerable amounts of energy available in the form of electricity and heat. In 2005/2006, German waste incineration plants provided some 6 terawatt hours (TWh) of electricity and 17 TWh of heat, equivalent to the supply required by a major city like Berlin. This energy can replace fossil energy sources such as coal or oil and prevent about 9.75 million tonnes of carbon dioxide emissions annually. About 50 percent of the energy contained in residual municipal waste comes from biogenic waste, which can be credited as climate-neutral. After deduction of the climaterelevant CO2 emissions from the fos-

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sil waste fraction and the fossil energy purchased from external sources, the remaining net reduction in annual CO2 emissions amounts to slightly less than 4 million tonnes of CO2. This is equivalent to the annual CO2 emissions of some 1.6 million passenger cars.

NOT A CONTRADICTION: 10 ARGUMENTS

As waste generation is inevitable in a consumer society, it will remain necessary to thermally treat those wastes for which there is no environmentally compatible recovery method. There are several reasons the claim that waste incineration is thwarting waste prevention efforts is unsustainable. The points below also address waste recovery aspects, since interactions exist between waste prevention and waste recycling and recovery that need to be taken into account. Note that waste prevention involves a multidimensional environmental policy task which goes far beyond issues related to waste disposal and recovery.

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residuals to energy 1. Waste prevention in production and consumption. Although waste prevention is not directly related to waste management, the latter may provide impetus through waste prevention plans, for example. Specific incentive structures – e.g. for fees – may enhance this impetus towards waste prevention. Waste legislation defines waste prevention as a principle, not a regulatory obligation. To promote waste-avoiding modes of consumption, a range of productrelated instruments is needed, such as influencing product design (“eco-design”), providing procurement incentives and facilitating product choices through information.

4. Consumer behaviour. Although consumers are broadly willing to contribute to waste recycling in their everyday lives by collecting waste separately, only a minority is prepared to give up certain habits and amenities in favour of waste prevention. Yet, there is a whole range of possibilities. The number of households with sustainable consumption habits could grow – to a certain extent– if state and consumer organisations stepped up efforts to provide practical everyday guidance for a resource-efficient consumer behaviour, communicate good-practice examples and show consumers the benefits of such behaviour.

2. Resource-efficient products. Waste prevention through product innovation, focused among other things on material efficiency, requires environmentally related product design, modification of product portfolios on the supply side, and market penetration of these more resource-efficient products. When developing products, care must be taken to ensure that measures to increase material efficiency do not adversely affect recyclability, i.e. their return to the material cycle. Instruments to promote such product innovations vary and include regulatory environmental laws to procurement regulations.

5. Need for waste management. The use of technical processes for the management of residual waste does not influence the public’s consumption habits. The same amount of residual waste for incineration would have arisen without an expansion of thermal waste management. The efficient recycling of, or energy recovery from, these wastes not avoided in production and consumption plays a significant role for environmental protection, as does the associated replacement of primary raw materials.

3. Offsetting efficiency gains by growth in volumes. The efficiency gains in production and products are often overcompensated by growth in consumption. These socalled rebound effects erode abatement successes achieved through process and product innovations. If waste volumes are to be reduced, buying resource-efficient products must be combined with changes in lifestyles.

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6. Influence of long-term waste management contracts. Some articles in the print media have claimed that waste management contracts – with durations of up to 20 years and fixed quantities for delivery to waste incineration plants – would have a negative impact on waste prevention. This influence is negligible, however. This is because waste management companies have no control over waste volumes, as explained above, but can only influence the ratio of waste quantities for recycling to

waste quantities for energy recovery. It seems rather unlikely, and would be difficult to explain to residents, if existing collection systems were changed in favour of the quantities of residual waste destined for incineration. 7. Product responsibility. Today, important groups of products are covered by the principle of product responsibility. This principle is a fundamental element of the concept of closed material cycles. Mandatory return and recovery now exists for end-of-life vehicles and waste electrical and electronic equipment, for example, and the Packaging Ordinance regulates the return and recovery of yet another sub-stream of municipal waste. These ordinances provide incentives for both waste recovery and waste prevention. Waste recovery in trade and industry, as well, is better developed now than ever before. (See points 1 and 2.) 8. Highest recovery rates despite incineration of residual waste. The situation in Germany and other countries with advanced waste management concepts shows that countries that have high waste incineration rates also achieve the highest recycling rates. This is due to effective waste policies and waste management strategies, as applied by several countries such as the Netherlands, Switzerland, Austria, Germany and the Scandinavian countries. These countries recycle or use materials for energy recovery because they have sharply restricted landfills as a cheap disposal route, for example with taxes, or they have banned it completely. 9. Precise sorting as a prerequisite for recovery. To achieve high recycling rates and highquality recycling, certain waste frac-

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residuals to energy tions must be available in a condition as well-sorted as possible. This is achieved predominantly by separate collection, although subsequent sort-

ing of waste fractions collected jointly – for example, in bins for dry recyclable materials – is also possible in some cases (and may be increasingly in the

CONCERNS ARE THERE After an economic and paper industry forecast presented at the 2010 European Paper Recycling Conference, at least one audience member had competition from the energy industry on his mind. After the keynote presentation by Per Ove Nordstrom of McKinsey & Co., an audience member asked the Swedish Global Basic Materials department member whether paper is likely to be sought out as an energy feedstock in Europe. “If it grows [as a feedstock], it could create problems for the industry,” replied Nordstom, noting that it could decrease the supply of recovered fibre in Europe. The 2010 European Paper Recycling Conference was Nov. 3-4 at the Sheraton Congress Hotel in Frankfurt, Germany.

future). The remaining residual waste, which cannot be sorted at all or only with an unjustifiable input of resources and therefore is non-recyclable, goes to waste incineration for energy recovery or, in countries where depositing such waste is still allowed, to landfill. 10. Disposal security through waste incineration. The current expansion of incineration capacity in Germany is necessary to ensure the proper disposal of wastes which may no longer be land-filled for environmental reasons. As well as expanding recycling, waste incineration is available to serve as an environmentally compatible waste management method. This report was prepared by the UBA and the English-language version appears in full at www. umweltdaten.de/publikationen/fpdf-l/3820.pdf.

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datebook january february march

april may june july august september october november december

7th Waste Management Finance Forum // January 19-20

Dec. 9-12 Waste Management Expo 2010, Hyderabad, India, Conventions & Fairs (India) Pvt. Ltd., www.wmeonline.in/ 2011

Jan. 19-21 10th International Electronics Recycling Congress, Salzburg, Austria, ICM, +41 62 785 1000, info@icm.ch or www.icm.ch

Finance Forum, London, Euromoney Energy Events, www.euromoneyenergy. com

Feb. 15 RecShow 2011, Amman, Jordan, MEEF International Event Management, +96 26 556 2487

Feb. 17-18 7th International Annual Scrap Forum, Moscow, Rusmet Group, http://lom.rusmet.ru/about. php

Jan. 16-18

March 3-4

Aluminum Symposium 2011, Coronado, California, United States, Platts, www.events.platts.com or (866) 355-2930

MiaGreen Expo & Conference, Miami Beach, United States, Show Winners Corp., www.MiaGreen.com

Jan. 19-20 7th Waste Management

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March 22-26 ConExpo-Con/Agg Las Vegas,

7th International Annual Scrap Forum // February 17-18

Association of Equipment Manufacturers, (800) 867-6060, info@conexpoconagg. com or www.conexpoconagg.com

March 23-25 11th International Automobile Recycling Congress, Budapest, Hungary, ICM, +41 62 785 1000, info@icm.ch or www.icm.ch

April 6-10 ISRI Annual Convention, Los Angeles, Institute of Scrap Recycling Industries Inc., (202) 662-8500 or www.isri.org

April 7-10 Ecotec-Environmental Technologies & Photovoltaic Systems, Athens, Greece, www.ecotec-exhibition. gr/en

April 13-15 Environmental International Forum SAVE the Planet – Waste & Water Management/Recycling, Sofia, Bulgaria, Via Expo, www.viaexpo.com or office@viaexpo.com

May 9-12 Waste Expo, Dallas, Penton Business Media, www.WasteExpo.com

May 22-25 BIR World Recycling Convention, Singapore, Bureau of International Recycling, +32 2 627 57 70 or bir@bir.org

May 31-June 3 WasteTech-2011, Moscow, Sibico International Ltd., www.waste-tech.ru

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EQUIPMENT REPORT Meltog Introduces Two New Shredders

Meltog, a division of United Kingdom-based MMCo. Ltd., has introduced two shredders that target different industries. One of the new shredders, in the Bio Series line, is geared toward the anaerobic digestion (AD) sector, while the other shredder targets the handling of hard drives and obsolete electronics. Meltog claims that the Bio Series shredder is one of the first shredder lines aimed specifically at the organics market. The profile, number and arrangement of the cutting teeth for the Bio Series shredders have all been designed especially for plants handling AD and organics. The Meltog Bio Series incorporates as standard liquid escape zones that prevent liquid from seeping into the mechanical elements of equipment. The series features specially designed seals, while the cutting shafts incorporate additional features to ensure the efficient run-off of liquids. Regarding its new hard disk shredder (HDD), Meltog says it believes its new shredder is the only multi-stage shredding machine of its type in the U.K. market. The company says it is working on further developments for the HDD. The SH HDD is capable of shredding computer hard disks and other sensitive computer components down to particles of 9 millimeters and less. Designed as a compact and low-weight system, it can be fitted inside smaller vehicles or as additional equipment inside existing security shredding vehicle fleets. The hard drive shredder is available for mobile trucks, as well as a static unit at a plant. More information on the company can be found on its website at www.meltog.com

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>> man ufacturer news and equipment installations

Hammel Recyclingtechnik Introduces Mobile Scrap Processing Plant

German-based Hammel Recyclingtechnik has introduced its newest development, what it calls the world’s first mobile scrap processing plant. The plant was first unveiled during an auto recycling show in Hohenroda, Germany in November. According to a company press release, with this system it is possible The first Hammel mobile scrap processing to process a mixed basic material into plant was introduced in Germany. a marketable end product. Raw material such as car bodies, engine blocks, and aluminum bales, is shredded with the primary shredder type VB 950 DK and will be directly fed into the metal screen MMS 150 DK, where it will be separated via vibration screen while the oversized material is discharged. The screened material falls onto an integrated vibration channel, which feeds the material to a magnet drum. The drum, the company adds, separates the material into ferrous metals and nonferrous materials. The nonferrous parts are transferred via discharge belt to the eddy current system, whereby the aluminium and shredded light fraction is separated. The ferrous parts are transported to the metal fine shredder type HEM 1250 DK. The shredding rotor is equipped with eccentric disc hammers and is hydrodynamic. With the special shredding rotor and its pre-stressed screen basket, Hammel says it is possible to achieve a precise end size material, adding that it was the goal to reach an E40-classification on the European scrap specifications list. The complete system was demonstrated during the conference and will be tested over a longer period of time on a customer site. More information is available at www.hammel.de.

Harris Invests in Latin America, Hires global commercial director

Harris, a manufacturer of equipment for the recycling, scrap processing and waste management industry, has announced the appointment of George Lanza as Harris’ Global Commercial director. Lanza’s responsibilities include all international activity and growth throughout Lanza the Harris product lines. In a press release, Harris, headquartered in the United States, says that Lanza has an extensive background in management, operations, sales and marketing. Harris says Lanza, who will be based in Miami, has significant expertise within the Latin American market. Harris also announced that it has established a regional sales and customer service office in Bogota, Colombia. The Harris Latin American regional office will provide sales and local support throughout Latin America for Harris’ full line of products. Harris says its Bogota office also will be involved in strategic ventures with local partners and will be responsible for effectively supplying aftermarket parts, sales and service. More information is available at www.harrisequip.com.

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>> manufacturer news and equipment installations

EQUIPMENT REPORT

Columbus McKinnon Asia Installs Tire Shredder at South Korean Cement Plant

Columbus McKinnon (CM) Asia has announced that it has recently completed the installation of a CM Dual Speed tire shredder at Osung Resources Co.’s cement plant in Daugu, South Korea. The stage-one machine can accept tires from passenger cars, SUVs and trucks. The shredder is expected to process from 8 to 12 tons of shredded tires per hour. The CM Dual Speed is configured to produce a 2-inch tire chip that can be used as a tire derived fuel (TDF) at Osung’s cement plant. The cement company says it expects to process 20,000 tons of scrap tires at the cement plant this year. Su-Ui Lee, Osung president, also is president of Korea’s Waste Plastic Association. In a CM release, Lee says he is planning to acquire another factory in a densely populated area of Korea that will Osung president Su-Ui Lee with the company’s CM Dual Speed Tire Shredder. allow the company to shred more tires.

Pellenc Introduces Boreas Optical Sorter

Pellenc Selective Technologies, based in France, has announced the release of the Boreas mid-infrared optical sorter, which is designed to sort paper and cardboard. Boreas helps material recovery facilities (MRF) separate de-inking grades and office paper from cardboard, regardless of color. The newly developed Boreas range of optical sorters from Pellenc uses electromagnetic radiation detection to separate paper from cardboard regardless of shape and color. It also can separate black plastics from newspapers, according to the company. The technology analyzes the material composition, particularly the grammage, or the mass of paper measured in grams per square meter. According to Pellenc, the accuracy and speed of this technology offers enhanced results and decreased costs. “Improvements to the quality and consistency of ONP supplies could enable MRFs to net higher prices and possibly encourage increased utilization of ONP,” the company adds. Headquartered in Pertuis, France, Pellenc Selective Technologies recycling solutions are now at work in 40 countries. The company has subsidiaries in the U.S., Spain and Japan and exports 70 percent of its production. More information about Pellenc Selective Technologies is available at www.pellencst.com.

Swedish Equipment Company Relocating Manufacturing Plant

The Sweden-based equipment company Nederman has announced that it is closing its production unit in Arboga, Sweden, and relocating the business to its production facility in Marki, Poland. The Arboga division manufactures equipment for the recycling and material handling industry. In a release announcing, Anders Franzén, Nederman’s VP of Operations, says, “Our decision to move these activities from Sweden to Poland is a direct outcome of the present integration procedure of our acquired company Dantherm Filtration. Our objective with the relocation is to further strengthen our competitiveness within this market.” The transfer is expected to be complete by the first quarter of 2011.

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Metso to Supply Tissue Line, Board Machines TO Chinese Companies

Finland-based Metso Corp. has announced that it will supply two board machines to Liansheng Paper Industry Co. Ltd. for its mill in Longhai City in China. The start-up of both machines is scheduled for the first quarter of 2012. The two machines are expected to consume some 120,000 tons of recovered fibre each year, according to a prospectus from parent company Hongtai Group Limited. The new machines will give the Chinese paper company a combined annual capacity of around 800,000 metric tons. One of the new machines will produce testliner and the other will produce fluting. Metso Corp. also has announced it will supply a complete tissue production line to Xiamen Xinyang Paper Co. Ltd. at its site in Fujian Province, China. The new tissue line is expected to be started up in the fourth quarter of 2011. Metso's system includes a complete production line with stock preparation equipment and a tissue machine, including a multi-layer headbox, a Yankee cylinder, a hood, a dust management system and a reel, plus Metso's pressing technology. Initially, the raw material for the plant wil be virgin pulp. Also included will be an automation package, process and integrated drive controls and a quality control system. The first phase in the company's investment plan is a tissue mill for producing 60,000 metric tons per year of tissue paper.

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Product Spotlight

1

1

Columbus McKinnon Yale Global Max HC Hoists. United States-based Columbus McKinnon Corp. has launched a new line of wire rope hoists in capacities from 25 to 50 tons. The core of the Yale Global Max HC is the double-girder style. Features include: • An external hoist motor • Remote mounting of the hoist motor and brake • A sealed, fully enclosed, pressure-tested gearbox with all of the gears inside the gearbox submerged in oil • A fully enclosed free loop guide designed to eliminate a slack rope condition during operation • An optional mechanical overspeed device, block operated limit switch and twin ropes for dual motor hoists Visit www.cmworks.com for more information.

2

EREMA Vacurema Inline Compact Crystalliser Austriabased EREMA has introduced its newly developed Inline Compact Crystallizer. Features include: • Compact, space-saving design • Enables processors to keep to a reliable acetaldehyde (AA) content of under 1 pound per minute in the recycled PET pellets • The required IV value can be achieved flexibly through the modular Vacurema concept with the Basic, Advanced and Prime technology phases. • ecoSAVE technology reduces the already low energy consumption by up to an additional 10% Visit www.erema.at for more information.

2

3

3

ATM ArnoCut Scrap Shear. Austria’s ATM Recyclingsystems GmbH has introduced its ArnoCut 400/600 semimobile scrap shear with baling and breaking functions. Features include: • Suitable for small and medium-sized companies • A shearing force of 4,000 or 6,000 kilonewtons (kN) • The baling function has a refracting power of 6,000 kN • The breaking function has a press capacity of 2,000 kN • A bed length measuring from 4.1 to 6.2 metres • It can be taken apart into four pieces for easy transport Visit www.atm-recyclingsystems.com for more information.

4 4

38

RECYCLING TODAY global edition // november-december 2010

Product Spotlight.indd 38

BHS-Sonthofen IC-Process. BHS-Sonthofen, located in Germany, has introduced a new IC-Process for the recycling of refrigeration equipment containing CFCs (Chlorofluorocarbons) or HCs (Hydrocarbons). The “IC” stands for “Impact” and “Catalysts.” Features include: • A new method of processing all refrigerants and foaming agents by means of catalytic hydrolysis • Single-stage and continuous size reduction of refrigeration equipment in the BHS Rotorshredder • Maximum throughput rates of 150 refrigerators per hour • Gas treatment by thermal-catalytic conversion of refrigerants and foaming agents into saline waste water and CO2 directly within the plant • Liquid nitrogen is not required Visit www.bhs-sonthofen.de for more information.

www.RecyclingTodayGlobal.com

11/24/2010 11:34:19 AM


AD INDEX American Baler – .....................................................16 www.americanbaler.com

IPS Balers Inc. – ...............................Inside Front Cover www.ipsbalers.com

Asia Pulp and Paper Co. Ltd – ..................................15 www.asiapulppaper.com

Ling Tong Metal Information Co. – .............................13 www.lingtongmetal.com/eindex.asp

cieTrade– ................................................................26 www.cietrade.com

Metso Recycling - Texas Shredder – ............................5 www.metso.com/texasshredder

Eldan Recycling – ....................................................30 www.eldan-recycling.com

Recycling Today Media Group – ..........................34, 39 www.RecyclingToday.com/store

European Paper Recycling Conference – ....................39 www.paperrecyclingeurope.com

Shred-Tech –............................................................31 www.shred-tech.com

Granutech Saturn Systems – . ............. Inside Back Cover www.granutech.com

Shredder Co., The – .....................................Back Cover www.theshredderco.com

Hammel Recyclingtechnik GmbH – ...........................13 www.hammel.de

SSI Shredding Systems Inc. – ...................................27 www.ssiworld.com

Hagglunds Drives – ..................................................23 www.hagglunds.com

TopRecycle Consulting – ...........................................16 www.toprecycle.com

ICM Ag – ..................................................................7 www.icm.ch

EUROPEAN

Paper Recycling

2011 dates announced 9 – 10 November 2011 Barcelo sants Barcelona, spain

M a Pl rk an yo to ur at di te ar n y! d!

The Meeting Place for the european recovered Paper industry

www.RecyclingTodayGlobal.com

Ad Index.indd 39

RECYCLING TODAY global edition // november-december 2010

39

11/24/2010 2:23:05 PM


0the1numbers 23456789 >> A l oo k at tra nsaction or i ndex prici ng for the most com monl y traded secondar y com modities.

U.S. Producer Price Index/Mixed Paper

RMDAS Shredded Scrap Pricing October 2009

$265

November 2009

$236

December 2009

$294

January 2010

$341

February 2010

$338

March 2010

$386

April 2010

$399

May 2010

$356

June 2010

$345

July 2010

$319

August 2010

$347

September 2010 $370 October 2010

$342

(Per gross ton for No. 2 shredded scrap, defined as 0.17 percent or greater copper content)

Reported United States aggregated spot market prices per gross ton for each commodity are based on all Management Science Associates’ (MSA) Raw Material Data Aggregation Service (RMDAS) participants’ actual order data submitted to and processed by MSA as of the 20th of each respective “buy month,” rounded to the whole integer. A map of RMDAS regions is available at http://rmdas.msa. com, as is a further explanation of RMDAS methodology and an accompanying disclaimer. No. 2 shredded scrap is defined as containing 0.17 percent or greater copper content. The prompt industrial composite consists of an average of No. 1 bundles and No. 1 busheling. Pricing information on each grade can be found at www.RecyclingToday.com. © 2010 Management Science Associates Inc. All rights reserved. RMDAS is a trademark of Management Science Associates Inc.

Aluminium – LME Aluminium Alloy Pricing Nov. ’09

$1,740.00

March ’10 $2007.09

July ’10

$1,983.55

Dec. ’09

$1,881.76

April ’10 $2,161.13

Aug. ’10

$2,188.33

Jan. ’10

$1,955.98

May ’10

Sept. ’10

$2,207.27

Oct. ’10

$2,208.38

$1,909.00

Feb. ’10 $1,885.03 June ’10 $1,836.86

$6,674.24

March ’10 $7,461.91

July ’10

December 2009 521.1 January 2010

621.6

February 2010

633.3

March 2010

774.2

April 2010

774.2

May 2010

667.0

June 2010

718.7

July 2010 August 2010

i.n.a. 858.2

September 2010 848.3 Index is based on 1982 average prices as 100 Source: U.S. Bureau of Labor Statistics

U.S. Producer Price Index/Plastics Material October 2009

235.1

November 2009 234.1

January 2010

244.5

$6,734.00

February 2010

257.6 253.5

Dec. ’09

$6,979.93

April ’10 $7,743.70

Aug. ’10

$7,282.12

Jan. ’10

$7,384.98

May ’10

Sept. ’10

$7,708.57

April 2010

279.3

$8,291.29

May 2010

260.0

June 2010

253.6

July 2010

255.5

August 2010

253.8

$6,836.71

Nickel – LME Pricing Nov. ’09

$16,982.62

March ’10 $22,446.30 July ’10

$19,508.18

Dec. ’09

$17,055.00

April ’10 $26,014.75 Aug. ’10

$21,404.52

Jan. ’10

$18,430.00

May ’10

$22,637.73

Feb. ’10

$18,964.75

June ’10 $19,377.73 Oct. ’10

$21,995.26 Sept. ’10

$23.796.67

Average monthly settlement price, cash buyer; U.S. dollars per tonne. Source: London Metal Exchange, www.lme.com. Historical pricing for commodities traded on the LME is available for purchase through the LME website at www.lme.co.uk/dataprices_historical_buy.asp.

RECYCLING TODAY global edition // november-december 2010

The Numbers.indd 40

November 2009 522.3

March 2010

Feb. ’10 $6,847.20 June ’10 $6,498.02 Oct. ’10

40

505.5

December 2009 244.9

Copper – LME Pricing Nov. ’09

October 2009

September 2010 249.7 Index is based on December 1980 average prices as 100. Source: U.S. Bureau of Labor Statistics

www.RecyclingTodayGlobal.com

11/24/2010 11:34:51 AM


RTGE1012p39granutech.indd 1

11/19/2010 11:46:21 AM


EXPERTISE

Developed through decades of experience as an operator and manufacturer The Newell family has been building and operating shredders since 1960. That depth of knowledge is the foundation for The Shredder Company’s scrap shredders, which range from a 6060 all the way to the massive 124 SXS. Our proprietary software provides control of the shredding process, measures performance and produces management reports. It’s like having 50 years of shredding experience from the moment you start your mill.

As operators, the Newells understand the need to minimize costs for each ton produced. Put our shredding plants, recovery systems and operating system to work for your business today!

Prompt Service / Superior Design / Unmatched Experience

RTGE1012p42shredderCo.indd 1

The Shredder Company 7380 Doniphan Dr. Canutillo, TX 79835 USA 915-877-3814 915-877-4603 Fax sales@TheShredderCo.com TheShredderCo.com

11/29/2010 12:43:15 PM


RECYCLING MADE EASY A bird’s eye view of efficient recycling Flexibility and speed are the key to success in the recycling business. That’s why smart professionals rely on the specialists for materials handling from Terex® Fuchs. Convenient handling, the greatest power, high lifting capacities throughout the entire

The Terex® Fuchs programme: Material handling machines from 19 to 90 tons weight and up to 22 meters reach Complete solutions honed for your specific purpose – we cover scrap, recycling, timber

working range, ergonomic, straightforward operation in the

and port applications

vertically movable cab and legendary reliability make you ready

Special equipment: We equip each machine

for any challenge! Your individual needs are our blueprint.

according to your specific requirements

At Terex® Fuchs, your machine is equipped on request with the special features you require. www.terex-fuchs.com

©Terex Corporation 2011. Terex is a registered trademark of Terex Corporation in the United States of America and many other countries RTGE1102p52terex.indd 1

1/21/2011 3:15:20 PM

Recycling Today Global Edition: November/December 2010  

RTG Nov/Dec 2010

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