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Inside: Market Reports from Around the Globe........................ pg 08 Steel Dust Recycling Plant Opens in Japan................... pg 19 2011 Market Review ........................................................ pg 32 Optical Sorting For Auto Shredders............................... pg 36

serving the international market for secondary raw materials / November-December 2011 / www.RecyclingTodayGlobal.com

more than

LUCKY The Lucky Group has drawn upon much more than luck to spark its growing presence in the international recycling industry.

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NOVEMBER-DECEMBER 2011 V o l u me 0 4 / N u mber 0 6

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

04 06 08 11 15 18

FEATURES More than Lucky.................................................. 24

The Lucky Group has drawn upon much more than luck to spark its growing presence in the international recycling industry.

Showing Potential................................................28

Despite a struggling world economy, the plastics recycling industry is growing as material generation, demand and end market uses increase.

Sharp Edges..........................................................32

Secondary commodities remained in demand in 2011, but volatile pricing made some markets more nerve-wracking than others.

Electronic Eye Contact........................................36

Optical sorting technology can offer an alternative to heavy-media plants for auto shredder operators.

Compression Force............................................... 40

The SITA plant in Hochheim, Germany, is using a 1,200-kilotonne baler to help send material on its way.

Rolling Past Waste............................................... 42

Datebook Equipment Report Product Spotlight Ad Index The Numbers

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45 46 48 49 50

Europe’s tyre manufacturers make the case for end-of-life tyres being able to comply with end of waste criteria.

WEB SPOTLIGHT • Paper & Plastics Recycling Conference Middle East: Learn more about the conference and register at www.paperrecycling conference.com. • Connect with us: Be sure to follow us on Twitter @rtglobaledition and become a fan of Recycling Today Global Edition on Facebook.

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editor’sLetter Signs of a Plateau

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conomic analysts, especially those trying to forecast commodity markets, have long tried to predict when the Chinese infrastructure building boom will reach a plateau and then subside. There are several signs, including financial troubles within China’s railroad-building program and sputtering residential property prices, that the most intense years of infrastructure construction are drawing to a close. The nation continues to experience GDP growth. China’s economic growth and rural-to-urban migration continues to spur residential and retail construction, consumer spending and other forms of activity that create demand for copper, aluminium and steel. While the economic development of a nation of 1.3 billion people has created a new metals production and consumption powerhouse, a question becomes whether China’s most intense infrastructure expansion years are behind it. Some commodity fund investors may be answering that question in the affirmative, seeing lukewarm Chinese copper production figures in the third quarter of 2011 as a reason to reduce their investment in the red metal. China’s largest copper producers, it should be noted, remain bullish. Many have continued to invest in additional capacity, and many continue to tell their overseas scrap suppliers that they anticipate purchasing just as much red metal scrap in 2012 as they did in 2011 or 2010. For nations that send tonnes of scrap metal to China, though, the pace of construction there is a large factor in both pricing and demand. During the past 15 years, an amazing number of factories, office buildings, apartment towers, hotels and other structures have been wired for electricity and telephone service with kilometres and kilometres of copper wire. Connecting these fast-rising cities is a grid composed of steel towers, aluminium cable and yet more copper wiring. A plateau or modest decline in China’s building boom certainly is a better outcome than a sudden financial or economic crisis. A drop in demand for copper and brass scrap from China would surely cause market turbulence. In remarks prepared for the 11th Secondary Metals International Forum in Guangzhou, China, in November, BIR Nonferrous Division President Bob Stein observed, “There is every reason to believe that if the wide difference in price between copper scrap and cathodes continues, then India will likely increase in its importance as an importer of copper scrap.” Essentially, scrap recyclers could face yet one more factor causing market volatility as China’s building boom subsides, but it doesn’t necessarily mean the seller’s market has disappeared. As long as there are people in nations striving to build an infrastructure and lift a higher percentage of their population to the middle class, demand for scrap metal will likely remain strong.

BRIAN TAYLOR

Publisher James R. Keefe, Publisher jkeefe@gie.net editorial Brian Taylor, Associate Publisher/Editorial Director btaylor@gie.net DeAnne Toto, Managing Editor dtoto@gie.net Dan Sandoval, Senior Editor & Internet Editor dsandoval@gie.net Kristin Smith, Associate Editor ksmith@gie.net Kelley Stoklosa, Assistant Editor kstoklosa@gie.net Larry Sax, Editorial Consultant lsax@giemedia.com Creative Andrea Vagas, Creative Director avagas@gie.net Sean Burris, Graphic Designer sburris@gie.net Michelle Wisniewski, Advertising Production Coordinator mwisniewski@gie.net Helen Duerr O’Halloran, Director, Production hduerr@gie.net Sales Jackie Van Meter, Sales Director jvanmeter@gie.net Diana DiRienzo, Senior Account Executive ddirienzo@gie.net Marty Smith, Account Manager msmith@gie.net Jen May, Account Manager jmay@gie.net INTERNATIONAL SALES Vince Maynard (Europe) pulppaperlogistics@virginmedia.com Marco Chang (China) marco@ringiertrade.com Kelly Wong (Taiwan) kwong@ringier.com.hk Michael Hay (Hong Kong) mchhay@ringier.com.hk Conferences Maria Miller mmiller@gie.net CORPORATE Richard J.W. Foster, CEO Chris Foster, President & COO James R. Keefe, Executive Vice President Daniel Moreland, Executive Vice President Matt Reeder, Director, Circulation & Integrated Data Kelly Antal, 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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perspective Rapid & Sustainable Development

S

ince we entered the new century, with the sustainable and rapid development of its economy, China has now become the largest producer, consumer and import and export trader of nonferrous metals in the world. In 2010, the output of 10 common nonferrous metals in China was 31.35 million tonnes, which accounted for about one-third of total world output. Consumption was closely matched at 31 million metric tons, also accounting for about one-third of the world total. Currently, China’s nonferrous metal resources (including mineral resources and recycling resources) cannot guarantee the needs of economic development, so the dependency on imported raw materials has been an ascendant trend as a whole. However, with the increase of consumption of nonferrous metals, domestic scrap resources that could be recycled are increasing. It is estimated that the percentage of recycling resources as a supply of raw materials to make nonferrous metals could rise in the next few years. In 2010, refined copper output in China was 4.57 million tonnes, accounting for 25.4% of total world output. Mineral accounted for 62.2% of raw materials used to make this refined copper and recycled materials for 37.8%. Secondary aluminium output in China in 2010 was 3.5 million tonnes, accounting for 26.9% of global output. Driven by increasing demand, the production of nonferrous metals in China keeps going up. As mineral raw materials cannot guarantee the needs of domestic nonferrous metals, the production of nonferrous metals made from scrap

has formed on a large scale in China. In 2010, China had about 300 large enterprises engaged in the production of copper made from scrap. Jiangxi Copper Corp. was the largest producer of such copper in China, utilizing more than 2 million tons of raw materials, with scrap accounting for 30% of this total. Other major red metal scrap consumers were Shandong Jinsheng Non-ferrous Group Co. Ltd., Ningbo Jintian Investment Holdings Co., Guangxi Non-ferrous Metals Group Co. Ltd. and Western Mining Investment (Tianjin) Co. Ltd. With the rapid growth of consumption of nonferrous metals in China, the reservoir of domestic nonferrous scrap that could be recycled is starting to provide a resource guarantee for the production of secondary nonferrous metals. However, domestic scrap resources cannot quickly satisfy the need for raw materials, so imported nonferrous scrap will continue to occupy an important place in the production of nonferrous metals in China. Calculated by 15 years of service life and an 80% recovery rate of copper products, China will recycle about 1.1 million tonnes of copper scrap by 2015, 57% higher than in 2010. But for the projected demand of 3.6 million tonnes to be satisfied, some 2.5 million tonnes of copper scrap must be imported in 2015—130% higher than the 2010 figure. The above views are only a theoretical analysis and may not be in accord with actual developments. In particular, if the price of nonferrous scrap metal in international markets is up and goes beyond the capacity of Chinese producers to buy it, Chinese enterprises will abandon the import of raw materials and only use domestic raw materials to meet production levels.

Zhao Wuzhuang

The author is chief analyst at Beijing Antaike Information Co. Ltd., which is 51% owned by a division of the China Nonferrous Metals Industry Association (CNIA). He can be contacted at zhaowz@cnni.net.cn.

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glo bal market reports METALS INDUSTRY OVERVIEW >> GLOBAL Robin Bhar, Metals Analyst with Credit Agricole CIB The happenings in the financial world are certainly driving sentiment and driving prices for metals. We have all beR. Bhar come political analysts as we watch the news flow that appears to be moving and changing every other minute. It has been interesting if not tiring trying to keep up with the news flow, particularly in Greece whether the referendum is on or not, or whether George Papandreou survives a vote of confidence. There are plenty of things up in the air and that just makes for more uncertainty. The one thing the markets hate is uncertainty. Metals are certainly being held hostage to the macro events. The G20 meeting has now ended and the communiqué has looked at various means and have looked at bolstering the funds in the eurozone through an IMF (International Monetary Fund) initiative. And there has been promises by the various G7 economies to contribute to that, so it really depends on what sort of firewalls can be built around some of the weaker eurozone countries such as Italy and Spain. The GDP Forecast for next year still shows growth of 3.7% globally with the driver being the Asian economies in particular. I think that is important for the metals market because China is now accounting for 35-40% of global metal consumption. I think if we didn’t have the shadow of the threatening, darkening macroeconomic side of things, we have attractive fundamentals particularly for metals where demand isn’t that bad.

08

The fourth quarter tends to be a strong quarter and that is being reflected in drawdowns of inventory. We have had healthy import demand from China in the last few months. We have supply constraints, particularly for metals like copper and tin with strikes at the top three copper mines in the world including the Grasberg Mine in Indonesia and the Cerro Verde mine in Peru. Reasonably good demand, stocks falling and constraints on supply paint a constructive picture that the economy has held up, and the promise of growth that we have for the rest of this year and 2012 continues to be seen. At the moment, downside risk has increased. The platinum price compared to the gold price is a concern from the market perspective. The views from the market are pretty negative because it suggests a difficult few months. That could change very quickly because it is a matter of confidence. Some of these uncertainties could be resolved with the biggest one being Italy. I think you could see confidence coming back into the market pretty quickly. If you look at the stock market, the Dow and the S&P have had a fantastic October–the biggest rally in decades. It is not all doom and gloom and down and out. If confidence does come back, I am sure we will see equity markets take heart and rally. We have seen a very strong correlation of the last several months between metal prices and equities. It suggests growth going forward and that metals are leveraged to growth.

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China’s imports of copper scrap remain at very high levels. They are trying to maybe lessen their need to import refined metal, which of course is at a higher price, and trying to boost their domestic smelting and refining industry. They have increased the capacity of their smelters and refineries but they haven’t been able to boost capacity because they haven’t been able to get a hold of enough concentrates and possibly enough scrap. There is a tightness appearing on the raw materials side, particularly for copper. It is all about contagion because at the end of the day, these economies like Greece and Ireland and Portugal are pretty small. There is this fear of contagion. Hopefully the G20, the IMF and the eurozone will come up with some means of at least ring fencing some of those bigger but weaker economies from the risk of contagion in Italy and Spain, which would be too big to execute. So it is really trying to contain contagion from impacting the other weaker countries. I think policy makers will get their acts together. I remain an optimist, and I think we will avoid default, although growth in Europe will be little if any. I think growth elsewhere in the U.S. seems to be a little stronger. If China does start to ease country policy and provide more liquidity, that could be good news for the raw material market. I remain hopeful. I wouldn’t be too doom and gloom at this point.

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

Listen to a podcast from this report at www.recyclingtoday.com/nov-dec-2011-rb.aspx.

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glo bal market reports FERROUS SCRAP >> UNITED KINGDOM Tom Bird, Van Dalen Recycling U.K. There is now considerable uncertainty for the final quarter of 2011. The continued fear of European or should I say world financial crisis dominating the headlines is influencing sentiment dramatically. The sovereign debt problem in the EU is of great concern. Clearly it seems that the global steel consumption is experiencing a slowdown, but until now production has remained constant leading to a potential over supply. This has led to pressure on steel prices. Reflecting this, finished steel prices have dropped down to levels of around $670/680 for rebar from Turkey when levels were recently around the $735 for export rebar. Worries of recession lurking in the background across the EU market means that there is a reluctance to speculate with sellers looking Many observers were to keep material moving. Similarly buyers are staying on the sidelines entirely by by the and not committing to large tonin 2008. However, nages. The EU market for October settled at between ¤10 and ¤25 this time, people are down with LR grades taking the biggest reductions. The volumes of , with more material bought by the Europeans and better are down based on future market uncertainty for end products. . Despite the favourable exchange rate, Spain still is well down on activity again reflecting the uncertainty. With only a couple of mills buying, this has tempered demand, but now due to pessimistic forecasts going forward, there is no real import activity as mills sit back and view the market. It is reported that stock levels are high enough to see them through October production without having to commit to imports. In the Italian market, September experienced lower sales volumes with consumption generally reflecting the uncertainty of the Q4 period. Recent business has seen levels concluded at around $20 or so down on the break bulk market with the same reductions on the container business. Some analysts are comparing where we are now to where the global economy was in 2008. However, there is one key difference to the mood of uncertainty then. Many observers were caught entirely by surprise by the downturn in 2008. However, this time, people are better prepared, with more vigilance and better inventory management. In addition, our customers are also more robust, more consolidated and far more likely to continue to perform in a falling marketplace. In summary, the final quarter remains uncertain. Much will depend on sentiment and the ability to maintain demand on finished product.

caught

surprise

downturn

prepared lance management

better vigiinventory

The preceding report is an edited transcript of a report given at the BIR Autumn Roundtables held in Munich 23-25 Oct.

Tom Bird can be contacted at T.Bird@vandalenrecycling.com.

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FERROUS SCRAP >> RUSSIA AND CIS Andrey Balashov, TYOR Commercial Inc. What we have today in Russia are stable prices and stable demand. Steel mills are buying scrap for the winter stock. There has been an increase in price already announced for next week of about $10 per tonne, which is encouraging. Scrap collection is still high because we don’t have any snow yet. Stocks at the ports are at normal levels. There are no new rumors of any limitation of scrap exports, but we have rumors about Russia going to WTO (World Trade Organization). This is good news for us because it will help us with various scrap exports and it should help with export duties. About 40% of finished products are being exported from Russia to areas in the EU where there are limitations for Russian material. These limitations we are experiencing is the main instrument that is stopping Russia from increasing export duties for scrap. Once the government increases export duties, the European community will limit what they will accept from Russia. I think for the next few months, the markets will stay stable ,and we will see improvements sometime in the spring.

Andrey Balashov of TYOR Commercial can be contacted at scrap@tyor.ru.

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glo bal market reports FERROUS SCRAP >> EUROPE Dr. K.U. Köhler, Tata Steel GDP growth is on a downward trend. In Europe, it nearly doesn’t even take place anymore and certainly the sovereign debt refinancing situation gives uncertainty moving forward. Perspectives of the automotive and engineering industries do signal growth but construction has already significantly declined. Nonetheless, steel will be made, and steel shows significant growth. In 2009, China was very much impacted by the crisis that we had. The growth in 2008 was a bit slower and then China sped up again until today. China today has 63% growth versus 2007. Europe’s growth is down 20% compared to 2007. Growth takes place in the developing countries. Developed regions such as Japan, the U.S. and Europe are still far away from the steel production they had pre-crisis. We believe that scrap prices will stay high. Besides some regional or temporary opportunity which may be there, in general, steel is a very stark material. The growth in the steel industry took place in the last 12 or 13 years. The scrap comes back at a rate of 70 percent in 17 years. We will see the scrap coming back that was produced during the massive growth years not until the next 8-10 years. Scrap stays structurally high priced. There is scrap utilization in the EAF (electric arc furnace) and BOF (basic oxygen furnace) routes. China uses below 10% in the BOF route whereas the United States and Germany are at close to 20% in the BOF route. The recycling in China is not yet at the level it will be in the future, so the price stays high. We also have to look at what regulators are doing. The majority of people don’t seem to talk about C02 regulation. It is a grey area, and there are some who think about it, some who talk about it, some who plan something, and then there is the EU-27 who actually does something. The EU has a pretty strict and severe commission trading system which has been established and will come into the next stage in 2013 to 2020. That creates a major competitive disadvantage to the industry in general and also to the steel industry that works in this region. We are all aware that Europe is not a low cost region. It has many high standards environmentally and in labor safety which drives up costs. Even though Europe is technologically developed, there are cost disadvantages. The gap in steel price will get so big that Europe will be open for imports. World steel consumption could double by 2050 and the assumption is we have targets reduce CO2 emissions by about 50 percent overall and an 80 percent reduction in Europe. We should be aware of the facts and that end-of-life recycling rates are very different in Europe. Steel has endless recyclability and is showing better rates than other materials. If you look at packaging recycling, 72 percent recycling is done for steel, outpacing all other materials.

The preceding report is an edited transcript of a presentation given at the BIR Autumn Roundtables held in Munich 23-25 Oct.

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FERROUS SCRAP >> UNITED KINGDOM Peter Mathews, Black Country Metals There is trouble at the moment. It is more with currency than it is with actual demand. That is causing a weakness in the market. There is a lot of uncertainty in Europe with the euro. These currency markets have got to settle before we see any growth in metals markets. It is holding the markets up, but people are doing what they should do, which is waiting to get the right prices for their raw material. The demand is there, they are

We need to take this waste label off of our material. It is more important than ever before. just waiting to get the best prices. There are a lot of problems in the market for nonferrous metals, such as copper. These are mostly due to currency problems. It is a real mess. In all my 40 years in the business, I have never seen anything like it. We are getting to the critical stages. 2012 is going to be very difficult. We can’t keep on the way we are. We have to have some balances here. We need to take this waste label off of our material. It is more important than ever before.

Peter Mathews of Black Country Metals Ltd. can be contacted at peter@bcmetals. com.

www.RecyclingTodayGlobal.com

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glo bal market reports NONFERROUS SCRAP >> The Americas, Asia, Middle east, South Africa Bianca Victintin Abud, Tecal Metalur Group In the USA, copper flows have slowed due to the sudden drop in pricing while lower ferrous prices were expected to contribute to a reduction in the availability of zorba this month. In the scrap lead-acid battery market, there seems to be a good supply, but demand is limited, leading to a big price drop of $150$200 per tonne between September and October. The lackluster performance of the U.S. economy as well as the on-going financial challenges in the EU are being felt in Mexico in the form of higher exchange rate volatility and a slow-down in industrial production. Some grades of aluminium that usually command a higher price in the domestic market are now making their way into the export market. The slow-down in production has left consumers overstocked so some are not buying at all. In other issues, there is still nervousness in the Mexican scrap industry over respect for constitutional rights during operations aimed at seeking out stolen metal at recycling firms. Meanwhile, the Mexican government has extended the “Maquiladora” tax scheme to December 2013; the incentives had been due to expire in December this year. This scheme gives tax exemptions for temporary imports of raw materials and goods for further processing in Mexico and subsequent export. In my home country of Brazil, the real has devalued by up to 13% against the U.S. dollar since the onset of the latest financial crisis,

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while inflation is expected to hit 6.5% before the end of this year. Some car producers stopped production for several weeks in order to reduce inventories and prepare for the effects of the crisis in the market. Consumption of aluminium products in Brazil has increased 12% this year whereas primary aluminium production has dropped 7.1% owing to, for example, the closure of some smelters and high energy costs for those continuing to operate. Demand remains firm and is increasing year on year. In China, the main issue of late has been the hold-up of shipments with a higher copper content at ports in Nanhai because customs officials and importers have not reached agreement on duty and VAT. Rules surrounding the loading of multiple items in the same container are being strictly enforced at this time. Credit availability is becoming tighter in China, thus prompting many businesses to turn to private “loan sharks” whose influence is now spreading. In India, where inflation is showing no signs of easing up and interest rates are continuing their steady climb, efforts to tackle corruption and the drafting of strict anti-graft laws have attracted a lot of public and media attention. Meanwhile, as the automotive, steel, housing and other core industries look to align their output with an expected shrinkage in demand, secondary producers may have some reason for concern despite the fact that the country overall appears to be

on track to achieve 8% overall economic growth. In Australasia, dealers have pointed to a slow-down in activity levels over recent weeks, although it should be added that there has been a slight increase in export demand for scrap. Volumes of scrap sourced in the Middle East this September and October have been almost 40% lower than in the same period last year owing to the steep drop in LME prices. Scrap processors in the Middle East are still sitting on large, unsold metal stocks in their yards as they await better prices. In South Africa too, much lower nonferrous volumes have been reported, with the sluggishness of domestic and export demand exacerbated by the recent fall in commodity prices. The issue of export duty on scrap metal is now to be decided shortly by the Treasury Department, with duties as high as 40% proposed in some quarters. Metal theft is a massive issue in South Africa where a ban is to be imposed on the possession of burnt copper wire, with the penalty likely to be imprisonment rather than a fine. It is hoped such a measure will reduce theft because insulated wire is identifiable in terms of its source whereas burnt wire is not. With less burnt copper available, there is likely to be an increase in raw material costs next year owing to substitution with more expensive material.

The preceding report is an edited transcript of a presentation given at the BIR Autumn Roundtables held in Munich 23-25 Oct.

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11/15/2011 4:20:40 PM


glo bal market reports Nonferrous scrap >> Western EUROPE, italy Fernando Duranti, Leghe & Metalli It is not only the euro that is causing concerns for metals. It looks as if the LME is following the stock exchanges. It has been up and down, which can change four times a day every day depending on what the Far East, European and U.S. stock exchanges are doing. Everyone who is looking at the LME does not know what to do. Everyone is reluctant to buy material at the moment until the situation stabilizes. Apart from this, it looks as if production is quite steady because exports are doing quite well. Consequently all the brass and bronze and copper are coming in and are going out. Local consumption of finished products has decreased so we are sort of in a stale situation where people are waiting to see what is going to happen in Italy, in Europe, in the U.S. and the rest of the world. People are sure what is happening in the Far East and China. Things are going well in those places. Brass is quite slow. There is demand for copper. Copper is going to be . nickels and bronze scrap is not in refused. You are given a price, The internal, but you can see they are not the Italy is interested in buying. Italian . supplies are more than enough concerns from for domestic consumers. There is a strong Italian demand for stainless steel. Prices being paid for stainless steel in Italy at the moment are the best in Europe. Consequently people are buying stainless steel scrap or importing from any country. This is a positive sign even though the market on finished products for stainless steel are not being sustained by the scrap consumers. Zinc is seeing little demand. The LME has weakened. I see that the nickel price is fairly stable but on the low side. It is the same case for tin. Tin is only sustained at the moment by bronze manufacturers. Ingot sales are very slow. Ingot makers producing bronze are having a better time because they are exporting. They have slowed down on brass production as well. Aluminium is quite stable. It hasn’t strengthened or weakened. The automobile grades are not doing well. Automakers have had very poor results since the month of August. September and October have also not been very good months for the auto industry in Italy. It hasn’t been able to sustain the secondary ingot manufacturers. If you speak to producers, the situation probably won’t change until next year. I think it is going to be very slow. Business is going to be difficult. The internal, political situation in Italy is influencing the liability concerns from foreign countries.

Business

difficult political situation influencing liability foreign countries

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

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Nonferrous SCRAP >> RUSSIA AND CIS Ildar Neverov, Scrap Market Ltd. The main news is that Russia has finally been accepted into the WTO (World Trade Organization). It is great news for us and hopefully Russia will have to reduce their duties for nonferrous and ferrous scrap for export. We are expecting great changes because of this development, which I think will help us with prices. The price for copper has gone down. Aluminium is stable. Lead is always stable here because of domestic consumption. Zinc is a very specific market in Russia. The price is not changing too much despite fluctuations on the LME. The market is stable except for copper. It has gone down. There is not a lot of material coming into the yards because of winter and we expect that to continue through the winter months. We will start thinking about international markets next year into China, Italy, the U.S. or anywhere. I am looking forward to the ability to expand my business. Stainless steel has not exploded as much as it was. Major tonnage is going to Southern Russia.

Ildar Neverov can be contacted via e-mail at siberiametals@bk.ru.

www.RecyclingTodayGlobal.com

11/15/2011 4:20:56 PM


glo bal market reports NONFERROUS SCRAP >> the netherlands, europe Boris Bronneberg, Source Montan Handels GmbH At the moment, the markets are a bit of a rollercoaster ride. Supply and demand is pretty much unchanged for the last couple of weeks. Copper is a bit more readily available because prices have come up as well as there being minor changes in sentiment. Spreads on copper are narrowing. The delivery times are shortening as well. You can sell and deliver for next week, which a couple of weeks ago was unthinkable. So there definitely is more demand on that side. But supply is only changing because the LME and COMEX are coming up slightly. Once those drop, supply will cease to be as ready. For the time being there is enough material available to fill the consumers’ needs, but like we said last time, it looked like it was going to be limited on the short

their material, but there is not aggressive buying from them. They are not competing with each other aggressively. They are buying but not substantially or aggressively. There is enough possibility to get material for export and local markets into the yard. The total upcoming scrap business is pretty slow. It is not dead, just slow. In aluminium, it is more of the same. There is demand yes, but it is not big. There is supply, but not oversupply. The prices themselves in relation to the exchanges aren’t changing significantly. Demand for the primary grades is still reasonable. Demand for secondary grades is still slow. It is becoming a little bit more difficult to cover the total cost, but there is definitely no reason for people to lose money for the time being. Demand for lead is fair and has

The general sentiment throughout the market is that people are trying to keep inventories very low especially on copper and yellow metals. People are seemingly still positive on nickel and keeping higher stocks on stainless steel and related products. term. Now it is obvious that is the case. The refiners and manufacturers will have to come up with slightly more aggressive numbers to secure their feed for the coming period. Chinese buyers are pretty slow. They are paying just a touch over European refineries just to get

www.RecyclingTodayGlobal.com

Market Reports_nov-dec.indd 13

been for the last several weeks. It looks like it could be slowing down slightly. Zinc is pretty much unchanged. There is no higher demand. There is no better prices. The refiners are getting what they need, but nothing more than that. The general sentiment throughout the market is that people are

Chinese buyers are pretty slow. They are paying just a touch over European refineries just to get their material, but there is not aggressive buying from them, trying to keep inventories very low, especially on copper and yellow metals. People are seemingly still positive on nickel and keeping higher stocks on stainless steel and related products. Zinc is at a normal position. There are no elevated or lower stocks than usual. Secondary aluminium grade stocks seem to be quite high. Nickels seem to be quite high and coppers seem to be quite low. From now until the end of the year, in my opinion, the fiscal year is done. I am not seeing any significant improvement or decline in the market keeping in mind that Greece, possibly Italy are giving the market a little beating every now and again, or maybe even more than just a little beating. I think sentiments have been too negative about what is going to transpire during the first part of next year. I expect things to pick up because of the seemingly overdone negative sentiment.

Boris Bronneberg can be contacted at boris@source-montan.de.

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/18/2011 10:00:00 AM


glo bal market reports NONFERROUS SCRAP >> NORTH AMERICA John Woehike, Evermore Recycling Mills are thinking about A podcast of this entire presentation growth in per capita GDP, is available at www.recyclingtoday. and that is where we are putcom/nov-dec-2011-bir-woehike.aspx ting our assets. That is where you are going to see a lot more supply of cans. There is going to be a lot of growth in the developing world. When you look at where the cans are in the world today, there are about 115 billion in North America. That is about 100 billion cans in the U.S. There is flat, slightly negative growth because people are drinking less soda. In Asia, there are 100 billion cans with 70-75% made of aluminium. We think that is going to grow 8%. Europe, we think is going to grow by 2% to about 52 billion cans, 他 of which are aluminium. The Middle East will grow by 4 percent. They have 15 billion cans with 他 of which are aluminium. South America will grow by 10 percent and they have 17 billion cans. For the near term at least, the industrial world will continue to export can sheet to the developing world. The industrialised world is going to repatriate those cans to produce more can sheet out of them. This means you will continue to see trade flow continue between the developing and industrialize world. The industrialized world is going to have flat growth with the exception of Europe where we are getting can substitution with steel cans and probably more new aluminium lines going in than steel lines. Industrialized world is focused on productivity and focusing on broader non UBC (used beverage can)-based scrap use. We are focusing on alloy optimisation so we can buy more different types of scraps. When we look at global UBC recycling rates, overall in the world, we are doing pretty well. North America is lacking, which is a concern for me. In North America, what we see are really good recycling rates in Mexico and Central America, and we see widely disparaging rates between voluntary and deposit programs in Canada and the United States. In the U.S. only 10 of the 50 states have deposit programs. What we see is those 25% of the states have around 25% of the cans, but they supply about 35% of the UBCs because their recycling rates are up. What we typically see for the pricing of UBCs is that as LME goes up, UBC prices also goes up on a percentage basis. When we see LME prices decline, a percent of the UBC price also declines.

The preceding report is an excerpt of a presentation given at the BIR Autumn Roundtables held in Munich 23-25 Oct.

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RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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NONFERROUS SCRAP >> CHINA TopRecycle, www.TopRecycle.com Earlier in October capital flows of aluminium paused for the holiday. With a lack of market consumption, the Nanhai region of China saw an increased ingot inventory, rising from the previous 70,000 tonnes to more than 100,000 tonnes. With an increase of over 30,000 tonnes of cargo, supply increased in the market. Market transactions became more stable. SHFE (Shanghai Futures Exchange) aluminium rose slightly after the holiday, but since then, there has been little change. In the middle of October, the consumer demand for aluminium had not shown significant improvement. In late October, the news on the international market was more positive, forming a good boost the metal market. Macro-control is expected to loosen but also market performance has done well. It has not reached the former glory of domestic aluminium prices. Aluminium itself is unique in the market as it is out of the downward wave. Around the country this year, there was relatively weak consumer spending, affecting the attitude of purchases on the market.

This report was prepared by Top Recycle, a market information company found at www.TopRecycle.com.

www.RecyclingTodayGlobal.com

11/15/2011 4:21:27 PM


glo bal market reports RECOVERED FIBRE >> SPECIAL REPORT ON CHINA Ranjit Baxi, J&H Sales International Ltd. The sudden drop in prices for A podcast of this entire presentation recovered fibre is due to many is available at www.recyclingtoday. factors. The euro, talk of recescom/nov-dec-2011-bir-baxi.aspx sion, and weak consumer demand are all working together to create this feeling of loss of confidence both at the mill end and at the selling end. We need to be aware that this tradition of this problem is not just looking at prices; it goes much further than that. Just slashing the price is not an answer to create a demand. It is much more than pricing. Look at the global scenario. Debt is really closing demand and supply. Much of these factors are ones we have no control over. In the first and second quarter of 2010, imports into China are 6.3 million tonnes and 6.0 million tonnes, respectively. Suddenly, in the third quarter, we saw quite a big drop and then there was a pickup in the fourth quarter. Comparing the first quarter of 2010 and 2011, the first quarters are about the same. 12.4 million tonnes of imports in the first two quarters to 13.2 million tonnes in the first two quarters of 2011. In the third quarter, it is a bit too early but I believe that it is sort of a customary situation and the fourth quarter might not be so bad, but the end of the third quarter and the beginning of the fourth quarter might reflect a scenario that we showed in the third quarter of 2010.

RECOVERED FIBRE >> NORTH AMERICA Patty Norris, International Forest Products Corp.

European recovered fibre in China used to be the second best choice. First used to be the U.S. and second was Europe. We are still maintaining our volume, but if you ask the buyer, we are not the second choice. The second choice is our friends from Japan. Other than Japan, people are looking at Australia. And our quality now, is becoming at par with the Oriental quality–quality that is being imported within the Asian region. This is not good news for us. We are supporting the volume, but as domestic volume in those markets have increased, we are the first ones to be affected.

There is a lot going on in the Chinese market. Chinese mills cannot get Letters of Credit (LCs) because there are no credit lines, especially at the end of the year. Credit lines start running out. Import permits start running out. There is a terrible slowdown in buying. At the same time we have an increase in generation. It is just the perfect storm, which is why pricing came down. The concern going into the next 60 days is you’ve got the dynamics of Chinese import permits running out, which means they can’t receive after Dec. 15 in order to declare goods and they can’t receive before Jan. 1 on their new import permits so there is a lag of time. There is an early Chinese New Year this year, which begins around Jan. 23, which means they will start cutting shipment receipt for the week before and week after. So here we sit in November and December with material, increased production, decreased buying and shipping problems. For the smaller and medium mills of China who haven’t shipped off the eastern coast by now, you are not going to ship for a while, which could push pricing down further. The domestic mills are flooded.

The preceding report is an edited transcript of a presentation given at the BIR Autumn Roundtables held in Munich 23-25 Oct.

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

China’s Global Imports for 1st & 2nd Quarters of 2010 & 2011 2010

2011

2010

2011

Continent

1nd Qtr (MT)

1nd Qtr (MT)

2st Qtr (MT)

2st Qtr (MT)

Americas

2,869,778

3,103,259

2,658,755

3,227,922

Europe

2,064,358

2,000,213

1,812,605

2,034,366

Asia

1,213,087

1,222,227

1,359,568

1,202,552

Oceania

218,420

242,955

226,146

217,163

Africa

1,184

24

1,378

229

Total

6,366,887

6,568,677

6,058,452

6,682,232

www.RecyclingTodayGlobal.com

Market Reports_nov-dec.indd 15

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 4:21:45 PM


glo bal market reports RECOVERED FIBRE >> EUROPE Ranjit Baxi, J&H Sales International Ltd. After a prolonged period of relative price stability, a perfect storm appears to be brewing in Europe as falling collection volumes are coinciding with declining prices for recovered fibre. In recent weeks, prices paid for OCC and mixed papers have dropped by at least ¤10 per tonne and by nearer ¤20 in some instances. The middle grades have suffered a similar fate while the high grades have seen up to ¤40 per tonne lopped off their values over the course of the last three months. OCC prices were back at around $240 per tonne by the end of the third quarter while mixed papers ended September at around $230. And according to the evidence of early October, this downward trend in values will continue during the fourth quarter as European mills report dwindling order books in response to negative economic news, not least the seemingly intractable Eurozone debt crisis. At the same time, paper prices have started to weaken markedly in the Asian markets. Having cleared their Christmas-related workload, Chinese linerboard mills, for example, are now struggling with weak order books and are experiencing a rapid build-up in their finished product stocks. Taking all of these factors into account, the fourth quarter will be one of the most challenging faced by the recovered paper sector. In Europe, some countries are clearly weathering the aforementioned storm better than others. In Finland, for example, recovered

16

paper businesses are reportedly running well and domestic mills’ order books appear healthy such that supply and demand are balanced. However, it should be remembered that Finland did not experience the same price peaks as prevailed in other parts of the continent. In Sweden, recovered paper merchants’ inventories are still normal but demand from paper mills has dampened significantly in recent months and their stocks are on the increase. Demand for secondary fibre remains reasonably good in France and in its export markets—despite the uncertainty

And according to the evidence of early October, this downward trend in values will continue during the fourth quarter as European mills report dwindling order books in response to negative economic news, not least the seemingly intractable Eurozone debt crisis. created by paper manufacturers’ relatively thin order books. In Germany, the stability of the first half of 2011 was replaced by price reductions on almost all forms of recovered fibre towards the end of the third quarter. The country’s deinking sector is already hinting at substantial reductions in capacity utilisation. Germany’s exporters, meanwhile, have been forced into playing a waiting game as buyers in Asia monitor price developments before making commitments. The latest figures show that overseas shipments by Europe’s leading recovered paper exporter—

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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the UK—suffered a sharp 6.7% year-on-year reverse in July after an almost exclusively positive first half to the year in which overall export volumes climbed 6.9% when compared to the corresponding period of 2010. Overseas demand for the country’s middle grades has been particularly weak of late as buyers in India and on mainland Europe appeared to be hoping oversupply in the UK market would force prices lower; the market indeed took a backward step at the start of October. In Southern Europe, the epicentre of the continent’s economic worries, a major drop-off in orders

for Italy’s paper mills will reportedly lead to significant machine downtime, suggesting even less demand for recovered fibre as the fourth quarter progresses. In Spain, meanwhile, mills are holding high stocks of recovered paper owing to healthy flows from France and maintenance-related production stoppages at home. Elements of this report are based on information provided to the Paper Mirror produced by the BIR world recycling organisation for the benefit of its members.

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

www.RecyclingTodayGlobal.com

11/15/2011 4:22:01 PM


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11/10/2011 3:23:28 PM


newsworthy >>METALS

>>PLASTICs

Umicore Opens Rechargeable Battery Recycling Facility

Coke Prepares for UK Bottleto-Bottle Involvement

Brussels, Belgium-based Umicore has inaugurated its rechargeable battery recycling facility in Hoboken, Belgium. In late 2009 the company announced plans to invest ¤25 million (US$34.1 million) to build a battery recycling plant that would produce batteries for hybrid electric vehicles and mobile phone batteries. Thomas Leysen, chairman of the board, Kris Peeters, Minister-President of Flanders and Marc Grynberg, In inaugurating the facility, Umicore Umicore CEO open Umicore’s new battery recycling says the market is anticipated to gain facility in Hoboken, Belguim. momentum, driven by a combination of intensifying recycling legislation, a continuously growing portable electronics market and an increasing share of hybrid and electric vehicles on the roads. Umicore’s Hoboken facility will use its patented ultra-high temperature (UHT) smelting technology, which, the company claims, enables a cost-efficient and environmentally sound battery recycling process with the highest recovery rates and with minimal waste. The facility will enable Umicore to offer a range of new recycling services, including a closed materials loop for battery producers. In addition, the technology will be designed to permit Umicore to test its suitability for recycling other streams of materials. Umicore’s businesses are centered on four business areas: catalysis, energy materials, performance materials and recycling.

>>PLASTICS

Sita UK to Build Plastic-to-Diesel Conversion Plant SITA UK’s planning application to build a plastics-todiesel facility in Avonmouth, Bristol, U.K. has been approved. “This is a landmark decision which will put Avonmouth at the forefront of the very latest in resource management technology and bring new jobs to the area,” Gareth Phillips, SITA UK planning manager says. “Our plans to construct a Bristol Resource Recovery Park that will extract energy and value from waste, and reduce the amount of rubbish that is sent to landfill, are now being advanced and will bring benefits to the environment and the local economy,” Gareth adds. Sita UK also says a gasification facility will be built to handle 100,000 metric tons per year of residual waste and a recycling center is being built to manage 80,000 metric tonnes of other recyclables. The plastics-to-diesel facility is being designed to produce about 4.2 million liters of specification diesel each year from 6,000 metric tonnes of end-of-life plastic, while the recycling facility should extract around 72,000 metric tonnes of recyclate, which would be sent for reprocessing. See the cover story in the July/August 2011 issue of Recycling Today Global Edition, “Alternative Option,” to read more about SITA UK’s plans.

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RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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Nick Brown, the commercial recycling manager for Coca-Cola Enterprises Ltd. (CCE), told attendees at a recycling convention that the company’s investment in a plastics recycling facility in the United Kingdom represents one of the “three pillars” of CCE’s recycling strategy. Speaking to attendees at a session at the RWM Exhibition in Birmingham, U.K., in mid-September, Brown referred to the three pillars as: • Educating and inspiring consumers to recycle more; • Improving both the quantity and quality of materials collected; and • Investing in recycling and sorting plants. Brown indicated that once the new plastics recycling plant came online, CCE in the U.K. would be able to use aluminum packaging that contains 50 percent recycled content, glass packaging that contains 37 percent recycled content and PET plastic packaging that contains 25 percent recycled content. According to a news release, Continuum Recycling Ltd. will be the name of the CCE-ECO Plastics joint venture. Used plastic bottles will be recycled in Lincolnshire, England, “and the high quality materials produced will be re-used in new Coca-Cola bottles,” according to the news release. The RWM in Partnership with CIWM Exhibition was in Birmingham, England, Sept. 13-15, 2011.

www.RecyclingTodayGlobal.com

11/15/2011 4:39:34 PM


Newsworthy >>PAPER

>> METALS

Malone Receives BIR Papyrus Award

Japan Opens Steel Dust Recycling Plant

Jim Malone, currently responsible for managing 2 million metric tonnes of recovered paper and other recyclables handled annually by U.K.-based D S Smith Recycling, has been awarded the Bureau of International Recycling (BIR) Paper Division’s Papyrus prize. The award was presented at the BIR’s Paper Division Roundtable session in Munich on Oct. 25, 2011. BIR Paper Division President Ranjit Baxi of U.K.based J&H Sales International described Malone as a man with a passionate commitment to paper recycling. Having entered the industry in 1987 when he joined Severnside Recycling, Malone was soon managing the company’s Croydon, U.K., recycling facility. From there, he expanded his responsibilities to become sales and purchasing director of Severnside Recycling 10 years ago, continuing with the company’s recent rebranding as D S Smith Recycling. In recognizing Malone with the award, the BIR noted that Malone has been a key player in the development of numerous paper recycling initiatives. In accepting the prize, Malone described it as “a great honor” and spoke of the responsibility shared throughout the industry of keeping recycling “high on the political agenda.” With the world’s population about to surpass 7 billion and with available resources likely to become ever more stretched, “recycling has never been more important,” Malone commented. The Papyrus prize is awarded twice a year - once to a company or organization and once to an individual - in recognition of their services to paper recycling.

>>METALS

BMRA Elects Davy Deputy President The British Metals Recycling Association (BMRA) has elected Graham Davy deputy president. Davy is Sims Metal Management’s (SMM) CEO of Europe and Global Sims Recycling Solutions (SRS). The BMRA is a trade association representing the Metal recycling industry in the United Kingdom. Davy has worked in the recycling sector for more G. Davy than 20 years. In his current position he is responsible for SMM’s metals recycling business in Europe. He will take over as president of the BMRA in 2012 when Michael Oppenheimer, current president, steps down. Davy says, “Taking on this role at the BMRA is a great opportunity to build on the efforts of my peers—past and present—to put the metals and electronics recycling industry’s case forward to government. We want to ensure the right policy and regulatory framework is in place to help the industry deal with the estimated 13 to 15 million metric tonnes of metals recycled in the U.K. every year. Our key messages remain the same: metals recycling is good for the U.K. economy, good for jobs and good for the environment.” With SMM and SRS, Davy specializes in strategic and technological development. He leads a business portfolio of metals and electronics recycling, IT and mass market asset management services. SRS says Davy has grown the company’s Waste Electrical and Electronic Equipment (WEEE) recycling business from concept to the world’s largest electronics recycling company.

www.RecyclingTodayGlobal.com

Newsworthy_nov-dec.indd 19

The Japanese steel companies Nippon Steel Corp. and Kobe Steel Ltd. have announced their jointly-owned steel mill dust recycling plant began commercial operation on Oct. 1, 2011, at Nippon Steel’s Hirohata Works in Himeji, Hyogo Prefecture, Japan. The project is part of the two companies’ objective to deepen and expand their business alliance. In Oct. 2008, the two companies announced plans to establish a joint venture to recycle steel mill dust into direct reduced iron (DRI). Construction of the plant began in May 2010 and cost 900 million yen (US$11.7 million). Nippon Steel will control 70 percent of the joint venture, called Nittetsu Shinko Metal Refine Co. Ltd., while Kobe Steel will own the remaining 30 percent of the plant. The steel dust recycling facility has an annual capacity of an estimated 220,000 metric tonnes per year. Nippon Steel and Kobe Steel will provide the new facility with steel mill dust and iron ore fines from their steel mills as raw materials to produce DRI, as well as recover and recycle zinc. The steel dust recycling facility uses Kobe Steel’s Fastmet Process, by which steel mill dust is heated to a high temperature in a rotary hearth furnace (RHF) and undergoes reduction to produce DRI. Nippon Steel announced it will provide the operational know how on the recycling and the effective use of steel dust.

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 1:48:22 PM


newsworthy >>ELECTRONICS

>>CONFERENCES & EVENTS

SRS Acquires UK Electronics Recycler

Paper & Plastics Recycling Conference Headed to the Middle East

Sims Metal Management (SMM), through its electronics recycling division Sims Recycling Solutions (SRS), has expanded its information communications technology asset recovery business into mobile devices with the acquisition of S3 Interactive Ltd. (S3i). Glasgow, Scotland-based S3i, founded by Philip Johnston in 2004, specializes in recovering end-of-life and defective mobile devices from manufacturers’ warranty and non-warranty service providers. Daniel Dienst, SMM’s Group CEO, says, “Our SRS business is already a global leader in the recovery of ICT assets such as laptops, desktops and servers. The acquisition of S3i will position SRS in the rapidly growing market of mobile devices, while leveraging S3i’s sector leadership into our existing global operating infrastructure.” Graham Davy, CEO of SRS, adds, “I would like to take this opportunity to welcome Philip and the employees of S3i who are joining SRS. Their extensive experience is a natural fit with SRS and, as a scalable business, we are very excited by the prospect of expanding their services to our global client base. Together we can offer a sustainable solution for our clients’ valuable electronic resources in a secure, environmentally responsible and cost effective manner.”

>>METALS

BASF Metals Recycling Opens Precious Metals Recycling Plant in UK BASF Metals Recycling Ltd. has opened a new recycling facility in Cinderford, U.K., that will target the recovery of precious metals from various industrial scrap materials. A range of materials with recoverPictured from left to right, John Setchfield, site manable metal content – primarily used in ager, BASF Metals Recycling Limited; Deon Carter, senior automotive catalytic converters and in vice president BASF Precious Metals Services; Dr. Henrik electronic scrap – will be processed at Junicke, BASF vice president of Global Refining, Salts and the company’s new 56,000-square-foot Solutions; Mark Hawthorne, leader of Gloucestershire County Council; Norman Stephens, chairman of Forest of facility. BASF expects to end up with a Dean District Council; and Graham Morgan, chairman of significant amount of platinum, pallaCinderford Town Council. dium and rhodium through its recycling process. In addition, the facility will house an analytical services laboratory to ensure accurate measurement of precious metals content for its customers. The new facility was built near BASF’s existing metals recycling plant in Cinderford, which had previously operated under the name Engelhard Sales Ltd. The company has expanded its operations to include the new operating site, more than doubling BASF’s local manufacturing footprint as well as its production capacity.

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RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

Newsworthy_nov-dec.indd 20

The Recycling Today Media Group has announced the extension of its successful Paper Recycling Conference with the addition of an event in another geographic market, Paper & Plastics Recycling Conference – Middle East. The event will be held Feb. 27-28, 2012, at the JW Marriott hotel in Dubai, UAE. It is being introduced on a joint venture basis with Dubai-based Media Fusion, the publisher of Waste & Recycling Middle East magazine. “We’re thrilled to be cooperating with the team at Waste & Recycling Middle East to introduce this new event,” comments Jim Keefe, group publisher of the Recycling Today Media Group. “By offering a high-quality business conference for the rapidly developing Middle Eastern market, we hope to provide both valuable insight into the local and global market and also develop commercial opportunities for the industry.” The event will combine sessions examining commodity markets for recovered paper and plastics in a global context; insights from local policy makers on regional waste and recycling management development; and case studies from local recyclers. “As we explored the possibility to develop such an event for our local market, we wanted to partner with a global market leader who offered a proven track record. Partnering with Recycling Today has allowed us to do that,” says Dr. Kayyum Ali, CEO of Fusion Media. “Building upon the success of Paper Recycling Conference – USA and Paper Recycling Conference – Europe, we are confident we can offer recyclers in the Middle East a world-class event right in their back yard,” Ali. Additional information about the event can be found by visiting www. PaperRecyclingConference.com.

www.RecyclingTodayGlobal.com

11/15/2011 1:48:40 PM


Newsworthy >>METALS

Worldsteel Elects New Officers World Steel Association (Worldsteel) board of directors has elected a new list of officers for the 2011/2012 year. The announcement was made during the Worldsteel’s 45th Annual Conference, held in Paris in October 2011. The new officers for 2011/2012 are: • Chairman - Xiaogang Zhang, president, Anshan Iron & Steel Group Corp. • Vice Chairman - Hajime Bada, president and CEO, JFE Holdings Inc. • Vice Chairman- Alexey Mordashov, general director, Severstal JSC • Treasurer - John Surma, chairman and CEO, United States Steel Corp. Worldsteel’s board also elected the following to its executive committee for 2011/2012: • Hajime Bada, JFE Steel Corp. • Joon-Yang Chung, POSCO • Daniel DiMicco, Nucor Corp. • Wolfgang Eder, Voestalpine AG • Heinrich Hiesinger, ThyssenKrupp • Sajjan Jindal, JSW Steel Ltd • André Gerdau Johannpeter, Gerdau SA • Lakshmi Mittal, ArcelorMittal • Alexey Mordashov, Severstal JSC • Shoji Muneoka, Nippon Steel Corp. • Paolo Rocca, Techint Group • John Surma, United States Steel Corp. • Lejiang Xu, Baosteel Group • Xiaogang Zhang, Anshan Iron & Steel Group Corp. • Edwin Basson, World Steel Association The board also recognized the following companies as new associate members (steel companies producing less than 2 million short tons per year): Compañia Siderurgica Huachipato S.A. (CAP ACERO), represented by Iván Flores, general manager; Iran Alloy Steel Co., represented by Eng. Mohammad Mehdi Faghieh Khorasani, managing director; Sahaviriya Steel Industries Public Company Ltd. (SSI), represented by Win Viriyaprapaikit; and Sunflag Iron and Steel Co. Ltd. (SISCO) represented by Vipul Jain, general manager. Worldsteel says it represents about 170 steel producers (including 18 of the world’s 20 largest steel companies), national and regional steel industry associations and steel research institutes.

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

Newsworthy_nov-dec.indd 21

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11/15/2011 1:48:53 PM


newsworthy >>PLASTICS

>>METALS

PlasticsEurope Reports Findings on Polyolefin Recycling

Toyota Motor Europe Signs Battery Recycling Deal

PlasticsEurope, an association representing European plastics producers, has released the results of its first study on polyolefins recycling and recovery rates for rigid applications in Europe. The study analyzed recycling and recovery figures for France, Germany, Poland, Spain and the United Kingdom. The study focused on bottles, other rigid packaging, automotive and appliance and electronic sectors. The study shows 57 percent of rigid polyolefins were recovered in 2009, of which 1 million metric tons were recycled. “With an appropriate combination of recycling and energy recovery, a 100 percent diversion of polyolefins from landfills is possible,” says Jan-Erik Johansson, program director for resource efficiency at PlasticsEurope. “Equally, I believe that supportive regulatory frameworks and improvements in identification and sorting techniques can certainly help the value chain to achieve this important objective.” The study shows recycling rates vary between European countries, with the recycling rate in Germany standing at 32 percent, while the recycling rate for polyolefins in Poland are at less than 10 percent. More information on the study is available at www.plasticseurope.org/docu ments/document/20110929140820-identiplast_-_rigid_po_recycling_and_ recovery.pptx.

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RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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Toyota Motor Europe has signed a three-year framework agreement with the Société Nouvelle d’Affinage des Métaux (SNAM), France. SNAM will take back and recycle all nickel-metal hydride (NiMH) batteries used in Toyota vehicles throughout Europe including NiMH batteries from any of Toyota’s European operations.

www.RecyclingTodayGlobal.com

11/15/2011 1:49:15 PM


Biz tour china Scrap metal tourS: Come and meet valuable customers in the Chinese market. Getting connected directly to processors and refiners is the best way for scrap dealers to maximize their material values. Now Beijing TopRecycle Consulting Co., Ltd. is organizing the “Biz Tours” to Chinese Metal Scrap Companies including:

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LUCKY

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cover story by brian taylor The Lucky Group has drawn upon much more than luck to spark its growing presence in the international recycling industry.

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he company started by the Shaban family may go by the name Lucky Group, but the Shabans have left very little to random fortune as they have built their Dubai-based recycling company. In a journey that has involved migrations to several different countries and knowledge passed down to a second generation, the Shaban family points to hard work and ethical behavior as the cornerstones of the business they have built. As of mid-2011, the Lucky Group consists of more than 300 trained and multi-lingual employees. It operates a network of recycling facilities and a secondary aluminum alloy smelting plant in the Middle East, an associated trading office in Toronto and a liaison office in Shanghai.

GETTING STARTED

The first leg in the journey that makes up the Lucky Group story starts in the early 1970s, when as a young man Dilawar Shaban moved to Dubai in the United Arab Emirates. Dilawar tried his hand at several entrepreneurial ventures, including textile recycling and finding markets for foodstuff, before his foray into scrap metal proved to be the business idea with staying power. Dilawar was soon joined by his younger brother Iqbal, and together they created the foundation for Lucky Group in 1973. As the business grew, there was soon enough activity for their brothers Rafique, Raza and Saleem to also come on board. Throughout the past several decades, the five brothers, together with their sons and daughters, have transformed the family business into a collection of companies now known as the Lucky Group. The company now has a recycling facility each in Dubai and Qatar and

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a secondary aluminum alloy smelting plant in Jebel Ali, United Arab Emirates, which manufactures secondary and semi-primary aluminum alloy ingots. The Shaban family migration has also included journeys to Canada. From an office in Richmond Hill, Ontario, Lucky Group’s associate company Fortune Metals Inc. operates as an international scrap trading firm headed by Saleem. Dilawar serves as Honorary Chairman of the overall Lucky Group while Iqbal, based in Dubai, is Lucky Group President.

STAYING IN TOUCH

Although the company has grown to include more than 300 employees, the five Shaban brothers from the first

Lucky Group At a Glance Officers: Dilawar Shaban, Honorary Chairman; Iqbal Shaban, President; Rafique Shaban, Executive Director; Raza Shaban, Executive Director of Business Development; Saleem Shaban, Executive Director of associate company Fortune Metals Location: Headquarters, Dubai; recycling facilities in Dubai, Qatar; secondary aluminum alloy plant in Jebel Ali; international trading office in Toronto and a liaison office in Shanghai No. of Employees: 300 Services Provided: Industrial, commercial and retail scrap metal purchasing, processing and export; and international trading; production of secondary aluminum alloys

generation (G1, as they call it) say they strive to stay close to the company’s front-line operations. “I believe in down-the-line communication,” says Raza, who serves as Executive Director of Business Development and is based in Dubai. “I’m willing to go directly to a team member and transmit a message first-hand, so there is no confusion.” Leading by example is also critical, Saleem says. “We believe a culture of quality flows from the top,” he comments. “If we are quality-conscious, then my Zohair and my nephew Riz and the other members of G2 (the second generation) will also be quality conscious, and subsequently employees will follow suit. But if I become complacent, or he does, then everybody around us will become complacent as well.” The five Shaban brothers in G1 learned the recycling business from the shop floor, and they have taken steps to ensure that the members of G2 learn the same way. Riz recalls working outside in Dubai on days when it was 45 degrees Celsius (113 degrees Fahrenheit), and recalls that the production employees at the time were happy to assign him the most menial tasks. “It can be a real struggle when your father’s company’s staff treats you just like any other employee,” he recalls with a smile. Saleem recalls Riz’s training period with pride. “He went through a rigorous metals identification test and his score was the highest,” he notes. Saleem says the test involved identifying and sorting metals by grade, including calculating the attachments percentage for some grades. Once he passed the test in 2003, he was permitted to work in the office, starting with basic functions such as cashiering and then moving into account manage-

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cover story ment and other roles with increasing responsibility. Both generations of Shabans say the training method has resulted in family members who appreciate the level of effort and skill it can take to perform any role within the company.

to ask our Shanghai staff to visit them at any time. I also visit our customers in China frequently and can act as a customer contact person and problem-solver as well.” Raza adds, “We regularly visit our customers in China and in the ASEAN (Association of South East Asian Nations) region to review product feedback and also to make goodwill visits.”

RISK AVERSION

Despite its steady pattern of growth in the past 38 years, the G1 Shaban Brothers of the Lucky Group say they have accomplished it while still taking a very hard line against going into debt. “We believe that borrowing freely increases your financial exposure; it can be a good recipe for bankruptcy,” Saleem says. Several of the Shabans point to the period of turmoil in the fall of 2008 as an example of why they intend to stick by that philosophy. “In the last quarter of 2008, we lost a lot of money that we had earned in the first nine months,” Saleem notes. “But there was no banker at the door at Lucky Group. It was, for us, a relatively peaceful feeling compared to those who were in debt.” Says Raza, “I feel that there will still be bumpy rides for our industry in the foreseeable future and we have to be prepared for that. We see volatile situations in the world, and possibly a couple of bubbles yet to burst. As Saleem mentioned, we want long term organic growth in a safe and steady way.” In addition to avoiding bank debt, the Lucky Group also chooses its trad-

THE RIGHT IMAGE Riz and Salman Shaban, two members of G2, Lucky Group’s second generation.

ing partners and suppliers carefully, the Shabans say. “For us, the most important thing to managing risk is knowing our customers,” Riz says. “Before we proceed with any deal, we make sure we know the customer and that we have a good reference point from someone we can rely on. Conducting business with reliable suppliers and customers is very important.” “We like those clients who are like us,” Riz continues, “Companies with family essence that care about relationships, have self-respect, ethical values and care about others—those are the customers we seek.” “Having a liaison office in Shanghai has offered us a strategic advantage,” Riz says. “, Though we are geographically far, we are very close to our customers as we have the convenience

Having spent several decades establishing a recycling company with a solid financial structure and a robust infrastructure, Shaban family members say they devote considerable energy to protect what they have built— most importantly the reputation of Lucky Group. “I think it has always been our top priority to protect the image and reputation of our organization,” Raza says. “It has always been our top-most priority, and it has paid off over time, many times, because the level of confidence people have in us is very high.” The family members say that ethical behavior combined with cumulative experience and a global view should serve the Lucky Group well as the first generation continues to groom the second generation for their leadership roles. “I think as a company, we are benefitting a lot from our previous 38 years of experience, and it’s truly international experience.” Raza says. “I’ve lived in eight countries and our

Second generation family member Ali Zohair Shaban helps monitor the quality of recyclable materials.

Pictured from left to right are first generation (G1) members of Lucky Group, Raza Shaban, Dilawar Shaban, Iqbal Shaban and Saleem Shaban.

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The Lucky Group secondary aluminium production facility in Jebel Ali Free Zone in Dubai, United Arab Emirates.

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C O V E R Sstory cover TORY Honorary Chairman Dilawar has lived in eight. We have a lot of exposure to international business.” That experience will be most valuable if it is transferrable, adds Raza. “There is no reason for our second generation not to learn from our mistakes,” he states. “We all spend time to teach and train our G2 (both sons and daughters).” The Shabans are unanimous in saying the Lucky Group will continue to operate in a “safe mode” as far as grow-

WHAT’S IN A NAME? When major corporations seek a name change or a name for a new subsidiary, they may spend considerable amounts to ensure that they’re selecting the proper name. Riz Shaban of the Dubai-based Lucky Group indicates that consulting fees and in-depth research were not part of the story of how the company got its name. He says his uncle Dilawar selected the name with simple logic in mind. “In the early 1970s, when he was standing at the corporate registration office in Dubai, he realized he is about to embark on a journey from this humble beginning that will hopefully take him and his brothers on a route to international success. He wanted a name for his company which was both simple and could relate to any language, culture or industry.” Riz says. “Besides, with such vision in mind, who could not do with a bit of “luck” in the name?” Since the company has been able to succeed and grow, the Shaban family decided to stay with the luck motif when choosing a name for its Canada-based associate company, selecting the name Fortune Metals.

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ing organically carefully and without debt. Although the company’s growth will be cautious the Shaban family will continue to pursue new opportunities. “We see a big potential for growth in North America,” Saleem says, “I am now spearheading a team to partner

with suppliers in Canada, USA and Mexico for long term sourcing of ferrous scrap for our clients in ASEAN regions. RTGE The author is editorial director of Recycling Today and can be contacted at btaylor@gie.net.

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COMMODITY FOCUS by kristin smith

Potential Despite a struggling world economy, the plastics recycling industry is growing as material generation, demand and end market uses increase.

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common theme at the recently concluded 2011 Paper Recycling Conference (PRC) in Chicago was that many companies were expanding their operations to enter into plastics recycling. While some sectors of the recovered fibre industry have experienced a sharp decline in material generation, the plastics recycling sector offers considerable opportunities to increase recycling rates and overall volume. For recovered fibre recyclers who are reaching the limits of recovery rates and volumes for certain grades, the comparatively under-developed nature of the plastics recycling industry presents an intriguing opportunity. Wade Schuetzeberg, executive marketing director of America Chung Nam (ACN), Los Angeles, told attendees at the PRC that the U.S. continues to be the largest supplier to China of plastic scrap, representing 24% of the world’s volume to China. Japan is ranked the second largest exporter to China at 19%, followed by Germany at 15%, the United Kingdom at 9% and Belgium at 4%. ACN is one of the largest exporters of recovered fibre and continues to grow its domestic and export recycled plastics business. Quality remains a big concern for recovered plastics imports to China. Schuetzeberg said ACN works with its suppliers to have stringent inspection and education processes which allow the company to not only meet AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine) standards in China but to be competitive in the marketplace. Schuetzeberg also emphasized the continued growth in demand for plastic scrap in China. In 2004, he said, China imported 5.5 billion pounds of plastic. By 2008, the amount of plastic scrap China imported increased to 9.7 billion

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COMMODITY FOCUS pounds. The growth rate is still going up each year, but at a slower rate. In 2009, an estimated 45% of the recovered plastics consumed in China were imported. Schuetzeberg said the Chinese government wants to control the handling of plastic through tariffs and taxes. China uses 43% of its recovered plastics in packaging such as bottles and bags. The second largest area where recovered plastics are consumed is in the construction industry, which makes up 20% of the total amount of plastics recovered. PVC (polyvinyl chloride) is the main recovered plastic, said Schuetzeberg. Electronics is the third largest consumer of recovered plastics and utilizes a large amount of recovered ABS (acrylonitrile butadiene styrene), he added. “Challenges we face when we import plastics include increased controls on the import of recovered plastic,” said Schuetzeberg. Schuetzeberg said a few exporters are bypassing the Hong Kong port and taking a “great chance” shipping bottles directly into China. They are facing the possibility of having a reject in shipments by customs, for which the exporter and supplier may ultimately be held responsible. Import duties have increased by as much as 40% in October compared to 2-3 months ago, said Schuetzeberg. High and rising demand for recovered plastics, together with the implementation of the Chinese government’s plans for standardised collection programmes and reprocessing schemes, are expected to provide momentum for domestic collection and an increase in the plastics recovery rate. Imports would remain a significant part of the supply mix, Schuetzeberg emphasized. In conclusion, Schuetzeberg said China’s demand for plastics is expected to grow in line with overall economic growth. Higher demand for recovered plastics and improved collection schemes will provide momentum for increased domestic recovery rates.

Conditions in India

While China’s demand is growing, the short-term market for secondary

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plastics in India was described as “dormant” by Surendra Borad of Belgiumbased Gemini Corp. N.V. during the Bureau of International Recycling (BIR) Autumn Roundtables held in Munich in late October. Borad said the reason for the lack

of activity is the limited number of recyclers licensed to import plastic scrap into India. The majority of the licenses were set to expire at the end of October and had not been renewed, he added. “Consequently, exports are substantially down,” he said. Domestically,

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COMMODITY FOCUS however, India’s recycling industry was faring well, according to Borad. Citing the British Plastics Federation, he said India has one of the highest plastics recycling rates at 47%. By comparison,

the European rate is 25%. Also, in India, plastics consumption increases by 16% per year compared to 10% in China and 2.5% in the U.K., he said. “India is unfortunately one of those

Untapped Opportunities According to the findings of a series of trials funded by U.K.-based Waste & Resources Action Programme (WRAP), it is possible to recycle almost all plastic packaging waste generated by consumers. WRAP’s trials have found that despite more than 300,000 tonnes of plastic packaging being collected for recycling each year in the United Kingdom, more than a million tonnes of plastic scrap are still being landfilled because of the difficulty of collecting and recycling films, the difficulty in detecting and sorting black plastics and the lack of high-value markets for non-bottle plastics. WRAP’s trials have identified methods of recycling black plastics, complex laminated plastics, plastic films and polypropylene (PP) that would otherwise typically be destined for landfill. WRAP says by using non-carbon pigments in the manufacture of black plastics, it is possible to create a material that is almost identical in color, but can be identified by optical sorting equipment used by many material recovery facilities (MRFs). This could lead to an increase in the recycling of most common plastic used in packaging, says the organisation. In addition, plastic trays could be recycled into high-value, single-polymer materials. WRAP adds that feedback from retailers has been encouraging. Another challenging material, complex laminated packaging that contains a layer of aluminium sandwiched between plastic, was the subject of further research. WRAP says a second trial has identified a way to extract this high value aluminium from the packaging. WRAP estimates that there is about 140,000 tonnes of this packaging in the U.K. waste stream with an aluminium content of around 13,500 tonnes. A third study has seen the development of a technique that could recycle post-consumer polypropylene (PP) back into material suitable for food-grade applications. While acknowledging that more research is needed, WRAP says that this could help to grow high-value markets for recycled PP. In a third trial, WRAP has found work done by The Co-operative Group and Sainsbury’s has identified a variety of uses for plastic films recycled in-store by customers and staff. These applications include reusable shopping bags, in-store signage and external cladding. A system has also been developed that cleans and recycles contaminated film, producing a pellet with a sales value of £400 to £500 per tonne. Marcus Gover, director of closed loop economy at WRAP, says, “When we first looked at recycling non-bottle plastic packaging back in 2007, we carried out detailed studies to make sure it would be technically and economically viable. “There have been, and there are still, barriers to overcome and WRAP will continue to work closely with the industry to develop these new methods and technologies so that, in the future, local authorities can offer their residents a way of recycling even more of their plastic packaging.”

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countries that do not encourage import of scrap,” said Borad, who continued, “This is rather unfortunate. But it fits in with the ideas of some groups in Europe that would like to restrict exports of plastic scrap out of Europe. I think this is a very sad story.”

Demands of the Future

According to Borad, Europe generates more than 24 million metric tonnes of plastic scrap per year, with a 2% increase each year. “Of the total volume of plastics scrap, well over 10 million tonnes are still going for disposal and landfill,” said Borad. He estimated only about 3 million metric tonnes are recycled within the European Union. More than 8 million metric tonnes of recovered plastics are used for energy in the EU, said Borad, adding that only 3 million tonnes or about 12% of the total amount of plastic scrap generated per year in the EU is exported to other countries. “If more scrap is to be kept within the European Union, would there be

“” According to Borad, Europe generates more than 24 million metric tonnes of plastics scrap per year, with a 2% increase each year.

enough capacity available to recycle it?” he asked attendees. “Assuming that we install the required capacity, how is Europe going to use such an enormous quantity of reprocessed plastics?” He said he was concerned that China and India might retaliate and impose restrictions making it difficult to import reprocessed plastics in their countries. “I strongly believe that such restrictions artificially reduce domestic prices and make collection of scrap less attractive. This is certainly not the objective of our society that is looking forward to zero waste by 2050,” Borad said. RTGE

The author is associate editor of Recycling Today Global Edition and can be reached at ksmith@gie.net.

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Red Carpet Access to International Markets A Necessary Information Source, a Powerful Communications Tool! Recycling Today’s Global Edition offers an editorial focus on the business of recycling. Each monthly edition provides unique insight into markets, technology, legislation and regulation as well as providing the latest industry news. Additionally, our commodities department publishes unique commodity market reports written by traders, processors and analysts from around the world – market insight not available anywhere else. This printed copy has been produced to provide you with an example of the magazine. Each month we publish in the style you see here, but as an electronic magazine. It will be delivered via e-mail to ensure a timely delivery no matter where you are in the world. Recycling Today Global Edition is also an unmatched advertising tool to gain access to international markets. Contact us today to learn how you can reach our 30,000+ readers worldwide.

Register to receive your copy by visiting www.RecyclingTodayGlobal.com or fax back the slip below to +001.330.659.0823 r Yes, I would like to subscribe to Recycling Today Global Edition at no cost to me. First Name:________________________________________________ Last Name:________________________________________________ Company:_________________________________________________ Address:__________________________________________________ _________________________________________________________ _________________________________________________________ E-mail Address:____________________________________________

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What is you Primary Business/Industry at this location? (check one) I Secondary Commodity Wholesalers: r 1 - Scrap Dealer/Processor r 2 - Importer/Exporter r 3 - Broker r 4 - Material Recovery/ Recycling Facility II Secondary Commodity Generators: r 6 - Auto Dismantler

III r r r

Scrap Consumers 9 - Metallic Consumer 10 - Paper Consumer 21 - Plastic Consumer

IV r r r r r r

Other 12 - Equipment Manufacturer 13 - Consultant Engineer 14 - Others Allied to the Field 15 - Mill Services 16 - Document Destruction 17 - Hauler

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2011 MARKET REVIEW by brian taylor

sharp edges Secondary commodities remained in demand in 2011, but volatile pricing made some markets more nerve-wracking than others.

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nless turmoil occurs in November or December, 2011 appears poised to be a year that ferrous scrap processors and brokers can look back upon as having gone fairly smoothly. Ferrous scrap shippers in the United States, for instance, received steady prices for their products from March through October of 2011, whether export demand fluctuated or not. Recovered fibre recyclers and red metals traders appeared to be in for a relatively smooth year as well until late in the third quarter. Demand for recovered paper from Chinese buyers dropped suddenly (followed by fibre prices that also plunged).

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2011 MARKET REVIEW

In September, prices for Copper on international exchanges also fell sharply, causing buyers and sellers in many cases to scramble to re-negotiate previously made trades. Throughout 2011, even when prices concluded a given month with little movement, conditions in the world’s economy—and in Europe in particular—provided a sub-text of anxiety. Traders most likely kept one eye on Internet news sites at all times to make sure the EU would remain coherent and its banks solvent; that U.S. political parties would reach a budget agreement; or that economic figures from China remained buoyant.

IRON RESOLVE

With turmoil as a backdrop throughout the year and the fibre and red metals markets beginning to fade in midAugust, ferrous scrap processors may well have anticipated their market segment would be the next to suffer. In his report to Recycling Today Global Edition for its Sept./Oct. 2011 issue, Tom Bird of Van Dalen Recycling in the United Kingdom commented, “I think it is fair to say going into the last weeks of August and the very early parts of September, certainly people were anticipating potentially some weakness in the market.” But prices held firm into the autumn, noted Bird. “After the Ramadan period, we have seen at worst a sideways movement on the Turkish market. I think the European market is slightly down, but not as much as perhaps people were anticipating.” Bird repeated a circumstance that was cited throughout the year by ferrous processors in both Europe and North America. “Supply is very tight,” he commented. “Volumes generally around everywhere are a lot tighter than usual. General arisings in the yards and from other sources have tightened up.” Throughout the year, stable pricing seemed to indicate that the reduced

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supply (sub-2007 levels) was a fairly even match for steel mill production capacities in the 73 percent range in North America and 78 percent as a global average. Speaking to attendees at the 2011 BIR Autumn Round-Tables in late October in Munich, Karl-Ulrich Köhler, managing director and CEO of Tata Steel Europe, predicted that ferrous scrap will remain “structurally scarce,” and predicted that price levels will stay strong but with some regional volatility. Fellow BIR Round-Tables speaker Blake Kelley of Sims Metal Management in the United States remarked that iron ore and steel prices had been “drifting lower” but steel production “continues at high rates.” As for raw materials, steelmakers “will need to restock unless consumption truly decreases”, he contended. “The longer they delay, the more urgent their need.” Also at the same BIR Ferrous Division meeting, Bird of Van Dalen Recycling said encouragement should be derived from the fact that “business is still being done, reflecting demand,” and that although prices have fallen, current levels “are not as low as some were forecasting.” Bird, who also is president of the European Ferrous Recovery and Recycling Federation (EFR), said compared to the crisis of 2008, “our customers are more robust, more consolidated and far more likely to continue to perform [even] in a falling marketplace.”

RAPID PULSE

Traders of nonferrous metals, and copper in particular, continued to operate in an environment of historically high prices, with volatility added to the mix in the second half of the year. While copper’s autumn volatility grabbed the spotlight, the world’s aluminium market functioned on a more stable plateau. Measured by London Metal Exchange (LME) aluminium alloy cash

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2011 MARKET REVIEW buying monthly average pricing, the omy and figures that point to slower previously, now when it gets there, the light metal ranged in from $2,272 economic growth in China were helpsame material is a problem,” he said. to $2,398 per tonne in the first nine ing contribute to copper’s price decline, “Whether the problems are market months of 2011. That reflects a trading as speculation now seems to figure into related or not is hard to tell. All these range of about 9 percent from peak to copper pricing much more than in factors are creating a very frustrating trough during that 9-month period. previous decades. trading environment with no answers. In the case of aluminium, the metal As well, new customs rules adopted It is very hard and many of the exportwas at its low in January, drifted upby China on Aug. 12, 2011, led to “trafers have been caught in the middle. It is ward through May, and then began fic jams” at several major ports. frustrating on [the buyer’s] part as well. losing value. Its September average of “New regulations in China are conIt is hard to get into deals knowing $2,274 per tonne put it almost exactly tinuing to throw confusion into how there could be problems and the kind where it started in January. material can be shipped,” Solomon of profits the traders are trying to make LME copper, on the other hand, reported in the late summer. “Regulais not enough to cover potential probtraded from as high as $9,866 per tions seem to be changing constantly. lems. There is a lot of money at stake.” tonne in February down to $8,313 People are unsure whether things will PAPER AND PLASTIC in September, representing a steeper change even when things are en route. As with copper, recovered fibre was 16 percent drop. In the red metal’s Just to get bookings of containers has a material that experienced case, there were fluctuations price volatility in 2011 as well throughout the 9-month perias procedural changes for od, with the steepest drops ocshippers. curring in May and September. At the BIR Autumn RTGE contributor Johan Round-Tables, Paper Divivan Peperzeel of nonferrous sion President Ranjit Baxi of recycling firm van Peperzeel London-based J&H Sales Inin the Netherlands, reported in ternational expressed concern early September 2011, “There that, for quality reasons, Euare sufficient quantities of lowropean recovered fiber exports grade scrap aluminium availto China are coming under inable in Belgium, whereas high creasing pressure from mategrade scrap materials are more rial supplied by other regions difficult to obtain.” of the world. He added, “Secondary If China were to cut back aluminium smelters are fully on its imports of recovered booked until the end of this The nonferrous metals markets, especially copper, continue to function at paper, Europe was likely to be year [and] aluminium scrap historically high prices. Trades saw volatility in the second half of the year. “the first to suffer,” Baxi told prices are under pressure. Secattendees of the BIR Paper Division ondary ingot prices are more or less been a challenge. The business is sort meeting in Munich. stable, because of long delivery terms of changing on the fly.” Third-quarter GDP growth in Chifrom smelter side. The total expectaSolomon cited these procedural na was the slowest in two years, Baxi tion is weak, because of actual LME customs changes as being of greater also noted, calling it proof that even losses and negative outlook for next concern than price fluctuations. “The the world’s main driver of demand for year and due to the fact, that lower volatility of the markets is no differrecovered fibre has not been immune consumption worldwide is expected.” ent now than it was or has been for to the latest economic crisis. Baxi told Aluminium’s ups and down have the last several years,” he commented. attendees that China’s recovered fibre been mild compared to copper’s in “I think we have gotten used to the imports for the whole of 2011 were on 2011. As portrayed by RTGE contribuvolatility of the markets. We can deal course to be “slightly better” than the tor Steve Solomon of Solomon Metals with that through hedging or what22.2 million tonnes of 2010, but still Corp. in the United States in the late ever other means we use to lock our below the 27.6 million tonnes of 2009. summer, “There seems to be scrap prices in. What we can’t get used to The importance of establishing and available, but the problem is that getare the changing regulations that, even following strict quality procedures was ting commitments from consumers when good deals are made, things can underlined by guest speaker Herman to buy it when they don’t know what change before the deals are done.” van der Miej, Commercial Sales Directhe economic landscape will be for When customs and inspection protor at Viridor UK, which handles some the next several months. It is very difcedures change, both sellers and buy1.7 million metric tons of recyclables ficult to make strong sales in that type ers can experience turmoil, Solomon annually. There was an over-arching of environment.” noted. “There is sort of a lack of conneed, he contended, to monitor inUncertainty about Europe’s econfidence that what was a good shipment

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2011 MARKET REVIEW ciation. He indicated that China accounted for 79.8 percent of all Japanese recovered paper exports last year (slightly less than 3.5 million tonnes). Of the 4.4 million tonnes exported by Japan to all destinations, OCC made up 50.6 percent and news/OMG a further 34.3 percent by grade, said Okubo. At the BIR Plastics Division RoundTable in Munich, Gregory Cardot of Veolia Propreté in France said there had been a slight drop-off in trading activity levels since mid-October within his domestic secondary plastics market. And in China he said there had been significant problems at ports and the market was “under pressure.” BIR Plastics Committee Chairman Surendra Borad of Gemini Corp. NV, Belgium, used that same two-word phrase, “under pressure,” to describe prices in the United States. As for the market in India, he said it was “abso-

lutely dormant,” as many company licences to import plastic scrap had not been renewed. India’s domestic recycling industry, on the other hand, “is doing extremely well” and claims to have achieved a recycling rate of 47 percent, Borad said. Although he did not classify the overall economic outlook as especially positive, Borad predicted “a golden future” for the rapidly-expanding recycling industry. After examining data, he has arrived at the conclusion that the global recycling industry is worth upwards of $500 billion annually and employs as many as 20 million people around the world. The industry “is growing at a tremendous rate that is faster than (world) GDP growth,” Borad stated. RTGE The author is editorial director of Recycling Today Global Edition and is available at btaylor@gie.net.

IARC 2012

coming supplies and to ensure outgoing product meets the standards set by customers. In a meeting covering a wide range of topics, BIR’s Environmental & Technical Director Ross Bartley confirmed that there has been a delay in the process to establish “end-of-waste” criteria in the EU for recovered paper, with an important vote by the Technical Adaptation Committee now expected on or after May 4, 2012. As well, European Recovered Paper Association (ERPA) President Merja Helander of Finlandbased Lassila & Tikanoja described the end-of-waste issue as one of the most important currently facing the sector in Europe. The global significance of Chinese recovered fiber imports was highlighted in the Munich presentation given by Nobutaka Okubo, the vice president of the Japan Recovered Paper Asso-

12 t h International Automobi le Recycl ing Cong ress IARC 2 012 March 21 – 23, 2012, Budapest, Hungary n n n n n n n n

How do car manufacturers and the industry close the recycling loop? New cars and new recycling technologies Where are the new cars sold? – Where are they going to be recycled? Best available recycling technologies Reports about illegal export of wrecked vehicles Hybrid vehicle dismantling and parts reuse European ELV Directive – A monster with no teeth? Recycling – High-tech or low-cost technology?

RAW HE

LS

ERIA

MAT

T

E

T

The next top quality congress in ELV recycling will focus on:

DEBA

An exhibition area is integrated into the conference facility, where vendors meet their clients. Cocktail receptions and a networking dinner create an excellent atmosphere to get in touch with your business partners, friends and competitors. Plant tours to leading recycling companies and car manufacturers in the vicinity of Budapest are offered to all participants. ICM AG, Schwaderhof 7, 5708 Birrwil, Switzerland, www.icm.ch, info@icm.ch, +41 62 785 10 00

www.RecyclingTodayGlobal.com

2011 Market Review.indd 35

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 1:54:36 PM


PROCESSING POINT by deanne toto

electronic Eye Contact Optical sorting technology can offer an alternative to heavy-media plants for auto shredder operators.

T

he thorough extraction or recovery of nonferrous metals from auto shredder residue and the further classification or sorting of predominantly aluminium (zorba) and predominantly stainless (zurik) grades have been growing areas of focus for operators of auto shredding plants. This has been particularly true in the last decade as prices of nonferrous metals have trended at and near historic highs. While pricing has softened recently for some nonferrous metals, recyclers are still considering the benefits of investing in this technology. Recyclers may at times have market-based reasons to change the focus of their efforts in the area of optical technology used

36

in metal recovery and sorting plants. Thanks to the nature of the optical sorting equipment, this is a relatively easy adjustment to make. William D. Close, applications engineer at Wendt Corp. in the United States advises recyclers to take the current market into consideration when operating optical equipment in metal sorting applications. “It can be equipped with multiple programs for different sorting applications,” he says of the equipment. “If stainless is hot, they can switch on stainless steel programs and produce high-grade stainless. If copper is hot, they can sort the copper.” He continues, “It’s an incremental business decision that is market driven.” However, before recyclers consider upgrading the nonferrous shredded grades they bring to the market, they should first focus on recovering all of the metals they can from the shredded materials stream, Close says. “With

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all of our customers, we’re always advocating that they first have to get the metals before they pay attention to the sorting of the metals,” he says. “We are counseling them to invest their dollars in a recovery plant until they have achieved a total metal recovery. After they have achieved that, the next focus can become the converting of those metal units into higher values.”

TOTAL METAL RECOVERY

In addition to the magnets, eddy currents and inductive sorters (Wendt supplies a version from the German company Titech GmbH called Finders) that are commonly used downstream of the auto shredder, Close says units that provide additional value to operators include optical systems that work in near-infrared (NIR) wavelengths to separate insulated wire out of the material flow. These optical sorters, which Wendt/ Titech calls PolyFinders, are similar to

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PROCESSING POINT those units used in MRFs (material recovery facilities) to sort plastic bottles and fibre from the residential recyclables stream. “We are applying a higher-resolution version of that same machine to cherry pick the insulated copper wire out of the flow,” Close says. “As part of our recovery plant, where we are trying to get all the value out of the stream and in real time convert that to higher-value product, this is the most important tool in the plant.” Heiner Guschall of SiCon GmbH, Hilchenbach, Germany, says near-infrared sorting is commonly used to sort plastics. “The limitation here is that black colored material is difficult to detect or can’t be detected.” A camera sorter that uses a charge-couple device (CCD) can help with this limitation, however. “The CCD camera sorter can differentiate between different colored plastics or metals,” Guschall says. “It will also be used, for example, to separate the copper from the aluminium. In addition to this, the CCD camera sensor is also able to detect the shape of pieces so wires can be separated out of a mixed metal fraction.” Once auto shredder operators have optimized their metal recovery through their shredder downstream systems, they may want to consider a stand-alone metal sorting plant. These plants, which are an alternative to heavy-media plants, allow recyclers to upgrade the value of the nonferrous metals they have recovered using a dry sensor-sorting process.

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OPTIMAL VALUE

Close describes such plants as the future of the metals sorting business, enabling recyclers to convert mixed nonferrous materials into higher-value products. Guschall agrees, adding that interest is growing among recyclers who want to further sort various fractions from the shredded material stream. “We see more and more

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PROCESSING POINT opportunities when customers want to maximize their revenues by additional sorting steps,” he says. “Scrap processors, especially in Europe, are indentifying more and more local customers for copper and aluminium and they don’t want to export mixed metals to China, Vietnam, India, etc.” When it comes to sorting the zorba fraction from the shredder’s downstream, Guschall says a typical installation supplied by SiCon would include the separation of aluminium using SiCon X-ray sorters. Copper also would be separated from heavy metals using this technology. “Another application is the sorting of wire from mixed metal or zurik fractions,” Guschall says. “S+S color sorters detect cables based on their different shape,” he says of units made by Germany’s S+S Separation and Sorting Technology GmbH. With these units, says Guschall, “We detect [them] independent of the color of the cables. The same job could be done with NIR sorters, but then black cables wouldn’t be detected.” Guschall adds, “NIR sorters are mainly used in e-scrap applications where customers want to split the plastics fraction into differ grades of plastics.” Close says a typical system from Wendt would include an X-ray transmission (XRT) unit, where heavy metals such as copper, brass, lead, zinc and stainless steel would be separated from the mixed metals flow. XRT units can replace other densitysorting methods and transmit X-ray energy, which is absorbed by metal particles at different rates depending on their atomic density. This generates an image that is captured by the unit’s sensor and is the basis for the sort. XRT technology commonly is used to do bulk sorting of the zorba and zurik grades, Close adds. The heavy metals recovered by the XRT unit would then go on to optical sorters called CombiSenses, which are manufactured by Titech, Close says, and offer a combination of metal and color sorting. “Here we

38

Processing Point Metal2.indd 38

are able to do very high-resolution sorting of the red metals. From the mixed heavy metal fraction, we’re able to cherry pick the mixed red metal fraction of copper and yellow brass and further refine it to a dedicated copper and a dedicated yellow brass using the same machines but putting them in series.” Wendt also offers the Titech XTract XRF unit. This unit uses X-ray fluorescence to perform a spectroscopic analysis of the materials, Close says. “Now we are able to sort stainless steel into different grades based on the chemistry.” This unit also can differentiate between red brass and copper, which are similar in color though they have a different chemistry, he adds. “Each one of these machines can be equipped with multiple programs for different sorting applications,” Close says. This gives operators the flexibility to respond to changing market demands. The purity of the final products depends on a number of factors, Guschall says, including the input material and throughput rates, the calibration of the sorters and the pre-treatment of the material itself. When it comes to sorting copper from the zorba fraction, he says, “In this case, our color sorters achieve purities of more than 99 percent.” He adds, “The material purity may differ from the metallurgical purity since metals often contain alloys which aren’t detectable by a color or sensor sorter.” Guschall adds, “In general, the quality and the performance of the machines are continuously improved. This leads to higher throughput as well as to the detection and separation of smaller pieces. SiCon has in its plant S+S color sorters which separate copper from a mixture of aluminium and copper down to a particle size of nearly 1 millimeter.” RTGE This article first appeared in the November issue of Recycling Today magazine. The author is managing editor of Recycling Today and can be reached at dtoto@gie.net.

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 1:23:45 PM


Baler Application Focus by stefa n i e kel ler

S

The Hochhelm says it gets 35 tonnes per hour with the VK 12018 R fullly automatic channel bailing press.

ITA Deutschland GmbH is one of the largest German providers of waste and recycling services, with more than 100 facilities and more than 3,000 employees across Germany. The Hochheim, Germany-based unit of France’s Suez Environnement has recently been making use of the VK 12018 R fullyautomatic channel baling press from HSM Pressen Verwaltungs GmbH to bale its secondary commodities. The new machine, “with its pressing power of 1,200 kilonewtons as well as a frequency-regulated drive and conveyor belt technology,” has helped the SITA plant be both more productive and energy-efficient.

MULTIPLE JOBS

The SITA plant in Hochheim, Germany, is using a 1,200-kilotonne baler to help send material on its way.

Mixed paper, cardboard as well as a small amount of foil, up to a maximum material size of DIN (Deutsches Institut für Normung) A0 (841 millimetres by 1,189 millimetres), can be compressed by the new machine. Mountains of paper and cardboard pile up at the SITA plant as dozens of trucks arrive and unload their secondary commodity cargo every day. Every year, this amounts to around 30,000 tonnes of

compression

Force 40

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paper, cardboard and cardboard boxes from households, printers, businesses and press wholesalers with unsold newspapers. Joachim Häffner is the operations manager at SITA Rohstoffwirtschaft (feedstock industry) business unit, and is responsible for operations at eight SITA plants, including Hochheim. SITA’s Rohstoffwirtschaft unit also is responsible for the professional preparation and marketing of recycled paper as a secondary raw material. In figures, this means the eight SITA sites sell approximately 550,000 tonnes of paper, cardboard and cardboard boxes every year. At the SITA plant, the material is fed using a wheeled loader as well as with a new subsurface charging and loading conveyor. In practical use at SITA, the HSM VK 12018 R achieves a throughput capacity of 35 tonnes per hour when loaded with mixed paper, meaning a finished bale is ejected every 100 seconds. In one-shift operation, up to 300 tonnes of mixed paper are processed this way. This occurs at a total drive power of just 2 by 55 kilowatts. The noise level produced by the system remains at less than 80 decibels (adjusted), despite its considerable productivity. The bales can reach a weight of up to 1,000 kilograms (depending on whether they are comprised of paper, cardboard or boxes) producing a bale format of 1,100 millimetres wide by 1,100 millimetres high by 1,200 millimetres long, which can be easily sold. A bale that can be compressed this compactly means less wire is used, and handling is reduced. The VK 12018 itself is 6.20 metres high and weighs 40 tonnes. Thanks to the enormous compression force and the large bale format, fewer bales can be made from the same amount of material compared to before. SITA can thus utilise the warehouse in the best way possible, speed up its logistics pro-

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Baler Application Focus cesses and reduce energy consumption at the same time.

READY FOR MORE

In comparison with SITA Deutschland facilities Karlsruhe, Trossingen and Fulda, the site in Hochheim is rather on the small side, but the tracks are set for growth, according to the company. In the coming years, the quantities of paper and cardboard will increase considerably. But the warehouse in Hochheim has limited space. How can it be optimised, or better utilised? The operation manager’s reply is simple: “We have to stack the paper bales in tall and stable stacks.” An HSM press with a pressing power of 1,200 kilonewtons was thus considered ideal for the job. “The tighter the bales are pressed, the more stable and therefore higher we can stack them,” says Häffner, “even in the open.” High pressure makes the bales as strong as concrete blocks and even sustained rain cannot harm them. And the highly condensed bales meet the needs of customers such as producers of tissue paper. “We are the prime supplier for paper mills”, says Häffner. SITA also puts pressure on speed. The work done by three presses in the past will now be done by two. SITA obtained quotes from seven suppliers, but the winner was the fully automatic channel baling press by HSM. Among the deciding factors were the convincing technologies, such as the frequency-controlled drive developed by HSM. It reduces the power consumption of the channel bale press by up to 40 percent when compared to traditional drive systems. The frequency-controlled drive is designed to optimise the unit’s energy efficiency. Power consumption is reduced by up to 40 percent compared with conventional drive technology. Along with the energy savings, the frequency-controlled drive can provide other benefits, such as potential process optimisation by adjusting the speed to the production process and other external factors. The gentle operation of the motor reduces the number of starts and stops, and avoids any

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unnecessarily harsh loading of the machine components. Operations manager Joachim Häffner says SITA regularly submits to an eco audit. The baler has been in operation at SITA Hochheim since mid-June 2011, and Häffner says “HSM’s fully auto-

matic channel baling press allows us to optimise our warehouses and logistics processes whilst simultaneously saving energy.” RTGE This story was submitted by HSM of Frickingen, Germany, www.hsm.eu.

SSI Shredding Systems, Inc. www.ssiworld.com | sales@ssiworld.com | Tel: (503) 682-3633 Shredding everything including the kitchen sink at www.watchitshred.com

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 2:04:47 PM


TYRE RECYCLING REPORT res

Rolling Past Waste Europe’s tyre manufacturers make the case for end-oflife tires being able to comply with end of waste criteria.

Editor’s Note: The following article is excerpted from the 2010-2011 annual report of the Brussels-based European Tyre & Rubber Manufacturers Association. The entire report can be found at www.etrma.org.

dards applicable to products. As an illustration derived from a recent study by French tyre recycler Aliapur (www.aliapur.fr) on the use of ELT granulates in Europe, tyres have a wide range of use in the form of

T

he current definition of waste for end-of-life tyre-derived products leads to serious administrative and financial burdens (collection, transportation, etc), which are responsible for slowing down the development of further routes of recovery. This approach contrasts with the European Union’s Strategy aiming to make Europe a recycling society and to encourage sustainable use of natural resources. ETRMA is convinced that endof-life tyres are particularly well positioned to be excluded from waste status, since they comply with end of waste criteria enshrined in the EU Waste Framework Directive.

MANY DESTINATIONS

A market or demand for ELT-derived materials clearly exists. End-of-life tyre (ELT) derived materials are commonly used for specific purposes, meet related technical requirements as well as existing legislation and stan-

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powders and granulates; the main applications of which are synthetic turf, industrial floors, sport fields and children playgrounds, while equestrian floors, moulded pieces (industry and urban furniture) and anti-vibratory

A Successful Pitch in Denmark Starting in 2012, football games in the Danish “Superliga” as well as first and second league games can be played on artificial turf pitches, according to a recent press release from The Danish Football Association (DBU). With this step, DBU follows football governing bodies FIFA and UEFA in allowing the use of artificial turf pitches at all match levels, according to a news release from Danish tyre recycling company Genan Business & Development A/S. ”We are operating in a field as decision makers, where we cannot only consider the present, but also need to think of the future,” says Allan Hansen, the chairman of the DBU, on the organisation’s website. Artificial turf protects the environment and as opposed to natural grass, artificial turf pitches can be used throughout all seasons, according to Genan. With reference to international experiences and scientific studies of artificial turf pitches, DBU has concluded that artificial turf pitches – in spite of some contrary opinions – have no significant negative impact on the players’ health or the character of the game itself. Genan bills itself as the world’s largest supplier of infill for artificial turf pitches, saying it “delivers a quality that not only meets all international requirements, but also sets entirely new standards for purity and uniformity.” In its news release announcing the DBU decision, Genan adds, “Furthermore, the superior properties of the rubber are preserved, such as elasticity, weather resistance and extremely good aging properties” when it is used in athletic applications.

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11/15/2011 2:06:13 PM


TYRE RECYCLING REPORT Main Uses of ELT Recovery Routes (EU, 2009) Application

Est. Tonnes (000)

Examples

Cement Kilns (Energy)

1,254

Products (Recycling)

960

Flooring (playgrounds, sports fields) and paving blocks; roofing materials; wheels for carts

Civil Engineering (Recycling)

240

Foundation for roads; embankment Stabilizers; draining material; erosion barriers

Power Plants (Energy)

39

Source: ETRMA

Life Cycle Analysis Findings on ELT Recovery Methods ELT Recovery Method

Substitution rate for different (virgin) materials -- (1 tonne of ELT replaces . . .)

Retention basins

1.95 tonnes of blocks of concrete or 0.3 tonnes of blocks of polyethylene

Infiltration basins

6 tonnes of gravel

Moulded objects

1 tonne of virgin polyurethane

Synthetic turfs

0.5 tonnes of virgin EPDM and 2 tonnes of chalk

Equestrian floors

44 tonnes of sand

Cement works

0.7 tonnes of coke and 0.29 tonnes of coal

Urban heating

1.15 tonnes of coal

Steelworks

0.59 tonnes of anthracite and 0.16 tonnes of scrap metal

Foundry

2 tonnes of scrap metal and .5 tonnes of coke

Source: Life Cycle Analysis of Nine ELT recovery routes, Aliapur R&D, June 2010

and insulation mats are markets in development. The use of granulates in concrete, asphalt, road paving and new compounds is a promising route but one which suffers from some limitations at present. ETRMA also is convinced that the use of ELT-derived materials does not lead to overall adverse environmental or human health impacts. Over the last seven years, several life cycle analyses (LCAs) have been performed in Europe to compare the environmental impacts of different ELT recovery routes. These have provided the industry with a better knowledge of the positive contribution of replacing virgin raw materials with ELTs.

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Generally speaking, the benefits provided by the recovery of ELTs come from of using them as substitutes for high energy-consumption materials, avoiding the production and transport of certain substituted materials when the life span of ELT products is greater than that of the products they replace, as well as the biomass portion of used tyres for energy recovery. Among relevant studies, one needs to highlight the 2004 LCA conducted by CIT Ekologik AB and IVL Swedish Environmental Research Institute Ltd. on behalf of SDAB, the Swedish ELT management company, and the 2010 LCA conducted by PWC Ecobilan on behalf of Aliapur, the French ELT management company.

Both studies demonstrate that almost all the recovery methods analysed provide net environmental benefits (i.e. higher impact being avoided than those generated), regardless of the environmental impact considered. In both studies, results indicate: 1) the largest benefits are associated with replacing virgin polymer with granulated used tyres in the material recycling scenario and by replacing coal as a fuel in the cement kiln with ELTs; 2) recycling does not systematically have better environmental review results than energy recovery; and 3) retention basins, infiltration basins and reuse of tyres for landfill covering are recovery methods for which the advantages remain rela-

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11/15/2011 2:06:26 PM


TYRE RECYCLING REPORT tively minimal. Since nearly all recovery routes are environmentally beneficial, a management policy for ELTs based on the combination of all recovery methods results in environmental benefits. In 2010, ETRMA began taking

steps toward the EU Commission DG Environment and the Joint Research Centre in Seville to initiate some technical work on end of waste criteria for end-of-life tyre derived products. ETRMA is contributing to two JRC horizontal studies on the

feasibility of defining end-of-waste criteria for aggregates and waste derived fuels.

SETTING STANDARDS

The ongoing development of quality standards for ELT-derived materials at CEN level (TC366) together with high ELT recycling and recovery performance achieved throughout Europe is a major step towards getting the end of waste status for ELTderived products. Furthermore, the development of EU standards contributes to a significant increase of the level of quality of tyre-derived products while opening the market to new applications, promoting technology exchanges and access to know-how and innovation and protecting the environment. For this good work to take hold, there is another situation that will have to be addressed. With the development of Internet tyre sales in Europe, a growing number of tyres are presented for collection without having financially contributed to their recovery. This situation is unsustainable in the long run, as it is impossible to recover millions of tyres every year free of charge and it is unfair to transfer those costs to tyre producers duly paying the eco fee. By way of illustration, in order to ensure a balance between producers, the French government has imposed administrative fines for producers who are not respecting their regulatory obligations. After examination of how seriously they fail to respect these obligations and the advantages they have obtained as a result, this fine can be as much as €7,500 “per product unit manufactured, imported or distributed,” in this case, per tyre. ETRMA will be taking initiatives at EU level to quantify this phenomenon and initiate some political awareness actions to ensure all tyre producers and importers are treated equally, in countries with producer responsibility obligations. RTGE More information on the Brussels-based ETRMA can be found at www.etrma.org or by writing to info@ etrma.org.

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datebook january february march

april may june july august september october november december

Paper & Plastics Recycling Middle East // Feb. 27-28

2012

Jan. 15-17 Aluminum Symposium 2012, Ft. Lauderdale, Fla., U.S., Platts, www.events.platts.com or 781-430-2100

Jan. 18-20 11th International Electronics Recycling Congress, Salzburg, Austria, ICM AG, www.icm.ch

March 21-23

April 17-19

8th International Annual Scrap Forum, Moscow, Rusmet Group, lom.rusmet.ru/about.php

12th International Automobile Recycling Congress, Budapest, Hungary, ICM AG, www.icm.ch/iarc-2012

Feb. 27-28

March 25-27

Reverse Logistics Conference & Expo, San Paulo, Brazil, Reverse Logistics Association, www.rltshows.com or 801-331-8949

Paper & Plastics Recycling Middle East, Dubai, Recycling Today and Waste & Recycling Middle East, PaperRecyclingConference. com

Paper2012, New York, AF&PA/NPTA Alliance, www.paper2012.com or 312-673-5828

Feb. 16-17

Jan. 26-27

March 15-18

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

Ecotc-Environmental Technologies & Photovoltaic Systems, Athens, Greece, www.ecotec-exhibition. gr/en

Feb. 6-8 Reverse Logistics Conference & Expo, Las Vegas, Reverse Logistics Association, www.rltshows.com

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Datebook_nov-dec.indd 45

12th International Automobile Recycling Congress // Mar. 21-23

March 20-21 Plastics Recycling Conference, Atlanta, Resource Recycling, www.plasticsrecycling.com

April 30-May 3

March 28-30

Waste Expo, Las Vegas, Penton Business Media, www.WasteExpo.com 708-486-0744

May 7-11

Environmental International Forum SAVE the Planet – Waste & Water Management/ Recycling, Sofia, Bulgaria, Via Expo, www.viaexpo.com

April 15-19 ISRI Annual Convention, Las Vegas, Institute of Scrap Recycling Industries Inc., www.isri.org or 220-662-8500

IFAT Entsorga 2012, Munich, Messe München International, www.ifat.de/en

May 7-10 7th China International Steel Congress, Beijing, China, Metallurgical Council of China Council for the Promotion of International Trade, www.mc-ccpit.com

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 3:36:00 PM


EQUIPMENT REPORT

>> man ufactu rer news and equi pment installations

US Shredder Links with South American Ally

U.S. Shredder and Castings Group, Trussville, Ala., U.S., has announced it has partnered with Brazil-based SECTA International to serve the automobile and scrap shredder market in Brazil and other parts of South America. In a news release, U.S. Shredder describes SECTA as “a well-established company that will assist U.S. Shredder with administrative support as well as complementing its already strong ties to the metals industry.” “We are very excited about our relationship and future with SECTA,” says Bill Tigner, president of U.S. Shredder. “We have been providing wear parts and aftermarket services to shredders in South America for years. This will allow us to take the next step and provide new systems and engineering support at the local level. SECTA’s strong relationship with steelmakers and the metal industries will be a huge factor in expanding our presence in the region.” The U.S. Shredder and Castings Group offers scrap shredders, control systems, downstream systems, scrap shears, balers, loggers and shredder castings as well as service and consulting to the worldwide scrap industry.

Untha Relocates U.S. Headquarters

UNTHA America, the subsidiary of UNTHA Shredding Technology GmbH, Salzburg, Austria, has relocated from Newburyport, Mass., to Hampton, N.H. To celebrate the move, the company hosted an open house Oct. 18, 2011 to showcase its line of shredding machines. “UNTHA is another great example of a family-owned high-tech company that has UNTHA President and CEO for U.S. found New Hampshire to be a lower-cost Operations Berhard Mueggler, left, stands with New Hampshire Division state to operate a business,” says Michael of Economic Development Business Bergeron, business development manager Development Manager Michael for the New Hampshire Division of Economic Bergeron at the company’s recent Development. open house. The new complex consists of larger office and warehouse space and an expanded test facility that includes UNTHA’s newest single shaft shredder, the VR, and anewly redesigned RS Series 4-shaft machine. “This new facility is twice the size of our old one in Massachusetts and reflects both UNTHA’s growth as well as our commitment to the North American market” Bernhard Mueggler, president of UNTHA America, said during the open house ceremony. “We also have a great location—Hampton is close to Interstate 95, with easy access to the Boston metropolitan area and the rest of New England.” The event included shredding demonstrations showcasing the capabilities of UNTHA’s single-shaft and 4-shaft technology. “Shredding and size reduction is crucial to any recycling operation” explained Charles Hildebrand, the Western Regional sales manager for UNTHA. “It is what transforms waste into product.”

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Equipment Report_nov-dec.indd 46

Bollegraaf Recycling Machinery Receives Award

Bollegraaf Recycling Machinery, which is celebrating its 50th anniversary in 2011, is the winner of the Groninger Ondernemingsprijs 2011, the Groningen Award for Entrepreneurs. Bollegraaf, headquartered in Appingedam, the Netherlands, was nominated for the award by a jury of public officials and fellow entrepreneurs. The award was presented to Heiman Bollegraaf, Bollegraaf Recycling Machinery’s CEO, by the Queen’s Commissioner for the Province of Groningen, Max van den Berg, during a live television broadcast. The ceremony was held Sept. 29. Criteria for the award include: • The originality and durability of company; • The strength of the product; • The level of success of the product; • Strategic vision of the management; and • The company’s marketing strategy. Bollegraaf Recycling Machinery, founded by Hartog Bollegraaf, has grown from one location to currently having subsidiaries in the United States, France and the United Kingdom. In recent years, under the leadership of Heiman Bollegraaf, the equipment manufacturer has expanded its operations as it says it has recognized the need for turnkey installations to meet the challenges in the recycling industry.

www.RecyclingTodayGlobal.com

11/15/2011 2:11:13 PM


>> man ufacturer news and equi pment installations

Blancco Receives Certifications from Mexican, UK Governments

EQUIPMENT REPORT

Metso Makes Acquisition, Installs Production Line in China

The Finland-based company Blancco has announced that its data erasure software has received certification as an official supplier of the Mexican government by the Secretaria de la Función Pública (SFP). In addition, the United Kingdom government’s Defence Infosec Product Cooperation Group (DIPCOG) has approved a new version of Blancco software for use by its Ministry of Defence (MoD). “These certifications represent Blancco’s global emphasis on serving the rapidly-changing needs of the public sector for safe, cost effective ways to remove data and reuse, sell or donate IT assets,” says Kim Väisänen, CEO and co-founder of Blancco. “We are proud to be the only data erasure solution provider certified by Mexico with a local office in the country. Likewise, we are pleased to extend our relationship with the U.K.’s Ministry of Defence.” According to Blancco, with certification from SFP, the Mexican ministry that supervises and audits government purchases, all government departments may now purchase products directly from Blancco, including the army, Ministry of Treasury and police. In the U.K., DIPCOG formally approved Blancco’s CESG (National Technical Authority for Information Assurance) certified data erasure software, 4.10HMG, for MoD use, adding it to the CESG Directory of Infosec Assured Products. The UK approval follows similar CESG certifications in 2003, 2006 and 2008, and 2010.

The global equipment company Metso, headquartered in Helsinki, Finland, has acquired Fabrication Company of Maine (Fabco), based in Winthrop, Maine, U.S. The acquired business will be affiliated to Metso’s Paper and Fiber Technology segment - Filtration Services. Metso did not disclose the value of the transaction. According to Metso, Fabco will complement the company’s current services, technology and product offering to the pulp industry in North America, and is in line with Metso’s strategy to increase the level of business in the services sector. In other company news, Metso has landed a contract to supply a coated board production line to International Paper & Sun Cartonboard Co., Ltd for the joint venture mill the two companies created in China. Metso’s delivery will include a complete coated board machine from headbox to winders, including stock preparation and approach flow systems, hoods with machine ventilation and coating color preparation systems. Additionally, the full-scope automation delivery will include process, machine and quality controls, web break monitoring and web inspection as well condition monitoring.

SWEEEP Kuusakoski to Install Nulife Furnace to Recycle CRT Glass

Nulife Glass, a U.K.based company that develops furnace technology to recycle cathode ray tube (CRT) glass, has agreed to build a glass furnace for SWEEEP Kuusakoski’s electronics recycling facility in Kent, England. Nulife says it is the only commercially available furnace of its type in the world. The furnace is geared to process the CRT glass, extracting the lead oxide, leaving the glass to be recycled for a variety of applications.

RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

Equipment Report_nov-dec.indd 47

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11/15/2011 2:11:27 PM


Product Spotlight 1

To have a product featured in Recycling Today Global Edition, please send a news release and high-resolution image in tiff or jpg format to Kelley Stoklosa at kstoklosa@gie.net.

1

Vezzani VS Mobile Press Shears Vezzani, based in Ovada, Italy, has introduced new VS Mobile Press Shears, which are designed similarly to the company’s PC/AC pre-compression shear. Features include: • Offered as a mobile system in the 600 to 700 tonne range that utilizes the same gravity feed system that Vezzani patented for its PC/AC stationary shears • The light, compact and transportable unit has been manufactured and supported to the same standard as Vezzani’s stationary machines, the company says • Developed for smaller operations Visit www.vezzani.biz for more information.

2

2 3

4

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RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

Product Spotlight_nov-dec.indd 48

Eriez DensitySort Air Table United States-based Eriez, has introduced the DensitySort Air Table, which is designed to sort nonferrous fines into light and heavy fractions. Features include: • The air table uses air, vibration and slope to separate the fines fraction • It does not require a media base • Designed to process 0.25-inch-by-1-inch and 1-inchby-2-inch fractions without changing the setup of the machine Visit www.eriez.com for more information.

3

Builtrite Model 2100-SE Stationary Electric Material Handler United States-based Northshore Manufacturing, the manufacturer of the Builtrite line of products, has made a number of enhancements to its stationary electric material handlers, the model 2100-SE. The enhancements include: • Better visibility, more room and a more powerful heating and air conditioning system than previous models • A three-fold increase in hydraulic oil cooling capability • A more energy efficient, 75-horsepower electric motor Visit www.builtritehandlers.com for more information.

4

Jorgensen Process Feeder Conveyors Jorgensen Conveyors designs and manufactures a line of process feeder conveyors for most material recycling applications. All products are available in Europe through Jorgensen’s affiliate in the Czech Republic. Features include: • Product solutions include hinged steel belt conveyors, Z-Pan metal belt conveyors, combo metal chain rubber belt conveyors, slider bed and troughing idler conveyors • Designed for a wide variety of recycling operations • Frame construction is open and modular, built in five and ten foot bolt together sections. Visit www.jorgensenconveyors.com for more information.

www.RecyclingTodayGlobal.com

11/15/2011 2:12:13 PM


AD INDEX American Baler – ..................................................................... 27 www.americanbaler.com

Parker Hannifin Hydraulic Pump Division – .......... Inside Front Cover www.parker.com

cieTrade – ............................................................................... 44 www.cietrade.com

Paper and Plastics Recycling Conference Middle East – www.paperrecyclingconference.com.................Inside Back Cover

Eldan Recycling – .................................................................... 29 www.eldan-recycling.com

Recycling Today Media Group – ..................................... 31, 37, 39 www.RecyclingToday.com

Granutech Saturn Systems – ..................................................... 17 www.granutech.com

Sharif Metals –......................................................................... 22 www.sharifmetals.com

Hammel Recyclingtechnik GmbH – ............................................ 22 www.hammel.de

Shred-Tech –............................................................................ 21 www.shred-tech.com

Harris – ...................................................................... Back Cover. www.harrisequip.com

SSI Shredding Systems Inc. – ................................................... 41 www.ssiworld.com

ICM Ag – ................................................................................ 35. www.icm.ch

Techgene Mechinery Company, Ltd. – ........................................ 37 www.taiwan-baler.com.tw

Ling Tong Metal Information Co. – ............................................. 47 www.lingtongmetal.info

TopRecycle Consulting – ........................................................... 23 www.toprecycle.info

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

U.S. Shredder & Castings Group –................................................7 www.usshredder.com

Northeast Metal Traders Inc. – .................................................. 38 www.metaltrader.com

WastemMET Asia –...................................................................49 www.wastemetasia.sg

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Ad Index_nov-dec.indd 49

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RECYCLING TODAY global edition // NOVEMBER-DECEMBER 2011

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11/15/2011 3:22:06 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 2010

$342

November 2010

$361

December 2010

$403

January 2011

$472

February 2011

$451

March 2011

$452

April 2011

$450

May 2011

$432

June 2011

$448

July 2011

$451

August 2011

$447

September 2011 $451 October 2011

$445

(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 scrap commodities 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. Pricing information on this and other grades is available at www.RecyclingToday. com. The other grades are prompt industrial composite (an average of No. 1 bundles and No. 1 busheling) and No. 1 heavy melting steel. © 2011 Management Science Associates Inc. All rights reserved. RMDAS is a trademark of Management Science Associates Inc.

Aluminium – LME Aluminium Alloy Pricing Oct. ’10

$2,208.38

Feb. ’11

June ’11

$2,331.82

Nov. ’10

$2,223.23

Mar. ’11 $2,375.70

$2,329.30

July ’11

$2,308.14

Dec. ’10

$2,247.38

Apr. ’11

$2,398.44

Aug. ’11

$2,283.18

Jan. ’11 $2,272.30 May ’11 $2,394.75

Sept. ’11

$2,274.75

$8,291.29

Feb. ’11

$9,866.75

December 2010 932.7 January 2011

932.7

February 2011

932.7

March 2011

933.1

April 2011

933.1

May 2011

871.4

June 2011

870.6

July 2011

855.8

August 2011

i.n.a.

September 2011 870.9 Index is based on 1982 average prices as 100 Source: U.S. Bureau of Labor Statistics

U.S. Producer Price Index/Plastics Material October 2010

257.7

November 2010 262.6

June ’11

260.5

$9,044.80

February 2011

262.5 264.8

Nov. ’10

$8,468.39

Mar. ’11 $9,529.57

July ’11

$9,618.36

March 2011

Dec. ’10

$9,146.07

Apr. ’11

Aug. ’11

$9,040.34

April 2011

271.5

May 2011

282.8

June 2011

281.4

July 2011

287.2

August 2011

280.6

$9,482.56

Nickel – LME Pricing Oct. ’10

$23,796.67

Feb. ’11

$28,246.75 June ’11

$22,344.32

Nov. ’10

$22,901.59

Mar. ’11 $26,803.04 July ’11

$23,721.43

Dec. ’10

$24,103.33

Apr. ’11

$26,321.39 Aug. ’11

$22,075.23

Jan. ’11

$25,638.50

May ’11

$24,203.00 Sept. ’11

$20,384.55

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 2011

The Numbers_nov-dec.indd 50

November 2010 892.8

January 2011

Jan. ’11 $9,554.13 May ’11 $8,925.93 Sept. ’11 $8,313.82

50

848.3

December 2010 254.3

Copper – LME Pricing Oct. ’10

October 2010

September 2011 289.1 Index is based on December 1980 average price as 100. Source: U.S. Bureau of Labor Statistics

www.RecyclingTodayGlobal.com

11/15/2011 2:13:17 PM


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11/10/2011 3:30:52 PM


RT_Global_NovDec2011.indd 1 RTGE1112p52harris.indd 1

10/26/11 1:23 PM PM 11/10/2011 3:32:23

Recycling Today Global Edition: November/December 2011  

RTG Nove/Dec 2011

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