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Inside: Market Reports from Around the Globe........................ pg 08 Aluminium Recycling Plant Expands in Germany........... pg 19 Positive Signs for Steel and Ferrous Scrap.................. pg 26 What to Consider Before Purchasing a Baler............... pg 30

serving the international market for secondary raw materials / JANUARY-FEBRUARY 2012 /

turning up the

The U.K.’s Viridor has grown through acquisition and greatly increased the volume of materials it recycles each year.




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JANUARY-FEBRUARY 2012 V o l ume 0 5 / N umber 0 1

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

04 06 08 10 14 16

FEATURES Turning up the Volume........................................22

The U.K.’s Viridor has grown through acquisition and greatly increased the volume of materials it recycles each year.

Attractive Figures................................................26

Statistics from 2011 largely point to a healthy level of steel production and ferrous scrap consumption.

For Your Consideration......................................... 30

Veteran equipment dealer Steve Colton urges recyclers to consider a baler purchase from many different angles.

Waste Not.............................................................32

The European Commission considers draft End-ofWaste legislation governing recovered fibre.

An Education.........................................................38

Datebook Equipment Report Product Spotlight Ad Index The Numbers

42 44 48 49 50

Even after growing up in the metals industry and spending several decades as a trader, Michael Lion says there is more to learn each day.

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



editor’sLetter School’s Not Out


ock and roller Alice Cooper had a hit on his hands in 1972 with “School’s Out,” a paean to youthful rebellion that went to #1 in the U.K., #3 in Canada and #7 in his native U.S. While the thought of a holiday break with no school (or the completion of formal education altogether) appeals greatly to most 12-yearolds, quite a few older, wiser people seem to discover that the learning process never stops. In an interview starting on page 38, scrap industry veteran and current chairman and director of Sims Metal Management Asia Limited Michael Lion offers advice along this line to people entering the recycling industry. “There are so many facets to [this industry] that no matter how old you are or how young you are, you’ll always be learning something new every day. That’s been my observation,” states Lion. Hopefully, Michael Lion will not mind me referring to him as one of the older and wiser people who take this view on the recycling industry in particular or of life in general. Judging by his response to the question of what advice to give to young people entering the industry (found on page 40), it clearly is a message he views as the most important. Someone who has attained their formal degrees and entered the scrap recycling industry may have left the brick-and-mortar classroom behind. But the learning process is far from over, and each day is likely to bring literal and figurative note-taking and many exams to be passed as well. The aforementioned interview with Michael Lion was conducted by Larry Sax, who has served as an editorial consultant to Recycling Today Global Edition since it was launched in April 2008. Larry, himself a veteran of several decades in the scrap recycling industry, has been the key person making the Market Reports section of Global Edition come to life for the past five years. As witnessed by the reports on pages 8 through 15 of this issue, Larry has spent considerable time and effort contacting recyclers from around the world and obtaining their thoughts on where the market stands and where it might be heading. This issue will mark the final one with Larry’s involvement as editorial consultant. On behalf of the entire staff of Recycling Today Global Edition, I’d like to extend my own heart-felt thank you for his dedication to the job and his contribution to turning this publication from an idea into a reality. Readers or market report contributors who also would like to send their own thanks to Larry, please do so by contacting him at


Publisher James R. Keefe, Publisher editorial Brian Taylor, Associate Publisher/Editorial Director DeAnne Toto, Managing Editor Dan Sandoval, Senior Editor & Internet Editor Kristin Smith, Associate Editor Kelley Stoklosa, Assistant Editor Larry Sax, Editorial Consultant Creative Andrea Vagas, Creative Director Sean Burris, Graphic Designer Michelle Wisniewski, Advertising Production Coordinator Helen Duerr O’Halloran, Director, Production Sales Jackie Van Meter, Sales Director Diana DiRienzo, Senior Account Executive Marty Smith, Account Manager Jen May, Account Manager INTERNATIONAL SALES Vince Maynard (Europe) Marco Chang (China) Kelly Wong (Taiwan) Michael Hay (Hong Kong) Conferences Maria Miller 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 Member Bureau of International Recycling Institute of Scrap Recycling Industries, Inc.



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etal theft is a major issue. It’s having a huge impact on society both in terms of damaged infrastructure – which brings costly repairs and widespread inconvenience – and desecration of war memorials and plaques that has caused public outrage. It’s a problem for metals recyclers too: around half of the 15,000 tonnes of metal stolen on average each year is taken from our own members’ yards. BMRA welcomes the debate on metal theft and continues to advise government on the most appropriate measures to take. It is widely agreed that the Scrap Metal Dealers Act 1964 needs to be reformed. BMRA wants to see enhanced identification checks for those selling scrap metal to be included. It already forms part of a voluntary code of practice launched by BMRA and ACPO (Association of Chief Police Officers) and is part of a trial in the northeast of England that has been supported by police, the industry and the Home Office. Whilst most of the measures called for by government and other authorities are supported by the industry, any suggestion that a ban on cash transactions would be accepted by the industry or that it would help to reduce the incidence of metal theft is wholly inaccurate. The proposal to ban small businesses and individuals from selling their old car, redundant washing machine or scrap pipework for cash seems draconian and at the moment would have no effect on reducing the incidence of metal theft. If restrictions on cash trading were introduced, the U.K.’s estimated 800 illegal operators would continue to trade in cash regardless and act as a honey pot for illegal metals. It would also drive entirely legitimate cash business into the hands of non-compliant operators, fuelling the black market in the process.

Until policing of these illegal operations is demonstrably improved, imposing such restrictions on legitimate metal recyclers is untimely, unwelcome – and will not reduce the incidence of metal theft. Once the rash of illegal and unregulated operators that blight our industry are stamped out, then the option of restricting cash trading may be worth considering. For some time BMRA has been calling for a properly funded national intelligence unit which would identify illegal scrap metal operations as well as focussing on the growing threat of organised crime surrounding metal theft. It is hoped that a task force, led by British Transport Police, being set up to target both metal thieves and those setting out to dispose of it will answer that call and help to address some of the issues that metals recyclers face. Along with the Environment Agency’s own environmental crime task force to tackle illegal scrap yards and other rule-breaking waste sites, it could, if properly targeted, go a long way in the fight against metal theft and building public confidence in the authorities. In spite of this, BMRA continues to call for a complete overhaul of the current system of licensing and permitting for scrap metal dealers into one single system. Currently, operators must register with local authorities under the Scrap Metal Dealers Act, whilst environmental permits are issued by the Environment Agency. A single national list of legal yards would free time and money for enforcement and make it easier to identify those trading illegally. The U.K. metals recycling industry continues to work with government to address the issue of metal theft. It is imperative that the authorities act now and allow law-abiding businesses to get on with what they do best: driving up recycling and recovery rates and making a valuable contribution to the UK economy.

Ian Hetherington

The author is director general of the British Metals Recycling Association. That group can be contacted at 06


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glo bal market reports FERROUS SCRAP >> EUROPE/ITALY Ruggero Alocci, Alocci Rappresentanze Industriali The New Year started with positive signals for steelmakers and recyclers. Prices are rising even if the demand is more or less on the same level of December 2011. It seems that all the people inIt seems that the people volved in the steel chain are are involved in the working hard to restore the balance between profit and loss, beto the working fore the awaited storm. The global economy faces between and many uncertain factors in the , before the awaited . forthcoming future. The strong U.S. dollar is helping export demand from the EU countries, supporting the prices in the euro zone. Also, high oil prices provide further support to the steel prices. 2011 will be remembered positively for the strong volume of steel produced and raw materials traded, less positively for the net profit of our companies. Now we are ready for new challenges! Here in Italy, the first half of December 2011 has been characterized by a positive mill demand and price growth on an average of ¤20. During the second half of December 2011, several mills stopped production for the holidays, but also because of low scrap stocks and large product inventories. During this time, the mills continued to receive scrap and were always open to recover the stock. The end-of-year stoppage has been on the average of three weeks, including the first week of January. Arrivals by vessel during December were about 17,000 tonnes of scrap, about 100,000 tonnes of pig iron and 40,000 tonnes of HBI. Following are the December average prices reported by Italian steel association Federacciai (¤ per tonne delivered):

all steel chain hard restore balance profit loss storm

New arising E8 Shredded E40 Demolition scrap E3

Italy ¤330 ¤330 ¤305

France ¤330 ¤330 ¤300

Germany ¤330 ¤330 ¤300

Today the market seems to stay again in the hands of the sellers and prices are still under pressure for further increases. Pig iron is now quoted up to $500 per tonne CIF (cost, insurance and freight) for February shipment and around ¤400 per tonne delivered for end-users. HBI is offered around $450/480 per tonne CIF, depending on the origin. Large arrivals in January are awaited and have settled at the lowest prices of November and December 2011. Even if steel consumption remains conditioned by the slowdown of the economic growth, the raw materials prices are towing the steel prices at higher level.

Ruggero Alocci can be contacted at



Market Reports_jan-feb.indd 8

FERROUS SCRAP >> RUSSIA AND CIS Andrey Balashov, TYOR Commercial Inc. January is a dead month in Russia, with 11 Jan. being the first working day. In December 2011 and also today, we see markets are driven by export. Steel mills have not been high priced, at $290 to $300 per tonne. At the ports, collection is good and prices are high. The exchange rate of the ruble against the U.S. dollar has been weakening since December 2011. Now we are finding numbers are quite good. There was a resolution signed in December 2011 saying that exports from far eastern Russia have to be sent through one port. For the first quarter, traditionally, it is a quiet market. Maybe this year will be a better year because we see the U.S. market is very strong. The U.S. is supplying much scrap. We are quite hopeful that prices will not go down in Janu-

We are quite hopeful that prices will not go down in January or February. ary or February. The domestic market will have to support high prices. Winter is finally coming so collection will get slower and slower.

Andrey Balashov of TYOR Commercial can be contacted at

1/24/2012 3:06:12 PM

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glo bal market reports FERROUS, NONFERROUS SCRAP >> SCANDINAVIA Björn Grufman, M.V. Metallvärden We have just started up for the year, so we don’t yet know what is going to happen. There are a lot of expectations. A lot of people are waiting for their customers to call so they can start up their order books again. We have a very good business locally in Sweden. If you look at the ferrous side, Swedish Steel AB is running at 60% capacity. They are supporting the local suppliers. So far so good. We have not been reduced in our deliveries or anything. It continues business as usual. Price-wise, a lot of the materials have been reduced in price, but we had a peculiar increase recently. The situation doesn’t look very optimistic when you talk to the purchasing people of the various companies. They are a little bit scared that the sales departments are not reporting orders in their order books. We will see what happens. Winter has been slow to arrive. Mid-January is the first we have seen of snow. That is the latest day for winter to start in many, many years. That has made scrap collection at a high level for December in Sweden and in other countries as well. Our customers are not so optimistic on the steel side. The nonferrous side of the business is the part of our industry that increases during the winter because we go indoors and sort our copper, brass and aluminium, and we are [preparing] the deliveries we have not been able to do during the autumn. We see fairly good optimism from our customers; even the small nonferrous foundries are still running at 100%. And that is vital amidst having problems such as the automaker Saab going bankrupt. The same producers of spare parts for the auto industry have been able to get new customers other than Saab. All the foundries and everybody is almost running at 100% of their capacity, so that is good news. On the nonferrous side, I have seen no problems whatsoever. Until a couple of weeks before Christmas, we had good collections and good demand for our scrap. Everything is running very well. Finally on the stainless steel side, we see a reduction in demand. Both Sandvik and Outokumpu Stainless are reducing their production. They have commitments from earlier last year. They are telling us to wait until February. That is a little bit of a disappointment for us. But on the other hand, there is good demand from abroad. We can ship our containers to the Far East. It is a little bit of a disappointment on the stainless steel side and the steel side. The uncertainty in the industry has me puzzled. No one is wanting to buy a new scrap yard or a new shredder. The uncertainty is still there and it is very dependent on the euro, even though we don’t have the euro in our country. People don’t want to invest and no one knows what is going to happen. The situation around Saab also is very disturbing. We don’t know what will happen. They and their suppliers had been producing scrap for us, which they are not doing at the moment.

Björn Grufman can be contacted at



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NONFERROUS SCRAP >> WESTERN EUROPE Anton van Genuchten, Reukema Recycling We are seeing in general some markets have bottomed but are not getting up fast. They are still subdued. We also saw that December was a mild month in terms of arisings. There was not a lot of material that came out of the woodwork. There is more demand for material than there are offerings. That means a little bit of a fight for material. We are seeing that people are keeping stocks. Some material is now coming into the market. There are smaller inventories at mills. The market hasn’t really decided what it is going to do. In some cases the market is near its bottom. On the other hand there is not enough optimism to make it go higher. There is reluctance to sell material at lower levels than this. At the moment, the market is really at a standstill. I think the effect of the Chinese New Year will not be as big as in previous years. Other markets such as Italy are weak. There is a lot of uncertainty in the car industry. India is doing well and continuing to see demand. The growth rate in China may be coming down, while India is more stable. I see more continuity in India. There has been a huge pressure on ever-increasing quality requirements and that is really putting pressure on the industry.

Anton van Genuchten can be contacted at

1/24/2012 3:06:29 PM

glo bal market reports NONFERROUS SCRAP >> Brazil, South America Bianca Vicintin Abud, Tecal Metalur Group Although the economy grew in 2011—for example the automotive sector grew about 3.36% over 2010—this end of the year was more quiet than usual. I feel that all the industries—the automotive industry especially— are being cautious about 2012. Automakers are cutting their inventories. They are also looking at their payrolls. The main feeling I get from the industry is one of caution. Gross domestic product is only projected to grow 3.5%, which isn’t bad because the country was facing threats of inflation in 2011. That being said, it is still not a very overwhelming growth rate to speak of, but the pressure for scrap is still strong, however. Primary aluminium production failed last year. Two smelters shut down in 2011. There is even greater pressure for scrap metal in

We are net importers of aluminium and copper scrap. Hardly any aluminium scrap leaves the country because the prices internally are so high. We basically need to import to keep the pressure off. the country right now. The prices are unreasonably high for the medium scrap. Used beverage cans (UBCs) are being traded at 85% of the price of the high grades. Copper is being traded at 90% of the price of the high grade copper. I don’t see in the future that

Market Reports_jan-feb.indd 11

The worst thing is that in the near future, there are no investments for new smelters and the ones that are already here are shutting down. scrap metal prices will go lower in terms of percentages of high grades. In Brazil, we are net importers of aluminium and copper scrap. Hardly any aluminium scrap leaves the country because the prices internally are so high. We basically need to import in order to keep the pressure off of the prices. Novelis is a large importer of aluminium scrap in the country and so is our company, Tecal Metalur Group. Even the primary producers in Brazil import primary ingot because their production is lower and domestic demand for aluminium is very strong. A forecast released at the end of December 2011 shows aluminium consumption is supposed to grow around 9% per year until 2025. The cost of industry in Brazil is very high, so the smelters are having a hard time with their competitiveness. The two smelters that shut down did so because of the high industry cost. The Olympics, The World Cup, and the automotive industry, all of which require a lot of nonferrous metals and whose growth is proposed higher than growth domestic product, will put pressure on the price of scrap for a long time. I

don’t see metal leaving the country. Embraer is a large aircraft manufacturer that also imports aluminium to build its aircraft carriers. With all of these industries considered, it indicates there is plenty of demand internally and not enough metal. The worst thing is that in the near future there are no investments for new smelters and the ones that are already here are shutting down. Basically, I see that situation will remain for a while unless the government does something to create better conditions for the smelters to operate. Primary aluminium gets sold at a very high premium here. It is sold at around $300 per tonne. The billets are sold at an even higher premium than that. We import from other sources in order to keep the prices at a reasonable level. The year 2012 will be a difficult one for the industry. Even though the demand in the nonferrous industry is larger than GDP growth, I find that it is going to be a difficult year because financing is harder to get and it is hard to be competitive, especially when the scrap prices don’t fall accordingly to the LME.

Bianca Vicintin can be contacted at bianca@



1/24/2012 3:06:45 PM

glo bal market reports NONFERROUS SCRAP >> the netherlands, europe Boris Bronneberg, Source Montan Handels GmbH It may be a new year, but very little has changed over the last few weeks. The copper market is a bit tighter. It seems that consumers on the refining side are asking for more. It is not occurring as much on the high grade side. Throughout most markets, there is reluctance. The Chinese have backed off more than they had before. I don’t think it has to do with the New Year. There are rumors some of the bigger buyers have stopped taking in materials. I personally have not experienced that yet, but I have a very limited group of buyers. There is definitely something happening on that side of the pond with the reluctance to buy. It has nothing to do with our new year starting or theirs coming. It is more a matter of supply and demand—supply being fair and demand being very lacking on their markets. For the materials they are still buying, the spreads aren’t widened. They haven’t changed the spreads if they are still buying. It is the way they are doing it now and have been for a while. There is no demand for certain grades such as electric motors, which is odd. It is still a good quality material. They are taking some birch/cliff, but not in huge quantities. The Chinese have gone out of the market for a good many other items. It is very quiet on that side. The flow of scrap is good. The most frost we have had here is one or two degrees below freezing on one or two separate days, so there hasn’t been any issue with that. We have had some issues with water levels being too high for ships to pass bridges or damaging the dykes. It is only incidental and in very limited areas. The flow of steel and nonferrous scrap is the same. Demand on the stainless steel and zinc sides is not spectacular. Demand for primary aluminium is there. Secondary demand has been unchanged. All in all you could sum everything up as being pretty boring. The copper refineries are coming into the market now and buying more aggressively because they have run down their inventories. They are buying the higher refining grades and actively chasing that material at the moment. Others are likely to follow that trend soon in other sectors. For the time being the risk of being lulled into hibernation and missing the plot is quite fair. I have started taking positions, especially on items that aren’t at a very high risk such as nickel and copper, because I expect once the inventories are run down the buyers will become more aggressive. I think the outlook should be quite positive. Everybody has been quite negative about the economy in general. Everybody’s been very negative about the industrial outlook for the near future. Meanwhile, 2011 has shown record production in some industrial sectors such as automobiles. I think it is always quite easy to exaggerate. Economies have been bad since 2008. None of the large global economies have recovered since 2008. It is just a matter of trying to find a new starting point. Essentially, I am quite positive about the near future.

Boris Bronneberg can be contacted at



Market Reports_jan-feb.indd 12

NONFERROUS SCRAP >> CHINA TopRecycle, In early December, copper scrap prices rebounded slightly (regaining some of the value lost earlier in the fall), but then started drifting down again at the end of the month. In the earlier part of the month, market shipments were relatively high. Later in December, however, several smelters experienced financial constraints and scaled back their procurement efforts, causing scarce market transaction activity. In some cases, copper smelters are considering staying idle beyond the New Year break, creating another reason why scrap market transactions have been greatly reduced. In mid-December, warehouse inventories of aluminium ingot began to drop. According to traders in the market, a decline in aluminium prices stimulated some manufacturers to purchase large volumes of ingots. By the end of December, the buying enthusiasm diminished and ingot inventories began to rise again. Traders pointed to the debt crisis in Europe as one culprit. On the other hand, the long New Year holiday and related downtime taken for smelter furnace maintenance is likely to keep ingot inventories in check.

This report was prepared by Top Recycle, a market information company found at

1/24/2012 3:06:58 PM

glo bal market reports Nonferrous scrap >> MEXICO Alejandro Jaramillo, Recicladora Cachanilla Within domestic Mexico, where most of our sales are exports, we see a healthy demand. We also see a little bit of a disconnect between the prices consumers are wanting to pay and what processors are wanting to sell for. Domestic consumers report not being able to find as much metal as they wish and sometimes need to import scrap from the U.S. For a lot of processors, the export market has been a lot more attractive. Here in northern Mexico, [many of the locations] that we service are assembly plants, which keep a very robust schedule so we don’t see much of a slowdown over the holidays. The industry up here does not shut down for a long period of time. Any slowness from industrial tonnes have actually helped our volumes because some industries do make a point of trying to clean out their yards and their warehouses by the end of the year. We see a little spike of metal intake from industrial accounts. Overall, though, intake has been rather subdued. Aluminium, tense, and taint/tabor are all in demand. Other prime related scrap like basic aluminium 351 has seen a little bit of a slowdown in demand with consumers taking in limited amounts of metal. On the copper and brass side, we sell to a mill in the L.A. area. We mostly export those. We see a healthy demand in the U.S. In California, we saw a softening of prices in December 2011, maybe signaling not as much of a desire to buy during that month. I haven’t felt a slowdown in demand from China yet. In early December 2011, we kind of saw an increase in appetite of buyers trying to secure metal to arrive right after Chinese New Year or before, because they expect that after the Chinese New Year prices would start to improve. I was expecting kind of a slowdown in the export demand because of the general economic outlook. In October and November 2011, I had conversations with many overseas consumers that they were doing okay because they were trying to fill the orders they already had, but they were seeing a rather dull first quarter. But we haven’t seen that yet. We see prices for tense and taint/tabor and those kinds of items being rather robust. Also, I have read many articles in the press about the economy in South Korea not being as good, but when you look at the demand for metal, it seems to be there. I don’t know if it has to with a lot less metal being available because last year wasn’t really good for us as a company volume-wise. We contracted 3.5% when we had been growing by double digits. I have talked to four other processors in other Mexican states. Three of them have reported being down 30% in volume. One reported an increase in volume by 10% percent. I also have a friend in the L.A. area who [runs] a processing yard and he also reports minus 20 to 30%. If scrap volumes are down 20 to 25% percent, margins may be down, but you don’t really feel it because the availability of scrap is even worse.

Alejandro Jaramillo can be contacted at

Market Reports_jan-feb.indd 13

Nonferrous SCRAP >> CHINA David Chiao, Uni-All Group Ltd. The New Year and the Chinese New Year are only 13 working days apart. Usually in China, the Chinese New Year is a turning point. New economic and financial policies will be coming out after the Chinese New Year for the next fiscal year. There is a lot of doubt about the 2012 economy. Because of these issues, in January and probably most of February, China’s market will be kind of dull. There will not be as much activity as in the first two weeks of the year. The first quarter of this year is going to be slowing down and there will not be much material to trade. People are holding a lot of inventory, especially in stainless steel. There are imports for primary, but not secondary. More and more consumers are using primary metals and backing away from scrap. There is not much scrap around because manufacturing is slowing down or people are hanging on to their automobiles or appliances much longer. The last two quarters of 2011, the scenario was that when COMEX dropped below $320, all the buyers came out. It is a tug of war. And the consumers say if I can’t get enough scrap or secondary, I will buy primary. It is not just with copper, but also with aluminium and zinc. It is all the same thing.

David Chiao, Uni-All Group Ltd. can be contacted at



1/24/2012 3:07:12 PM

glo bal market reports NONFERROUS SCRAP >> NORTH AMERICA Steve Solomon, Solomon Metals Corp. We are dealing here in the Northeast U.S. with very mild weather, and that has brought out a great amount of scrap. The availability of scrap is not a problem. Selling it, especially with the combination of it being after the first of the year and with the Chinese preparing for their New Year, has made it tough to ship out scrap. There has also been a shortage of containers going back to China as well. There is interest from domestic mills, but the amount of mills that are left can only take in so much scrap at a time. Yes, they do want to buy scrap and there is a feel that in 2012, demand for metal will be strong, and the scrap will be there, we believe, to fill the demand. Carrying inventory becomes expensive and the large dealers are not going to be able to move it out as quickly as they would like, but they can get the sales month to month to match up with what they buy. We are seeing stainless steel prices start to pick up after the first of the year so we are project-

ing strong stainless demand in the first quarter. The feeling is now that stainless steel is moving up, people have in their mind, sort of a magical $1 per pound stainless steel. That is probably motivating people to hold on to their stainless. Spreads have been very steady over the last three or four months for #1 and #2 copper. There is consistency in buying and material is flowing. Even though prices are less than what they were six or eight months ago, we are still experiencing relatively historical high prices. At these levels, we don’t believe people are waiting for $4 copper and are very happy to be selling copper in the mid-$3 range. If it goes below that, there will be a tendency to start holding material. If the price goes up, metal will continue to flow. We foresee the demand for scrap aluminium throughout the first quarter increasing. We feel pretty comfortable that the secondary aluminium smelters that were not very aggressive toward the end

of 2011 will be more aggressive in at least the first half of 2012. Zinc and lead are relatively dead markets. Volumes for most people in the scrap industry for lead and zinc items are minimal at this point. Right now the action is in the copper, brass, stainless and aluminium items. We are coming off a strong fourth quarter relative to volume. We don’t see anything to slow down the flow of scrap going forward other than weather. We also see, this being an election year, that manufacturing is going to increase in the U.S. I believe that once the presidential race is in full force, there will be measures put into place to encourage bringing manufacturing back into the U.S. Manufacturers want to bring their manufacturing back here, it is just up to the government to give them the proper incentives. Right now we are bullish on the flow of scrap for the upcoming year.

Steve Solomon can be contacted at steve@

RECOVERED FIBRE>> NETHERLANDS, EUROPE John van den Heuvel, Peute Papier Recycling European mills have dropped their prices again because they have had other intake, want to ensure a better cash flow and build down their stocks of raw materials. In December 2011, exports to the Far East were pretty slow and are now improving again. Prices went up ¤10 to ¤15 to ¤20 depending on the quality. There is a lot of demand for OCC, mixed paper, newsprint, over issued maga-



Market Reports_jan-feb.indd 14

zines and over-issued news from China. Also for the middle grades such as sorted office paper, there is better demand. In January, deinking mills in Europe have dropped the price again ¤5 to ¤10 per tonne. Free mill delivered prices for deinking in early January was about ¤115. When I tell you we have OCC prices of ¤135 FAS (freight aboard ship) and ¤120 for mixed paper,

then our deinking price of ¤115 free mill delivered and a service cost of ¤20 to ¤25 per tonne becomes impossible because we all know what the incoming streams are costing right now. It means big losses. We see a massive export of huge volumes to the Far East.

John van den Heuvel of Peute Papier Recycling can be contacted at

1/24/2012 3:07:24 PM

glo bal market reports RECOVERED FIBRE, FERROUS >> EUROPE Dominique Maguin, La Compagnie des Matières Premières The market has been very foolish. As far as paper prices are concerned, we have had a large decrease in our prices in Europe. This is mainly due to the fact that the people who are running the mills are not anymore the producers, they are the finance people of the groups. These people want to reduce the prices and the inventories just to be able to have a better balance sheet for the end of the year. They decided to reduce the prices by ¤10, ¤20 or even ¤30 sometimes. Myself and my fellow merchants mentioned to the buyers of the mills that you should not do that because the market is not as you are expecting it to be. There is still a large demand coming from Asia, and very soon, you will miss out on the tonnage. A lot of people mentioned

A lot of mills in Europe are complaining, mainly in France, about the fact that we have merchants who are exporting to Asia, but we don’t have a choice. These mills are not playing a good game with us. to us that they will not have the right to pay the level of prices we have reached at the end of the year. So they started to reduce the prices in a very silly way. Our friends from Asia who eased up on buying to make sure shipment would not arrive during the Chinese New Year suddenly came back, and the prices are climbing again. Now we are in a very strange position because the prices are increasing very rapidly on the brown grades used by the packaging sector. It is very surprising for us to see that the European and French mills are not reacting yet. They all know they have to increase the price because if they compare the price they are paying to the price they are supposed to pay, the gap is around ¤40 per tonne now, which is a huge difference. European mills will have to increase their prices very soon. As of 5 Jan., we don’t have the prices for the European mills yet. A lot of mills in Europe are complaining, mainly in France, about the fact that we have merchants who are exporting to Asia, but we don’t have a choice. These mills are not playing a good game with us. They continue to push the price down, then push it back up again and they don’t see that this policy is foolish for the business. At the moment the market is a bit tight for deinking grades, and we will have some new prices in the next few days, but again, we don’t see any movement at the moment. The Asian buyers have not until now been very big buyers for these grades. At the moment, the European mills are playing the game and are maintaining a very low price.

Dominique Maguin can be contacted at

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RECOVERED FIBRE >> NORTH AMERICA Patty Norris, International Forest Products Corp. It is a little bit of a mixed market right now. Export pricing has jumped up as compared to domestic over the past few weeks. I am not sure if it is a push to get stuff ordered before the Chinese New Year hits. I think it is a little bit unexpected that the market would strengthen when there is so much generation, but that will fall off fairly quickly. I think pulp subs are just barely starting to get some life back into them. Everyone is watching to see what will happen there. Deinking grades jumped up in price. I think the first quarter is going to be sort of a time of transition. The economy is a little bit better, so it will be wait and see, I guess. Mills in the U.S. don’t carry a lot of inventory. They basically work on just-in-time deliveries. Mills, from historical standpoints, worry this time of year about low collections and they also worry about bad weather. Right now it has been a pretty mild winter across the whole United States. We will have to see what happens in the next few months. We are already into January with no real significant snowfalls anywhere. Collections are good right now, but won’t last for very long. I think we will see upticks in the market more so than staying stable or down for the first quarter.

Patty Norris can be contacted at PattyN@



1/24/2012 3:07:38 PM

newsworthy >> MUNICIPAL


Veolia to Sell US Operations

Van Dalen Opens New Shredder in the UK

During its annual Shareholders Day in December 2011, the French-based solid waste management firm Veolia Environnement Co. (VE), announced plans to sell its North American waste management and recycling division, Veolia Environmental Services North America Corp (VESNA). The decision is part of VE’s overall plan to divest around ¤5 billion ($6.7 billion) in assets and reduce the company’s financial debt to less than ¤12 billion ($16 billion) over the next two years, the company said. VE also plans to divest its U.K. water operations, reduce the company’s geographic footprint and narrow its business concentrations to water, environmental services and energy services. “The strategic plan that we are announcing today is going to drive a profound transformation of our company in order to adapt to the current economic and financial environment and to quickly position Veolia Environnement to capture the most attractive growth opportunities,” says Antoine Frérot, chairman and CEO.” It is an ambitious, but realistic plan. My management team and I are committed to this effort with conviction and confidence.” In a statement released following the announcement, Richard Burke, VESNA’s president and CEO, says the company will move forward with plans to find an appropriate buyer for Veolia ES Solid Waste. “These divestiture plans are in support of VE’s existing program to pay down debt and increase cash flow, which has been in place since 2009 and was expanded earlier this year,” says Burke. “Our solid waste business is self-sustaining, profitable and highly marketable, and its sale will make a significant contribution to the financial well-being of Veolia globally.”


China’s Government Takes Steps to Cut Paper Mill Capacity The China Ministry of Industry and Information Technology has announced that the country’s paper-making sector will eliminate at least 10 million tonnes of what it calls outdated capacity by 2015. The steps are designed to increase recycling capabilities and reduce pollution in China. In a report published by the state news agency Xinhua, the Ministry of Industry and Information Technology says its goal is to increase the recycling rate of recovered paper to 72.1 percent in five years from its current level of 71.5 percent. The Ministry says China’s paper-making industry faces resource, energy and environmental pressure, thus prompsting faster restructuring in the sector. The statement forecasts the country’s consumption of paper and paperboard will reach 114.7 million metric tonnes by 2015, and that paper consumption will see an annual 4.6-percent rise during the nation’s 12th Five-Year Plan period (2011-2015). Meanwhile, paper industry output is likely to hit 116 million tonnes, the statement adds.



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Netherlands-based metals recycling company Van Dalen Metals Recycling and Trading plans to significantly increase its operating capacity in the United Kingdom by investing £6 million ($9.3 million) in a shredder at its Sheffield, U.K., facility. The investment also has been used to build a new nonferrous facility to serve the company’s U.K. operations, to expand its facilities in the southeast of England and to create new roles in purchasing and operations. Van Dalen, in business for nearly 65 years, currently operates 17 shredding and baling sites in the U.K. and in Northern Europe. According to Van Dalen, the investment follows the company’s success in 2011, in which total capacity increased to 500,000 tonnes per year. The company says it hopes to double that figure during the next three years through a mixture of operational investments and strategic partnerships. Overall, Van Dalen has seen its total annual production and trade grow to about 1.6 million tonnes per year, the company says. Tom Bird, Van Dalen UK’s managing director, says, “Although market conditions have been challenging, we’ve had a really positive 12 months. Going forward, the shredder will transform our Sheffield facility, making it a state-of-the-art metal recycling center.”

1/24/2012 3:08:17 PM

RTGE1202p17riversideproducts.indd 1

1/19/2012 11:30:50 AM

newsworthy >> CONFERENCES & EVENTS


Speakers Confirmed for Paper & Plastics Recycling Conference Middle East

Scholz Group Anticipates Active 2012

Several industry leaders have been lined up as speakers for the inaugural Paper & Plastics Recycling Conference Middle East. The event will be held 27-28 Feb. at the JW Marriott hotel in Dubai, UAE and is hosted by U.S.-based Recycling Today Media Group and Dubai-based Media Fusion, the publisher of Waste & Recycling Middle East magazine. The first opening keynote program will feature speakers from the Office of the Waste Management Director of Dubai, providing a comprehensive look at the recycling programs developed to serve the community. On 28 Feb., the keynote will consist of a special presentation from the Centre of Waste Management, Abu Dhabi, examining the development of recycling policies and practices in that municipality. Moderated conference sessions cover a variety of topics: current issues in paper and plastics recycling in the Middle East, equipment and technology updates, and information on global supply and demand trends with regard to both recovered paper and plastics. The lineup of speakers for these sessions includes Mohammed Al-Mowkley, general manager of OPI, Obeikan Paper Industries; Atul Kaul of Waraq Paper; Jonathan Clarke, Country Manager UK, TITECH Visionsort Ltd.; Ake Anderzen, KALMEC; and Niels van Binsbergen, managing director, ACN Europe. In addition, a panel of large-volume plastics recyclers will offer their insights on the state of the global plastics recycling industry in “Global Recovered Plastics Supply and Demand Trends,” featuring Surenda Borad, CEO, Gemini Corp., and a representative from ACN Europe. Attendees will also learn about the future of key paper grades in a session featuring prominent merchants and traders from around the world, including Ranjit Baxi, CEO of J&H Sales International Ltd., and Helmut Berger, general manager, Abu Dhabi National Paper Mills. A session on residential collection of recyclables in the Middle East will feature Fredereic Vigier, CEO of Trashco. For more information, visit

Germany-based scrap recycling firm Scholz Group AG forecasts solid demand for scrap metals in 2012. “Despite the economic slowdown in the second half of 2011, we have been expanding our market position successfully,” says Oliver Scholz, director of Scholz AG. “Prices for steel and industrial metals are in volatile markets [but] on a solid level. We expect strong demand in the beginning of the year and a generally favorable market environment.” Parag-Johannes Bhatt, CFO of Scholz AG says the company will continue with its optimization strategy. “Provided capital markets are stable, we are considering issuing a corporate bond in 2012, thus diversifying our financial structure,” he adds. Meanwhile, Scholz believes urban mining will be a growth area in 2012. “Urban mining means the systematic recovery of raw materials from residential and industrial waste,” says Scholz, citing environmental and sustainability factors. “A metric tonne of steel that is produced from scrap saves about 1.5 metric tonnes of iron ore; 0.65 metric tonne of coal; and 0.3 metric tonne of limestone. Plus, it avoids approximately 1 metric tonne of CO2 emissions.” According to a company statement, in 2012, Scholz Group AG also plans to continue its investments in such markets as the processing of plastic scrap.


Viridor Acquires Waste Logistics Firm The waste and recycling firm Viridor, based in the United Kingdom, has acquired JWS Churngold Ltd. for £14.25 million ($22.3 million). The acquired company is based in Lancashire, U.K. According to Viridor, the acquisition is in line with its strategy to expand in the areas of contracts and recycling. JWS Churngold is a waste logistics and transport services provider under contract with Global Renewables Lancashire Operations Ltd., the contractor for the Lancashire waste management PFI (Private Finance Initiative). The company transports material derived from the Lancashire and Blackpool local authorities’ transfer stations to Global Renewables’ PFI treatment facilities in the U.K. for recycling or disposal. Colin Drummond, chief executive of Viridor, says, “We welcome our new colleagues in the North West. JWS Churngold’s operations in Lancashire fit well with our existing and planned operations in the northwest, including those associated with the Viridor/Laing Greater Manchester waste PFI. The acquisition is expected to be earnings enhancing in its first full year.”



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1/24/2012 3:08:47 PM

Newsworthy >>PLASTICS

Recovinyl Reports Steady Growth in PVC Recycling According to the Brussels-based firm Recovinyl, the recycling of polyvinyl chloride (PVC) in the U.K. continues to increase and is forecast to reach 50,000 tonnes by the end of 2011. Jane Gardner of Axion Consulting, Recovinyl’s agent in the U.K., says more than 49,300 tonnes of post-consumer PVC were recycled in the U.K. in 2010 through 26 specialist recyclers. The figures were presented during the November 2011, British Plastics Federation (BPF) PVC recycling seminar, during which Gardner said Recovinyl was positioned to build on its Vinyl 2010 achievements and to establish 2020 targets under its new Vinyl Plus voluntary commitment. The updated targets include 800,000 tonnes of PVC to be reused throughout Europe by 2020, with 700,000 tonnes mechanically recycled and the rest processed using new technologies for more difficult-to-recycle or contaminated PVC. “While these targets are ambitious, Recovinyl has demonstrated proven success under Vinyl 2010, particularly in the U.K., which, as a star performer, has contributed to 20 percent of overall EU PVC recycling so far,” Gardner said. In 2010, 254,000 tonnes of PVC were recycled in Europe through Recovinyl — exceeding its original target amount of 200,000 tonnes. Moving forward, Gardner said there would be a shift toward a “pull” market involving the existing recycling network and convertors, who will be encouraged to increase their use of recyclate in products. This is already happening with recycled PVC-U being used in new window profiles, reinforcements and fascia products, she continued. There will also be greater focus on the quality of recyclate produced and a move toward a certification process, Gardner said.


BMRA Applauds UK Environmental Agency’s Anti-Theft Fund The British Metals Recycling Association (BMRA) is applauding an announcement by the United Kingdom’s Environment Agency to authorize a £5 million ($7.8 million) fund to assist in tackling illegal waste operations. “BMRA has been calling for the Agency to take urgent action against the many hundreds of illegal sites handling scrap metal for some time,” says Ian Hetherington, BMRA director general. “They blight the metals recycling industry’s reputation, make a mockery of environmental protection laws and give illegal operators an unfair commercial advantage as well as providing a ready outlet for stolen metal,” he adds. “BMRA vigorously supports a nationally coordinated approach to metal theft from the police and the Environment Agency. However, there is concern that the Environment Agency’s initiative has not been properly joined-up with the announcement of a separate £5 million metal theft taskforce made by the Chancellor of the Exchequer in his Autumn Statement,” Hetherington remarks.

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Novelis Expands Recycling Facility in Germany Atlanta-based Novelis has expanded the aluminium recycling facility at its Aluminium Norf GmbH (Alunorf) plant in Neuss, Germany. The company invested ¤14 million ($18.9 million) on the project. The expansion included Alunorf’s twin-chamber melting furnace and processing plant that is designed to recycle 50,000 tonnes of aluminium scrap per year. The processed material will be used to feed Alunorf’s Neuss rolling mills. Novelis’ recycling center will process aluminium manufacturing scrap from its customers throughout Europe. It is the second phase of a recycling expansion project at Alunorf that began in 2009 with the construction of a similar recycling facility funded by Hydro. With the completion of the newest expansion, the combined capacity of the plant’s integrated recycling operations will be 100,000 tonnes of aluminium per year. “Today’s event marks another important milestone in Novelis’ ongoing commitment to recycling and sustainable manufacturing,” says Tadeu Nardocci, senior vice president of Novelis and president of Novelis Europe. “This new facility brings benefits for the environment, our customers, our employees and the economy of the region. It also helps ensure a steady source of metal for our rolling operations here at Norf, while reducing our carbon footprint and that of our customers.”



1/24/2012 3:09:04 PM

newsworthy >> METALS


Global Steel Dust to Build Thailand Plant

CellMark Acquires Alcan International Network

Global Steel Dust (Thailand) Ltd., a wholly owned subsidiary of Global Steel Dust Ltd. (GSD), based in Switzerland, has announced plans to build Thailand’s first steel dust recycling plant. GSD recycles zinc from electric arc furnace (EAF) steel dust. The company expects the plant to have the capacity to recycle up to 110,000 tonnes of steel dust per year and produce up to 40,000 tonnes of crude (Waelz process) zinc oxide per year. Construction is slated for completion within a year. According to GSD, EAF dust volume accounts for about 2 percent of the total volume of steel produced almost all steel produced in Thailand uses the EAF production method. During 2010, Thai EAF steel mills produced more than 4 million tonnes of steel, which generated about 90,000 tonnes of steel dust. Currently, many steel mills in Thailand are landfilling or storing their EAF dust. “Demand for steel dust recovery and recycling is currently high and will be increasing as the steel industry in Thailand continues to grow,” says Russ Robinson, CEO of GSD. Robinson says the plant has been designed with the ability to double the company’s recycling capacity in order to grow with the steel industry. “We also will not have to import any steel dust from other countries in order to make our project a success,” Robinson continues. GSD also has partnered with a Saudi Arabian company to build a steel dust recycling plant in the Dammam/Jubail area of Saudi Arabia. Construction is expected to begin in the first quarter of 2012.

>> nonmetallics

Blue Diamond Signs JV with Insigma, ECO BDT for Tyre Recycling Project Blue Diamond Technologies, based in Winnipeg, Manitoba, Canada, and Insigma Technology Co. have formed a joint venture to build and operate up to 13 facilities in China to produce reusable crumb rubber, clean steel and fibre from used vehicle tyres. Blue Diamond is providing its process of breaking down used tyres without need for what it calls harmful environmental emissions. The joint venture comprises initial funding of $8 million and exclusive rights for the use of Blue Diamond Technologies’ process in China. The first facility, to be located in Hangzhou, China, is expected to start operations by the fourth quarter of 2012. Blue Diamond says once the first facility becomes operational, the joint venture partners anticipate the establishment of an additional 12 facilities in other industrial regions of China. ECO BDT is expected to provide turnkey construction on all the recycling projects in China.



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CellMark, a marketer of pulp and paper based in Gothenburg, Sweden, has acquired Alcan International Network (AIN) from Constellium. AIN is a global supply chain services company that provides links between manufacturers and customers in chemicals, minerals and raw materials and equipment for the foundry industry. Constellium was owned by affiliates of Apollo Global Management, Rio Tinto and the French sovereign investment fund Fonds Stratégique d ‘Investissement. CellMark says in a news release, the acquisition reflects its plans to diversify its global supply chain capabilities, creative trade finance solutions and risk management to products outside of the pulp and paper industry. “We are very pleased to partner with AIN, an excellent company of experienced professionals with in-depth understanding of international markets,” says Hans Kling, CellMark’s CEO. “From an operational perspective, the organisations have a great deal in common and we will leverage these commonalities to ensure that employees from both companies can exploit the opportunities the merger presents.” CellMark further states in a news release that the partnership will benefit AIN and its business partners significantly. “We look forward to leveraging CellMark’s financial strength and willingness to invest in strategic opportunities,” says Hugo Galletta, head of AIN’s chemical division. “Our people expect to team very closely with their new CellMark colleagues to develop creative solutions that help to improve the service we give to all our partners: AIN’s, CellMark’s, and those we cultivate together.”

1/24/2012 3:09:24 PM


>> municipal

WRAP Touts Electronics Reuse Opportunities

UK Recycler Acquired by Viridor WM Ltd.

A recent report by the U.K.-based Waste and Resources Action Programme (WRAP), finds that close to 25 percent of the waste electrical and electronic equipment (WEEE) disposed of each year could be reused, generating more than £220 million ($343 million) in the process. The study examined the potential reuse value for items disposed of by consumers. The report concludes that there is a potential to create high resale value from repair, refurbishment and open market resale. Lucy Keal, WRAP project manager for products and materials, says, “We found that 23 percent of all the WEEE collected at recycling centers could have been either sold or resold after repair and refurbishment. “This in turn could generate gross revenues of more than £220 million a year — and even after taking account of the costs involved in acquiring the waste items and repairing or refurbishing them, this could still realize profits of more than £100 million,” she adds. “As you’d expect, the resale values vary depending on the categories,” Keal continues. “Smaller items typically have lower reuse potential, but the proportion that is reusable has a higher value than other categories. “Large domestic appliances such as washing machines offer good potential value, from reuse, use of parts or from scrap, and make up 61 percent of the resale value from the bulky waste collections. Fridges and freezers offer particularly good reuse potential if they’re still working.” More information is available at HWRC_summary_report.2a9f20d1.11560.pdf.

>> scrap industry news

Stena Expands Refrigerator Recycling Facility in Germany Stena Technoworld, a part of Sweden-based Stena Metall Group, has completed the expansion of its refrigerator recycling facility in Lauingen, Germany. The facility is able to process more than 360,000 refrigerators per year. Stena Technoworld, a part of Stena Electronics Recycling, offers electronics recycling services throughout Europe. In addition to Sweden, the company has operations in Denmark, Norway, Finland, Poland, Germany, Austria, the Czech Republic, Romania and Italy. “We offer customers the best technology available and achieve a high level of material recovery,” says Staffan Johansson, CEO of Stena Technoworld GmbH. “Environmentally harmful Freon gas is taken care of in an extremely secure closed system,” he adds. The newly completed Lauingen facility joins three other Stena Technoworld facilities in Germany, in Wangerland, Langhagen and Baumholder. “This is Europe’s most modern facility for refrigerator recycling,” says Johansson. “With the best technology available, we can neutralize environmentally harmful Freon gas in a closed system. More than 97 percent of the material in refrigerators is recycled; the rest is refined into fuel.”

Newsworthy_jan-feb.indd 21

Viridor Waste Management Ltd., a subsidiary of Pennon Group Plc, has acquired Community Waste Recycling Ltd., based in Milton Keynes, U.K., for £15.75 million ($27.5 million). According to Pennon, the acquisition is in line with Viridor’s strategy of expanding its U.K. waste management activities. Community Waste, which specializes in paper recycling services, operates a MRF in Milton Keynes that processes recyclables from local municipalities; a MRF in Enstone, Oxfordshire, U.K, which processes both municipal and commercially generated recyclables; and a brokerage division operating in London. The company also has a number of medium- and long-term municipal contracts. The company currently processes around 90,000 tonnes of recyclables per year. “The U.K.’s waste strategy demands ever-increasing levels of recycling, while the world has an increasing demand for raw materials including recyclate,” says Colin Drummond, CEO of Viridor. “Recycling is a fast growing part of Viridor’s business and accounted for around 31 percent of the company’s profit contribution in the first half of financial year 2011/2012. Community Waste’s operations fit well with our existing operations and strategy in the southeast, and also provide additional volumes for our international trading arm.” Graham Warren, Viridor’s southeast regional director, says, “There is a vital need to continue delivering higher recycling and resource management levels across the U.K. Community Waste Recycling has an excellent track record in providing essential recycling services to businesses and councils in its operating areas.”



1/24/2012 3:09:35 PM

cover story by brian taylor

turning up the



urrently among the five largest post-consumer materials recyclers in the United Kingdom, Taunton, England-based Viridor recently has been through a dramatic growth spurt to get there. The company’s humble origins trace back to 1956, when a company called Haul Waste Limited began as a liquid waste haulage business in the southwest of England, according to current Viridor Resource Management (VRM) Director Herman van der Meij. Acquired by the Exeter, U.K.-based Pennon Group in 1993 (and later renamed Viridor Waste Management Limited), today’s Viridor operates several dozen recycling plants and waste transfer stations throughout the United Kingdom.


After its single-location, niche origins in 1956, Haul Waste Limited eventually “started moving into wider waste collection and disposal operations, and subsequently into recycling and power generation,” remarks van der Meij. After that firm’s acquisition by the Pennon Group and subsequent renaming to Viridor, “through growth and acquisition, Viridor has developed into one of the U.K.’s leading recycling, renewable power and waste management companies,” says van der Meij. “I joined the company when Viridor acquired Grosvenor Waste Management in 2007,” he continues. Van


der Meij adds that Pennon Group describes the current mission of VRM as “selling quality recyclates to markets in the U.K. and across the globe.” Van der Meij himself has recycling roots that trace to his childhood. “Recycling is in my blood, being a fourthgeneration family member from a Dutch paper, plastics and metals merchant trading business.” A timeline of Pennon Group and Viridor growth and investments (at lends a description to the hectic pace of activity that van der Meij has become accustomed to at Viridor. “Viridor is now at the forefront of investment in vital infrastructure delivering high levels of recycling and recovery, and essential waste treatment services for a broad range of public and


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The U.K.’s Viridor has grown through acquisition and greatly increased the volume of materials it recycles each year.

private sector customers,” says van der Meij, adding, “In 2010 we were pleased to be named as U.K. Recycling and Waste Management Business of the Year.” The company has been structured, says van der Meij, to handle a wide range of materials safely and responsibly. “We provide the full range of recycling and waste services including advanced materials recycling, glass and plastics reprocessing, composting, mechanical and biological treatment, waste-to-energy, transport, collection and safe and efficient landfill disposal.” Viridor takes considerable measures to ensure the safety of its more than 3,000 employees, says van der Meij. “Health and safety is of crucial importance to Viridor and the [recycling] sector,” he comments. “The more times you handle and sort any

Viridor At a Glance Officers: Herman van der Meij, Director of Viridor Resource Management; Colin Drummond, CEO of Viridor Limited Location: Headquarters, Taunton, Somerset, England; 26 material recovery facilities in the United Kingdom; 19 organics recycling facilities and 80 residential drop-off sites in the United Kingdom; 240 facilities in total van der Meij

No. of Employees: 3,000-plus

Services Provided: Residential, commercial and industrial recycling collection and processing services, with the most commonly handled materials being paper, cardboard, plastics, glass, metals and obsolete electronics or WEEE (Waste Electronic and Electrical Equipment)

1/24/2012 3:15:43 PM

cover story

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1/24/2012 3:15:54 PM

cover story material, whether at kerbside or inside a building, the more attention you have to pay to the systems and kit involved to ensure the safety of those involved. Any process with vehicles, machinery and people involved carries a risk, and it is our responsibility to effectively manage and reduce that risk. Nothing is more important than ensuring that our employees arrive at, and leave, their workplace in a safe and healthy way.”


Viridor’s fleet of collection trucks and network of recycling plants spreads throughout England and into Scotland and Wales. It operates 26 material recovery facilities (MRFs), 19 organics recycling facilities and more than 80 residential recycling drop-off sites. “Viridor also produced 750,000 megawatt hours of renewable power at 37 operating renewable power plants, including three energy-from-waste facilities,” adds van der Meij. The sizable network of trucks and facilities accumulated by Viridor—often through acquisition—has resulted in a parallel growth in secondary commodity tonnages handled. “In 2010, VRM traded 1.7 million tonnes of material,” notes van der Meij. “Viridor as a whole recycled 2.4 million tonnes, including organics and aggregates.” The company sources its material in a variety of ways, with a key source

of supply being residential material resulting from contracts with government jurisdictions. “We buy and collect from customers across the U.K., ranging from 25-year integrated contracts with the public sector through to spot market deals for specific materials,” says van der Meij. The Viridor website (www.viridor. contains several press releases announcing long-term agreements with town councils, such as those concluded with the South London Waste Partnership in December of 2011 and one reached with Glasgow City Council earlier that same month. Such arrangements provide some of the reasons van der Meij is pleased with the company’s chances of maintaining forward momentum. “Viridor remains ambitious to help its customers from both public and private sectors recycle and recover more,” van der Meij comments. “Last year, 46% of our profits came from those parts of the main business. Our services and the support that VRM provides are set up to [help us to further] build on that over the next few years,” he adds. “The development, implementation and management of our long-term marketing and sales strategy has been pretty unique,” says van der Meij. “This helps us manage the risks, quality, finance and logistics involved in placing our products in some extremely demanding U.K. and international mar-

ON THE LIST According to a list prepared by Catalyst Corporate Finance for publication in June 2011, the Viridor Waste Management Ltd. subsidiary of the Pennon Group ranks as the fourth-largest waste management and recycling company in the United Kingdom. The list and accompanying text was published in both the CIWM (Chartered Institutions of Waste Management) Journal in June 2011 and then the Show Guide for the 2011 Recycling & Waste Management Exhibition (RWM), held in Birmingham, U.K., in mid-September. The list creators and article’s authors, Mark Wilson and Robert Pearce of Catalyst, say of Viridor, that it grew its revenue by 20% in 2010 and that “the growth is largely attributed to the company’s fast-growing recycling activities, which have taken off following significant investment and important contract wins.” Since the article was first published, Viridor has continued to announce additional large collection contracts, additional acquisitions and further investments into its recycling collection and processing infrastructure.



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kets, giving our customers and buyers the assurance they require,” he adds. Such arrangements also can present challenges. Although known as the United Kingdom, van der Meij says that in the three parts of the U.K. it operates (England, Scotland and Wales), Viridor encounters different government philosophies. “We have some interesting differences in the approaches of the U.K. countries with regard to waste and recycling,” he comments. “The coming years will tell as to whether the less prescriptive approach of England will result in higher recycling and recovery levels than the different regimes in Wales and Scotland.” Whatever trends affect the collection of residential material in the U.K., van der Meij says Viridor is positioned to play a large role. “Viridor is now at the forefront of investment in vital infrastructure delivering high levels of recycling and recovery, and essential waste treatment services for a broad range of public and private sector customers,” he comments.


Having spent most of his adult life in the recycling industry, van der Meij is keenly aware of the fluctuating value of secondary commodities. As well, the economy in Western Europe has been providing a wider challenge to recyclers there. “The economic climate remains challenging,” says van der Meij. Nonetheless, the VRM director sees several reasons to be optimistic about the future of the company and the overall recycling sector, including the ongoing global demand for secondary commodities. “As we recently saw with the birth of the 7 billionth human, the world population keeps growing and the emerging countries and markets create strong demands for raw materials,” he notes. “We have to adapt and realize we need to be ahead of these changes by investing in people and technology to improve the recycling and recovery industry we are in,” adds van der Meij. The “End of Waste” regulations or criteria in the European Union that have begun to more clearly identify

1/24/2012 3:16:06 PM

COVER STORY scrap materials as commodities rather than waste provide another reason for optimism, although van der Meij notes that recyclers who sort and process commingled materials have a stake in how those criteria are defined. “The End of Waste Regulations and associated criteria for paper and glass (and other materials), and the subsequent verification requirements, will affect us all in our sector,” van der Meij comments. “It’s important that these help, rather than hinder, our industry to recycle more of these materials and that they are based on sound science and a practicable approach.” Regarding these criteria and the EU’s overall Waste Framework Directive, van der Meij says there are several issues of importance to Viridor. “These include a hoped-for pragmatic outcome on the commingled versus pre-segregated collections position in the U.K., how much benefit will come from the revised Duty of Care to help improve C&I (commercial and industrial) recycling and recovery rates, extended producer responsibility, biowaste measures and many others.” By no means are Viridor’s leaders waiting passively to see where events will lead, says van der Meij. “To me, lessons learnt in life and business are more important than any formal education,” he comments. “The most important thing is a keen awareness of how our business and the markets that we serve operate, from bottom to top.” Customer service is another important factor, adds van der Meij. “Equally important is recognizing your customers’ requirements and being able to meet and exceed these through thick and thin. Working with each other instead of against each other will already be a huge step in the right direction to make our industry even more a professional one,” he remarks. As well, Viridor relies on its people, says van der Meij. “Coming from a strong family business background, I believe that good teamwork is a vital element to ensure you can maintain a position as a market frontrunner, which we as a company aim to be.” Based on these fundamental cornerstones, van der Meij is optimistic

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that Viridor can continue to grow and solidify its place in the U.K. recycling market. “My philosophy for business remains simple—stay loyal to your customers, focusing on maximizing recycling opportunities, while remaining open to how our markets are oper-

ating at any given time,” he states. “My grandfather and father always said ‘Always keep your promise, as what comes around goes around.’” RTGE The author, editorial director of Recycling Today Global Edition, can be reached at

SSI Shredding Systems, Inc. | | Tel: (503) 682-3633 Shredding everything including the kitchen sink at



1/24/2012 3:16:19 PM

commodity focus by brian taylor

ment community was heartened in mid-January when positive statistics were released by the nation’s Statistics Bureau. Although the figures showed a slight GDP growth rate slowdown (to 8.9%) in the final quarter of 2011, it was not as big as many economists had feared. Fund managers, steel producers and scrap traders, processors and generators all through the supply chain will probably benefit if the last quarter of 2011 in China indicates a “soft landing” is underway in that nation as opposed to a severe economic slowdown.




Statistics from 2011 largely point to a healthy level of steel production and ferrous scrap consumption.


he global economy experienced its twists and turns in 2011, but through it all, steelmakers in most parts of the world continued to churn out product and melt ferrous scrap. As 2012 gets underway, recyclers are attuned to economic and steel industry-specific forecasts as they try to put together a budget in an economic climate that is far from predictable. In Europe, the fiscal position of several national economies remains a foremost source of concern. Whether


the steel mills of Turkey and the Middle East will have a robust end market for structural steel and reinforcing bar also is a concern to some forecasters. In the United States, presidential election years often bring about uncertainty (and distractions), while most forecasters remain unconvinced that the construction sector will rebound in 2012. And no look at the ferrous sector can be complete without considering China, that nation that produces fully half of the world’s steel. The invest-


Commodity Focus Ferrous.indd 26

At the Bureau of International Recycling (BIR) 2011 Autumn RoundTables in late October in Munich, that organisation’s statistics advisor to the Ferrous Division, Rolf Willeke, gave an overview of global steel production in the first half of 2011. “After setting a new record of around 1.4 billion tonnes in 2010, global steel production continued its climb in the first half of 2011,” Willeke noted. “In comparison to the JanuaryJune period last year, world steel production increased in total by 7.6% to 757.8 million tonnes,” he continued, adding that the biggest percentage increase was recorded by Turkey with growth of 21.3% (to 16.4 million tonnes produced). The world’s largest steel producer, China, also recorded “positive results,” said Willeke, with a 9.6% increase to 350.5 million tonnes produced in the first half of 2011. More modest growth was seen in the European Union (4.1% to 93.4 million tonnes), the United States (4.3% to 42.7 million tonnes) and in Russia (5.3% to 34.6 million tonnes). “In our half-yearly report, it is also worthy to note the increases in steel scrap usage in China (up 14.7% to 49.8 million tonnes),” added Willeke.

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commodity focus “The higher scrap consumption in China together with a decline in imports could be a first effect of the country’s new Five-Year Plan, which calls for the use of more scrap, and especially from domestic collections,” he added. Willeke also told BIR attendees that in the first half of 2011, global trade in ferrous scrap was “particularly influenced by a 13.5% increase in Turkey’s overseas purchases to 9.98 million tonnes, thus enabling the country to reinforce its position as the world’s leading importer [of ferrous scrap].” “As for the main four steel scrap exporters, there were increases in the USA’s and Russia’s overseas deliveries but a decline in shipments from the EU and Japan,” said Willeke. “Turkey is the biggest buyer of EU steel scrap, but these deliveries recorded a small decline of 0.1% to 4.95 million tonnes” in the first half of 2011, Willeke noted. “The EU’s total exports—which have grown significantly in the last five years—fell 5.8% to 9.08 million tonnes in the first half of 2011, possibly because the Euro vs. U.S. dollar exchange rate movements did not favor Europe’s export position.”

November 2011 declined to 73.4%,” according the World Steel Association. “This is its lowest point for two years.” Despite the slow November, with 11 months of figures compiled, steel production in China in 2011 has to-

taled 631 million tonnes, a nearly 10% increase over production in 2010. In major scrap export destination Turkey, steel production in the first 11 months of 2011 was an impressive 17.6% higher year-to-date compared with 2010. Some 3.6 million tonnes




In the second half of 2011, the unrelenting growth in steel output demonstrated some signs of abating. Globally, figures from the World Steel Association (www.worldsteel. org) demonstrated a significant decline in steel production in November 2011 compared with the month before. While the world’s steel producers pumped out nearly 124 million tonnes of steel in October, in November that figure fell to just 115.5 million tonnes. The biggest decline was in the biggest market, as Chinese production slipped by 4.7 million tonnes, accounting for about half of the global decrease. European steelmakers also produced about 1 million tonnes less, while steel output in the United States was down by less than 120,000 tonnes. “The world crude steel capacity utilisation rate of the 64 countries in

Commodity Focus Ferrous.indd 27

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commodity focus more steel was produced in the 2011 time frame compared with the year before. On the demand side in North America, mills in the United States produced at 74% of capacity in early December 2011, according to the

American Iron and Steel Institute (AISI, That level is above the 2010 same-week rate of 68% but down slightly from the previous week of this year. With 2011 nearly complete, steelmakers in the United States had produced nearly

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90 million tonnes of steel, showing a 7.5% increase from the 83.6 million tonnes that had been produced in the first 11-and-a-half months of 2010, according to AISI.


The relative stability in the ferrous scrap market in 2011 took place against a backdrop of comparative price turmoil in some other recycling sectors, such as red metals and recovered fibre markets. In his ferrous scrap report to Recycling Today Global Edition for its September/October 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 also cited a circumstance that had been indicated throughout the year by ferrous processors in both Europe and North America. “Supply is very tight,” he commented. “General arisings in the yards and from other sources have tightened up.” Throughout the year, stable pricing seemed to indicate that the reduced supply (sub-2007 levels) was a fairly even match for steel mill production capacities in the 73% range in North America and 78% as a global average. Speaking to attendees at the 2011 BIR Autumn Round-Tables, 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.” Fellow BIR Round-Tables speaker Karl-Ulrich Köhler, managing director and CEO of Tata Steel Europe,

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commodity focus predicted that ferrous scrap will remain “structurally scarce,” and predicted that price levels will stay strong but with some regional volatility. Also at the same Bureau of International Recycling 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,

INCREDIBLE HULKS Although China’s government and customs officers have been shoring up their defenses to prevent obsolete computers and television sets from being imported, an exception is being made for end-of-life vehicles. At a session at the World Recycling Forum, held in Hong Kong in mid-November 2011, Scott Horne, general counsel of ISRI (the Institute of Scrap Recycling Industries Inc.), said a Chinese government official in Beijing had conveyed to him that shredder operators in China’s Jiangsu province had been granted permission to import flattened auto hulks. The policy change was confirmed by scrap recycler and equipment manufacturer Scott Newell of The Shredder Co., Canutillo, Texas, U.S., and scrap recycler Michel Dubois of Luxembourg-based Recylux Group, each of whom told attendees they had seen evidence of the new policy. Dubois told attendees at a Forum session that in Europe he has witnessed trailer loads of flattened autos “being loaded into bulk vessels and shipped directly to China.” Dubois added, “It is being imported as iron scrap; this is a fresh idea.” Newell commented that four different shredder locations in Jiangsu province each had received licenses to import up to 400,000 tonnes per year of auto hulks. “I think it’s a mistake to think this is not going to happen,” he stated.

Commodity Focus Ferrous.indd 29

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.” RTGE The author is editorial director of Recycling Today Global Edition and can be contacted at btaylor@

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P R O C E S S I N G poin t edited by brian taylor guidance to minimize side-to-side “scrubbing” of the baler floor and the liner on the underside of the ram. With two-rams the ram face pressure should be close to 200 psi. A lot of models in the 150-psi range just can’t get the necessary export density. Depth of ram penetration is also a factor with two-rams in order to get full pressure on the material early in the formation of the bale. Penetration is not a factor with single-rams, as the extrusion style gets full pressure on every stroke. RTGE: If recyclers also anticipate baling old corrugated containers (OCC) or plastic in the same machine, how does that change their requirements? SC: When OCC is in the mix in any appreciable amount, the customer must choose a model with a large feed opening.

For Your Consideration Veteran equipment dealer Steve Colton urges recyclers to consider a baler purchase from many different angles.


n his role as owner of Colton Equipment, Temecula, Calif., U.S., Steve Colton has helped recyclers through a range of steps as they outfit their plants. These steps include researching and shopping for equipment followed by installation, training, maintenance and repair of purchased equipment. In a “greatest hits” interview conducted several years ago with Recycling Today Global Edition Editorial Director Brian Taylor, Colton offers his comments on what recyclers need to consider before they make a major capital investment in new baling machinery.


Recycling Today Global Edition: When baling light metals, such as used beverage cans (UBCs) or aluminium sheet, what are the most important qualities for a baler to have? Steve Colton: With a single-ram baler, ram face slot covers can be helpful in preventing thin pieces from slipping through the ram face into the auto-tie needle “pockets.” With either single- or two-ram balers, a multi-height floor can be helpful. It helps keep material from wedging under the ram and it has the added benefit of providing extra ram


Recovered Fibre Bailing.indd 30

RTGE: When a recycling plant that has traditionally baled fibre begins to handle more plastic, how might this change the style of baler it needs? SC: Some plastics require a large opening as well, but blown shapes like bottles can be handled nicely with a small opening. This holds down frame size, cylinder size and overall cost. In general, single-rams struggle with many plastic materials. They have a limited number of bale wires (usually four to six), and the bales must be made short. Two-rams have the ability to use any number of extra wires to contain the memory and spring-back of plastics. However, two-rams have less throughput per horsepower than single-rams, so in that regard they are less efficient. We address this catch-22 with every customer. The decision boils down to percentages. If plastics are 2% of their total volume, the single-ram is

1/24/2012 3:17:06 PM

P R O C E S S I N G poin t usually chosen to avoid having the tail wag the dog. But if plastics are 30%, the two-ram is more appropriate. In the larger plants we are now seeing a trend toward two baler systems. A large single-ram for fibre is used along with a two-ram for plastics, other minority grades and for backup when the single-ram is down or overwhelmed. RTGE: Should a paper recycler who also has a confidential shredding division purchase a different or specialized baler for the shredded paper? SC: Operations that have strictly confidentially shredded paper usually select a single-ram with a small feed opening. This holds down the price considerably versus a large feed opening model. If OCC or other large material is in the mix, a large feed opening is of course required. In either case, ram face slot covers are helpful on singlerams. Two-ram models perform well on confidentially shredded paper as well. With either style baler, a little water goes a long way toward improving bale quality and helping with dust control. The shredders that make long strips of paper have a lower dust content and make excellent bales. The higher-rpm shredders that make more square pieces generally have a higher dust content, but still make good bales, especially with a solenoid-controlled water mist system. Many companies have a pneumatic dust control system as well, usually located over the infeed conveyor. RTGE: How can you help recyclers determine their baling wire costs (or anticipated usage) ahead of time? SC: Baling wire, like all steel products, has gone up considerably in recent years. It can be surprisingly difficult to figure wire costs per tonne. First, you have to know the price of the wire per pound and the number of feet of wire per pound. This varies considerably

Recovered Fibre Bailing.indd 31

depending on the gauge of wire being used. Second, you have to know the number of feet of wire per bale. This varies according to bale size and number of wires used per bale. And third, you have to know the weight of the bale to convert to wire cost per tonne. After you’ve done all this, you still need a crystal ball to predict what will happen to wire costs in the future. About the only safe bet is that it probably won’t go down. RTGE: What are some important questions someone shopping for a baler should ask about a model that is being considered? Do recyclers sometimes fail to ask these questions? SC: When customers shop for a baler, a number of questions need to be addressed.

I can’t tell you how many times I’ve seen brand new installations that have no room for growth or even struggle to keep up with current volume. Three critical topics are involved in almost every case: 1) Types of materials to be baled, and the percentages of each; 2) The volume of each material (per month, per day, etc.); and 3) In North America, whether the bales will be exported in 40-foot containers or whether they will go to domestic users with 45-foot to 53-foot trailers. Colton Equipment offers more than 150 different models of balers. That seems a bit excessive on the surface, but the fact is we need that many models to make sure we tailor each machine to the specific application. There are different horsepower choices, cylinder sizes, bale sizes, feed opening sizes, etc., that all come into

play in the equation. Then there are choices on various optional features. Needless to say this can be a confusing maze for the inexperienced buyer. It is essential to have an experienced dealer to help inform the customer when making these choices. It’s a bit shocking how many misapplications we run across. The two most common mistakes are: 1) The bales simply can’t be exported, and the customer often misses out on additional revenue available for export bales. Usually the density is too low and/or the bale size won’t “cube out” well in a container. 2) Often people say “we have 1,000 [gross] tonnes per month and we work 200 hours per month, therefore we need a baler that can do five tonnes per hour.” In the real world if you’re going to average five tonnes per hour, the baler had better be capable of 10 to 15 tonnes per hour. I can’t tell you how many times I’ve seen brand new installations that have no room for growth, or even struggle to keep up with current volume. A dealer got the order by being the cheapest, and the customer got stuck with an under-sized machine. RTGE: How can an experienced dealership take steps so that the installation process takes place with minimum interruptions? SC: Installations are so case-specific, I can’t really generalize. For installers, a brand new building is best—then it’s a piece of cake. Sometimes it’s a real challenge when the new system has to go where the old one was. If you have to change the conveyor, that gets even more involved, especially if it’s a wider conveyor because then there is concrete work involved. RTGE Colton Equipment sells and installs equipment for American Baler, Karl Schmidt & Associates and other manufacturers. Owner Steve Colton can be reached at This article was first published in the Feb. 2008 edition of Recycling Today magazine.



1/24/2012 3:17:20 PM

U P D A T E O N e x po r t l a w s

WASTE NOT The European Commission considers draft End-of-Waste legislation governing recovered fibre.



Update on Export Laws.indd 32

1/24/2012 3:18:06 PM

U P D A T E O N e x po r t l a w s by david barrio Editors’ Note: The following text is an excerpted and edited transcript of David Barrio’s presentation from Paper Recycling Conference – Europe, which was held 8-9 Nov., 2011, in Barcelona, Spain.


hen I received the invitation to come and make this presentation this summer, I thought that by the time of this presentation we would have a clear framework, a clear regulation, or at least that we would be in the final steps of this process. Unfortunately, this is not the case, and we still have the draft that was issued in the month of May.


For those of you not too familiar with this End-of-Waste discussion, in the Waste Framework Directive (WFD) (2008/98/EC) there was a new procedure for defining End-of-Waste criteria, which are criteria that are given to certain waste streams in order to cease to be waste. That means certain waste will not be waste once “something” happens. This “something” that happens is what we are working on. Waste streams that are candidates for end of waste must have undergone a recovery operation and comply with a set of specific criteria. These criteria have to be defined for each specific [scrap] stream, but the general conditions that a waste material has to follow are defined by Article 6 of the WFD in the following terms: a. The substance or object is commonly used for a specific purpose, which is very clear for paper; b. A market or demand exists for such a substance or object; c. The use is lawful (technical requirements and standards apply); and d. The use of the substance or object will not lead to overall adverse environmental or human health impacts. It is very clear that paper and board is one of the best candidates,

Update on Export Laws.indd 33

and that was the case when the paper industry went to the commission and said, “We want to be the first material to be in this process.” So, the industry is asking for that. The IPTS/JRC (Institute for Prospective Technological Studies/European Commission Joint Research Centre) here in Seville, Spain, I think has done a wonderful job of setting up background studies to establish the criteria. There was representa-

tion from all the stakeholders—ERPA (European Recovered Paper Association), FEAD (European Federation of Waste Management and Environmental Services), CEPI (Confederation of European Paper Industries), all the member states and different interested parties that formed a technical working group. This group resulted in technical documents that were sent to the commission to prepare the regulation. The work by IPTS has been

QUESTIONS TO CONSIDER The European Commission’s development of End-of-Waste (EoW) legislation for recovered paper raises additional questions: • While visual quality inspections and statements of conformity are required for any consignment, what should be the frequency of gravimetrical quality control? How many times? How many bales per year? How many trucks? How many times are we going to make a real gravimetric control? That means sorting, drying and weighing exactly to be sure it is below 1.5%? Is the system going to be audited? By whom? By an external audit? I guess it should be. • What happens if EoW is unlawfully used? What happens if as a supplier I just sign all of my Statements of Conformity without executing a quality control step? There should be some kind of fine or will it become an illegal shipment of waste even if it is in the same country or city? It is not something that is included in the legislation today. • Who is the recycler? Everybody wants to be the recycler. Everybody wants to take credit for being the recycler. It is clear that a bale of any EN 643 grade that fulfills the criteria will be a product, not waste. But do we mean that an EN 643 graded bale is recycled paper? • How do we solve the problem with multi-layer packaging and more complex packaging that will probably come in the future? • Finally, how can we build a global approach? We have a global market, that is for sure. Recovered paper is a commodity that we are trading and recycling all over the world—more than 200 million tonnes are recycled every year. But the standards are still European, American, etc. Should we go to a global grade list and quality control procedures so we can understand each other all over the world? I think we should work towards a more global approach for the problems of recovered paper, or recycled paper, whatever you want to call it. — David Barrio



1/24/2012 3:18:18 PM

U P D A T E O N e x po r t l a w s finished for a year or so and now it is in the hands of the commission to issue a European regulation. This means that a European regulation will be enforceable the day after the publication or whenever the period of implementation is set in that specific regulation, so it doesn’t need any transposition. It will be applied directly into the legislation of the different countries and then it will enter into force, though it has to be scrutinized by parliament and council in Brussels. The IPTS technical report was delivered in July 2010 and the draft regulation was issued in May 2011. As I said, I thought that by the time that I was here today we would have some final regulation or at least a more advanced draft that we could discuss, but this is not the case, and this first draft regulation is the only thing that we still have for discussion.


Product Quality. The end-of-waste principle is that waste ceases to be waste when a useful and safe product is placed on the market. But the whole issue is about quality. The target of the commission is to improve the quality of recycling in general. The quality of recycling goes together with the quality of the materials that are going to be recycled. The four framework conditions that I mentioned before are: a. Commonly used; b. A market or demand exists; c. Meets technical requirements, legislation and standards; and d. No overall adverse environmental or human health impacts. Then there is a set of specific criteria that has to be designed for every different material. Scrap metals and aluminium already have their regulations on the market, and now it is our turn for paper, and some other materials are in the process of being studied. But obviously this criteria is specific to the different materials, so each material has different criteria that have to be ap-


Update on Export Laws.indd 34

plied: Criteria about input materials; what quality control measures are required to fulfill the product quality targets; what is the provision of information that must accompany the load or consignment; and what are the processes and techniques that are permitted and forbidden. These draft regulations that we still have on the table and that have not been changed since May 2011 has this criteria: “Recovered paper must be graded according to EN 643 [European specifications].� That is why meeting the standard is so important. In order to be something that is considered a product and not waste, it has to be graded according to the standard EN 643. The other very important issue is that the draft sets a limit for nonpaper components of 1.5%, and that is defined as the material that can be separated in a dry sorting process. That is something that can be taken by hand or by automated devices but in a dry sorting process. That means, for instance, that adhesive paper on corrugated boxes would not count because it is not feasible to do so. That 1.5% is only for the material that can be sorted in a dry sorting process. That is something that was not included in EN 643. In the current EN 643, the limit is zero. In principle, all the grades in EN 643 will be outside the scope, so that is why we are in the pilot process of a revision of EN 643. Additionally, from what we have heard, the European Commission is now planning to include another tolerance of 0.5% for those nonpaper components that cannot be separated in a dry sorting process, such as acetate or a staple in a newspaper. There is an exception for multi-layer packaging (e.g., beverage cartons, frozen food packaging), which are counted as nonpaper components. It is not that a piece of frozen food packaging is not allowed, for instance, in a bale of 1.04 (ERPA specification for supermarket corrugated paper and board). It means that if you make a bale of only frozen food packaging, that will exceed obvi-


1/24/2012 3:18:28 PM


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U P D A T E O N e x po r t l a w s ously the 1.5%, and it is not included in this legislation, though it cannot be separated in a dry sorting process. This is an issue that is being discussed now in the Commission and being pushed by the different secretarial organizations to try to find a solution for this specific type of product. Regarding quality control, recovered paper suppliers will have to operate a quality control system at the point where the material ceases to be waste and begins to become a product. That means if this waste is going to become a product in a recovered paper plant, before or at the time it is loading into a truck to a paper mill destination, it needs to go through a quality control system so that it can certify that it fulfills the legislation. That is a very new approach for the paper industry or for the paper loop

Recovered paper suppliers will have to operate a quality control system at the point where the material ceases to be a waste and becomes a product. as such, because the supplier needs to make the quality control to fulfill the legislation. Input Materials. Some input materials are obviously not permitted, such as hazardous waste, biowaste, mixed municipal waste, health care waste and used personal hygiene products, which is very much in line with EN 643. That is quite logical, and we all want to try to avoid these products in our recovered material. Processes & Techniques. That was a very hard discussion in the IPTS/ JRC because there was the issue of separate collection and commingled collection. The final agreement was that the problem is not where the pa-

per comes from or the collection technique used; the real importance is the quality of that material. End-of-Waste legislation does not exclude paper originating from commingled household collection, but it has to fulfill the quality standards. In the opinion of most of us, I think it is quite obvious that a lot of improvements in sorting techniques and sorting technology and also in the way that commingled material is collected has to be put in place if we really want to fulfill this new legislation. Otherwise, that 1.5% would be very difficult to fulfill and all of these prohibited materials, especially biowaste and mixed municipal waste, would be very difficult to avoid in these new materials. The Provision of Information. I said before we need quality control in the place that the material ceases to be waste, but that has to go with a document that says so. Recovered paper suppliers will sign a statement of conformity for every consignment—that is something yet to be defined—with the end-of-waste criteria. This has to be transmitted to the next holder. That means that somebody has to sign and certify that this is according to the legislation—according to the prohibited materials, processes, quality.


One of the peculiarities of paper and board material that doesn’t happen with scrap aluminium, for instance, is that it can be burnt. For paper recyclers it was important to make sure that when waste becomes a material it cannot escape from the waste hierarchy. Therefore, it cannot escape from recycling and go to incineration, once it is turned into a product. End-ofwaste paper is only to be applied to paper recycling and not to other uses for that material, such as incineration, pet beds and insulation. RTGE David Barrio is recycling director of the Spanish Association of Pulp and Paper Manufacturers (ASPAPEL).



Update on Export Laws.indd 36

1/24/2012 3:18:46 PM

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I N D U S T R Y l e a d e rs Q & A


ichael Lion and the Lion family name have been synonymous with scrap trading in the English-speaking world for several decades. The current chairman and director of Sims Metal Management Asia Limited, Hong Kong, grew up in a metals trading and recycling family in the United Kingdom and subsequently operated trading offices there, in the United States, in Australia and now in Hong Kong. Throughout his career, Lion also has been involved on committees and boards for organisations such as the

Bureau of International Recycling (BIR), to which he devoted time and energy as a form of, in his words, “repaying the industry [and] contributing Michael Lion back.� In December of 2011, Recycling Today Global Edition contributing editor Larry Sax interviewed Michael Lion about his life in the scrap recycling industry. Lion says the metals recycling and trading industries continue to provide

An Education

exciting opportunities for young people, and that even for a veteran such as himself, there is more to learn each day. Recycling Today Global Edition (RTGE): How did you get started in the scrap recycling business? Michael Lion (ML): My family was in the recycling business as well as on the London Metal Exchange, and had established the business along with the Philipp Brothers family in the beginning of the 20th century. The business, by the time I came to it, was being run essentially by my father, Jacob Lion, and my Uncle Nigel. My grandfather and my great uncle Rudolf, who had been the original partners along with Oscar Philipp, were well on the point of retirement. That was in the late 1960s. I had been involved in a few

Even after growing up in the metals industry and spending several decades as a trader, Michael Lion says there is more to learn each day.



2012 Market Outlook.indd 38

1/24/2012 3:12:55 PM

I N D U S T R Y l e a d e rs Q & A other activities before I joined them at that time. RTGE: And you did sit in the LME ring trading copper? ML: It would be more accurate to say I crafted the ring. The business had some size to it. We were probably the largest international traders or brokers of nonferrous scrap metal on an international basis around the world. That was one half of the business and the other half was on the London Metal Exchange. My uncle was more in charge of the LME side of the business and I worked with him and a number of other people on the floor of the Exchange. RTGE: Did having that experience on the Exchange influence your later career?

ML: I think it did a number of things. It certainly created a certain mentality or discipline towards doing business, not the least of all being the sacrosanct nature of the contract commitment. In the ring, even today, once such a commitment is made it has to be a deal. That still remains very much a way the international scrap metal business is done as well. It’s an ethic and a principle I’ve always adhered to ever since. It often impresses me the fact that, while sometimes people are critical of the recycling industry, the reality is that it’s one of the rare instances where a handshake or a verbal commitment until there is a confirmation in writing is quite sufficient. You don’t need a battery of lawyers to negotiate an agreement. RTGE: How has your involvement in BIR and other organisations been beneficial and would you recommend it to others? ML: I believe and continue to believe that, in the first instance, taking an active role in the BIR is a form of re-paying the industry of which you are part — of contributing back. I believe the motivation for being involved should be that you wish to contribute something to the future of the industry . . . [to help toward recognition and prosperity in the right way.] I don’t think people should go into the BIR as an organisation officer with a view toward furthering their own interests. When there was a conflict of interest, one had to put the interest of the office first. I don’t want to be sanctimonious about this, but I believe that ethic must always be the guiding principle. Certainly, it does have some bearing on your profile and recognition in the industry, but that’s a secondary concern or a byproduct. I think I would recommend it to the kind of person who believes that service to others is an appropriate activity, but not to people who think it is a basis for furthering their own interests or increasing their own visibility for their own sake. RTGE: What do you consider to be

2012 Market Outlook.indd 39

the single greatest change in the scrap industry since you’ve been involved in it? ML: I suppose it’s difficult to single anything individually out, but the main thing would probably be the Internet, because the speed of communication and transparency of information and availability has exponentially increased. It has changed the practices and the momentum of the industry on the trading side. On the operational side, I suppose there are many technological developments in terms of treating the materials. RTGE: Has consolidation left room for entrepreneurs and the entrepreneurial spirit, or has it destroyed it a little bit? ML: I think it modified it. The different requirements of the corporate world, as well as the regulations that have been imposed, have modified the flexibility of the entrepreneur. As well, the escalating value of metals like copper has strained the availability of capital. Those changes were inevitable. RTGE: What has stayed the same? ML: I think the fundamental processes of recovering materials and the segregation of materials and the grading has remained very much the same. When we think about the ISRI specs, although there are some new materials modifications, overall the classification hasn’t changed very much. We still have materials like berry or birch/ cliff or taint/tabor. There are increased technical capabilities, but essentially the same end products. RTGE: Do you feel that personal relationships have remained a vital part of conducting the business? ML: Absolutely, in the nonferrous business anyway. The ferrous business perhaps is a little different, with just a few large players on both sides. But in the nonferrous business it’s still sufficiently fragmented and there are so many variables. Essentially, relationships are absolutely vital within a very large network. And that network can



1/24/2012 3:13:16 PM

I N D U S T R Y l e a d e rs Q & A only be maintained if you have relationships with people and for them to prefer to deal with you. The Internet and the transparency of pricing has, if anything, increased the importance of relationships, in that since prices are broadly similar, people will tend to gravitate toward doing business with the people they prefer to do business with. There are a number of reasons as to why they’ll choose to do business with you, but it starts with the personal relationship. RTGE: Do you find that younger people move so fast that they don’t forge the personal relationships that used to be more common? ML: I work with and certainly mentor a number of young people. And I foster them in many different aspects toward building their careers and their futures within the company. And in all cases I do pass along my belief in the importance of personal relationships and the value of it. And from my view, they work very hard at it and know it remains an important part of our business. RTGE: To what extent do you think the general public understands and appreciates the scrap recycling business? ML: I think it’s probably fair to say that perceptions have changed for the better where the industry is concerned. We talk now about the recycling industry. When we talked 20 years ago we referred to it as the scrap industry. And the common perception of that was not always of the highest order, and we were, rather unfairly, not always portrayed in a beneficial light. Whereas, because of the world consciousness today of sustainability and environmental responsibility, it has become clear that recycling plays a valuable contributory role. Attitudes have changed enormously. That is a bit of a change in the industry, not to mention concerning the general public. When I was first in the industry and my father was on the LME, when people asked him what he did, he would very proudly say,


“We’re members of the London Metal Exchange,” and then rather out of the corner of his mouth add, “and we’re also in the scrap business. “ Whereas when one gives speeches now, to say we’re in the recycling industry gets you respectable recognition, whereas an association with the financial services industry, pertaining to being part of the LME, is rather unpopular with the general public. RTGE: Has the industry done a good job of keeping up with environmental concerns? ML: I would certainly say that Sims Metal Management is recognized as and strives to be a sustainable company and has positioned itself as one of the most sustainable public companies in the world. RTGE: How would you compare the number of different materials, metals and beyond, that are recycled and traded now compared to when you started in the industry? ML: An obvious change is the increased treatment of waste electrical and electronic products, the so-called

RTGE: What advice would you give a young person entering the business? ML: I think the extraordinary thing about the scrap industry, in addition to it being an exciting industry, is that at first blush it can require quite a sophisticated skill set. Once they get into it, they can decide where they have an interest and what they find to be an extraordinarily compelling business. It is why so many of us have stayed in it all our lives. There are so many facets and differentials and permutations and opportunities within the industry, whether your skill set is in trading and marketing or whether it’s in operations. The most extraordinarily interesting thing about our business is that you can never know it all. There are so many facets to it that no matter how old you are or how young you are, you’ll always be learning something new every day. That’s been my observation. I would advise someone going into the business to be open-

I would advise someone going into the business to be open-minded, flexible, observant and to enjoy it as a way of life. WEEE category, which has generated a whole bunch of new materials for recycling. Obviously, changes in technical operations are generating different types of products, different grades from the shredder, such as the nonferrous products that have been added to the nomenclature, like Zurik and other types of material for that category. The sophistication of processing has expanded the range. Equally, modernization of manufacturing techniques and efficiencies in manufacturing processes means there are fewer types of new production scrap and certainly lower volumes — things that were more available 20 or 30 years ago and were generated much more in quantity


2012 Market Outlook.indd 40

then. That’s caused by efficiencies of scale.

minded, to be flexible, to be very observant and to become thoroughly engaged and involved in it and enjoy it as a way of life. RTGE: Are there any particular directions in which you see the recycling industry moving in the future? ML: I certainly think that advances in technology will open up a large new vista of opportunities, I anticipate that. I think we will continue to see the trading and marketing of metals and materials be highly international in nature. I think the industry has a very bright future. I remain, as I’ve always tried to be in my career, an optimist about the future of recycling. RTGE

1/24/2012 3:13:30 PM

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 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:____________________________________________

RTGE1202p41subscription.indd 2

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

1/19/2012 11:33:24 AM


= e g d e e l v i w o t i n K pet m o C Edge

january february march

april may june july

8th International Annual Scrap Forum // Feb. 16-17


Feb. 16-17 8th International Ferrous and Nonferrous Scrap Metals Forum, Moscow, Russia, Rusmet Group,

March 20-21

Gain your competitive edGe today!



Datebook_jan-feb.indd 42

5th International EcotecEnvironmental Technologies & Photovoltaic Systems, Athens, Greece, www.ecotec-exhibition. gr/en

March 28-30

Plastics Recycling Conference, Atlanta, Ga., Resource Recycling,

South-East European Conference & Exhibition on Recycling, Waste Management & Environment, Sofia, Bulgaria, Via Expo,

March 21-23

April 15-19

12th International Automobile Recycling Congress, Budapest, Hungary, ICM AG,

ISRI Annual Convention, Las Vegas, Nev., Institute of Scrap Recycling Industries, (202) 662-8500 or

April 26-27

April 30-May 3

14 Annual BVSE Recovered Paper Conference, Budapest, Hungary, BVSE,

Waste Expo 2012, Las Vegas, Nev., Penton Business Media and the Environmental Industry Associations,

th 001.330.523.5400

March 15-18

1/24/2012 3:03:47 PM

datebook august september october november december

Ecotec-Environmental Technologies & Photovoltaic Systems // Mar. 15-18

May 7-11 IFAT Entsorga 2012, Munich, Germany, Messe M端nchen International, or

May 9-11 5th China International Metal Recycling Conference, Beijing, China, Metallurgical Council of China Council for the Promotion of International Trade,

May 7-10 7th China International Steel Congress, Beijing, China, Metallurgical Council of China Council for the Promotion of International Trade,

May 15-17 7th China International Recycling Conference

Datebook_jan-feb.indd 43

Dalian City, China, China National Resources Recycling Association,

May 29-June 1 BIR 2012 World Recycling Convention & Exposition, Rome, Italy, Bureau of International Recycling, +32 2 627 57 70 or

June 10-13 4th International Conference on Progress Development in Iron and Steel Making, Lulea, Sweden, Metallurgical Research Institute AB,

Oct. 14-16 2012 Paper Recycling Conference & Trade Show, Chicago, Recycling Today Media Group, (800) 456-0707 or www. PaperRecyclingConference. com



1/24/2012 3:04:00 PM


>> m anufacturer ne ws and equi pment installations

IFAT Exhibit Space is Fully Booked

The IFAT Entsorga trade fair in Germany has sold out its 2.3 million square feet (215,000 square metres) of exhibition space. According to the show’s organisers, Messe München, it is the first time the show has fully pre-leased all the exhibition halls at the New Munich Trade Fair Centre. IFAT Entsorga is billed by Messe München as “the world’s premier trade show for innovations and services in water, sewage, waste and raw materials management.” The 2012 event takes place from 7 to 11 May in Munich and will include 1.9 million square feet of indoor exhibition space and 375,000 square feet of outdoor space, setting a new record for the show. The number of exhibitors will exceed the 2,730 that took part in the 2010 IFAT Entsorga event, the organisers say. “We are particularly pleased in this context with the response from exhibitors from abroad,” says Eugen Egetenmeir, managing director of Messe München. “A total of 27 international joint stands are registered from 17 countries, while in 2010 there were 18 international pavilions from 13 countries. Canada, Japan, Norway, Russia and Spain are taking joint stands for the first time. These strong participation figures, resulting in fully booked halls, show clearly that companies — in Germany and around the world — regard IFAT Entsorga as the leading trade fair for their sector.” The event’s organisers also say the recycling management product category “will occupy a total of fully 55,000 square metres (590,000 square feet).” Another category with a sizable presence at the 2012 IFAT Entsorga event will be waste-to-energy, according to Messe München. “IFAT Entsorga 2012 showcases the diverse technologies and concepts involved in obtaining valuable energy from waste,” the group states in a news release. “Currently, an estimated ¤5.6 billion ($7.25 billion) is being invested each year in building, expanding, modernizing and maintaining waste incineration plant and power stations which use refuse-derived fuel (RDF),” Messe München writes in a news release.

International Baler Adds Dealer in the UK

International Baler Corp. (IBC), based in the U.S., and Randy Gibson, director of sales and marketing, have announced Freedmans as the company’s dealer for the United Kingdom. “Freedmans offers many years of industry knowledge, service capability, and the willingness to take care of the customer — the exact same philosophy adhered to by International Baler,” says Gibson. “Robert Freedman has hit the ground running for us and is already helping recyclers in the U.K. become better equipped to process their materials.” International Baler invites customers in the U.K. to contact Freedmans for recycling equipment needs, to check out the complete International Baler product line at, or to contact the company at 001-904-358-3812.



Equipment Report_jan-feb.indd 44

SSI Shredding Opens Office in Switzerland

U.S.-based SSI Shredding Systems, a designer and manufacturer of industrial shredders and compaction systems, has opened a new European sales support office in Lutry, Switzerland. The new office will be headed by Dr. Pascal Gübeli, who was named SSI Shredding Systems’ European managing director. According to a company news release, one of the main goals of the new office will be for SSI to provide more efficient sales and communication support to clients located throughout Europe and western Russia. The SSI statement says the company chose Gübeli to head the new office because of his extensive senior-level expertise in industrial and environmental technologies, as well as his educational background and multilingual capabilities. “Dr. Gübeli comes to SSI with a strong technological and business development skill set. He’s a proven solutions developer who’s fluent in five languages,” says Joby Easton, sales and marketing director at SSI Shredding Systems. “We’re excited about having an experienced representative on the ground in Europe who’s ready to help SSI serve our clients even better.” SSI Shredding Systems currently has installations in 46 countries.

1/24/2012 3:05:02 PM

May 9-11, 2012 Beijing Landmark Towers, Beijing, China



Hosts: China Iron & Steel Association (CISA) China Non-ferrous Metals Industry Association (CNIA) China Association of Metalscrap Utilization (CAMU)

China International Metal Recycling Conference 2012


2011 was a bittersweet year for both metal producers and processors, after a good start early this year, the market

Organizer: Metallurgical Council of China Council for the Promotion of Int’l Trade (MC-CCPIT) Supporters: Bureau of International Recycling (BIR) Institute of Scrap Recycling Industries, Inc. (ISRI) Korea Iron & Steel Association (KOSA) Co-organizers: China National Resources Recycling Association China Resource Recycling Association China National Shiprecycling Association

turned out to be confused and gloomy for most of the time. As we look into 2012 and beyond, the on-going economic downturn and political chaos will continue to take its toll on ferrous and non-ferrous industries with a slow-down in production, volatile price and weaker end-

5th China Int’l Metal Recycling Conference 2012 will explore the following subject areas: Development of the Chinese metal scrap recycling industry in the

use demand. For what it’s worth, Asia and developing

12th five-year plan period

countries still have potential to sustain the growth,

Development of the Chinese steel industry and its demand for

particularly China. In the 12th five-year planning, China


emphasizes the need to produce green product, enhance

World metal & steel scrap demand and supply situation, pricing

sustainability performance of mills, improve existing

trend and market outlook

process with a focus on safety, energy conservation and

World metal & steel scrap import/export trade flows and

environmental protection, and maximize the use of scrap


and to further promote recycling industry.

EU & North America’s regulatory updates on exporting ferrous &

First launched in 2003, China Int’l Metal Recycling

non ferrous scrap and the impact on buyers, sellers and traders

Conference has been held successfully for four sessions

Metal scrap industry legislation and regulation in China (inspection

and has quickly evolved into a global industrial event

and quarantine procedures, tariff challenges, environmental

offering fast, efficient and cost-effective access to the

protection issues, good declaration practices and documentation

metal recycling community. With attendees of about 450


delegates, the 4th China Int’l Metal Recycling Conference

Status quo and outlook for regional metal & steel scrap recycling

2011 had been a grand gathering of the year for metal

markets (Japan, Korea, Turkey, and U.A.E etc)

scrap sellers, users, dealers, processors as well as related

Stainless steel and special alloys scrap demand and availability

government institutions, industrial associations and

Recent development on automobile, ship, home appliance and

technology & equipment providers. The goal of our

electronics recycling

conference is helping metal recycling professionals

Recovery of metals from steel (and non-ferrous) mill wastes

better understand development trends of the industry,

Developments of DRI technology and DRI supply and demand

connecting metal scrap sellers and buyers, promoting use


of scrap in the steel and the non-ferrous metals industries,

Latest achievements in metal scrap processing technology &

proliferating low-carbon production and living concepts,


as well as strengthening international communication and

and more…


For participating questions, please contact Conference Organization Office Attn: Ms. Zhai Jing, Project Manager of Conference Division, MC-CCPIT Tel: +86-10-65220754, Fax: +86-10-65254154, E-mail: Add: No.46 Dongsi Xidajie, Beijing 100711, China

bird Early adline ing de book

h5 Marc 2012

Website:WWW.MC-CCPIT.COM/RECYCLING/EN RTGE1202p45cimc.indd 1

1/19/2012 11:34:45 AM

EQUIPMENT REPORT AMCS Purchases UK Software Services Provider

>> m anufacturer ne ws and equi pment installations

The software firm AMCS Group, based in Limmerick, Ireland, has acquired The Solution Works (TSW), based in the United Kingdom. TSW has been a long-term partner to AMCS. AMCS specializes in the supply of information technology, management and tracking solutions for the recycling and environmental management sectors. It has introduced a “pay-by-weight” and on-vehicle technology that the company says has significantly reduced the amount of waste going to landfill and has encouraged more recycling. According to statements from the two companies, the combined expertise of the merged companies will result in the ability to deliver a one-stop-shop for customers’ digital needs in the recycling and waste industry. Andrews McKelvie, TSW founding partner and AMCS’ new director of custom solutions, says, “In terms of day-to-day operations it will be business as usual, except that we will have increased capacity, greater



Equipment Report_jan-feb.indd 46

capabilities and a wider pool of products, placing us in a much stronger position to achieve rapid and sustainable growth in the years to come. All existing TSW personnel have transferred to AMCS, and we continue to operate from our offices in Greenock, Ireland. The strategy of the new business is one of high growth, and the skills and experience of the TSW workforce are an integral part of that strategy.” “The acquisition, which is a first for AMCS, is a major milestone in the international expansion and development of the company,” says Jimmy Martin, CEO of AMCS. “The Solution Works has an impressive track record and experience in software development and deployment,” Martin continues. “The core technology of TSW — the Elemos/Wims software, is the leading solution in our vertical market. “The acquisition will significantly enhance our capabilities to develop innovative and integrated end-to-end software and hardware systems that maximize efficiencies and profitability for our clients and help them meet their recycling targets,” Martin adds.

1/24/2012 3:05:15 PM

>> m an ufacturer news and equi pment installations


S+S Inspection Relocates North American Headquarters

S+S Inspection Inc., part of the Germany-based S+S Separation and Sorting Technology Group, has seen a significant expansion to its North American business, with its customers in a range of industries, from plastics molding and recycling to food and pharmaceuticals. As a step to ensure it meets its before- and aftersales service, S+S Inspection has relocated its headquarters from Niagara, N.Y., to what it calls a more centrally located Bartlett, Ill., about 20 minutes from Chicago’s O’Hare International Airport. The move and organization of the new facility was managed by S+S North America general manager Werner Fleps. The new building incorporates an optical sorting line for its customers in the recycling industry and an applications laboratory with a complete range of X-ray inspection and metal detection equipment for customers in the food and plastics industry. In a news release, S+S says it offers total sorting capability using advanced, proven technology; and the

Equipment Report_jan-feb.indd 47

company’s recycling demonstration line can process customers’ material in quantity to prove the economic and technical feasibility of the complete process. In-house design and production engineering capability has been expanded with the move, the company says. The customer service center, also based in Bartlett, provides a first-line contact with its customers. To enable S+S to provide the quickest possible delivery of both new equipment and spares, the company says that both the machine and spares inventories have been significantly increased. The company also says that because of its growth, it has added to its sales and distribution capability with the appointment of Tracey Hartje and Tony Rampino.

RECYCLING TODAY global edition // january-february 2012


1/24/2012 3:05:29 PM

Product Spotlight To have your product featured here, please send a news release and photo to Kelley Stoklosa at




seltek Stokkermill 3000STD Turbo Seltek Stokkermill, Udine, Italy, is offering the 3000STD Turbo compact granulator. The company says the machine can shred and separate large quantities of cables while offering high operating efficiency. Features include: • A self-cleaning cyclone filter that eliminates dust emissions and increases service intervals; • The grinding mill consists of three rotating blades and two fixed blades, each 430 mm long; • Dry separation through an air-assisted vibrating table; • Integrated turbo unit to ensure higher quality and purity of even thin cables (e.g. telephone, data, etc.); • Upon request, can be delivered with an integrated pregrinder and/or conveyor system with magnet separation. Visit for more information. 

2 3

E-CRane Worldwide 700 Series E-Crane E-Crane Worldwide, Adegem, Belgium, is offering the 700 Series E-Crane for handling scrap in mills and recycling centers. Features include: • Designed for dedicated duty-cycle applications like feeding shredders or shears, or filling baskets; • Hydraulically pivoting, mechanically linked boom is designed to keep the machine in balance; • Available with grapples or magnet attachments; • Outreach to 165 feet and duty-cycle capacity to 50 tons. Visit for more information.


S+S Flake Purifier C S+S Separation and Sorting, Schönberg, Germany, has developed the S+S Flake Purifier C, which sorts PET and HDPE into fractions by colour. Features include: • Modular design allowing up to three sensors to be combined to separate by colour, separate metals and detect and remove contamination; • Optical inspection with high-speed charge-coupled device cameras. Visit for more information.




Product Spotlight_jan-feb.indd 48


Revend Light Bulb Recycling Machine Revend Recycling based in the U.K., has launched a reverse vending recycling machine for light bulbs and batteries. Features include: • Automated, safe collection and recycling of domestic light bulbs, including incandescent, CFL and LED bulbs; • Optional battery collection unit; • Soft-drop system designed to minimize breakage; • Internal mercury fume extractor and filter; • A database updated regularly via telemetry; • Automatically sends text or email when secure light bulb storage container needs emptying; • Complies with EU and U.S. standards. Visit for more information.

1/24/2012 3:10:12 PM

AD INDEX REW Istanbul –........................................................................ 47

Bulk Handling Systems (BHS) – ................................................ 27

Riverside Products –................................................................. 17

China International Metal Recycling Conference – ....................... 45

ScrapRight –...................................................... Inside Back Cover

CP Group –........................................................ Inside Front Cover

Sharif Metals –......................................................................... 46

Eldan Recycling –..................................................................... 29

Shred-Tech –............................................................................ 43

Granutech Saturn Systems – ....................................................... 7

Sierra International Machinery LLC – ............................. Back Cover

ICM Ag – ................................................................................ 49.

SSI Shredding Systems Inc. – ................................................... 25

Ling Tong Metal Information Co. – ............................................. 46

Techgene Mechinery Company Ltd. – ......................................... 36

Northeast Metal Traders Inc. – .................................................. 34

TopRecycle Consulting – ........................................................... 37

Paper and Plastics Recycling Conference Middle East –

U.S. Shredder & Castings Group –................................................9

Recycling Today Media Group – ........................................... 41, 42

Vezzani USA Inc. –.....................................................................5

IARC 2012

American Baler – ..................................................................... 28

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?








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


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,,, +41 62 785 10 00

Ad Index_jan-feb.indd 49



1/24/2012 3:01:10 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 December 2010


January 2011


February 2011


March 2011


April 2011


May 2011


June 2011


July 2011


August 2011


September 2011 $451 October 2011


November 2011


December 2011


(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 Dec. ’10


Apr. ’11


Aug. ’11


Jan. ’11


May ’11


Sept. ’11


Feb. ’11


June ’11 $2,331.82

Oct. ’11


Mar. ’11 $2,375.70 July ’11 $2,308.14

Nov. ’11



Apr. ’11


Jan. ’11


May ’11


Feb. ’11


June ’11 $9,044.80


March 2011


April 2011


May 2011


June 2011


July 2011


August 2011


September 2011 870.9 October 2011


November 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 December 2010 254.3

February 2011


March 2011



April 2011


Sept. ’11


May 2011


Oct. ’11


June 2011


July 2011


August 2011


Aug. ’11

Nickel – LME Pricing

September 2011 289.1

Dec. ’10


Apr. ’11

$26,321.39 Aug. ’11


Jan. ’11


May ’11

$24,203.00 Sept. ’11


Feb. ’11


June ’11 $22,344.32 Oct. ’11


Mar. ’11


July ’11


$23,721.43 Nov. ’11

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


The Numbers_jan-feb.indd 50


February 2011


Mar. ’11 $9,529.57 July ’11 $9,618.36 Nov. ’11 $7,550.95


January 2011

January 2011

Copper – LME Pricing Dec. ’10

December 2010 932.7

October 2011


November 2011 285.0 Index is based on December 1980 average price as 100. Source: U.S. Bureau of Labor Statistics

1/24/2012 3:10:37 PM

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1/19/2012 11:35:08 AM

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1/19/2012 11:35:34 AM

Recycling Today Global Edition: January/February 2012  

RTG Jan/Feb 2012

Recycling Today Global Edition: January/February 2012  

RTG Jan/Feb 2012