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2020 MARKET FORECAST ended 2019 down less than 1%, while average faced with excess domestic scrap supplies and old aluminum cast and sheet scrap prices in declining export sales. U.S. exports of copper the United States finished the year down more and copper alloy scrap were down 3% year on than 22%. Prices for several aluminum scrap year, as copper scrap exports to mainland China grades, including used beverage containers, fell plunged from nearly 265,000 mt in the January- to 30-year lows in 2019. China’s scrap import to-November period in 2018 to just over 85,000 restrictions have played a role in the divergence mt during that period in 2019. But improved between primary and secondary prices. In late trade with Malaysia—now the largest destination 2017, U.S. exports to China of all aluminum for U.S. copper scrap exports—India, Germany, scrap (including UBCs and remelt scrap ingot) Belgium, and other markets has helped to offset exceeded 75,000 mt per month; in November the decline in sales to China. 2019, those shipments were down to just over 5,000 mt. As it would with aluminum, China’s reclas- sification of high-quality copper and copper The Chinese government’s intention to imple- alloy scrap imports could significantly reshape ment new standards for imports of copper, brass, the scrap market in 2020. By late 2019, copper and aluminum derived from recycling will be a prices had already benefited from the signs of key development in 2020. But aluminum recy- progress in the U.S.-China trade talks. As Reuters clers continue to face a host of other challenges, reported, “A renewed sense of optimism has been including the low valuation of automotive scrap, evident in the sharp turnaround in fund position- competition from scrap imports, weaker alumi- ing on copper, as ever the metallic bellwether for the risk-on-risk-off trade. The money men held a Improved trade deals with major U.S. trading partners such net collective short on the CME copper contract for most of 2019 but turned net long in the last as China, Canada, and Mexico will play an important role days of the year.” A December report from the Goldman Sachs Group pegs the price of copper at for the iron and steel industries, as will ferrous scrap trade $7,000 per ton in 2020. flows and domestic capacity expansion plans. IRON AND STEEL In 2020, the World Steel Association (Brussels) num demand, and a potential rebound in global projects Chinese steel demand will only grow 1% primary aluminum output in 2020 which could while steel demand in the rest of the world will result in a supply glut. Absent a sharp rebound increase 2.5%, driven by 4.1% growth in emerg- in global aluminum demand, forecasters are ing and developing economies excluding China. concerned that aluminum capacity expansion As a result, it forecasts global steel demand will plans will have to be curtailed to rebalance the grow 1.7%, to 1.8 billion mt in 2020, down from market. Analysts from Morgan Stanley reported the 3.9% growth rate in 2019. But as it would in December that “supply cuts in excess of one with other commodities, any improvement in million tons are needed to prevent a drop to our U.S.-China trade relations could have outsized bear case of $1,657 per ton [for primary alumi- implications for the global steel and ferrous scrap num] in early 2020.” markets. COPPER According to a press release from the U.S. The global refined copper market is widely Trade Representative, China has agreed to import expected to see a supply surplus in 2020. at least $120 billion of U.S. manufactured goods According to the latest forecasts from the in 2020, including iron and steel products. International Copper Study Group (Lisbon, Improved trade deals with major U.S. trading Portugal), world refined copper production is partners such as China, Canada, and Mexico expected to exceed copper demand by more will play an important role for the iron and steel than 280,000 mt in 2020, reversing several years industries, as will ferrous scrap trade flows and of supply deficits. A return to refined copper domestic capacity expansion plans. For the first supply surpluses would only complicate the 11 months of 2019, Census Bureau trade data outlook for copper recyclers, who have been show total ferrous scrap exports (excluding stain- less and alloy steel scrap) from the United States 48 _ Scrap _ JANUARY/FEBRUARY 2020 were up 0.7%, to 14.6 million mt, on sharply www.scrap.org

higher exports of No. 1 bundles, cast Finally Scrap Yard Software with: iron scrap, and other grades that more than offset lighter loadings of shred- ■ No Contracts ■ No Compromises ded, heavy melt, and cut plate and ■ No Ticket Limits structural. At the same time, total U.S. steel imports during the first 11 Compliant Fully integrated scrap yard software solution. months of 2019 were down 17.3% A ordable From yard operations to nancial statement compared with the corresponding Easy to Use preparation & everything in between. period in 2018. Major expansion plans Indispensable Includes: buying, selling, shipping, inventory control, materials announced by Nucor Corp. (Charlotte, processing and WIP inventory, o ce administration. N.C.), U.S. Steel (Pittsburgh), and Now Integrated with ScrapIT Software now o ers: other domestic steel producers could Monthly Subscription Option for as little as $100 per month. significantly ramp up U.S. demand for for scrap purchases. ferrous scrap in 2020. Electronic scale reading ■ Cameras ■ Driver’s license scanners ■ Fingerprint scanners ■ ATMs LEAD AND ZINC State compliance ■ Electronic signature capture ■ Remote hand-held tablets ■ ScrapIT Mobile Admin Over the course of 2019, zinc and lead SQL data warehouse for external report writing ■ Web portals for supplier & customer access ■ Pay by credit card prices were among the worst perform- ers at the London Metal Exchange, 1.866.880.7392 www.ScrapITsoftware.com [email protected] falling 6.5% and 4%, respectively. The price decline for the sister metals JANUARY/FEBRUARY 2020 _ Scrap _ 49 came despite a drawdown in LME warehouse stocks, which typically coincides with rising prices. Reuters explains that the disconnect stems from the difficulty in getting mined material transformed into refined metal: “Smelters’ collective capac- ity to convert raw material into metal was last year hampered by a string of outages, including the fire at the Mooresboro refinery in the United States, the temporary suspension of the Skorpion refinery in Namibia and lower output due to an electrical failure at the Trail plant in Canada. Chinese smelters’ ability to lift run- rates, meanwhile, was constrained by the rolling environmental inspec- tions that have become a feature of the country’s metallic supply chains.” Looking at 2020, the International Lead and Zinc Study Group (Lisbon) is forecasting global demand for lead metal will increase 0.8%, to 11.9 mil- lion mt, while it expects world refined lead supply to increase 1.7% in 2020, to 11.96 million mt, leaving a global lead market surplus of 55,000 mt. The ILZSG also sees a 0.9% increase in world demand for zinc being out- stripped by a 3.7% increase in global zinc production, resulting in a global www.scrap.org

2020 MARKET FORECAST zinc supply surplus of 192,000 mt. In light of Even with continued uncertainty regarding the expected supply surpluses, the World Bank nickel and stainless steel demand, Fastmarkets projects average prices for lead and zinc at $1,950 Metal Bulletin reports that “LME nickel’s tech- a mt and $2,450 a mt, respectively, in 2020. nical configuration has improved and could continue to support its prices to recover higher in NICKEL AND STAINLESS STEEL the short term.” The International Nickel Study LME 3-month nickel futures in 2019 ranged from Group (Lisbon) is forecasting another global as low as $10,530 per ton in January to as high as nickel market supply deficit this year, which $18,850 per ton in September. At the same time, also could help underpin prices. Looking further closing nickel stocks in LME warehouses dwindled ahead, Macquarie is projecting a recovery in the from more than 207,000 mt at the end of 2018 to stainless steel market starting in the second half less than 65,000 mt in November 2019. Despite the of 2020 and healthy growth in nickel demand ongoing volatility in nickel prices and warehouse from the electric vehicle battery market. As a stocks, nickel prices outperformed the other major result, they project steadily rising global nickel base metals in 2019, ending the year nearly 32% prices that are expected to reach $19,500 per ton higher in London compared with the end of 2018. in 2024. However, prices for stainless steel scrap came under pressure late last year amid reports of excess RECOVERED PAPER AND SCRAP PLASTICS scrap supplies in the United States and Europe. As For paper and plastics recyclers, tighter import a result, the price of 304 stainless steel scrap in the restrictions around the world, rising quality United States declined nearly 2% over the course demands, and investments in domestic produc- PRexAd.qxp_Layout 1 7/30/19o4f:21301P9MdePsapgiete1 rising primary nickel prices. tion capacity will remain key themes in 2020. 40% STRONGER Twice the ReachthanElectromagneticDrumswith Eriez’ P-Rex® redefined the performance standard of the scrap drum magnet, e ectively replacing the electromagnet. Edge-to-Edge P-Rex O ers: Performance • 40% greater strength • Twice the reach • No strength loss due to heat XPterremmaenDernutmRaMreagEanretth • No energy required The Drum Magnet that Changed Everything “We’re running at 99% ferrous recoverywith our P-Rex drums running Underflow.The magnets are amazing! Eriez is family owned and made in America, I like that... and their service is first rate.” Recovery.Eriez.com | 814.835.6000 EarlWeber, Partner - Garden Street Iron & Metal, Inc.

Import restrictions in China have contributed Import restrictions in China have contributed to the to the restructuring of the global marketplace for recycled paper and plastic, but additional restructuring of the global marketplace for recycled paper restrictions and stepped-up enforcement of exist- ing regulations continue to surface. India, for and plastic, but additional restrictions and stepped-up example, is now reportedly strictly enforcing its regulations that call for zero “putrefiable organic enforcement of existing regulations continue to surface. matter” in paper consignments and that outline the tolerance for other “recyclable material” that RISI reports that “recycled pulp has become an may be present in each of its 48 categories of alternative way for Chinese paper producers to recovered paper grades. obtain the recycled fiber they need… Chinese paper companies have plans to invest in signifi- U.S. exports of recovered paper, paperboard, cant amounts of recycled pulp capacity to expand and pulp decreased nearly 11% in the first 11 recycled pulp production in different regions, months of 2019 compared with the same time mainly the U.S. and non-China Asia, to solve period a year ago. U.S. exports of plastic scrap the potential fiber shortage problem caused by plunged 39% in that 11-month period, year on the further drop in RCP imports and the poten- year, by volume. Looking at plastics by resin type, tial zero-RCP-imports scenario sometime in the styrene polymers were the only polymers to see a future.” S gain in 2019; all other polymers saw double-digit decreases that ranged between 28% and 69%. Joe Pickard is chief economist and director of commodi- ties and Bret Biggers is an economist for ISRI. Looking forward, China’s role in the nonme- tallic scrap sectors will continue to loom large. www.scrap.org   JANUARY/FEBRUARY 2020 _ Scrap _ 51

PUBLIC INTEREST IN SUSTAINABILITY IS DRIVING DEMAND FOR SOME RECYCLED PLASTICS IN NORTH AMERICA, BUT OTHER RESINS CONTINUE TO FACE PRICE AND QUALITY CONCERNS. BY KATIE PYZYK 52 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

GETTY IMAGES/CAMILOTORRES 2019 was a landmark, evolutionary year for “biggest potential disruptors” and “one of the plastics recycling. After China banned nearly least understood from a demand, supply, regu- all imports of scrap plastics as of January 2018, latory and technology standpoint.” The tim- plastic scrap exporters turned to Southeast ing of China’s ban just happened to coincide Asian countries—including Indonesia, Malaysia, with Americans’ mentality shift about plastics, Thailand, and Vietnam—to pick up China’s slack. Saunders says. Those countries, overwhelmed by the influx of supply, illegal processing and consuming opera- The sustainability movement has some indus- tions, and insufficient regulatory infrastructure try participants optimistic that demand for recy- to control the situation, soon set their own cled resin will grow to meet or exceed the supply. restrictions or bans. Then the Basel Convention Others caution that it’s not that simple: North Conference of Parties imposed worldwide trade American demand already exceeds supply for restrictions on many forms of plastic scrap, a some recycled plastics, they say, but other resins policy scheduled to go into effect Jan 1, 2021. are still struggling to find markets. Even as some companies announce plans for new or expanded Despite the impact such regulatory changes are capacity, others point to factors that may impede having on recycled plastic exports, those policy growth in this industry sector. shifts were not the biggest driver of change in the U.S. recycled plastics market last year, says THE SUSTAINABILITY BANDWAGON Scott Saunders, general manager at KW Plastics The call for better end-of-life plastics management (Troy, Ala.). Instead, he points to ramped-up and more use of recycled resins quickly grew from awareness, advocacy, and legislation focused on a few voices to a worldwide movement in 2019, plastics’ sustainability issues—especially the sources say, and major multinational brands took problem of ocean plastics. A recent report, “A notice. Many of them announced or signed com- Sea Change: Plastics Pathway to Sustainability,” mitments to increase the recycled content of their also takes that perspective. Led by IHS Markit plastic packaging and products. “The number in collaboration with More Recycling (Sonoma, of brands coming out with goals to use recycled Calif.) and Environmental Packaging International content in the last 12 months is unlike anything (Jamestown, R.I.), the report calls the plastics we’ve seen before. Companies are aware their con- sustainability movement one of the industry’s sumers are demanding more sustainable packag- ing,” says Susan Collins, executive director of the Container Recycling Institute (Culver City, Calif.). Brands have made commitments both indi- vidually and in large collaborations. Businesses representing 20% of the plastic produced glob- ally—including Coca-Cola, Colgate-Palmolive, Kellogg, Keurig Dr Pepper, Mars, PepsiCo, and SC Johnson—have signed the New Plastics Economy Global Commitment, an Ellen MacArthur Foundation initiative, alongside more than 400 other manufacturers, retail businesses, govern- ments, and other entities. Advocacy groups and industry associations have launched other large- scale commitments. For example, the Association of Plastic Recyclers (Washington, D.C.) says its Recycling Demand Champions program increased participants’ postconsumer resin use by 25.9 mil- lion pounds in 2019, the program’s second year. These commitments had already spurred growth in demand for some recycled resins as of late 2019, Saunders says. “We have noticed a big change in PCR demand for our natural high-density polyethylene, which is made from milk bottles. … As a result, we’ve seen those bale www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 53

“If brands are willing to pay for recycled content and live up They have “the potential to decouple recycled to the pledges, I think the new recycling facilities will have [pricing] from virgin pricing, which it’s always markets” for the material they process, Chaz Miller says. been tied to,” she says. Such a commitment “makes its own market for recycled material prices go up rapidly.” The export market restric- because regardless of the cost, people will seek it tions came at an opportune time for his company. out just to fulfill these commitments.” That could “Without the China ban, we would not be generat- prompt further, deeper plastics recycling market ing enough material in the U.S. to supply this new changes in the next few years. demand,” he says. “There is a lot of uncertainty in the market,” “Most of the buzz about domestic demand that Butler says. The IHS Markit report suggests that I’m hearing is about PET,” says CRI’s Collins. “The demand could contract for certain resins if mate- U.S. has about 22 PET reclaimers, and they are rial bans—on straws, bags, and other single-use not at full capacity, so they could easily take in plastics—proliferate, but new end-market oppor- and process more material.” Even at full capacity, tunities could expand recycled plastics demand these facilities would not be able to generate suffi- on a more widespread scale. That growth also cient material to meet expected demand, espe- might depend on how new policies affect the cially for food and beverage packaging, says Jason economics of recycling and the value placed on Farahnik, director of brand partnerships and resin carbon, Butler adds. sales at CarbonLITE Industries (Los Angeles), which calls itself the world’s largest recycled PET LEFT BEHIND producer. For RPET, “demand far outweighs cur- While these recyclers say they’re seeing higher rent supply capacity. Not a lot of plants are able to demand for PET and natural HDPE, demand is process PET to the food-grade level,” he says. not as strong for other resins. Most of the demand for postconsumer resin is for material from Some analysts caution that brand commitments bottles, Butler explains, but bottles are only 1/3 are promises that might never come to fruition. of the packaging market, and packaging is about Most aim to achieve a specific percentage of recy- 40% of the total plastic market. Fewer North cled resin use by a deadline five to 10 years from American destinations exist for nonbottle mate- now, but there’s no mechanism to hold the brands rial, much of which had been exported to China accountable for meeting those goals. Nor is there a and Southeast Asia. “The U.S. isn’t prepared to sustainable funding source to support the infra- absorb the commodities that were mostly slated structure enhancements needed to produce the for Asian markets, such as mixed rigid plastics,” high-quality recycled feedstock consumers require, Butler says. says Nina Bellucci Butler, CEO of More Recycling. “Many companies will not pay more” for recycled EFS-plastics (Listowel, Ontario) purchases bales plastics than for virgin material, Butler says. of mixed plastics Nos. 3-7 and processes the PE and PP into products for less visible applications, Processors are left wondering if demand will such as garbage bags or pipes. “Ours is a very dif- really grow enough to justify investing in more ferent story than recyclers who are handling PET collection and processing capacity. “If brands and able to get that into a consumer-facing water are willing to pay for recycled content and live bottle,” says Eadaoin Quinn, director of business up to the pledges, I think the new recycling development and procurement. Because it comes facilities will have markets” for the material they as a mixed plastics product, the material typi- process, says Chaz Miller, chair of the recycling cally is more contaminated than material that’s markets task force for the Northeast Recycling segregated during MRF sorting, such as PET. But Council (Brattleboro, Vt.) and Northeast Waste the resins are well-suited to industrial or utilitar- Management Officials’ Association (Boston). “But ian products such as stormwater pipes, residen- if brands are not willing to pay and live up to the tial foundation barriers, slip sheets, pallets, and guarantees, we will have problems.” waste or recycling bins, Quinn says. “There are a lot of easy outlets for PCR that have been proven Sustainability commitments are an “artificial over the years,” she says, and stronger collabora- driver” for postconsumer resin, but they could tion between recovered plastic consumers and yield positive long-term consequences, says Kim processors could identify more uses for these less Holmes, a consultant for the Plastics Industry in-demand resins. Association, or PLASTICS (Washington, D.C.). 54 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

“People need to think beyond that ‘unicorn Contamination prevents the large amounts PCR,’” Quinn says. “There is high demand for of film the United States generates from being clear, food-grade-approved PCR”—typically clear in high demand, says Gene Jones, CEO of PET from water bottles and clear HDPE from milk the Southern Waste Information eXchange jugs—but “opportunities to use colored, non-food- (Tallahassee, Fla.). “The clean films definitely are grade PCR are being overlooked, even though still sought after. But the dirty films [such as agri- these applications could be the easiest to switch cultural films] are problematic … and we gener- from virgin resin to 100% recycled resin.” ate a tremendous amount of it here in the United States,” he says. The cost of separating mixed plastics, as well as the technology needed to do so, are concerns Across the recycled plastics industry, China’s for those seeking to grow markets for those resins. stricter contamination standards for scrap spurred “Materials in mixed bales have good value, but increased global interest in higher-quality mate- not when they’re all mixed up. We’re looking at rial—but at a price that’s comparable to virgin how we can change the value of materials with material. “That’s tough to get your hands on,” no or negative value,” Holmes says. PLASTICS Quinn says. Others are optimistic that North recently led a collaborative effort studying how American recyclers will soon resolve any quality secondary MRFs could boost material value and questions. “The quality of material available for demand in the northwestern United States. The recyclers will be improving exponentially here project collected PET, HDPE, low-density poly- in the next 12 to 18 months,” says APR President ethylene, polypropylene, polystyrene, gable-top Steve Alexander. He anticipates that improved cartons, and aseptic cartons from four West Coast residential recycling education and adjustments to MRFs. A secondary MRF sorted the materials into MRF work processes will soon result in improved six streams and prepared the majority of it for material quality coming from the residential sale into domestic markets, “which already exist stream to plastics processors and consumers. for many of these plastic packaging products, so “Communities and haulers will adjust to the new long as the packaging can be sorted by resin type,” market reality and will increase the quality and Holmes says. value of the material they’re baling,” he says. The study’s results suggest that if the collection THE PRICE PROBLEM programs stay the same, and people continue the The biggest obstacle to increasing demand for same recycling behavior, adding a secondary MRF recycled plastic may be price. Low oil and gas in that region could recover an additional 50,000 prices are causing virgin resin costs to dip, mak- tons of material each year that now goes to the ing recycled resins less competitive. At the same landfill, Holmes says. “If we look at the additional time, prices for natural HDPE bales, “the com- sortation capabilities afforded by the secondary modity that generates an attractive feedstock to sorting process, we could eventually look at grow- ing the accepted list of plastic packaging prod- Low oil and gas prices are causing virgin resin costs to dip, ucts”—such as by adding cold-drink cups made making recycled resins less competitive. At the same time, of PP—“and greatly increase the potential recov- prices for natural HDPE bales have gone way up, Butler says. ery number.” A regional secondary MRF allows multiple MRFs in a region to share the costs and potentially displace virgin [material],” have gone benefits of investing in new sorting equipment, way up, Butler says. “The price for postconsumer she adds. resin suitable for food-contact applications far surpasses virgin resin right now. It simply costs Film faces demand-side challenges as well. more to reprocess scrap plastic” than it does to “There’s an enormous amount of film available purchase virgin resin, she says. for recycling that used to get exported … and there’s not enough domestic capacity to process “There is a relatively small pool of material it,” Quinn says. EFS wants to increase its film fit for use, and a growing volume of products processing capacity, but that’s hard to justify that require more content,” Butler says. “We until true end-market demand grows to meet this need to collect more HDPE bottles, but even if excess supply, she says. “There are solid end mar- we maxed out collection, there isn’t enough to kets that we have been selling to for 10-plus years, but they are not growing at the same rate that the supply is growing,” she says. www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 55

“Markets for colored, non-food-grade PE and PP are currently involved in reclamations as well,” Holmes says. strong, but the quickly declining virgin resin pricing is For example, Nestlé Waters North America has putting these markets in potential jeopardy,” Quinn says. partnered with CarbonLITE to produce PET bottles meet the demand needed for recycled content with recycled content. This winter, CarbonLITE is in applications beyond bottles. Converters are opening its third bottle-to-bottle PET processing using PCR from bottles in other rigid and flexible facility, near Allentown, Pa., primarily to serve applications.” Nestlé, although it has other customers as well. With a projected annual processing volume of Meanwhile, for the less in-demand plas- 120 million to 130 million pounds, CarbonLITE’s tics, “nearly all the resin we (and many of our Pennsylvania facility will be larger than its other competitors) sell today is [priced] below virgin two, which are in California and Texas. “We want pricing,” Quinn says, “However, that is becom- to expand as our core customer base requires,” ing increasingly difficult as virgin prices con- Farahnik says. tinue to decline.” Butler says she understands companies’ reluctance to increase their costs by Foreign-owned companies are investing in using recycled material. “It forces a privately held North American processing facilities as well. company to be irresponsible fiduciarily to their “Some of the Chinese facilities are starting to set stakeholders,” she says. Quinn concurs: “A lot of up operations here in the U.S. since they can’t get our longstanding customers … have really felt the product at home,” Jones says. For example, Roy pressure to look for the cheaper virgin alternatives Tech Environ (Decatur, Ala.), a subsidiary of a right now,” she says. “Markets for colored, non- Shanghai-based plastics processor, purchased an food-grade PE and PP are currently strong, but the 80,000-square-foot facility in Alabama to process quickly declining virgin resin pricing is putting scrap that it plans to sell to Southeast Asian cus- these markets in potential jeopardy.” tomers. A similar scenario is unfolding in South Carolina, where Ecomelida, a U.S. subsidiary of Even when brands commit to using more recy- China-based scrap importer Zhangzhou Sanlida cled material, they sometimes hesitate to purchase Environmental Technology Corp., is building its the material—at least in considerable quanti- first North American facility to process postcon- ties—because they can’t find recycled resins with sumer plastic and paper. the quality and functionality they want at a price comparable to virgin material. That’s why Butler Bangkok-based Indorama Ventures has invested has her doubts that these sustainability pledges in numerous North American facilities, includ- will result in greater overall demand. “If you want ing retrofits at Loop Industries’ Spartanburg, S.C., [recycled material] at price parity, and you want plant for manufacturing PET and polyester fiber; functional equality [with virgin material], there’s a new PET bottle recycling facility in Guadalajara, not true demand,” she says. Mexico; and purchases of PET recycling facilities in Alabama and California. Indorama recently EXPANDING CAPACITY partnered with The Recycling Partnership (Falls More than a half-dozen North American plastics Church, Va.) to improve U.S. residential recycling processing facilities have announced new or rates and committed to investing $1.5 billion expanded capacity during the past 18 months. (For across the globe to improve recycling. capacity growth in chemical recycling of plastics, see “A Promising Formula” in the September/ Saunders sees new PE and PP processing October 2019 issue of Scrap.) The IHS Markit capacity coming online in North America in report says that participants throughout the plas- 2020, but he cautions that it can have a downside: tics value chain are “re-assessing their business “Hopefully the new capacity won’t force prices so models and either considering or already imple- low that there’s no way to compete with them.” menting vertical and/or horizontal integration plans,” such as virgin polymer producers adding Industry watchers have some ideas about why recycled resins to their portfolio, or brand owners recycled plastics consuming capacity doesn’t becoming plastic scrap processors as well as con- appear to be growing as quickly—or as publicly— sumers. “We’re seeing [brand owners] investing as recovered fiber consuming capacity. First, the in technology … some of them are getting directly paper recycling industry established itself decades ago, therefore it has “a tremendous time advantage … Plastic is a younger product with younger infra- structure,” Miller says. That might be one reason why recovered fiber consumers largely have been 56 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

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transparent about facility openings and new overseas markets. For nearly scrap, “but we’re not giving up,” he expansions, whereas plastic recyclers three decades, GDB International (New says. It plans to scale up the operation and consumers are more tight-lipped Brunswick, N.J.) shipped much of its with more equipment purchases, with about their plans. “I’m very comfortable plastic scrap overseas, with China its the additional capacity expected to with the data NERC has released on largest export destination. After China come online at a second GDB facil- paper expansions. I’m not as comfort- announced its import restrictions, “we ity early this year. “Once we scale up, able with the data we’ve accumulated saw the writing on the wall. We knew the economies of scale will come into on plastic,” Miller says. Butler con- if our biggest market is getting affected play, and we’ll see the return on all the curs: “I’m not getting really solid infor- in a blanket manner, our sales will be hard work our company is putting into mation, either,” she says. The lack of affected,” says GDB President Sunil this,” Bagaria says. information creates uncertainty about Bagaria. In March 2019, the company which capacity expansion projects invested in machinery to clean and SUPPORTING THE MARKET have come to fruition as announced pelletize some of the plastics it previ- Processors and consumers of recycled and which have been delayed, under- ously exported. plastics, as well as stakeholders outside gone scope changes, or been canceled. of the recycling industry, are consider- But Alexander is optimistic. “We see Experimenting with this new ven- ing what else can further develop the a very robust market for recycled resin ture proved nerve-wracking, Bagaria North American recycled plastics mar- demand over the next five to 10 years,” says. “Because virgin prices have gone ket. Some want to increase the supply he says. down continuously … that has put a of recovered plastics. The American strain on our profit margin.” Thus far Chemistry Council (Washington, D.C.) Plastics recyclers are altering GDB has not experienced the kind of launched a public relations campaign their business strategies to sell scrap return from selling pelletized recycled encouraging Americans to recycle domestically rather than search for plastics as it did from exporting plastic At Kendallville Iron & Metal...Failure is NOT an Option “The innovative design makes the With increased production demand Metso shear/baler/logger more and the need to process heavier scrap, e cient in processing scrap.” Kendallville Iron & Metal required a solution to replace their 20-year-old shear. Jeremy Spidel - Vice-President Kendallville Iron & Metal, Inc. “Our management team thoroughly researched numerous shear / baler / N-Series-NMS 616-9 SL60 logger manufacturers. Metso was selected Stationary Modular Shear based on the operational features Kendallville Iron & Metal Inc. coupled with their knowledgeable support team and competitive price.” Get the Whole Story N-Series™ Lindemann™ Texas Shredder™ Pre-Shredders • Shredders • Shears • Balers • Briquetters metso.com/campaigns/metal-recycling/NMS/ 58 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

plastics—and to recycle them cor- there won’t be enough plants to recycle bottle-deposit bill would increase PET rectly—to ensure a steady supply of all the potential volume,” CarbonLITE’s collection. 2019 was a banner year for feedstock for plastics recyclers. For Farahnik says. state lawmakers introducing bottle bill the most in-demand resins, material legislation—CRI’s Collins estimates 10 collection is a barrier to growth, many Other industry participants would states introduced legislation, compared industry participants say. Plastics recy- like to see government action drive with the usual three or four annually. clers have ample capacity to process greater demand for recycled plastics. postconsumer plastics from MRFs, “The time has come when … some Federal laws would move the APR’s Alexander says, and “there is federal help may be required for plastic needle on recycling faster and in a plenty of investment that’s sitting on recycling to continue,” Bagaria says. more uniform fashion, some indus- the sidelines, waiting to build new pro- “Demand for recycled resin has to try participants say. Sen. Tom Udall cessing capacity in the United States, increase … Otherwise, the recycling (D-N.M.) and Rep. Alan Lowenthal but they’re waiting for more material industry’s biggest fears will become (D-Calif.) introduced draft federal to be collected.” Thus, he suggests true: that we have the capacity, and legislation in October 2019 that would focusing on collection and MRF sorting there is no home for [the material]. impose a nationwide 10-cent container infrastructure. Postconsumer plastics That would be a disaster.” The govern- deposit law on beverage containers, are considered more difficult to collect ment can and should create demand regardless of material. It also would than other postconsumer materials for to foster an environment where plastic place extended producer responsibil- multiple reasons, including their light recycling is profitable, he says. ity requirements on plastics produc- weight. It takes more collection of plas- ers to design, manage, and finance a tics to get a ton of material. “Once we Farahnik notes that states with program to process plastics that might hammer down and fix PET collection, bottle-deposit laws have three to four otherwise be landfilled. Funds from times the recycling rates of non-deposit unclaimed deposits would go to the states. He suggests that a national Mack Grapples Quality First • Built to Last Heavy-duty Mack cylinders, built in our own shops, are one way we build longer life into Mack scrap grapples. • 4-tine & 5-tine grapples custom-built to order • All shafts are heat-treated stress relieved 4140 • All steel is ASTM-A514 (T-1) and AR400 steel for high wear areas “Quality First” Since 1942 251-653-9999 www.mackmfg.com 7205 Bellingrath Road, Theodore, AL 36582 USA American-made for over 75 years 139-037C Scrap 8.125x5.54 4C.indd 1 _ _2018-05-03 2:50 PM www.scrap.org JANUARY/FEBRUARY 2020 Scrap 59

Manitoba i oud t servic th scra beverage producers to use for their EPR ecyclin industr over 100 year . programs. Other parts of the proposal would ban certain single-use plastics, PERFORMANCE AND REPUTATION impose a fee on single-use carryout MAKE THE DIFFERENCE bags, and set a minimum recycled-con- tent mandate on containers. • BARE COPPER • BURNT COPPER WIRE • #1 INSULATED COPPER WIRE ISRI submitted comments in • COPPER TUBING • STATOR BARS response to the proposal that support • TRANSFORMER COILS market incentives when markets do • LEAD COVERED COPPER CABLE not yet exist. The comments also note that requiring manufacturers to design www.manitobacorp.com • [email protected] products so that they can be recycled is a “more effective way to reduce plastic SERVICING THE METAL INDUSTRIES OF NORTH AMERICA SINCE 1916 waste.” It also voiced support for efforts to improve labeling, raise awareness ISO 9001:2015 about proper recycling, and increase recycled content in plastic products. BUFFALO ST. LOUIS, MO (716) 685-7000 (314) 436-0199 Mandatory minimum postconsumer Fax (716) 685-7008 Fax (314) 436-1062 recycled content levels for manufac- tured plastic products have the support 60 _ Scrap _ JANUARY/FEBRUARY 2020 even of those who customarily oppose government intervention. California’s Assembly Bill 792, introduced last year, would have required beverage producers to use 10% recycled content in their bottles by 2021 and 50% by 2030. The bill passed both branches of the state legislature, but Gov. Gavin Newsom vetoed it because he believed amendments to the bill would have allowed manufacturers to shirk their responsibilities to meet the recycled- content requirements. A federal recycled-content mandate could achieve results more effectively and quickly than state mandates, sources say. Miller cautions, however, that “if all it does is shift buyers from one recycled material market to another … it’s meaningless.” He explains that “plastic fiber is currently the biggest market for recycled PET,” for example. “If [recycled content] requirements sim- ply cause recycled plastic to be bought by bottlemakers instead of plastic fiber companies, we are not expanding the market for recycled plastic.” Federal lawmakers have proposed other initiatives to advance plastics recycling and demand for recycled plastics. In November, U.S. senators Rob Portman (R-Ohio) and Debbie Stabenow (D-Mich.) introduced the www.scrap.org

RECYCLE Act, which would create a EQUIPMENT FOR PROFITABLE TIRE RECYCLING new federal grant program through the U.S. Environmental Protection Agency No need for de-beading tires prior to processing to help communities improve recycling education and outreach. It also calls for Fiber-free granules from car tires the EPA to more frequently review and Easy processing of OTR tires and mining tires revise its comprehensive procurement guidelines, which set recommended Handcrafted equipment of highest quality recycled content guidelines for federal agency purchases. ISRI applauded Turn-key plants tted to your needs Call us today the bill’s introduction. “Through the Sales support and service 716 731 4900 consumer recycling education and outreach program, we hope to see Cbaussetodmoinzeedxpseysriteenmces aanndd skonlouwtio-hnosw- improvements in the quality of the material entering the stream. And with www.eldan-recycling.us a stronger procurement process, the federal government is in a position to YOU NEED TO 40' - 53' Gondola Trailers help drive demand for recyclable mate- up to 125 cu. yds. rials,” ISRI President Robin Wiener HSAOULLUITTWIEOARENYOUR says in a press release about the act’s introduction. Doing Our Best to Provide You the Best 1.800.543.3626 • www.demco-products.com In December, members of Congress launched the Congressional Plastics JANUARY/FEBRUARY 2020 _ Scrap _ 61 Solutions Task Force, a coalition that plans to work with state and local offi- cials and industry leaders to promote investment and education related to plastics recycling technologies and plastics recovery. Rep. Haley Stevens (D-Mich.), one of the founders, says in a statement that she hopes to build momentum around emerging tech- nologies that are “being developed to increase the efficiency and availability of plastics recycling, repurpose more recycled plastics into high-value prod- ucts, and ultimately, reduce the impact of plastic on the environment and human health.” Other federal interven- tions could include government subsi- dies or tax incentive loans for installing new plastics processing equipment. Meanwhile, recyclers hope the sustainability movement will continue to put pressure on brand owners to use recycled content in their products and packaging. “People don’t realize the power they have when they decide to buy something with recycled content,” Quinn says. Katie Pyzyk is a contributing writer for Scrap. www.scrap.org

“ENDLESS CUTTING” Featuring high-quality blades that increase productivity and a lower jaw that endures hours of use, the Genesis GXT is Diehl Metal Recycling’s mobile shear of choice. They know the GXT’s rugged construction will withstand processing the variety of material that comes their way and rely on Shear Jaw Armor™ to minimize maintenance and keep the crew up and running. “Endless cutting.” That’s what Diehl Recycling gets with the strength and durability of their GXT mobile shears. What will you get? Already have a GXT? Tell us your story at genesisattachments.com/mygxtstory Danny Rodenschmit, Dan Rodenschmit, Corey Schlender, Elliot Diehl Diehl Metal Recycling © 2020 Genesis Attachments, LLC genesisattachments.com | 888-SHEAR-IT (743-2748)

COMPANIES THAT OFFER BOTH RECYCLING AND DEMOLITION ARE FILLING NICHES BASED ON REGIONAL DEMAND FOR COMMODITIES, SERVICES, OR A LITTLE BIT OF BOTH. BY MEGAN QUINN ISTOCKPHOTO.COM/MIPAN David Mulicka is having a banner year. HONC services. “When I became the person I used to haul to, Destruction (Fort Myers, Fla.) started in 2002 as a that transformed my company,” he says. “I can now load demolition company that demolished 16 houses partially segregated material and haul it to my own facil- in its first year. Today, the company is a hybrid ity from our demolition sites, and I can process it more recycler and demolition contractor with its own transfer quickly and efficiently at our transfer station, rather than station, a fleet of 500 roll-off containers it rents out, and on customer job sites. I can offer a faster schedule than a plan to expand its footprint into a new space next year. my competitors.” In 2018, it spent $2 million on brand-new recycling sor- tation equipment, including new screens, magnets, and It can be tricky to expand a business. Mulicka admits air sorters to accommodate its growing recycling stream. he knew little about the recycling industry when he Mulicka says his business is doing well enough that he made the decision to add recycling services in 2007. has a separate staff of about 25 people for its recycling But he sees demolition and recycling as well-paired industries, especially in Florida, where the construction www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 63

industry is doing well and recycled concrete and business. Several years ago, if a business got a con- steel are in high demand. Breaking into the recy- tract to take down a refinery, for example, “they’d cling industry “was a game-changer,” he explains. pay for the opportunity to do the job because of the “The bigger our recycling business can get, the [high] metal prices,” he says. “But that has changed bigger our demolition business can get,” he says. in recent years … Now they charge upfront for their “We can process faster, and we can get hired for services.” more work because we have the capacity to make materials disappear ourselves.” Beyond dealing with the normal fluctuations in scrap commodity prices, demolition contractors Companies that have found a way to balance also have to grapple with how price changes can both recycling and demolition services say this affect long-term projects, says Andrew DeBaise, diversification helps them during both good and executive manager for Rocky Mountain Recycling bad market conditions, and the two industries’ (Commerce City, Colo.). Scrap recyclers can manage overlapping equipment—such as mobile shears, how much of each metal they buy to adjust for balers, material handlers, and skid-steers—and daily price changes, but demolition companies are materials management know-how make the two often paid on a project basis, meaning their contract a natural fit. Employees often have training that pays the same amount regardless of whether the applies to both industries. value of the scrap they recover goes up or down. And since demolition projects can take a year or These companies “try to be a one-stop shop more, a company might sometimes bid on a demoli- where they can guarantee demolition material is tion job when prices are higher and get left with being recycled because they are using their own large piles of low-value scrap months later, when plants to do so,” says William Turley, executive the job is done. This also makes it tough to budget director of the Construction and Demolition and bid on long-term projects, Mulicka says. “In Recycling Association (Chicago). “Even if they’re Florida, you might bid on a project, then learn they doing demolition further afield, they can better want to delay it until after tourist season, which prepare [scrap] to be transported and recycled down here is Thanksgiving to Easter,” he says. because of the experience they have with their own “Everyone wants the job done when the snowbirds plants.” leave, but if you bid [based on] the December pricing for steel, [and] you can’t start the project Companies that do both scrap recycling and until May, you might lose 20% off the steel prices” demolition have the ability to insulate themselves if they decline, he says. somewhat from economic downturns because they sell both services and commodities, he says. The A recycling and demolition company might be exact array of services they offer can depend on the able to offset this problem by diversifying the mate- unique demands of customers in their geographic rials it can process—provided there’s a strong local region or partnerships these companies have forged market for them, Mulicka says. When his company over time. That means no two companies with both expanded, it got creative and started recovering demolition and recycling expertise are alike. and selling dirt. “Believe it or not, dirt is a hot commodity in Florida” because it’s a key ingredi- DIVERSE SERVICES, DIVERSE CHALLENGES ent in construction projects to fill holes and grade Recycling and demolition businesses have a lot streets. It’s expensive to transport, so companies going for them, but they’re not immune to the chal- that can supply it locally can make a good profit, he lenges each sector faces, Turley says. Recent dips says. The same goes for wood chips, which HONC in commodity prices have been a challenge for both Destruction sorts and sells as mulch. recyclers and demolition contractors, he says. Steel is one of the most common commodities recovered BREAKING INTO THE BUSINESS from demolition sites, often in the form of I-beams What makes a company decide to break into a new and rebar, but low steel prices in 2019 hit both sec- line of business? For HONC Destruction, it started tors hard, he says. “We’re still [recovering] metals, as a way to reduce costs. By 2007, the company of course. We’re just not always getting every little was doing more than 350 demolition projects of bit like we used to, like metal springs from mat- all sizes, from malls to condemned houses, a year. tresses, because it’s just not economically feasible. Business was going well, but disposal costs were It’s too much labor for the trouble,” he says. starting to creep up to almost $1 million a year. “Right before the recession, the nearby landfill Low commodities prices have also changed the way some recycling and demolition companies do 64 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org



raised our rates by 20%, and I realized I was Instead, it’s become the largest recycled aggregates beholden to them because I had no other landfill to producer in the United States and is leaning go to,” Mulicka says. further into its most successful commodity stream: concrete. “We recycle nearly 3 million tons of Workers at HONC were already recovering concrete on an annual basis,” Rizzo says. “We do a metals to sell to nearby scrapyards. Mulicka started lot of asphalt, roof shingles, and tires, too, so from looking through his waste stream for ways to sell a green perspective, we’re very focused on that,” he things that normally went to the landfill and won- adds. “For us, nowadays, demolition is a smaller dered if overhauling his entire system would save part of our business, and we have transitioned more money in the long run. If he could further over to being a recycler of aggregate in lieu of process and sell the metal himself, as well as pro- demolition.” cess and sell demolition materials such as concrete and wood, he figured he could be more competitive In December 2019, Arcosa (Dallas), a provider and offer a faster turnaround on projects. of infrastructure-related products and services, announced it would acquire Cherry Cos. In a He watched how the recyclers in his area priced presentation to investors, Arcosa officials said the the metals he sold them from his demolition company was attracted to Cherry Cos.’ market share projects and did research on what it would take and ability to process and manage high volumes to process, sort, bale, and and sell them himself. of recycled concrete and other aggregate. “Virgin “I started off [sorting] the easy things: the copper, natural aggregates are becoming more scarce near aluminum, steel, and the wire from demolition established metropolitan areas, as decades of projects. I had to figure out how the [scrapyards] growth and development have depleted reserves,” were doing it, where they sold it, how they handled the company said in the presentation. “Recycled the material.” It took time to establish himself in aggregates are also a cost-competitive material the market, and even longer to learn the intricacies to meet increased demand for erosion and flood of pricing and grading metals, he says, but “in the control projects,” especially in the Houston area, a end, I was in control over my own destiny.” Today, major market Cherry Cos. serves, Arcosa says. HONC Destruction processes 1,000 tons of material a day, and it recovers about 850 tons, including There’s a strong market for concrete in many metals, plastic, wood, and dirt. parts of North America, Turley adds, which works well for Cherry and any other recycling and The ability to process their own scrap and do demolition company that can process and sell the so faster has advantages, Mulicka says, because it material. Areas with robust construction activity helps HONC avoid some of the commodity pricing tend to be places with high demand for recycled fluctuations that make it hard to budget for long- concrete, which can be used as a base for new roads term demolition contracts. The average length of and buildings, he says. “It’s a superior product, its demolition contract is 60 days, compared with especially as a road base,” he says. some larger projects that could take one or two years. “Things like lower steel prices still affect us, PARTNERSHIPS OVER COMPETITION but the time frame of when we recover and sell the While companies like Cherry Cos. have seized on material is shorter now, so outside of major unex- a regional appetite for recycled aggregate, recy- pected fluctuations, it’s easier to budget,” he says. clers with demolition expertise in other parts of North America are filling other niches. The web- SHIFTING SPECIALTIES site for Allied Salvage & Metals (Richmond, British HONC Destruction’s workforce and revenue are Columbia) advertises demolition services, but its split nearly 50/50 between recycling and demoli- owner, Arthur Weinstein, says the company’s most tion, but not all companies that do both divide their profitable niche is assisting nearby demolition con- time or resources so evenly. It’s common for own- tractors instead of bidding on big projects by itself. ers to shift their business models over time, Turley “If there’s a really big project, like a big building says. A few companies he’s familiar with have coming down, [demolition contractors] give us a dropped one specialty completely or shifted focus call,” he says. Allied provides demolition sup- more heavily to the other. port, equipment, and certified equipment opera- tors for about 10 different demolition contractors Though it still offers some demolition services, in the Vancouver area. Oftentimes, the contractors Cherry Cos. (Houston) has moved away from also need help separating the metal and concrete that sector in recent years, says Joe Rizzo, the company’s vice president of business development. 66 _ Scrap _ JANUARY/FEBRUARY 2020  www.scrap.org

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have very similar challenges with handling generated,” he says. RMR also helps contractors materials, finding markets, finding labor … you develop pricing for the material and generate “full have to really feel like you can marry the two breakdown reports” of the materials they identify businesses in a profitable way, and you have to feel during their site visits. that you can take on any additional risk a demoli- tion business might have.” Other scrapyards offer this type of service to local contractors, but RMR was able to turn the Like Allied Salvage & Metals, Rocky Mountain consultations into a specialized, national service Recycling doesn’t do any of its own demolition that has sent their employees all over the United projects, but its partnerships with demolition States and Canada, DeBaise says. “We were buying contractors are a keystone of its business, he says. material that came from large national demoli- A “major” portion of its inbound scrap—about tion projects in Colorado, Nevada, Wyoming, and 50% of its annual volume—comes from demoli- Nebraska. Building those relationships helped tion projects in the Denver metro area, he says. us take on projects all across” North America, he That’s because RMR’s scrap management services says. include sending its employees and trucks to demo- lition sites to help prepare and sort scrap. An even BUILDING BUSINESS FOR THE FUTURE bigger part of RMR’s demolition-related business DeBaise says both demolition contractors and comes from its consulting services, where DeBaise scrap recyclers are used to operating with some or other employees visit demolition sites before level of uncertainty about how commodity prices, a project begins to help the contractor estimate government regulations, or construction and what it might cost to undertake the project, “then infrastructure projects might affect future busi- [estimate] the return on commodities potentially ness. Both sectors also have their eye on some Enhanced precision + Highest throughput Reliable top quality yield TOMRA’S NEW X-TRACT X6 FINES Aluminum vs. + SORTS EVEN THE SMALLEST GRAIN heavy metals, SIZES OF FINES ZORBA 5-40mm Contact us: TOMRA Sorting, Inc. // +1 916 346 0299 // [email protected] // www.tomra.com/recycling _ _68 ScrapUS_Light MJAeNtaUilAARYg/e_FEXB-RTURAARCYT20X260Fines_191007.indd 1 07.10.2019 w0w8w:2.2s:3c3rap.org

large-scale changes in the United States that could These companies similarly follow news about a directly affect them. “The overall economy has a possible infrastructure bill or any legislation that great impact on the demolition projects that are could affect domestic infrastructure spending. available,” DeBaise says. “But political policies In July 2019, the Senate Environment and Public also play a role.” Works committee approved a bipartisan funding bill allocating $287 billion for road projects, One trend is the shift in energy policy in the which the Wall Street Journal reported is a 27% United States, he says. Recently, “power plants increase from current funding but nowhere near not associated with natural gas have been on the the $1 trillion investment in roads and bridges political agenda, and there have been a lot of older President Trump proposed on the campaign trail power plants scheduled to be decommissioned. At in 2016. Other infrastructure spending proposals, the same time, emerging in 2020, you have renew- such as a $2 trillion package proposed in 2019, able energy projects that are being revitalized,” he fell through due to political disagreements. As says. of December, the president has said he is still com- mitted to putting new infrastructure measures One notable project is the planned demoli- into law, the Wall Street Journal reported. “If any tion of 18 structures at a former federal nuclear of that comes to fruition, all of a sudden you’ll see research site in California. The U.S. Department an increase in bridge work, and that would gener- of Energy announced in December that it was ate both ferrous for scrap recyclers and opportuni- seeking requests for proposals for the next round ties for demolition workers,” DeBaise says. S of demolition work. Demolition and recycling companies keep their ear to the ground for these Megan Quinn is senior reporter/writer for Scrap. types of announcements, which could provide work for several years, DeBaise says. www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 69

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2020 ISRI CONVENTION PREVIEW NUMBEBYRTHSE ISRI2020 IS SHAPING UP TO BE AN IMPRESSIVE EVENT, BUT THE NUMBERS CAN’T CAPTURE THE FULL PICTURE OF THE VALUE ISRI’S ANNUAL CONVENTION AND EXPOSITION PROVIDES. Nearly 300 exhibitors in more than 250,000 squareADRIENNE ANGELO; SCRAP MAGAZINE feet of exhibit space. An estimated 5,000-plus attendees. Eight commodity spotlights, two JANUARY/FEBRUARY 2020 _ Scrap _ 71 main stage speakers, and more than two dozen other education sessions. Activities that could span from dawn to midnight, across 18 hours in a single day. Looking at the numbers, ISRI2020 has the potential to be a record-breaking convention. But the numbers can’t capture the feeling of attending “the ISRI show,” which is what many people call ISRI’s annual convention and exposition. You have to experience that in person. You’re surrounded by thousands of people who have a focused interest in scrap recycling but who are diverse in every other measure. You’ll find newcomers who’ve heard it’s the must-attend recycling event, and indus- try stalwarts who have been attending the show or its predecessors for decades. Las Vegas natives, and visitors from halfway around the world. Processors and consumers of every type of scrap you can think of, and some types you’ve never considered. The convention provides value by several measures. It’s the volume of business conducted on the expo floor and in the hallways, meeting rooms, and bars. It’s the stack of business cards—or the digi- tal equivalent—you go home with. Harder to quantify is the value of that one idea—a processing technique, market knowledge, a safety strategy, or a legal or regu- latory update—that gets you moving in an entirely new direction or helps you become an even greater asset to your company. And the numbers can’t capture the feeling of watching ISRI leaders celebrate recycling industry excellence and its future promise by recognizing members across a wide array of achievements. www.scrap.org

2020 ISRI CONVENTION PREVIEW While many popular convention elements demonstrations, plentiful food and drink, and return this year, there’s always something new seating throughout the hall. ISRI continues to to keep things fresh. Here are 20 things to know refine the expo hall experience to improve traffic about ISRI2020. flow and give attendees plenty of opportunities 1. It’s in a popular spot. ISRI returns to the Mandalay to both browse and have substantive discussions Bay Resort & Casino in Las Vegas, the site of its with potential clients and business partners. most successful conventions to date. The conven- Stay tuned for information about workshops tion dates are April 27–30, with ISRI governance that will be held on the expo floor Tuesday and meetings April 25–27. Wednesday. At ISRI members’ request, the open- 2. It’s going to be big. Early registration has reached ing gala in the expo hall has been scheduled from record levels, with more than 1,500 people regis- 5 to 8 p.m. on Monday, April 27, early enough tered by mid-January. That’s more than double the that you can plan for drinks or dinner afterwards. number who had registered at the equivalent date 4. ISRI members will have an exclusive expo hall retreat. for the record-breaking 2012 convention. With the New for 2020, the ISRI-members-only lounge draw of Las Vegas as well as these early indicators, inside the exhibit hall, sponsored by Sierra, will convention organizers are confident that atten- feature food and drink, including a cash bar, and dance will approach or surpass the 5,000 mark. semi-private meeting areas with tables and chairs 3. The expo hall is sold out. Nearly 300 companies that are available on a first-come, first-served basis. are exhibiting their products and services in 5. The main stage speakers will provide food for thought. the world’s biggest recycling industry exposi- ISRI is bringing to the main stage two innovative tion. Expect the usual high-quality displays and business leaders to address two crucial questions The ISRI2020 expo hall will welcome visitors to explore the wares of nearly 300 www.scrap.org exhibitors and take meetings with clients in a new lounge just for ISRI members. Meanwhile, about two dozen education sessions will take new approaches to commodity trends, workforce development, certification, safety, and more. 72 _ Scrap _ JANUARY/FEBRUARY 2020

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2020 ISRI CONVENTION PREVIEW This year’s convention will feature workshops held in annual sales and turned him into a in the expo hall, as well as an adjusted Wednesday worldwide marketing phenomenon. morning schedule where sessions do not compete His five books on entrepreneurship, for the same time slot. That makes it easier to leadership, marketing, and media are catch important discussions on CEO insights, all bestsellers. He continues to have a international trade, and health and safety topics. prolific online presence via podcasts, YouTube, Facebook, Instagram, Twitter, for any business: how to tell your mes- LinkedIn, Snapchat, Spotify, and more. sage and find your market. On Tuesday, April 28, he will speak on how to tell your story in a noisy world. Gary Vaynerchuk, who also goes by GaryVee, is a marketing guru, inves- Renée Mauborgne and her co- tor, entrepreneur, chairman of media author, Chan Kim, were the No. 1 company VaynerX, CEO of ad agency business thinkers in the world in VaynerMedia, and more. Vaynerchuk 2019, according to Thinkers50, which started working at his family’s liquor the Financial Times called “the store in New Jersey at age 14. His early Oscars of management thinking.” A mastery of e-commerce, social media, distinguished fellow and professor of and personal branding grew the com- strategy at graduate business school pany from $3 million to $60 million INSEAD, Mauborgne is co-author of international bestsellers Blue Ocean Strategy and Blue Ocean Shift. The basic idea is this: Most companies fight for market share in existing markets, like fish fighting over chum— that’s the red ocean. Growth comes from finding or creating uncontested market space—the blue ocean. On Thursday, April 30, she’ll speak about how to create a blue ocean strategy for your company. 6. The education sessions follow five future-oriented tracks. ISRI’s Challenges 74 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

& Opportunities Committee provided Stop Waiting input on topics that will have you thinking about what—and how— you might be recycling tomorrow. The tracks are market development and commodity trends, managing a 21st-century workforce, certification, 20/20 vision for recycling’s future, and environment, health, and safety from compliance to culture. 7. The schedule allows broad participation in selected sessions. Four sessions the morning of Wednesday, April 29, don’t have any competition on the education schedule, allowing each to draw a wide audience. The first, a briefing on ISRI’s trade mission to Southeast Asia, is for ISRI members only. Following that are a panel of recycling industry CEOs addressing how to lead in challenging times, a look at the global movement of scrap to old and new markets, and an Same day shipping now available expert on safety and health. for Vanta™ handheld XRF analyzers 8. A long-missing spotlight returns. ISRI pro- vides benchmarking on the major scrap commodities in the convention’s spot- light sessions, which typically feature the perspectives of scrap processors and Call us at 339-227-1049 or visit us online at consumers as well as market analysts. In www.olympus-ims.com/vanta-same-day-shipping addition to spotlights on plastics, paper, electronics, nickel/stainless, aluminum, Orders placed by 3 p.m. will be shipped the day the order is placed using next day delivery. O er available copper, and ferrous, the convention will for select Vanta analyzer configurations and in select regions. Contact your local Olympus sales representative have a lead, zinc, and tin spotlight for for more details. the first time in many years. 9. ISRI Talks will let you learn from industry innovators. If you’re familiar with TED Olympus is a registered trademark, and Vanta is a trademark of Olympus Corporation. Talks, the same concept will govern the new ISRI Talks, a 90-minute pro- gram featuring several 8- to 12-minute presentations from ISRI members wOhlyompus_ScrapMagazine_201908_4x7_B.indd 1 8/29/19 10:41 AM want to share new and innovative ideas. The program’s producer has Attention ISRI members! Sign up for your on-site worked on TEDX Chicago for several years and is selecting among the appli- SSAAFFEETTYY BBLUEPRINT RREEVVIIEEWW cants for the event. with an ISRI safety professional. 10. You might want to pack your running shoes. ISRI is holding its second annual Fun Run, sponsored by Steinert, the morn- ing of Tuesday, April 28. Participants Contact Scott Wiggins at 202/662-8529 will run from the Mandalay Bay up the or [email protected] for more details. Las Vegas Strip, down to a photo op at the “Welcome to Fabulous Las Vegas” sign, and back. www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 75

2020 ISRI CONVENTION PREVIEW 11. Late-night networking events are in exclusive Mandalay convention organizers say. The event takes place Bay venues. Last year’s popular ISRI After Hours 7–10 p.m. on Thursday, April 30. Note that local events are returning, and night owls won’t have nightclub regulations require that attendees must to go far to participate. Tuesday’s event, for be age 21 or older. full-registration attendees, is 9 to 11:30 p.m. 13. There will be additional programming by and for ISRI at the Mandalay Bay Daylight Beach Club, a interest groups. Next issue will feature details on pool club between Shark Reef and the Four education sessions and networking opportuni- Seasons Hotel. Wednesday’s event, for full-reg- ties organized by ISRI’s Women in Recycling, istration ISRI members only, is 9 to 11:30 p.m. Young Executives, and Century Club members. at the Foundation Room on the top floor of the (Speaking of young executives, don’t miss your Mandalay Bay Hotel. opportunity to nominate a young executive for 12. The final-night event is something entirely new. For ISRI’s newest award. For details, see p. 117.) what may be the first time in the history of ISRI’s 14. ISRI governance groups give you a place to learn and get Las Vegas conventions, the ISRI2020 final night involved. Most ISRI governance meetings—those event is not at the host venue. Instead, ISRI will of committees, divisions, and task forces, as provide transportation to Drai’s Nightclub on the well as the Board of Directors—are open to all top floor of The Cromwell Las Vegas, a luxury employees of ISRI member companies. You can boutique hotel on the Las Vegas Strip. With attend as an observer, but joining a group can be both indoor and outdoor spaces, the club pro- as easy as making a phone call or completing an vides a view of the Bellagio fountains, and The online form. (Visit isri.org/about-isri/committees- Cromwell’s casino is just one floor below. Expect task-forces.) These meetings provide valuable great food, an open bar, music, and surprises, insights into ISRI’s activities at the state, national, Serving our ecycling eeds Since Baler Feed Can Crusher System on errous steel pan ortable Sort System Hydraulic Tipper • Hydraulic Tippers • Sorting Systems • Custom Equipment • Screens •Blowers • Glass breakers • Can Crushers • Can Buyers • Baler Feed Conveyors Shannon ane riest iver rem g com 76 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

and international levels. Participants have the The expo hall is the spot to network and mingle throughout the week. It’s also where the opportunity to shape ISRI’s direction or to voice convention kicks off with the opening night gala. This year, it’s scheduled from 5 to 8 p.m. concerns about challenges facing their facilities on Monday, April 27, which leaves plenty of time for dinner and drinks afterward. or the industry. ISRI’s spring governance meetings are at the Mandalay Bay starting the afternoon of Saturday, April 25, and ending before the exhibit hall opens on Monday, April 27. 15. The ISRI booth can help you get more from your member- ship. Are you making full use of all the products and services ISRI offers? Learn what you might be missing by visiting the ISRI member services booth in the exhibit hall. Staff members and vol- unteers will be happy to fill you in on the govern- ment relations, safety, environmental compliance, communications, workforce development, training, and research support ISRI provides to member companies and their employees. 16. A silent auction supports the recycling industry. Benefitting the Recycling Education and Research Foundation (formerly the Recycling Research Foundation), the annual silent auction lets you have fun and do good at the same time. The www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 77

2020 ISRI CONVENTION PREVIEW auction items will be on display in the exhibit each year. Mandalay Bay donates unserved hall, but now that the auction uses an online food to people in need, and all MGM Las Vegas bidding platform, you don’t need to hover near resorts divert their food scraps to a local pig the tables to place or increase your bids. To donate farm and compost facility. Visit isri2020.org/ scrap artworks, hotel and vacation packages, isri2020-sustainability-efforts/. high-quality electronic products, recycling equip- 19. ISRI members receive significant discounts on ment and services, or other items to the auction, registration. contact Natasha Grant at [email protected]. I Full registration for an ISRI member attendee, 17. Just For Fun events will feature food, music, and fun. exhibitor, or spouse/partner is $999 through One Just For Fun event on the schedule is lunch March 25, $1,099 from March 26 to April 24, or at the Mandalay Bay’s House of Blues, featuring a $1,199 on-site. For a nonmember attendee, exhib- speaker and a musical performance from its Music itor, or spouse/partner, full registration is $1,699 Forward Foundation. The foundation helps young each through March 25, $1,899 from March 26 to people in under-represented communities work April 24, or $1,999 on-site. toward careers in the music industry. Additional I Trade-show-only admission (which provides Just For Fun events will be announced soon. access to the exhibit hall on April 28 and 29 only) 18. The Mandalay Bay takes sustainability seriously. This for an ISRI member is $599 through March 25, and all other MGM Grand properties in Las Vegas $699 from March 26 to April 24, or $1,199 on-site. have Green Key certification at the four- or five-key For nonmembers, trade-show-only badges are level for their sustainability efforts. MGM operates $899 each through March 25, $999 from March its own materials recovery facility that diverts 26 to April 24, or $1,099 on site. nearly 86,000 tons of material from landfills I Child full conference registration (ages 2 to 16) Protect Yourself from Superfund Liability Order your 2020 SREA Reports today. Don’t get caught without your liability shield. ISRI members can order “Reasonable Care” reports on consumer facilities through ISRI’s SREA Reasonable Care Compliance Program, making it easy to gather compliance information needed to avoid liability. Several improvements are planned in 2020 to make it easier and more cost effective for members to order and receive reports. Learn how you can save your company from potential Superfund liability and even bankruptcy. Protect yourself today! ISRI.org/SREA Copyright 2020 Institute of Scrap Recycling Industries, Inc. All rights reserved. The information contained herein is for informational purposes only and is not intended to be used as substitute for speci c legal or technical advice or opinions. ISRI provides no warranty, expressed or implied, as to the accuracy, reliability, or completeness of furnished data.

Last year’s speakers included author and consultant Hal Becker, who led an interactive coaching session on building meaningful sales relationships. ISRI2020 will feature forward-thinking dis- cussions from industry leaders during a new ISRI Talks session, which follows a format similar to popular TED Talks. accompanying ISRI member adults is $300 each 20. Hotel rooms are available at several price points. through March 25, $325 from March 26 to April The average Mandalay Bay hotel room price 24, or $350 on site. For children accompanying for ISRI2020 is lower than it was at ISRI’s first nonmember adults, full conference registration is Mandalay Bay convention in 2006, organizers say. $325 each through March 25, $350 from March 26 Rates vary; Mandalay Bay rates range from $128 to to April 24, or $375 on site. $258 a day, plus taxes and fees; rates at The Delano, I Closing night party tickets for an adult guest of an on the Mandalay Bay property, range from $158 to ISRI member with full registration are $225 each $280 a day, plus taxes and fees. The Luxor, con- through March 25, $250 from March 26 to April nected to the Mandalay Bay, offers rooms from $65 24, or $275 on site. Closing night tickets for an to $195 a day, plus taxes and fees. Those rates are adult guest of a nonmember with full registration guaranteed when booking through isri2020.org only. are $275 each through March 25, $300 from March No one affiliated with the ISRI convention will 26 to April 24, or $325 on site. Local regulations solicit your hotel purchase by phone or e-mail. S restrict attendance at the closing night party venue to those age 21 and older. Go to isri2020.org to register online. BUY SELL TRADE E-SCRAP I METALS I TEXTILES I PAPER WOOD I RUBBER I PLASTIC I GLASS Post your BUY/SELL/TRADE listings or sign up for membership and take advantage of our services for sophisticated traders. If it’s scrap or used, it’s... www.recycle.net www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 79

ISRI2020 PRELIMINARY SCHEDULE OF EVENTS SATURDAY, APRIL 25 9 a.m.–5 p.m. WEDNESDAY, APRIL 29 THURSDAY, APRIL 30 Exhibit Hall Open 2:30–6 p.m. 8–9:30 a.m. 7 a.m.–5 p.m. 7 a.m.–noon Registration for exhibitors and ISRI Main Stage: State of the Registration Registration full-registration attendees only Association, Chair Brian Shine; 7–8 a.m. 7–8 a.m 3–5 p.m. Lifetime Achievement Award; ISRI Breakfast Café (open to ISRI Breakfast Café (open to ISRI Governance Meetings Keynote Speaker Gary guests with full registration) guests with full registration) 5–6 p.m. Vaynerchuk 7–8 a.m. 8–9:15 a.m. ISRI Board of Directors Meeting Briefing on ISRI Trade Mission Education Sessions (open to all ISRI members) 9:45–11 a.m. to Southeast Asia I Vehicle Data Security Concerns Education Sessions (ISRI members only) I The Fire Risk: Know the Issues, SUNDAY, APRIL 26 I Integrating Sustainability 8–9:30 a.m. CEO Insights and Reflections Manage the Issues 7 a.m.–6 p.m. Principles Into Your Operations 9 a.m.–4:30 p.m. I The Potential and Impact of 3D Registration for exhibitors and I Creating a Workforce Exhibit Hall Open full-registration attendees only 9 a.m. – 4:30 p.m. Printing in Manufacturing 7:30 a.m.–6:30 p.m. for the Future ISRI Members Only Lounge, 9:15–10:30 a.m. ISRI Governance Meetings I Plastics Spotlight sponsored by Sierra ISRI Talks: Interesting and Infor- (most meetings open I Quality Assurance Programs: 9:45–11 a.m. mative Stories From the People to all ISRI members) Take a Scrap Trade Tour: China, in Recycling The Rules Are Changing, NAFTA, and the Transatlantic 9:30–10:45 a.m. MONDAY, APRIL 27 Are You? 11:15 a.m.–12:30 p.m. Education Sessions 11:15 a.m.–12:30 p.m. The Importance of a Safety I Solar Panel Recycling 7 a.m.–8 p.m. Education Sessions Culture and Safety Programs I Autonomous Vehicle Registration I Back to the Future With the 11:30 a.m.–2 p.m. 7:30 a.m.–1:30 p.m. Century Club Just for Fun: Lunch at Technologies and Trucking ISRI Governance Meetings I Nickel/Stainless Spotlight the House of Blues 11 a.m.–1 p.m. (most meetings open I Partnering With Community 12:30–2 p.m. ISRI Main Stage: State of the to all ISRI members) Colleges to Develop Internship Exhibit Hall Luncheon Industry, Chair-Elect Gary 1:30–3:30 p.m. Programs 2–3:15 p.m. Champlin; Awards Presenta- ISRI Board of Directors Meeting I The Future of Packaging Education Sessions tions; Keynote Speaker Renée (open to all ISRI members) 11:30 a.m.–2 p.m. I Electronics Spotlight Mauborgne 4–5 p.m. Just For Fun Program I The Future of UBCs and 2–4 p.m. First-Time Attendees Welcome 12:30–2 p.m. ISRI Board of Directors Elections and Orientation Exhibit Hall Luncheon Residential Recycling 7–10 p.m. 5–8 p.m. 2–3:15 p.m. I Ferrous Spotlight ISRI Final Night Event, Drai’s ISRI Exhibit Hall Opening Education Sessions 3:30–4:45 p.m. Nightclub atop The Cromwell Reception I Leadership and HR Compliance Education Sessions Hotel on the Las Vegas Strip I Lead, Zinc, and Tin Spotlight I Paper Spotlight TUESDAY, APRIL 28 I Sustainability Scorecard: How I Building Relationships & Note: Meeting dates and times are Sustainability Plans Can Drive subject to change. Visit isri2020.org for 6–6:45 a.m. Demand Expanding Networks up-to-date schedule information, or ISRI Fun Run I Blockchain Technologies and I Electronics Recycling download the ISRI Connect app from the 7 a.m.–5 p.m. Downstream Diligence 9–11:30 p.m. Apple App Store or Google Play store. Registration 3:30–4:45 p.m. ISRI After Hours Party, 7– 8 a.m. Education Sessions Foundation Room, Mandalay www.scrap.org ISRI Breakfast Café (open to I Lower Your Fire Risk: Bay, sponsored by ShearCore guests with full registration) An Introduction to the and OilQuick ISRI Fire Prevention and Management Plan I Copper Spotlight 9–11:30 p.m. ISRI After Hours Party, Daylight Club, Mandalay Bay 80 _ Scrap _ JANUARY/FEBRUARY 2020

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REPORT: BIR BUDAPEST Opportunity In Uncertain Times RECYCLERS STRIKE A POSITIVE CHORD AT BIR BUDAPEST DESPITE GLOOMY MARKETS. BY EMILIE SHUMWAY SHUTTERSTOCK/ZG PHOTOGRAPHY hrough the centuries, numerous outside future, but if you take the mid- to long-term view, forces—from the Romans and Ottomans to the there are some good opportunities there.” Nazis and Soviets—have conquered and ruled over Budapest, Hungary. Recyclers meeting there The recycling industry must do more to posi- in October described feeling equally powerless, tion itself “at the forefront of the climate change caught between great powers with different goals and environmental debate,” said BIR President Tom and agendas. Their concerns ranged from the con- Bird of Chiho Environmental Group (Hong Kong), tinuing lack of clarity on future U.S.-China trade pointing to the growing public interest in the issue policy to governments’ exclusion of recyclers from and the strong positive contribution the industry their developing climate policies. Despite these makes. BIR is compiling and issuing more benefi- concerns, the weak markets for many commodities, cial facts and figures “to help people better argue and an uncertain political future, recyclers over- the case” of recycling’s role, he said. It will work all remained hopeful and optimistic at the Bureau with the press to create greater visibility for the of International Recycling’s (Brussels) fall meeting organization and industry; work more closely with in Hungary’s capital. “Change brings opportunity,” said Graeme Cameron of Sims Metal Management The Liberty Statue overlooks Budapest. Originally erected in 1947 in remembrance of (New York). “It’s a very complicated short-term the Soviet liberation of Nazi-occupied Hungary, the Hungarian people removed refer- ences to the Soviets and a Russian inscription after the fall of communist rule in 1989. www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 83

REPORT: BIR BUDAPEST the Global Recycling Foundation, particularly on weak demand from the automotive sector, Faye the promotion of educational programs; and focus said. The shift toward more hybrid vehicles and on adding new members and developing resources away from diesel engines means “the market is like a global database of recyclers, he said. shifting towards primary foundry alloys” instead of secondary, she said. Thus, even if the United Murat Bayram of European Metal Recycling States resolves its trade conflict with China, low (Warrington, England) echoed the need for the aluminum scrap prices are likely to persist. recycling industry to make clear its contributions to the environment during a panel discussion of Due to the massive investments being made in global trade. “There is a green hurricane outside, Southeast Asia, Faye said she doesn’t anticipate which could be out of control if we don’t do a shift in trade back to the old patterns, even if something in our industry” he said. In a climate the U.S.-China trade war settles. Bayram agreed. protection program Germany recently introduced, “This is a perfect storm of our markets,” he said, the word recycling didn’t appear once, he noted. referring to the combined impact of the trade war, “We need incentives for companies who are using oversupply, and environmental policies. “There is scrap,” he said. no way back … We need to fasten our seat belts.” “PERMANENT CHANGE” TO NONFERROUS FLOWS He and other panelists emphasized the need to go back to the fundamentals in difficult and Emerging trade and environmental policies are unpredictable times. Bayram suggested recyclers focus on three things: quality, service, and reli- likely to have a lasting effect on nonferrous scrap ability. Dhawal Shah of Metco Marketing (Mumbai, India) reminded recyclers of their “primary trade flows, speakers at the Nonferrous Division responsibility” to buy and sell “good, clean scrap.” meeting agreed—even after international con- Andriy Putilov, chairman of the board at second- flicts like the U.S.-China trade war are resolved. ary aluminum alloy producer MZ (Kherson, David Chiao of Uni-All Group (Atlanta), president Ukraine), spoke about the nonfer- of the division, said global scrap flows have been rous scrap market in Ukraine. The duty on nonferrous scrap exports “transformed.” to European Union countries is 7% and to other countries is Declining copper and aluminum prices are 15%—a steady improvement from a 30% duty in 2008 and the consequence of global oversupply, explained Andriy Putilov a total ban on nonferrous scrap Perrine Faye, global base metals editor at Fastmarkets exports in 1999, Putilov said. Ukraine is a strong prospective trade partner, he said, and consumers (London). China’s scrap restric- in Ukraine want to buy more imports. tions have resulted in an INNOVATION OFFERS HOPE FOR PLASTICS While global geopolitical and policymaking increased supply of lower-quality trends pose challenges for the recycled plastics industry, speakers on the Plastics Committee scrap grades outside of China, she panel expressed optimism regarding the scale of technological innovation and the increase in said: a “tsunami of scrap supply brands’ voluntary commitments to using recycled plastic in their products and packaging. “I’m not going away from China and being very positive for the short term,” said Henk Alssema, chairman of the committee and of Vita Plastics diverted into Southeast Asia, (Leek, Netherlands), citing the mid-September attack on a Saudi Arabian oil facility and the Perrine Faye mainly Indonesia and Malaysia.” possibility of global recession. “For the long term, I’m more positive.” But while China has plentiful aluminum stocks, In the United States, negative views of plastic its secondary copper production remains “still combined with a stronger desire for effective very much in an embryonic stage,” with alterna- tives like blisters, concentrates, and cathodes very expensive. Thus, while copper demand has dropped in China, Faye said, its demand remains robust compared with aluminum. Strong reactions to Chinese policy announce- ments have driven the copper scrap discount to diverge from the London Metal Exchange copper price at times over the past two years, Faye said, but overall copper scrap discounts continue to have a strong correlation with the LME price and its ups and downs in the market. With aluminum, on the other hand, “there’ve been no ups and downs—there’ve just been downs.” The “strong downtrend” is largely a result of oversupply and 84 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

THE IDEAL BUSINESS www.danieli-centro-recycling.com GLOBAL PARTNER www.danieli.com GTFITNOHLHDOREEUBITDISADHTELEEARPALRYALEBRBCUTUYSNSCIENILRNIENESSGSS FGOTLROHTBEHAIDELERPAAELCRBYTUCNSLEIIRNNGESS wA©llw2R0wi1g8h.DdtsaaRnneiesileierClviee-ndctreo nRetcroyc-lirnegcycling.com > EQUIPMENT & PIRNIFONOFTGIGFDCNDOOHLLREUDOUORRSESTUSSBBITTTHSDTKAAHRHENTERLLYEEAORRYPPRWRLYEAACEE-BRRHCCYUTOTYYCSWNNCCLIEEILLNNRRIIENNGSGGS wswawlewsw@w.dd.adanainenli-ecieelinl.itc-roco-remecnytcrliong-.rceomcycling.com >> EINQTUEIGPRMAETNETD&LAPYROOUICNTEDCSUSONSKCNTEORPWYT-HOW ©w2w0w1w8wDw.adn.adienali inCeeileni.tlrcio-oRcmeecnyctlrinog-recycling.com > EQUIPMENT & PROCESS KNOW-HOW Asa©sAlllaleRwwlw©l2seRi0@gswww2i1@hg08dhtww1wsadDt8nsaR...aDniddRdeeniasleeiaaiaeen-slcilrnnnei-ieecvrCniielievieeeednteCrndlltloeriiit-o-.r.nrocc-cetrrceRoooeycecmmRnyclceiytnlccringyloi.gcnc-l.goicnrmoegmcycling.com >> >IVNETEREQTGIUCRIAAPLTME&EDNHLTOA&RYOIPZUROTONCTAEOLSNSSCHKERPNTEODWD-HEROSW >>>>>VPIENREIRNETQTE-TSIUGCEHIRGAPRARLMETA&DEETNDHDEDTOELR&RALSYIAPZOYROOUONUTCTTCAEOCLSONSSNHCKECRNPEOTPDWTD-EHROSW All Rights Reserved >>>>>PNVROEIVENNRE-TSTR-EFIHTCEGIRARCRELRAADOL&TDEU&HDESHORLSORSAEIRYZPIOOZAUONRTNTAACTTLAIOOLSNNHSCHPRELERPADETNDDTDESRESRS ©sal2e0s1@8 dDaanniieellii-cCeenntrtoro-rReceyccylcinlign.gcom >>>>>NSPCORVPRNEERA-R-EFSPTE-HSIRSCHRHRAEROELDEAU&DDRSHDESRSEOAESRRNPSIAZDORBNAATTIALOELNRSSPHLRAENDTDSERS All Rights Reserved >>>>>SLNOCPNOCRROANAELNP-F-SS-ESFHEREHRRRREVEORAIDCOURDEUSSSESASRAENSSFPEDTAPEBRARAARSTLAIEATORILONESNSPLP&ALNANTSTS [email protected] >>OSVCNERORANHP-AFSUEHRLIERNAOGRUSSASNEDPABRAALTEIORNS PLANTS > L>OCSCARL ASPERSVHICEEASRSAFATNEDR BSALESRS& >>>O2L4VOS/E7CCRACRHLUAASSPUTESLORIHMNVEIGECARERSSSAEARFNTVEDICRBESAAALNLEEDRSSS&UPPORT >OLVOECRAHLASUELRINVGICES AFTER SALES & > >24L/O7OVCEUARLSHTSAOEUMRLVEINIRCGESSERAVFITCEERASNADLESSU&PPORT > 24O/7VECRUHSATOUMLINERG SERVICE AND SUPPORT > 24/7 CUSTOMER SERVICE AND SUPPORT > 24/7LCYUNSXTOSMER SERVICE AND SUPPORT HENSCHEL LRYINVEXRSSIDE PRODUCTS HLEYNXSSCHEL RHILVEYENNRSXSCSIDHELPRODUCTS RLHIVYENENRXSSSCIDHEELPRODUCTS SEE USHRRIIIENVVNEESRRBCSSOHIIDDEOEELTPPHRROO#DDUU2CC4TT3SS 5

REPORT: BIR BUDAPEST recycling have created challenges decision to veto a bill that would have mandated and opportunities, said Sally Houghton of the Plastic Recycling 50% recycled content in plastic bottles by 2030 Corp. of California (Sonoma, Calif.). Nationwide, the plastic as “surprising.” Public opinion in California has scrap export market has “all but disappeared,” she said, calling it led to bans at the local level—including a ban on Sally Houghton the “new reality.” U.S. companies are increasing their investments in technologies to the sale of plastic water bottles at San Francisco process lower-grade plastics that once would have been exported to Asia, she said. International Airport—and poor markets have Focusing on the situation in California, Houghton described Gov. Gavin Newsom’s caused some communities to cancel their recycling collections, she said. More positively, California created a statewide commission on recycling markets and curbside recycling to analyze what is and isn’t recyclable, Houghton said. Clément Lefebvre of Veolia Propreté France Recycling (Paris) said demand for high-quality PET is still high in France due to brand commit- ments, but recyclers need to invest in improv- TEXTILES FACE A SLUGGISH MARKET AND NEW RECYCLING ing their quality to meet this demand. Plastic STANDARDS FOR MATTRESSES TAKE SHAPE recyclers in Eastern Europe and Romania have Increasing volumes of collected textiles combined with decreased material been “under pressure” due to the loss of Chinese exports, said Andrei Sofian of Rematholding Co. quality have led to unfavorable textile markets, said Martin Boeschen of TEXAID (Schattdorf, Switzerland). Greater awareness of textile recycling has resulted (Bucharest, Romania). Plastic scrap prices have in the oversupply, Boeschen noted, while inferior collection methods have dropped 30% in recent months, and “more and increased contamination. Pol T’Jollyn of Recutex (Zulte, Belgium) echoed this more incinerators have appeared,” he said. concern, citing the European Commission’s directive for separate household Southeast Asia is experiencing one of its “most collection of textiles by 2025, which he said is causing consumers to send challenging” periods ever for plastic scrap, Steve Wong of the China Scrap Plastics Association even low-quality textiles for recycling. The result is that recyclers must send more material for incineration. Both noted that prices have not improved on (Hong Kong) said. Difficulty selling the material the international market, as African customers struggle to obtain currency due to low demand—compounded with illegal and Eastern European markets demand higher quality. While Mehdi Zerroug operations—have led many Southeast Asian of Framimex (Appilly, France) agreed that prices remain low, he offered a recyclers to go bankrupt, Wong said. Plastic sunnier outlook, saying the French market for used clothing is steady and that scrap prices in Saudi Arabia and the United Arab Emirates are “good,” Mahmoud Al Sharif of an expected slowdown in collection through the winter should lead to a lower supply and higher prices. Sharif Metals International (Sharjah, United Arab Alan Wheeler of the Textile Recycling Association Emirates) said, though demand is “a little slow.” (London) anticipated difficulties for the industry in the The UAE government has invested in educating U.K. due to a potential no-deal Brexit. Moving forward with the public about recycling, and recycling busi- no deal could create disruption to supply chains, greater nesses are expanding their facilities and setting scrutiny of recycled textile exports going into Europe, and ambitious recycling goals. Rob de Ruiter of applied research organization European import duties on clothing products, Wheeler said. He also decried the United Kingdom’s proposal to prevent TNO (The Hague, Netherlands) provided an Alan Wheeler businesses from hiring foreign workers, including European overview of chemical recycling, Union nationals, for jobs that pay less than £30,000 per year. “It is utterly the process that uses methods absurd,” he said. “There needs to be a clear and unambiguous exemption for like depolymerization, pyrolysis, those working in the used textiles and waste management industries.” and dissolution to break down Wheeler also addressed new mattress recycling standards the Textile Re- plastics into polymers and mono- cycling Association and the National Bed Federation, a bed manufacturer trade mers for use in primary applica- group, have developed in the United Kingdom. The partners formed the Reg- tions. While the technology is ister of Approved Mattress Recyclers to set industry standards and represent Rob de Ruiter still in its infancy—de Ruiter said this recycling sector. Accredited members of RAMR will submit to an audit to its viability in 10 years would be “optimistic”—he ensure they meet established standards in health and safety, employment law described big investments and “new connections” and labor, environmental compliance, and sound business practices, Wheeler that are advancing the process. “It is about system said. RAMR had completed three pilot audits by mid-October and Wheeler optimization,” de Ruiter said. “You need everyone anticipated a public launch of the organization in the U.K. in early 2020. in the chain.” He pointed to partnerships between Dow Chemical and Fuenix and BASF and 86 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

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REPORT: BIR BUDAPEST ChemCycling as some of the new thermochemical losses. “The informal network is in fact bigger agreements emerging in the sector. than the formal network,” he said. GOVERNMENT POLICIES ENCOURAGE, Bureaucratic slowness is also an impediment STIFLE E-SCRAP RECYCLING to trade within Europe, Slijkhuis said. The Countries’ concerns about end-of-life electron- involvement of large files requiring original signa- ics are guiding decisions that are both beneficial tures, a lack of harmonized rules and procedures, and harmful for electronics recyclers, accord- and major costs and delays can result in what ing to speakers on the E-Scrap Committee panel. Most scrap plastic that would have gone to China he called “the big waiting.” The is now going to Southeast Asia due to China’s Müller-Guttenbrunn Group has import ban, according to Steve Wong of the China joined a European stakeholder Scrap Plastics Association (Hong Kong). Several group working to reduce barriers countries in the region are also beginning to to trade. It has also invested in impose more stringent controls and crack down new plastic recycling technology with the goal of becoming the first Although the first half of the year brought a decline of Chris Slijkhuis company in the world to recycle 16.4% in Turkish ferrous scrap import purchases, Turkey polycarbonate-acrylonitrile butadiene styrene remains the world’s “foremost steel scrap importer,” from electronics, he said. said Rolf Willeke, statistics adviser of BIR. Concerns over brominated flame retardants are another challenge to e-scrap recycling, Slijkhuis on illegal operations, he noted, and some are no said. Last year, the European Union considered setting the allowable threshold of BFRs at 10 parts longer allowing imports of electronics plastic at per million—a move that would have “been the end of our recycling,” he said. (The limit was set all, he said. at 1,000 ppm.) Governments should adopt a “risk approach” rather than a “hazard approach” to India has allowed exports of e-scrap, including e-scrap material, Slijkhuis suggested. printed circuit boards, since July, said Surendra ISRI’s Robin Wiener called for recyclers to Borad Patawari of Gemini Corp. (Antwerp, Belgium). develop standards for who are legitimate recyclers to guide governments in better understanding the India’s changing attitude toward postconsumer industry. plastic is responsible for the relaxation in policy, ‘NEW HOMES’ FOR FERROUS EMERGE IN SLOWDOWN Geopolitical difficulties and government policy Patawari said, noting that “plastics has become took center stage for those at the Ferrous Division meeting. Though participants noted the growth a very important word… In of protectionist trade policies globally, they also highlighted opportunities presented by new trade India, it’s been identified with partners. pollution.” The volume of Although the first half of the year brought a decline of 16.4% in Turkish ferrous scrap import end-of-life electronics in India purchases, Turkey remains the world’s “foremost steel scrap importer,” said Rolf Willeke, statistics is growing 20% a year, Patawari adviser of BIR, during an update on world steel recycling. U.S. import tariffs on Turkish steel, said, and it is expected to reach a weak Turkish economy, and “sluggish long steel demand” were all to blame for the decline, more than 5 million mt by 2020, Willeke said. Still, Turkey imported more than 9 million mt of ferrous scrap from January to June Surendra Borad according to a study conducted 2019, nearly three times that of the world’s next Patawari by the Associated Chambers of largest importer, India. The European Union is still the world’s largest scrap exporter, shipping Commerce and Industry, India, and Ernst and 11 million mt—an increase of 3% from 2018— with the United States following at 8.6 million mt, Young. “India is going to be a very important market for the e-scrap business,” he said. Chris Slijkhuis of the Müller-Guttenbrunn Group (Amstetten, Austria) described his company’s experiences working to process e-scrap and move it across borders in Europe. While recognized recycling companies like his receive material collected from municipal and retail sources, they still compete with a thriving informal market of illegal scavenging, collection, and exportation in Central and Eastern Europe, resulting in major 88 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org



REPORT: BIR BUDAPEST TURKEY REPRESENTS OPPORTUNITY AMID PAPER SURPLUS a lack of growth particularly in France, Germany, Italy, South Korea, and Russia. Even so, “I’m not The European paper market is overstocked and recovered fiber value is low, looking for a huge recession,” she said. speakers at the Paper Committee meeting agreed, but investments in some countries may soon create new opportunities. European collection of recovered Though she described herself as bullish on fiber is 56.7 million tons per year, Sebastien Ricard of Paprec (Paris) said, but the 2020 outlook for steel production, Hites consumption is only 48.8 million tons. While most recovered fiber exports acknowledged the “global economic puzzles” that used to go to China, speakers noted, China has drastically reduced its imports— continue to complicate the steel scrap market, a and most of those are coming from the United States. With prices “collapsed,” concern others on the panel echoed. “The whole Ricard noted, cardboard is currently near its lowest previously recorded price, world is feeling [the] effects” of the trade war from August 2009, and mills are demanding higher quality. between the United States and China, said Greg Schnitzer of Schnitzer Steel Industries (Portland, Turkey may be crucial to solving the recovered fiber oversupply problem, Ore.), Ferrous Division president. “Luckily,” said Ercan Yürekli of the National Association of Turkish Paper and Plastic Recy- he noted, there has been a “shift in the market clers and Collectors (Ankara, Turkey). The Turkish fiber collection rate is at 40% offsetting any kind of negative effects” caused and shows no signs of increasing, but Turkish paper mills will have a produc- by not being able to ship into China, including tion capacity of 6 million or 7 million mt within a few years. Recovered paper the opening of new markets in countries includ- imports have increased from 300,000 tons in 2015 to an expected 1 million tons ing Vietnam and Bangladesh. Viktor Kovshevny of in 2019, and Yürekli estimated that could soon rise to 2 million to 3 million mt. Ruslom.com (Moscow) spoke nearly the same export level as 2018. While there about Russia’s move toward were export declines in the studied period from ferrous scrap export restrictions, Japan, Russia, Canada, Hong Kong, and Singapore, including government quotas Willeke said, a clear outlier was Australia, which on how much ferrous scrap can experienced a 36% increase in steel scrap exports be exported and a government compared with the same period in 2018. proposal of a metal exchange Viktor Kovshevny platform to be launched in spring China’s steel scrap use increased 20.7% in 2020. He described scrap company efforts to the first six months of 2019, Willeke said, to 103 convince the government to abandon the idea. million mt, compared with 85.6 million mt for George Adams of SA Recycling (Orange, Calif.) the same period in 2018. The country has ramped expressed excitement about the rash of new steel up its ferrous scrap consumption to keep up with mills coming online in the United States, but he higher emissions standards set by its government, voiced concern about how the “longest-running investing in electric-arc furnace production and expansion ever” might affect future prices. He also increasing its total crude steel production roughly cautioned that he expects a shift to more electric 10% in the first six months of 2019 compared vehicles and far fewer vehicles overall, complicat- with the same period in 2018, Willeke said. ing the future of the steel industry. “I think that’s a huge concern for my business,” he said, “but Becky E. Hites, president of Steel-Insights probably more for my kids than it is for me.” (Atlanta), also emphasized Chinese crude steel production and the country’s investment in NICKEL SOARS WHILE STAINLESS FLOUNDERS EAF steelmaking. China’s EAFs produced 120 Speakers at the Stainless Steel and Special million mt of crude steel in 2018—a jump from Alloys Committee puzzled over nickel’s booming prices and the slump in stainless prices, a situ- 80 million mt the year before. ation Joost van Kleef of Oryx Stainless (Dordrecht, Hites predicted that while most Netherlands), chairman of the committee, called countries would see their EAF “confusing.” steel production level off in 2019 and beyond, China would Nickel is the “single outperformer” among base continue growing, producing and precious metals this year, said Natalie Scott- more than 140 million mt by Gray, senior metals analyst at INTL FC Stone (New Becky E. Hites 2022. The United States, India, York). She noted a 65% year-to-date increase in Vietnam, Iran, and Egypt will also ramp up EAF its value, with nickel reaching $18,000 per mt on steel production in the years ahead, Hites said. the London Metal Exchange in September—its She expressed optimism that “next year steel highest valuation since 2014. The key drivers are production is going to be good” despite her threefold, she said: “robust production in Chinese expectations of a global economic slowdown with 90 _ Scrap _ JANUARY/FEBRUARY 2020 www.scrap.org

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REPORT: BIR BUDAPEST ISO 9001 CERTIFIED nickel pig iron” as high in the years to come, particularly LME Registered China has ramped demand for Class I nickel and nickel up its stainless steel sulphate. Greater Class I nickel use by (856) 964-1510 production, booming that sector could result in greater use FAX (856) 964-7101 battery demand for of scrap by the stainless industry, he electric vehicles, and noted. While China and Indonesia are E-mail: [email protected] falling LME nickel focused on the use of nickel pig iron www.statemetalindustries.com Natalie Scott-Gray warehouse stocks. in stainless production, the United Indonesia’s decision to impose a States, Europe, and India remain 92 _ Scrap _ JANUARY/FEBRUARY 2020 complete ban on nickel exports in “more reliant on scrap,” a trend he January 2020—rather than January expects to continue. 2022, as previously stated—has further exacerbated a rise in prices due to TYRES LOOKS AT INCREASING supply concerns, she said. Stainless steel is currently 70% of MATERIAL RECOVERY the end use for nickel, and Scott-Gray Committee Chairman Max Craipeau of expects global stainless steel melt production to increase 16% from Greencore Resources (Hong Kong) 2020 to 2025. However, Indonesia’s ban on nickel exports will affect emphasized to the Tyres and Rubber global supply outside that country, especially in China. The Philippines, Committee his hope of developing the second-largest exporter of nickel ore, will not be able to fill the gap, more “bilateral coop- Scott-Gray said. Indonesia’s stainless steel production will rise as China’s eration” between falls, she predicted. While the electric vehicle industry’s demand for nickel is industries in the West projected to increase, she said, stain- less will remain the primary consumer and Asia. In China, and price driver up to at least 2030. A potential lawsuit levied by the Craipeau said, around European Union against the World Trade Organization over the Indonesia 90% of the more than nickel ban causing supply shortages may complicate things, she said. 6 million tons of Olivier Masson, senior analyst at Roskill Commodity Research Max Craipeau end-of-life tire scrap (London), also acknowledged the importance of stainless to nickel, generated each year is recycled into noting that “between 2006 and 2018, primary nickel reclaimed rubber that can be used consumption by the stainless steel industry again in new tires and other rubber has doubled.” He also pointed out that, products. This reuse benefits recyclers despite its strong price performance because the material has more value; it Olivier Masson compared with other metals, the price is not “historically benefits the environment through the high.” Like Scott-Gray, Masson expects stainless production and electric use of less virgin material; it benefits vehicles to keep demand for nickel tire and rubber manufacturers, who have lower compounding costs; and it benefits end users, who pay less for the products. Europe, in comparison, only recycles into reclaimed rubber about 30,000 mt of the 4 million end- of-life tires generated each year—less than 1% of the total. Most end-of-life tires in Europe and the United States are “downcycled” into crumb rubber or fuel, Craipeau said, although tire recovery in Europe has at least shifted toward a 50/50 balance of material recovery and energy recovery in the past 15 years. Craipeau encouraged a circular economy model for end-of-life tires that emphasizes the production of reclaimed rubber. He pointed to potential examples of legislative www.scrap.org

WheelPopper Separates scrap tires from steel & alloy wheels in seconds One challenge that continues to Save time From afflict the material recovery from and money! end-of-life tires is public concern $6,950 over the safety of crumb rubber, said Fazilet Cinaralp. support, noting that the European • Buy direct from the Commission Circular Economy manufacturer Package adopted in December 2015 mandates that PET bottle producers • World wide delivery to your door use 25% recycled content in their new bottles. Companies are also making AutoDrain [email protected] commitments to use more recycled content. www.autodrain.netExperts in vehicle depollution One challenge that continues to JANUARY/FEBRUARY 2020 _ Scrap _ 93 afflict the material recovery from end- of-life tires is public concern over the safety of crumb rub- ber, said Fazilet Cinaralp, secretary general of the European Tyre and Rubber Manufacturers’ Association (Brussels). In Europe, regulatory Fazilet Cinaralp initiatives are being proposed on polycyclic aromatic hydrocarbons, microplastics (includ- ing vulcanized rubber and granules, under the proposed definition), and potentially other substances found in artificial turf infill material. The European Chemicals Agency and European Commission are under pressure to clarify their proposals, and Cinaralp said she expects a decision shortly regarding an exception for recycled rubber infill material, though the conditions of the exception remained unclear. ETRMA has pursued two initiatives to help allay public concern over the use of crumb rubber, Cinaralp said. It invested in a major risk assessment of synthetic turf rubber infill, a multiyear project which tested tire-derived rub- ber from nearly 100 sources, quantified the presence of various substances of concern, and analyzed the potential harm to players on the turf and work- ers who install it. Cinaralp expects the www.scrap.org

REPORT: BIR BUDAPEST Your Source for results to be published in a peer- reviewed journal this spring. Scrap Metal Further, the Scandinavian tire Aluminum • Brass • Copper • High-Temp • Rubber industry is developing a certifica- Mixed Metal • Light & Heavy Steel • Stainless Steel tion system to identify and support responsible end-of-life tire recycling, www.govliquidation.com/scrap Cinaralp said. The system, which she expects to launch in March, will Take your company to the next level. be based on legal and regulatory compliance, traceability of material Learn more about RIOS and what it can do for your company. flows, good safety and environmental Contact Darrell Kendall, 202/662-8528 or [email protected]. performance, and other factors. www.certifymerecycling.org IEC MEETING HIGHLIGHTS OPPORTUNITIES, 94 _ Scrap _ JANUARY/FEBRUARY 2020 CHALLENGES OF REGULATION Plastics was the focus of the International Environmental Council meeting. Emmanuel Katrakis, secretary general of the European Recycling Industries’ Confederation, identi- fied two factors that have recently shaped the plastics recycling industry: trade restrictions and public awareness. “Plastic has become Emmanuel Katrakis a big buzzword,” Katrakis said, noting he’d been living and working in Brussels for 10 years and had “never seen such a strong reaction” as has recently gripped the region in response to the ocean plastics issue. While only 1% to 2% of the end-of-life plastics leaking into the ocean comes from Europe and the United States, public response to cov- erage on ocean waste has stimulated ambitious goals for reducing the use of plastics. Targets set in the European Union’s Waste Framework Directive and Packaging and Packaging Waste Directive set a floor for the proportion of packaging waste to be recycled. In a boost for the plastics recycling industry, the directives also set minimum recycled content mandates for beverage bottles: 25% for PET by 2025 and 30% for all plastic bottles by 2030. “There will need to be a lot of investments” to meet these targets, as well as a need for all stakeholders to understand “how recycling works www.scrap.org

Recycled content minimums, voluntary commitments from brand owners, and the corporate and consumer response to plastic waste are “game changers.” in practice,” he said. But he called the @@ @ @@ @ @ @@ @ @ @ recycled content targets, voluntary @@ commitments from brand owners, and the corporate and consumer response @@ to plastic waste “game changers.” Now you can follow Scrap on Twitter! “Substances of very high Add @ScrapMag to your Twitter list. concern”—chemical substances JANUARY/FEBRUARY 2020 _ Scrap _ 95 that the European Union has identified as potentially harmful and therefore subject to regulation under the Registration, Evaluation, Authorization and Restriction of Chemicals policy—are the “Damocles sword” hanging over the industry, Katrakis said. There were 191 SVHC categorized at the end of 2018, he said, and the final target is 3,000 sub- stances. Many of those may be found in polymers, Katrakis said. Jeffrey D. Kimball of Hungarian Loacker Waste Recycling described how the recycling market functions in Hungary and highlighted some of the challenges of the current system. Hungary has not met the European Union’s current goals for recovering certain recyclable materials, Jeffrey D. Kimball Kimball said, and he “just [doesn’t] know how” the country will meet those goals in the current economic climate. The government created a centralized auction sys- tem for sale of recyclables in 2018 which failed, Kimball said, and it was recently scrapped. He hopes Hungarian recyclers can work with the government to improve their coopera- tion and find workable solutions to meet EU goals, he said. S Emilie Shumway is senior editor/reporter for Scrap.a www.scrap.org

Attention ISRI Members – Come Join the Circle! The ISRI Circle of Safety Excellence™ program is offered by ISRI to help improve worker safety and demonstrate the recycling industry’s commitment to the safety of all of our employees and the communities we serve. COMMITMENT TO SAFETY SAFETY EXCELLENCE SAFETY NETWORK The Circle is composed of The goal of ISRI’s Circle of Safety Joining the Circle is free. As a like-minded ISRI member Excellence™ is to help member Circle member, your company will companies who have voluntarily companies improve their have the ability to benchmark its come forward to share safety operations so that eventually progress against other industry data and best practices for the all ISRI members will be proud leaders committed to safe betterment of their own safety members of the Circle. operations and become part operations, and at the same time of a network for the sharing be recognized by ISRI for their Why should your company of safety best practices. commitment to safety. join the Circle? All ISRI members who are committed to operating safely are encouraged to join the Circle. For more information or to apply today, visit ISRI.org/circle or contact ISRI EHS at [email protected] ™

Equipment and Services AUTOMATIC COUPLERS AUTOMATIC COUPLERS ARE GAINING POPULARITY IN NORTH AMERICA AS A WAY TO CHANGE MECHANICAL AND HYDRAULIC ATTACHMENTS WITHOUT LEAVING THE CAB—A FEATURE THAT COULD INCREASE SAFETY AND HELP ADDRESS LABOR SHORTAGE ISSUES. BY MEGAN QUINN Recyclers and demolition businesses Automatic couplers can help equipment operators change attachments without requiring them to perform rely on an array of attachments to any manual labor, such as connecting hydraulic hoses by hand. Manufacturers say these specific coupler multitask at the job site. Operators models keep workers inside the cab, thus keeping them away from hazards that can cause injuries. have several options for how to change STEEL WRIST the tools on a base machine like an from the hazards inherent in manipu- gain popularity in the North American excavator, material handler, or skid- lating large, heavy attachments with market, but customers have started to steer. The most labor-intensive and hand tools when they might not be take notice in the last few years, these time-consuming option is to switch properly positioned or anchored to pre- sources say. “The most major reason for attachments by hand: A worker will vent their movement. It also avoids the the uptick in sales is the labor short- manually drive out the attachment mess and potential injury from hand- age here,” says a North America sales pins. “That might mean using a sledge- connecting the hydraulics, which can representative for another Swedish hammer to bash away on the pin until expose workers to dangerously high- manufacturer with a U.S. headquarters it comes out, all while dealing with oil pressure hydraulic fluids, they say. in North Haven, Conn. The company in your face and on your hands” as you introduced automatic couplers for manually disconnect and reconnect the SAVING LABOR AND TIME excavators in North America in 2007, hydraulic lines, says a sales rep from a Automatic couplers, sometimes called but few buyers were interested at the Swedish equipment manufacturer with fully hydraulic couplers or “wet cou- time, he says. Today, demolition con- a U.S. headquarters in New Berlin, plers,” are so popular in Germany, tractors, construction companies, and Conn. This process can take at least Sweden, and similar European coun- a few recyclers are the company’s most half an hour depending on the base tries that they are standard features on common customers for these couplers. machine and attachment, and the work many excavator, skid-steer, and mate- Automatic couplers turn a two-person sometimes requires two people to take rial handler models there, according job into a single person job, he says, and off the old attachment, line up the new to the New Berlin sales representative. the time savings help customers stretch attachment, and safely attach it to the Automatic couplers have been slow to out the labor they have. “Everyone is base machine, he says. One popular solution is to install a quick coupler, an interlocking bracket system that allows an operator to forgo the hammer and hook the attachment to the machine from inside the cab. If the attachment requires hydraulic power or needs to be secured with an additional safety lock pin, however, a worker might still need to connect the hydraulic hoses or lock by hand. Enter the automatic coupler. This type of quick coupler allows workers to switch attachments, whether mechani- cal or hydraulic, without ever getting out of the cab, much less picking up a hammer. Equipment providers say automatic couplers are the fastest and safest option. They keep workers away www.scrap.org JANUARY/FEBRUARY 2020 _ Scrap _ 97