VIEWPOINT

Bottling the healthy is a monthly business magazine for lifestyle the international recycling industry and is published 10 times a year.

Address In our two-person household, my wife Helga and I are P.O. Box 2098 always striving to improve our health and the environ- 6802 CB Arnhem ment. We look to eat healthy, work out and recycle as The Netherlands much of our refuse as possible. Delivery Address Jacob Marislaan 30 6813 JV Arnhem e try to buy fresh food from butchers’ shops in business. We do so mainly by separating our The Netherlands W and bakeries in an attempt to cut down on refuse. When Helga and I started living together Phone +31 26 3120 994 the pre-packed and often over-packaged food you more than 18 years ago, we sat down one night to Fax +31 26 3120 630 find in supermarkets. Not only are these fresh prod- discuss household chores and who would do what. e-mail: ucts good for our health but they also taste much We agreed on the cooking, ironing and gardening, [email protected] Website: better than the cook-in-the-microwave meals from and Helga said she was also willing to take out the www.recyclinginternational.com the big stores. dustbin early on Friday mornings because I always

Publisher & Editor It’s me who usually does the cooking - not just stay in bed at least half an hour longer than she Manfred Beck because I like cooking but because I am a much bet- does. In return, she insisted I should separate our [email protected] ter and more adventurous chef than Helga, if I say household refuse and take it to the recycling sta- Magazine Administrator so myself. I should admit at tion or to the glass, plastics or Helga Fresen [email protected] this point that Helga does a textile banks.

Editorial consultant lot of other jobs around the In our house, we have bins for Ian Martin house which I really hate, ‘Start counting organic waste, paper, plas- [email protected] such as ironing and garden- tics, cans and glass, and one Contributing editor ing. The problem is that, in big bin for the rest of the Alfred Nijkerk the empty bottles’ trying to make a feast of refuse. But because I am [email protected] every meal, I usually eat too basically lazy, sometimes I Contributing editor/Consultant technology Prof. Ir. Wijnand Dalmijn, Technical much. This habit goes back have to be reminded of my University of Delft, The Netherlands to my childhood when my mother taught me always duties. ‘Have you been in our cellar lately?’ Helga

Contributing to this issue to empty my plate and also, if possible, the pans. will ask sweetly. ‘Actually, I haven’t. Why do you Prof. Ir. Wijnand Dalmijn, Dr Adam As a result of my upbringing and my love of cooking, ask?’ I will normally respond, although I know J. Gesing, Ian Martin, Alfred Nijkerk, Voermans van Bree Photographers I am therefore condemned to fight the flab for the exactly what’s coming next. ‘Well then, go down rest of my days. Thanks, mum! there and start counting the empty bottles,’ she will Art Direction Inpladi Lay Out Studio I suppose what I really hate is that, despite shar- retort in a not-so-sweet tone of voice.’ With a sigh,

Printing Company ing my love of delicious food, Helga effortlessly I make my way to the basement where I look in vanGrinsven drukkers Venlo bv manages to retain her slim figure. However, I must astonishment and disgust at the empty bottles of

Advertising Sales admit that she does much more than me to keep in beer, wine, port and whisky standing in a neat line Jan Willem Ypma shape. She goes to the gym twice a week, plays ten- against the wall like an army of glass soldiers. Phone: +31 343 517 488 nis every week, jogs in the park on Sunday morn- I start by putting clear, green and brown glass in Fax: +31 343 510 253 E-mail: [email protected] ings and often takes the bike instead of the car separate boxes. I then take these upstairs and put

Subscriptions when she goes shopping. On the other hand, I play them in the boot of our car. Just as I’m about to dri- Subsciption rate: € 149 a year tennis once every two weeks - and only if the weath- ve to the bottle bank some 5 kilometres away, Helga (excl. V.A.T.) er is nice. I only know the gym from the outside, will ask me with her honey-sweet voice: ‘Why don’t ISSN 1387-8700 while my bicycle is rusting away in the shed behind you take your bike instead of the car?’ I look to the Copyright 2006 the house. And instead of jogging, I play bridge with sky and spot the vaguest hint of a grey cloud. So I All rights reserved. No part of this friends in my favourite bar, the Paranoid Parrot. reply: ‘Are you nuts? It might rain!’ publication may be reproduced or In addition to leading a healthy lifestyle, we also And so I drive down the road and salve my guilty transmitted by any means without written permission of the publisher. try to do as much as we can for the environment conscience with the thought that I’m doing my bit to and, at the same time, keep the recycling business help the glass recycling industry. Member of Manfred Beck Editor

BIR

3 EXHIBITION Successful debut for

By Manfred Beck Metalriciclo

Metalriciclo, a new event embracing technologies for the recovery and recy- cling of ferrous and non-ferrous metals, was held on September 14-16 this year at Montichiari near Brescia in Italy. The event provided an opportunity for several machine manufacturers to showcase their latest equipment.

talian trade magazine publisher Edimet accidental damage because it can lift quickly. I staged the first-ever Metalriciclo exhibition After a prolonged series of tests, Zato has devoted to technologies for the recovery and selected a horizontal sliding shovel as the best recycling of ferrous and non-ferrous metals. means of conveying material to its HP series Delegates were also treated to a parallel con- of hammer mills. Traditionally, this type of ference programme. According to Edimet, the machine is supplied using sprockets which event was ‘an undisputed success, with 105 drive the material into the hammer mill on an exhibitors - of which 15 were from non-Italian inclined belt, guaranteeing a constant flow of countries, 3877 visitors, and eight conference material for crushing. However, according to sessions where 35 papers were presented by Zato, this option has its disadvantages. 50 speakers’. A continuous process enables greater pro- The next Metalriciclo event is scheduled to ductivity but can also lead to over-charging of run from September 13 to 15 next year at, the chamber since the hammer mill needs once again, the Garda Exhibition Centre in time to eject the crushed material before

Montichiari. receiving further feed. At best, this drastically This typical Italian coffee pot made from recovered aluminium cans caught slows down the revolution of the rotor; and it the eye in the Metalriciclo entrance hall. 1 * Zato can even result in a complete blockage, which Zato of Brescia in Italy presented hammer can lead to serious damage to the rotor unit proportion of the material introduced during mills from its HP series, which are now avail- while subjecting the motor to major stresses. the previous shovel cycle. able with 1500 and 2500 HP motors. Output of Zato regards the horizontal sliding shovel as www.zato.it the former is said to be 20-50 tonnes per hour the best solution to this problem because, dur- while the latter can produce 30-60 tonnes per ing a back shovel cycle lasting between 15 and 2 * Birim Makina hour depending on the infeed material. 25 seconds according to the material being Established in the Turkish city of Izmir The hammer mills are equipped with processed, the machine can take away a large some 18 years ago, Birim Makina has become devices to avoid damage caused by the intro- duction of car bodies that are impossible to 1 2 crush. Inside the cover, a hydraulic bulkhead known as ‘Rapid Dumping’ opens when an unsuitable item is detected, emitting it before it can cause serious damage to the rotor. Furthermore, Zato has equipped the 2500 HP model with what it calls ‘a revolutionary innovation in the sector of hammer mills’ - namely a rotor with variable structure. According to the company, this offers two big advantages: firstly, it is possible to regulate the size of emerging material simply by adjust- ing the lifting rotor cylinders; and secondly, in combination with the ‘Rapid Dumping’ feature Zato’s new HP series hammer mills are now available with 1500 and At Metalriciclo, Birim Makina showed off its new T-series and CBS 2500 HP motors. series of scrap shears. described above, the rotor is protected against

Recycling International • November 2006 2 EXHIBITION

an internationally-recognised tomer satisfaction. Another important aspect Cell-Data has recently founded Cell-Data manufacturer of machinery for the of our machines is the value we deliver. Our Consulting for the provision of market analyses cement, iron and steel, automotive performance/price ratio is comparatively high and forecasts. Those interested in Cell-Data’s and recycling industries. The com- in the sector.’ Given the difference in price services can apply for a free one-week trial. pany boasts clients in 28 countries, between a Birim Makina shear and one offered www.cell-data.it located mainly in Europe and the by some other companies, a customer could Middle East. Its range of equip- also afford to buy a new Ferrari, according to 4 * Gauss Magneti ment aimed at the recycling indus- Mr Karahan. ‘Anybody who loves sports cars is Over its 25-year history, Gauss Magneti of try includes: baling presses for welcome to contact us,’ he added with a smile. Brescia, Italy, has developed a complete range metal, paper and plastics scrap; www.birimrecycling.com of magnetic equipment for the lifting, handling packaging presses for paper and and separation of ferrous material. Most bulk bags; hydraulic scrap shears; 3 * Cell-Data recently, the company has introduced a line for alligator shears; cable strippers; Cell-Data of Milan in Italy provides LME, separating ferrous and non-ferrous metals. hydraulic grabs; and magnetic sep- Forex and plastics prices, as well other data Export manager Dr Guido de Santis is aration conveyor belts. related to recycling. Counting itself as Italy’s enthusiastic about this latest development. Birim Makina has been manufac- leading provider of metal prices, the company ‘Basically, the eddy current separation sys- turing inclined hydraulic scrap has more than 800 clients in 40 countries and tem consists of an overband magnet to extract shears since the early part of the operates three foreign branch offices in Paris, the ferrous, combined with an eddy current Millennium but, in the last couple Madrid and Stuttgart. Indeed, to reflect this system for the recovery of non-ferrous met- of years, the company has also international presence, the company recently als,’ he explains. begun production of non-inclined changed its name from Cell-Data Information The Gauss ECS separator comprises the variants. At Metalriciclo, the man- to Cell-Data International SRL. following stages: ferrous metals separation; ufacturer showed off its new T- Cell-Data maintains a wide range of histori- vibrating channel; ECS separator; further series and CBS series of scrap cal data banks which are updated and devel- magnetic separation; inert material offload; shears. One of its T-1250 shears oped on a regular basis. The main data banks and non-ferrous metals offload. After initial packing 1250 tonnes of shearing cover: Non-ferrous metals settlement magnetic separation, material passes along a force is already cutting stainless ASK/BID; Non-ferrous metals Three-Month vibrating feeder which makes the flow wider steel scrap at the Cronifer yard in Official 1st Ring ASK/BID; Forex exchange and more homogeneous. The ECS conveyor Moerdijk, The Netherlands. Euro/US dollar official fixing; London Metal and magnetic rotor revolution speeds can be Meanwhile, one of Birim Makina’s Exchange deposits; Monthly average Cash; adjusted. CBS 8060 mobile shears with a Monthly average Three-Month; and Monthly Although Italy remains the leading market 600-tonne shearing force is currently being average Euro/US dollar. Quotations are offered for Gauss Magneti’s products, sales into installed at Kuijpers Co.’s ferrous scrap facili- either in real time or in the form of delayed Eastern Europe and Scandinavia have been ty at Deurne, also in The Netherlands. internet prices. Cell-Data owner Giuseppe booming in recent years, says Mr de Santis. In Birim Makina’s Sales Manager Aykut Lacchini explained: ‘We also do trading and order better to support the European, Middle Karahan commented in Montichiari: ‘Our hedging activities for our Italian clients and, in Eastern and Asian markets, Gauss has recent- shears use the latest technology in terms of co-operation with a major, London-based bro- ly opened a service point in Belgium. control, operation and safety to ensure cus- ker company, we are engaged in hedging.’ www.gaussmagneti.it

3 4

Yvonne Steiner of Swiss congress organiser ICM (centre) Cell-Data’s Giuseppe Lacchini (right) and Cosimo Natoli of Win Consulting Gauss Magneti’s Export Manager Dr Guido de Santis stands in front of explains the finer points of her company’s ELV, WEEE, Battery S.n.C the company’s new ECS unit, which is designed to separate ferrous and China congress programme. and non-ferrous metals.

Recycling International • November 2006 3 BIR BRUSSELS BIR in Brussels - a healthy dose

The Atomium Brussel, also dubbed ‘the Eiffel Tower of Brussels’, was built in 1958 for the World Exhibition. It represents an iron crystal enlarged 160 billion times. The 102-metre tall building consists of nine 18-metre diameter spheres interconnected by tubes. The structure is made of steel and coated with aluminium. Following a major renovation project which began in 2004, the Atomium reopened its doors to the public in March this year.

In late October, almost 800 recyclers gathered in the ‘European he meeting of the International Environment Council (IEC) in Brussels provided a platform capital’ of Brussels for the BIR Autumn Round-Table meetings. Most T for the launch of a major new BIR publication. traders and processors were optimistic about business prospects ‘Tools for Environmentally Sound Management’ is intended to assist recovery and recycling companies for next year, although some harboured concerns about the volatility in implementing an ISO-compliant Environmental of the markets and the activities of speculative hedge funds. In the Management System by laying out the require- ments in an easily-understandable format. following in-depth series of articles, Recycling International captures According to Frans Bijlhouwer of Netherlands- the highlights of the meetings devoted to metals, recovered paper, based Quality Consultants, who helped devise the document, it was very unusual for an organisation textiles, tyres and plastics recycling. to make such a weighty publication freely available to any company within the industry. The document can be downloaded from the BIR website, although members of the world recycling body will also receive a hard copy. The document ‘compares what you have and what you should have’, Mr Bijlhouwer told delegates. ‘You don’t need to invent anything - just customise it and make it fit what is going on in your own organisa- tion.’ The publication identifies a number of key requirements, such as the need for companies to develop an ISO implementation ‘team’ since individ- uals will not be available at all times. IEC’s Chairman Alvaro Rodriguez Martinez of Spain says of the publication: ‘In an increasingly By Manfred Beck complex world, one of the tasks of BIR is to provide Smokers top up their nicotine levels outside the Sheraton Hotel in Brussels, where the BIR and Ian Martin Autumn Round-Table meetings took place. easily useable tools to help recycling companies

Recycling International • November 2006 28 BIR BRUSSELS of optimism

The Grand Place in Brussels is one of Europe’s most beautiful town squares.

As ever, the BIR secretariat did a great job in organising and running Didier Hagelsteen of Belgium-based SGM the convention. From left to right: Léon Verreydt, Elisabeth Christ, Gantry and Ulrich Kohaupt of Steinert in Amélie Carnevali, Ute Fuchs, Yolande Joret and Raïssa Wolteche. Germany discuss the ins and outs of magnetic separation.

demonstrate that they are working in an environ-

mentally sound way.’ And according to BIR’s During a break between meetings, non-ferrous metal trader Edwin de Representing the US Institute of Scrap Groot of Dutch company De Groot Metals finds the time to make some Recycling Industries - President Robin Wiener Environmental & Technical Director Ross Bartley, phone calls. and Chairman Frank Cozzi. ‘Tools for Environmentally Sound Management’ represents the first document to demonstrate inte- gration of the OECD’s Core Performance Elements and therefore complements the different systems in place in different countries. BIR will follow up the launch with further relat- ed workshops and will gather experience from com- panies and national associations. The publication will be updated annually, noted Mr Bartley.

Focus to fall on computers BIR Director General Francis Veys listens to an issue raised by one of In Brussels, Jack Husted of Huron Valley Steel In his review of legislative developments, the delegates. Corp. in the USA (left) took over as Co- Chairman of BIR’s Media & Metal Separation Mr Bartley confirmed that guidelines would be Committee from David Chiao of the Uni-All published shortly on the environmentally sound Group of Atlanta, USA. management of mobile phones as part of the Basel Convention Partnership Programme. The next step Future BIR conventions at UN-EP would be to focus on electronic waste, including computers. 2007 Mr Bartley also outlined an important develop- May 21-23 Athens Hilton Hotel ment in the ‘end-of-waste’ debate: the Environment October 22-23 Warsaw Marriott Hotel Committee of the European Parliament has drawn up a priority list of materials for consideration in 2008 the context of the debate about when waste ceases May 30-June 1 Monte-Carlo The Fairmont Grand Hotel to be waste. This included a number of materials October 30-31 Düsseldorf Hilton Hotel relevant to BIR members such as scrap metals and

Recycling International • November 2006 29 Ferrous BIR BRUSSELS Ferrous scrap turns on the style

In what was to be Colin Iles’ last meeting as President of the BIR Ferrous Division, discussion focused on steel production trends in China and the likely impact of increased domestic scrap consump- tion in Russia. As for scrap prices, the consensus was that levels could be expected to remain stable - or possibly to rise - over the coming months. By Ian Martin

U scrap consumption is on course to set a E record in 2006. The total is estimated to have risen 5% to 53 million tonnes in the first half of this year and could well reach 106 million tonnes for the year as a whole, according to Ferrous Division Vice- President Anton van Genuchten of Germany-based TSR GmbH & Co. KG. The subject of copper in shredded scrap was Similarly, EU production of crude steel appears Leap in Turkish imports addressed in detail by the Shredder Round- Table’s guest speakers - Patricia Ayed (left) likely to break previous records; having risen Turning to the international scrap trade, Mr van and Michel Faral of Arcelor Purchasing in France. around 4% to 100.7 million tonnes in January-June Genuchten confirmed that EU deliveries to Turkey 2006, the end-year figure should exceed 200 million had leapt 124.1% in the first half of 2006 to tonnes, he told delegates at the BIR Ferrous Round- 2.378 million tonnes; at the same time, shipments to Table in Brussels. ‘Based on the high steel produc- the USA had climbed 9.3% to 493 000 tonnes while tion forecasts for the fourth quarter, we in general exports to China had advanced 13.4% to 228 000 expect stable prices for scrap until the end of the tonnes. On a decidedly downward curve, however, year,’ he added. ‘Certain qualities could still, due to were EU scrap exports to India, which slumped 78.6% short-term local shortages, even have some upward in the first half of this year to 288 000 tonnes. price potential.’ Further perspective on Mr van Genuchten’s figures Bob Garino, Director of Commodities of the U.S. recycling association ISRI and also the Mr van Genuchten’s statistical review of the first was provided by the presentation of fellow divisional Editor of ISRI’s highly-valued weekly ‘Friday half of this year revealed particularly strong steel Vice-President Denis Ilatovskiy of Mair Joint Stock Report’ (left) and Ross Bartley, BIR Environmental and Technical Director. production growth in the following countries: Company in Russia. He noted that, owing to the start- Luxembourg (+60.3% compared to January-June up of new electric arc furnace capacity and ‘serious 2005); Czech Republic (+13.2%); Poland (+12.5%); growth in domestic scrap consumption up to 28 million Hungary (+12.2%); and Greece (+10.1%). The steep tonnes’, far less Russian scrap was becoming avail- rise in the production total for Luxembourg was a able for export. Furthermore, domestic scrap collec- reflection of a serious cut in the country’s output tors were struggling to maintain their recent perfor- during the early months of 2005. mance levels, partly because of a dwindling supply of Meanwhile, four countries recorded crude steel easily-obtainable scrap. His conclusion was that production declines over the two comparative peri- Russia’s scrap exports could tumble to ‘no more than 2 Christian Rubach of Interseroh Hansa ods, namely: Sweden (-8.1%); Austria (-4.1%); Spain million tonnes’ by 2008. Recycling GmbH of Germany was elected as the new President of BIR’s Ferrous Division. (-1.3%); and Finland (-1.1%). BIR Ferrous Division President Colin Iles of UK- based European Metal Recycling argued that a reduc- tion in scrap exports from Russia and the Ukraine would have a beneficial effect on sales into Turkey from the EU and US East Coast. Mr Iles had earlier announced to Round-Table delegates that, owing to business commitments, he would be stepping down as President immediately after the meeting in Brussels. John Neu of US-based Rolf Willeke, General Anton van Genuchten of Detlev Müller of Tube City He has been succeeded by Christian Rubach of Sims Hugo Neu. Delegate of the BIR Germany-based TSR IMS in the USA. Ferrous Division. GmbH & Co. KG. Interseroh Hansa Recycling GmbH of Germany.

Recycling International • November 2006 32 BIR BRUSSELS

Shredders on the up and up Big continues to be beautiful for a significant proportion of scrap metal processors investing in new shredder capacity. Jim Schwartz of US-based Metso Texas Shredder informed the Shredder Round-Table in Brussels that, of the 13 shredders known to have been installed since the BIR Spring Convention in May this year, five were of more than 6000 HP and two were 9000 HP machines. Having noted that further units were due to start up over the coming months and that ‘most of them are large shredders’, Mr Schwartz suggested this trend towards greater horse power reflected operators’ desire to shred more types of scrap given the high level of competition for traditional grades. The speaker went on to suggest that traditional de-dusting equipment was ‘losing its appeal all over the world’ as computer-controlled water injection systems offered users energy savings and made operations ‘much cleaner than they were before’.

Gamma ray technology At BIR’s Beijing Convention earlier this year, Mr Schwartz had identified a growing trend in the USA towards adoption of gamma ray technology to detect copper in shred- EU scrap consumption is on course to set a record in 2006 and could ded scrap. Since then, further installations have been completed in the USA and sys- well reach 106 million tonnes in 2006. tems have also been bought in the UK and the Netherlands. ‘There are plans for more in Europe,’ he noted. More promising outlook The subject of copper in shredded scrap was addressed in detail by the Shredder ‘Scrap has not gone out of style,’ was the bold Round-Table’s guest speakers - Patricia Ayed and Michel Faral of Arcelor Purchasing statement made to the Round-Table by BIR Ferrous in France. Division board member John Neu of US-based Sims They underlined the importance of keeping red metal levels below the specification Hugo Neu. When China was investing heavily in threshold of 0.25%. Through in-house trials, Arcelor has been able to combine a num- ‘gigantic’ blast furnace-based steel production ber of processing options - including hand-picking, pre-dismantling and grid-hole size plants some two years ago, there was reason to be reduction - to achieve acceptable levels of copper. Training and technical exchanges fearful of future prospects for ferrous scrap. with scrap operators had contributed to a significant reduction in copper content aver- However, the outlook now appeared far more ages over the last two years. ‘But we must continue the efforts,’ insisted Ms Ayed. promising given the substantial electric arc furnace capacity being added or proposed in Turkey, Greece, Possible - but at a price Egypt and a number of other countries. European Shredder Group Chairman Anthony Bird of the UK-based Bird Group of With international consumption of scrap at a Companies Ltd pointed out that the shredder industry had already carried out a high level, Mr Neu held ‘an optimistic view of where wealth of research and had achieved copper content results similar to those described scrap prices are going’ between now and the next by the guest speakers through, for example, double shredding. Since such steps were BIR Convention in May 2007. ‘Scrap prices will expensive and often entailed increased machine wear and tear, customers should be probably increase in December and certainly in prepared to pay more for the resultant product, he argued. January,’ he observed. ‘This may occur at the Mr Bird welcomed the decision by ARN in the Netherlands to support the construc- expense of steel producer margins because steel tion of a plant using the VW-SiCon process to derive secondary raw materials and fuel prices generally appear headed lower.’ from shredder residues. However, having acknowledged that the technology was the In other highlights, Mr Neu noted that China had best available at present, he added that there was no guaranteed market for any of the not bought a deep-sea scrap cargo in more than six products. months. ‘New capacity under construction will increase raw steel output, while environmental and From left: BIR Shredder Committee energy concerns are finally causing the (Chinese) Chairman Jens Hempel-Hansen, government to shut down many small, inefficient European Shredder Group Chairman blast furnaces,’ he went on to say. ‘Until this hap- Anthony Bird and Jim Schwartz of US-based pens, major deep-sea scrap imports into China can- Metso Texas not be expected. However, a few significant scrap- Shredder. buying mills and dealers have recently raised their offering prices to a level not so far from the interna- tional market.’

Recycling International • November 2006 33 BIR BRUSSELS

The Ten Excuse Commandments During the Plastics Round-Table, new Chairman Surendra Borad of Belgium-based plastics recycling and trading company Gemini Corporation NV treated delegates to a list of his favourite excuses used by suppliers when their material was rejected. Most of our readers will recognise at least some - if not all - of Mr Borad’s Ten Excuse Commandments:

1. I never said that. 2. That is not my material. 3. I am not making any money on this deal. 4. How should I know? 5. In the bottom of what barrel? 6. No two scales are the same. 7. I will make it up to you on the next load. 8. Everybody else does it. 9. I have shipped this material for years and never had a rejection. Surendra Borad of plastics recycling and trading company Gemini Corporation NV, 10. You have to trust me! Belgium. Built in the 15th century, Brussels’ town hall was a wonderful venue for BIR’s Welcome Reception. used tyres, although the world recycling body’s (ISRI) Robin Wiener confirmed that a Memorandum from which dismantlers and recy- attempts to have second-hand clothing placed on of Understanding recently signed with the US clers would be paid US$ 1 for the list had not met with success, Mr Bartley point- Environmental Protection Agency would usher in each switch. Roll-out of the pro- ed out. the first-ever national mercury switch removal pro- gramme was expected to begin Also at the IEC meeting in Brussels, President of gramme. The automotive and steel industries had early in 2007, according to the the US Institute of Scrap Recycling Industries agreed to contribute US$ 2 million apiece to a fund, speaker.

advertisement India BIR BRUSSELS

cerns raised by BIR officials in con- nection with the registration system, noting that the Indian government was currently examining: whether a less rigorous regime might be intro- duced for scrap imports which had been compacted, baled or pelletised by hydraulic pressing; and whether permitting high-seas sales would di- lute the control regime. He also ac- cepted that many companies were not in a position to submit audited balance sheets but added: ‘Relaxing the condition … can only be consid- ered if a suitable substitute to this is provided.’ During question-and-answer ses- sions held at both the BIR Round- India still welcomes Table meetings, Mr Gupta acknowl- edged that unintentional delivery of a small amount of unwanted muni- bona fide scrap suppliers tions scrap was ‘not a crime, but a slip’, and would not lead to the auto- matic disqualification of the ex- As from April 1 2007, India will accept imports of unshredded metallic scrap only from registered operators and through designated 26 ports such as the Nhava Sheva port near Mumbai. porter. Some penalty might still ap- ply but a ‘liberal interpretation’ had The agenda for the latest BIR Convention underscored the impor- had been made in relation to this first to be adopted, he said. tance of India’s proposed registration scheme for overseas suppliers round of applications. ‘We don’t want Among the concerns raised by of unshredded scrap in that the issue was featured in a guest pre- to reduce the number of suppliers to Round-Table delegates, Ikbal sentation to both the Ferrous and the Non-Ferrous Round-Tables. India,’ he insisted. Nathani of the Nathani Group of The following article represents a distillation of what was said at the At the same time, however, the Companies in India complained of in- two meetings. Indian government wanted assur- spection delays because virtually ances that foreign suppliers were every cylindrical item was treated as By Ian Martin ‘credible and established’, said the potentially ‘war-zone scrap’. He also speaker. Thus, companies seeking suggested that ports needed to ad- Developed by its Directorate Gen- mines, shells, cartridges and any registration were being asked to dress the issue of radiation detection. eral of Foreign Trade (DGFT), India’s other explosive material from enter- demonstrate their financial and The guest speaker urged ex- registration scheme for overseas sup- ing the country in consignments of business standing, for example by porters with any specific queries pliers of unshredded metallic scrap scrap. It would apply to all forms of providing: an audited balance sheet; about India’s new import regime to was in no way intended to stem the ferrous and non-ferrous scrap - with details of company proprietors and consult the DGFT website or to flow of material into the country. In- the exception of shredded material directors ‘for security clearance’; make direct contact with officials re- stead, it should be viewed as an un- which ‘will continue to be free of re- proof of membership of major recy- sponsible for implementing the derstandable government response to striction,’ he underlined. cling organisations; details of ISO scheme. ‘We will share information explosions and loss of life resulting Noting that India operated a accreditation; and evidence of ac- with you,’ he stated. ‘We don’t want from the presence of munitions in largely liberal import regime which creditation by a recognised Chamber to close doors to people who can sup- consignments of imported scrap. oversaw deliveries of scrap worth of Commerce or by the environmen- ply us with scrap. ’ This was the crux of the message more than US$ 1 billion per annum, tal control agency of the host govern- conveyed to the Ferrous and Non- the speaker insisted: ‘We don’t want ment. Importance would also be at- Ferrous Round-Tables by Neeraj to curb imports of ferrous or non-fer- tached to applications showing proof Kumar Gupta, Addl. Director Gen- rous scrap because we depend on it, of registration under China’s AQSIQ eral of Foreign Trade within the In- but we can’t permit live or spent scheme for overseas suppliers, not- dian government’s Ministry of Com- weapon-grade material.’ ed Mr Gupta. merce & Industry. He went on to explain that, as Under examination Specific concerns from April 1 next year, India would The 1400-plus applications for reg- Recognising the sensitivity of accept imports of these materials istration received on or before May 31 some of the information exporters only from registered operators and this year are currently under exami- were being asked to submit, the through 26 ports deemed ‘better nation. According to Mr Gupta, the speaker sought to give assurances Neeraj Kumar Gupta, Addl. Director General of equipped’ to handle them. India was registration process was likely to be that the data would be used solely Foreign Trade within the Indian government’s implementing the new system in or- re-opened to other prospective over- for the purpose of registration. He Ministry of Commerce & Industry (left) and Ikbal Nathani of the Nathani Group of compa- der to prevent arms, ammunition, seas suppliers once determinations also looked to address specific con- nies in India.

Recycling International • November 2006 35 Plastics BIR BRUSSELS Europe ‘over-regulated’, complains new Chairman By Ian Martin

There was a decidedly international flavour to the BIR Plastics Round-Table in Brussels, with market reports covering a number of leading European countries as well as China, India and Australia. In Australia, most of the 210 000 tonnes of plastics recycled each year is currently A key theme to emerge was the strictness of controls on movements of plastics scrap. exported to China.

The recycling of plastics has be- come big business and is beginning to attract favourable rather than damning headlines from the main- stream press. However, Europe’s plastics recycling sector is continu- ing to be weighed down by ‘multiple rules and regulation’. These were the opening words of Surendra Borad of Belgium-based Gemini Corporation NV in his first address as Chairman of the BIR Plastics Committee. He told dele- gates to the Plastics Round-Table in Brussels: ‘I strongly feel that we in the plastics industry are being over- regulated in Europe. The feeling is more intense when we find that our fellow North American and Aus- tralian businessmen are not subject Restrictive policy in India containerised shipments in response recyclables - craved frequent deliv- to so many strict rules.’ China continues to import some to ever-increasing demand. And he eries that were ‘just in time’ rather The ‘very punctilious’ attitude to 3 million tonnes of plastics scrap per warned: ‘More containers need a than ‘just too late’. The handling of plastics scrap adopted by some offi- annum, according to Mr Borad. By larger capacity of shipping and larg- large tonnages in a limited number cials was illustrated by the market comparison, India’s imports of recy- er ships result in a lower unit cost of ports would intensify congestion report from Italy. The country’s cus- clable plastics amount to a mere price - so ships grow bigger. Larger levels, he added. toms authorities were treating plas- 100 000 tonnes per year. After a pro- ships will not offer the same fre- Mr Paelinck went on to predict a tic film as ‘non-exportable waste’ longed struggle, the 30 factory opera- quency of departures in the limited fall in freight rates on the back of because it had not been subjected to tors in India who are permitted to number of ports they can call be- growth in shipping capacity. How- any transformation, delegates were import these plastics have obtained cause of their size.’ This would lead ever, any such downward movement informed. And Mr Borad himself five-year renewals to their exclusive to conflict, he suggested, because could still be two years away, he in- reported that Chinese checks on im- licences. The speaker commented: cargo owners - such as exporters of dicated. ports of low-grade plastics were ‘No new licences are being granted - becoming ever stricter. Meanwhile, the policy continues to be restrictive.’ Delegation ‘surprised’ by controls in India the report from Spain suggested that A report submitted by Michael quality controls imposed by the Lion of the Sims Group provided del- Rumours of poor environmental and child labour practices in India’s Chinese inspection and port authori- egates with a brief overview of mar- plastics reprocessing industry are far from the truth, according to BIR ties were ‘immoderate’ and were pro- ket conditions in Australia where Plastics Committee Chairman Surendra Borad. Speaking at the ving increasingly difficult to meet. annual consumption of plastics is Plastics Round-Table in Brussels, Mr Borad relayed the findings of a around 1.6 million tonnes and is delegation to India facilitated by his own company, Gemini Corporation growing at some 2% per annum. The NV. This consisted of representatives from: the Flanders environment plastics recycling rate currently authority; the Valipac non-profit organisation for businesses and trade stands at 15% but a target of 30-35% federations; and consultancy firm BELConsulting. has been set for 2008; most of the The delegation was ‘extremely surprised’ at the levels of control exer- 210 000 tonnes recycled each year is cised at the plastics reprocessing facilities visited. Mr Borad elaborated: currently exported to China. ‘These factories are located in export zones. When the delegates entered the zone compound, their cars were fully checked both at the entry point Higher-capacity ships and also at the exit point. They found that every kilo of plastics (enter- A guest presentation from Honore ing the facility) has to be accounted for.’ And he added: ‘There is Paelinck, Managing Director of absolutely no scope for dumping or illegal incineration. Plastics repro- Chairman of the BIR Plastics Committee, Belgium-based Port and Transport cessing is fully regulated and hence there is absolutely no child labour.’ Surendra Borad of Belgium-based Gemini Corporation. Consulting, focused on the growth in

Recycling International • November 2006 35 Stainless BIR BRUSSELS Potential for a ‘dramatic’ market correction

have also placed additional orders,’ steel exports were expected to fall explained Mr Wright. ‘Order books some 30% this year to around at most of the mills remain full until 250 00 tonnes in response to growth at least the end of the year.’ in domestic production - with Fin- In his overall market summary, land on course to consume more Mr Wright contended that strong than half the export total, explained global demand for stainless steel Ildar Neverov of Scrap Market Ltd was likely to persist for the remain- in his report on the Russian market. der of this year and into the first quarter of 2007. World stainless Military spending spree steel ingot production was on course The special alloys report from to total 27.1 million tonnes in 2006 - Stuart Freilich of US-based Univer- equivalent to an increase of 9.4% sal Metal Corporation highlighted over the 2005 figure. Producers had the positive market impact of the curtailed their holiday shutdowns in world’s ‘major military spending the third quarter to take advantage spree’. He ventured: ‘I expect that of the positive market conditions, the price levels of titanium scraps thus prompting a 20% surge in out- have probably seen their highs and put compared to the same three will stay in their current ranges.’ months of last year. A further 12% Guest speaker Peter Cutler of the improvement in production was pre- Nickel Institute contended that, in High global demand for stainless steel has led to increased stainless steel scrap availability. dicted for the fourth quarter. Europe, almost all process scrap and High global demand for stainless some 80% of end-of-life nickel-con- The demand outlook for stainless steel is set to remain positive for steel had helped nickel prices to leap taining products were recycled. The the rest of this year and for the early part of 2007, it was suggested well above US$ 30 000 per tonne and challenge, he said, was to ensure at the BIR Stainless Steel & Special Alloys Round-Table in Brussels. had also led to increased stainless that the remaining 20% was reintro- Strong demand from the stainless sector and heavy institutional buy- steel scrap availability. However, duced to the production loop. ing had contributed to soaring nickel prices - but a ‘dramatic’ cor- the main cause of this price surge rection might be on the way, delegates were told. had been ‘heavy speculation and in- stitutional investment buying’, ac- By Ian Martin cording to Mr Wright. ‘For this rea- son, we can expect at some stage a Global growth in stainless steel Elsewhere in Asia, the following correction phase, which will mean production ‘will continue to be dri- stainless steel outputs were antici- an equally dramatic downturn in ven over the next 10 years by the pated for 2006: Taiwan 1.7 million nickel prices once the investors de- Asian market - with China being the tonnes; South Korea 2.4 million cide to switch funds. And this in turn forerunner’, the BIR Stainless Steel tonnes; Japan 4 million tonnes; and will have a dramatic effect on the & Special Alloys Round-Table in India 1.7 million tonnes. According stainless steel raw material prices.’ Brussels was told by its Chairman, to Mr Wright, production in India Strong year in prospect Michael Wright, Chairman of the BIR Stainless Michael Wright of ELG Haniel Met- was expected to soar between 20 and Steel & Special Alloys Round-Table (left) and als Ltd in the UK. 25% next year and to reach 2.7 mil- Current indications suggested an- Stuart Freilich of US-based Universal Metal Corporation. Asia was already responsible for lion tonnes by 2010. other strong year for US stainless producing around 53% of the world’s steel production in 2007, according stainless steel. According to best es- Additional orders to the report from Barry Hunter of timates, Chinese production was set Turning to the Western European Hunter BenMet Assoc. ‘However,’ he to jump from upwards of 4 million market, forecasts suggest that stain- added, ‘we are starting to see more tonnes this year to nearer 4.8 million less steel production will rise around emphasis on the marketing of 201, tonnes in 2007. ‘The estimated total 6.6% this year from 8.3 million 301 and 400 series as nickel prices volume of domestic stainless steel tonnes in 2005 to 8.9 million tonnes. have escalated to heights never seen scrap generated in 2005 was approx- ‘Despite high alloy surcharges, cou- before. Many projections indicate a imately 900 000 tonnes, which we pled with sharp increases in the decrease of some 10-15% in overall expect to exceed 1 million tonnes in base prices, customers have not only austenitic production.’ 2006,’ stated Mr Wright. confirmed existing bookings but Meanwhile, Russia’s stainless Ildar Neverov of Scrap Market Ltd in Russia.

Recycling International • November 2006 39 Paper and tyres BIR BRUSSELS China’s imports to approach 19 million tonnes this year

12 months - equivalent to an increase of 12% over the 4.58 million tonnes registered in 2005. Having shipped some 1.34 million tonnes of recovered paper to China in the first eight months of this year, the UK is accounting for almost 40% of European exports to the Asian giant. Indeed, UK deliveries to China could well break through the 2 million tonnes barrier this year. Other major European suppliers to China include the Netherlands on 884 751 tonnes in January-August this year and Germany on 479 885 tonnes.

Quality concerns Mr Baxi’s statistics revealed that American exports to China exceeded 6 million tonnes in the first eight months of this year and so should approx- imate to 9.12 million tonnes for 2006 as a whole - Expert analysis suggests that China will import almost 19 million tonnes of recovered paper and board this year. some 15% above the 7.91 million tonnes recorded The galloping pace of China’s recovered throughout last year. Meanwhile, the rest of the world has recorded a paper imports has been maintained thus somewhat smaller percentage increase in recovered far in 2006. Indeed, expert analysis paper deliveries to China: shipments totalled 3.16 million tonnes in January-August 2006 and suggests that, during the course of the are set to reach 4.75 million tonnes for the year as a year as a whole, the Asian giant will while. This would represent a 4% increase over the shipment tally of 4.55 million tonnes for the whole bring in almost 19 million tonnes of Ranjit Baxi of UK-based J&H Sales International of 2005. (left) and Maarten Kleiweg President of the Rolling all of these figures together, China is on European Recovered Paper Association. recovered paper and board. All of the course to import a grand total of 18.98 million major supplying regions will record sig- tonnes of recovered paper this year compared to nificant growth in exports to China, del- 17.04 million tonnes in 2005. Higher world recovered paper collection volumes egates to the BIR Paper Round-Table in were finding a ready outlet in Asia - not just in Brussels were informed. China but also in India, Indonesia, Thailand, Vietnam, Malaysia and South Korea, according to Mr Baxi. But he warned delegates: ‘Increased vol- f the current pace of shipments continues until umes have a tendency to produce poor quality of I the end of the year, Chinese imports of recovered paper. We must not forget quality demands David Symmers of the UK-based Independent paper and board will leap almost 2 million tonnes in imposed upon us to ensure that Europe can contin- Waste Paper Processors Association. 2006, according to figures presented to the BIR ue to maintain its market share of exports to Asia.’ Paper Round-Table in Brussels by divisional Vice- President Ranjit Baxi of UK-based J&H Sales More mills to close International Ltd. In reviewing recovered paper market conditions European shipments to China climbed to in Europe, BIR Paper Division Vice-President Merja 3.42 million tonnes in January-August 2006 and Helander of Paperinkerays Oy of Finland identified By Ian Martin are expected to top 5.12 million tonnes over the full ‘deep concern’ at over-capacity within the paper and

Recycling International • November 2006 40 BIR BRUSSELS

board industry, and the prospect of ‘more mill clo- The speaker went on to explain that ERPA had sures to come and less news of new investment’. established a working group comprising represen- Focusing on specific developments, the speaker not- tatives from various associations whose task was to ed that Smurfit Kappa’s Lagamill in southern come up with proposals for the ‘difficult task’ of Sweden was scheduled to close at any time; the facil- revising EN 643. ‘We are dealing with a global com- ity has been consuming some 90 000 tonnes per modity and thus it would be worthwhile to see if we annum of OCC and mixed paper. A Finnish mill con- can learn anything from the US scrap specifications suming annually some 70 000 tonnes of news & as they are far more comprehensive than our cur- pams had also closed. Conversely, additional capaci- rent EN 643,’ he added. Hans de Koning of the Dutch paper recycling ty had come on stream in Spain where the installa- association FNOI (left) and Jan Vermoesen of the Belgian recyclers association Coberec. tion of new corrugated board and newsprint/maga- World waste survey zine lines would boost the country’s recovered paper Key findings of the ‘World Waste Survey 2006’, consumption by some 700 000 tonnes per annum, which was compiled by CyclOpe of France in associ- according to the speaker. ation with Veolia, were presented to the Paper Ms Helander’s presentation also acknowledged a Round-Table by Professor Philippe Chalmin. The lack of transport capacity in many European coun- speaker, who is President of CyclOpe, said an esti- tries - notably in Finland, France and Sweden - and mated 2.5 to 4 billion tonnes of waste was collected severe pressure for freight rate increases. ‘The rail- worldwide each year. Of the estimated 1.2 billion ways are starting to become a more economical way tonnes of municipal waste collected on an annual to transfer goods,’ she observed. basis, the OECD’s 30 industrialised nations accounted for around half, he revealed. Michael Moulton of Koch Pulp and Paper Trading in the USA Bearish market As for the size of individual secondary material According to BIR divisional Vice-President markets, the survey suggests a recovered fibre Michael Moulton of Koch Pulp and Paper Trading (paper) total of 170 million tonnes per annum. The LLC, the relatively ‘bearish’ market conditions pre- research also concludes that, overall, around vailing in North America were likely to persist for a 600 million tonnes of material is recycled each year number of months to come. - equivalent to at least a quarter of ‘world economic Negative factors included: consuming mills’ high waste’, said Professor Chalmin. And he underlined: stocks of OCC 11 and ONP 8 at a time of diminished ‘Recycling will be one of the key industries and domestic demand for finished products; and the non- activities in the 21st century.’ appearance of any of the significant hurricanes which had been anticipated across the Gulf Coast region, Tyres feature in ‘end-of-waste’ deliberations resulting in higher-than-expected stock levels. The North American market had also seen a sub- stantial reduction in testliner capacity, noted Mr Moulton.

End of an era The BIR Paper Round-Table in Brussels sig- nalled the end of an era. Dr Maarten Kleiweg de Zwaan announced that, after some three decades, this would be his final BIR Convention as he would From left: Guest speaker Frank Hopstaken of the FFact management consultancy, Tyres Round-Table Chairman shortly be stepping down as President of the Barend Ten Bruggencate and Alvaro Rodriguez Martinez, Chairman of BIR’s International Environment Council. European Recovered Paper Association (ERPA) and as Chairman of the Dutch federation FNOI. Used tyres are among the recyclables included on a priority list of materials to be According to Paper Division President Dominique studied by the European Parliament’s Environment Committee as part of its wider Maguin of Soulier in France, it was ‘very sad’ to lose review of when waste ceases to be waste, the latest BIR Tyres Round-Table was such a major industry figure. informed by its Chairman, Barend Ten Bruggencate of VACO in the Netherlands. In his final submission, Dr Kleiweg de Zwaan At the same meeting, guest speaker Frank Hopstaken of the FFact management noted that a new European Declaration had set an consultancy in the Netherlands outlined the country’s RecyBEM system under which ‘ambitious’ 66% recycling rate target for 2010. producers and importers pay Euro 2 per tyre into a fund dedicated to financing collec- Unlike the first Declaration which had posted a tar- tion and recycling. This efficient scheme did not conflict with free market systems in get of 56% for the period 2000-2005, ‘exports to other countries - such as the one adopted in neighbouring Germany, he stated. countries outside Europe are now included’.

Recycling International • November 2006 41 Textiles BIR BRUSSELS France eyes up ‘eco-tax’ proposal

Concern was voiced at the Round- UK market had attracted ‘bands of Table that the scheme might thieves who are operating systematic strengthen the role of socio-economic clearances from textiles banks’, con- groups to the potential detriment of tinued Mr Ralph. ‘These people are traditional textiles recyclers. For his also following legitimate charitable part, BIR Textiles Division Presi- collectors and picking up goods be- dent Frithjof W. Schepke of Schepke fore the charity vehicles reach them.’ Konzepte in Germany ventured to Reporting on conditions in the suggest that clothing producers French market, Mr Zerroug suggest- might try to side-step payment of ed that rising collection volumes this proposed new tax. were still failing to match demand. On a more positive note, BIR Tex- For Belgium, Pol T’Jollyn of NV Re- tiles Division General Delegate cutex pointed to ‘very strong’ de- Alexander Glaser of Fachverband mand from Eastern Europe and Textil-Recycling eV in Germany said North Africa, but also to an inability the French were to be congratulated to increase selling prices to offset on ‘getting the producers round the higher buying costs. table’. Terry Ralph of Terimpex Ltd in the UK argued that the French Impressive employment should be ‘very much commended for record what they have managed to achieve According to BIR Textiles Divi- so far’. The traditional mistrust be- sion Honorary President Klaus tween textiles recyclers, charity or- Löwer of Hans Löwer Recycling In France, a proposal has been tabled to introduce a tax on new clothing in order to finance the collection of second-hand clothing and secondary textiles. ganisations and socio-economic GmbH in Germany, sorters in Japan groups ‘has to be demolished’, he were complaining of high disposal Over recent years, many textiles ed the authorities to establish a added. fees for material that could not be recycling specialists have been working group, which had gone on to marketed. Meanwhile, a significant calling for the introduction of a identify the falling quality of origi- Ceiling has been reached proportion of US sorting activity had system of payment in order to nals and the increasing volume of In his UK market report, Mr Ralph ‘migrated’ to India and the Far East, alleviate the structural crisis sorted material consigned to incin- confirmed that higher prices had he said. within the sector. Unsurprisingly, eration as major reasons behind the been obtained for second-hand cloth- Earlier, Mr Schepke had under- therefore, delegates to the latest crisis afflicting the industry. The ing sales into Sub Saharan Africa, lined the impressive employment BIR Textiles Round-Table in group had proposed that those re- Brussels dwelt at length on the sponsible for producing new cloth- possibility of France supporting ing, footwear and household textiles its collection and recycling infra- and for putting them on the market structure by imposing a new tax should make a financial contribution on clothing producers. equivalent to around one thou- sandth of the sales price of the fin- By Ian Martin ished product.

There was no mistaking the burn- Objective criteria ing topic at the BIR Textiles Round- Under the proposal, these contri- Table in Brussels: a proposal in butions would be directed through an France to introduce a tax on new environmental body in which textiles clothing in order to finance the col- recycling companies would take up BIR Textiles Division President Frithjof BIR Textiles Division General Delegate lection of second-hand clothing and an advisory role. Money would be W. Schepke Alexander Glaser of Fachverband Textil- Recycling in Germany. secondary textiles. If sanctioned, the distributed ‘on the basis of objective so-called ‘eco-tax’ will apply not only criteria’, observed Pierre Duponchel Eastern Europe and Asia, but that record of the textiles recycling sector to clothes manufactured in France of French socio-economic group Le ‘the increases have by no means - not only in the developed world but but also to imports. Relais. The initiative was the result, kept up with the price increases of also within the major importing re- The background to the proposal he said, of collaboration between not originals’. And he added: ‘We feel a gions such as Africa. At the same was outlined by Mehdi Zerroug of only commercial textiles companies ceiling has been reached for many of time, however, the industry re- French company Framimex. The so- but also charity organisations and our foreign customers, and these mained in a ‘structural crisis’ and cial and environmental impact of socio-economic groups. ‘It is doubtful markets are no longer able to face was forced to contend with ever-ris- company closures within France’s we would have achieved this without more price increases.’ ing costs of collection, sorting, pack- textiles recycling sector had prompt- working together,’ he declared. Recent price increases within the ing and transportation.

Recycling International • November 2006 43 MARKET ANALYSIS

Ferrous

The Turks have played their exception of Germany where de- Market invaded by signs of scrap game cleverly. Refusing to mand for scrap is still very good, the purchase scrap in September, they Turks’ tactics adversely affected the weakness suddenly made a strong return in EU markets - although prices fell October and bought over 1 million only marginally in October. Doubts surround scrap price levels for the first quarter of tonnes from Europe, the USA and 2007. Turkey, currently the main buyer of deep-sea scrap CIS countries - before promptly Plummeting US scrap prices withdrawing from the market once Scrap prices fell heavily in the cargoes given China’s virtual absence from the market, is again. This was obviously a concert- USA, especially when it became ed action by the major steel mills - known that October automobile bun- unwilling to pay more than US$ 277 per tonne cfr for 80/20 something which is not unlawful in dles sales levels achieved by Ford, HMS I/II which, when taking into account sky-high freight Turkey. Having paid US$ 277 per GM and Chrysler had dropped some tonne cfr, the Turks were subse- US$ 40-50 per tonne. The US Com- rates, equates to US$ 247 fob Europe and US$ 240 fob US quently willing to buy only at prices posite price, which had already fall- East Coast. China is buying on a hand-to-mouth basis, pur- some US$ 10 to 15 per tonne lower. en from US$ 255 in June to US$ 194 In mid-October, Turkish mills per gross ton in September, edged chasing major tonnages of scrap only in Japan, but at very also paid some for US$ 265 per only marginally lower at the end of tonne cfr for Ukrainian A-3 scrap, October to US$ ????. The US auto- low prices which would leave US West Coast exporters with which is of even higher quality than mobile bundles price for November no margin. At the start of November, fob Rotterdam prices HMS I given its considerable heavy declined/rose to ??????. (Manfred, railway scrap content. This compar- please ask Bob - Fred) remain virtually unchanged at US$ 245 per tonne for 80/20 atively low offer was accepted by Export prices from the US West Ukrainian exporters although, over- Coast to the Far East have remained HMS I/II scrap, US$ 252 for shredded, and US$ 235 for the all, the country’s exports fell by no very depressed. For instance, Pacific 60/40 HMS I/II mix. less than 45% in the first three quar- Coast Recycling last month sold two ters of 2006. cargoes of 35 000 tonnes apiece for As a consequence of Turkey’s un- November/December delivery to the predictable buying patterns, the low Hyundai steel mills in South Korea prices paid in the Far East and also for a meagre US$ 263 per tonne cfr, Closed: November 6 2006 booming domestic demand, US scrap which equates to just US$ 215-220 exports declined over 20% in this fob. By Alfred Nijkerk year’s January-July period. With the The main US mini-mills such as

Recycling International • November 2006 2 MARKET ANALYSIS

Nucor, Gerdau and Mittal have re- intends to close these outmoded Australia and Brazil extend dominance of duced their ‘scrap surcharges’ on steel steel manufacturing facilities which global iron ore trade deliveries for November by some now account for only 2.8% of global US$ 15 per tonne on long products steel production. In 2005, worldwide and by US$ 30 per tonne on sheet 3.2 million tonnes of OHS was pro- Top iron ore exporting countries steel. But their base prices for new duced. As all steelmakers know, (x million metric tonnes) steel have remained virtually un- OHS production is an inefficient, en- changed. ergy-consuming and highly-pollut- 2004 2005 % change Freight rates from the USA to ing exercise which is some 10 to 20 Australia 221.2 239.0 + 8.0 Turkey have risen to US$ 40 per times slower than the BOF route. Brazil 200.9 223.4 + 11.0 tonne or even higher, and from the On the other hand, it can consume India 62.7 80.9 + 29.0 US West Coast to China to as much up to 60% scrap. Canada 22.5 27.9 + 24.0 as US$ 50 per tonne. The Rotterdam- Last year, only five countries/re- South Africa 24.7 27.4 + 11.0 Turkey rates rose from US$ 20 per gions persisted with OHS production: Russia 19.3 20.1 + 4.3 tonne earlier in the year to US$ 28-30 the Ukraine with its market share of Ukraine 18.1 19.6 + 8.1 in October for a 30 000 tonner - a lev- 44.2% in 2005, followed by Russia Sweden 17.4 17.8 + 2.4 el some US$ 5 per tonne higher than (22.1%), other CIS countries (8.4%), USA 8.4 11.8 + 40.0 that prevailing in August. The world and India (2.6%). Ukrainian steel pro- Mauritania 11.0 10.6 - 3.3 index for a Panamax ocean steamer - duction reached 30.4 million tonnes in World total 643.9 716.7 +11.3 which, at 55 000-70 000 tonnes, is a the first three quarters of this year, Source: Unctad size well suited to long-distance scrap equivalent to a year-on-year rise of transportation - rose from 2400 in 7.3%. Most probably, the OHS pro- March to 4100 by September. duction units will be replaced by elec- Australia and Brazil consolidated their dominance of the global iron The steel market is expected to tric arc furnace-based mills. Of ore market last year. Their combined exports grew by 9.5% from weaken in the first quarter of 2007 - course, this is good news for local 422 million tonnes in 2005 to 462 million tonnes in 2005. if not before - given that prices in the scrap merchants but is likely further India remained the world’s third largest iron ore exporter and USA and elsewhere are falling due to to reduce scrap export volumes. increased its shipments by almost 30% to 81million tonnes, largely over-production of certain grades. As The Ukraine has yet to decide because of strong demand from China. a result, the outlook for scrap is not whether to abolish or reduce its very bright. Normally, steel mills Euro 30 per tonne tax on scrap ex- would have looked to replenish their ports, which the EU has stipulated rently nearly twice as high as in 2004 to 462 million tonnes last year stocks to help see them through the as a pre-condition for granting the 2004. But the outcome will depend (see Table 3) - will succeed in secur- winter when many ports are forced country a higher steel import quota. on how the steel market performs ing such a hike as steel prices ap- to close. This would traditionally The Ukraine is still hoping for a during December and the first quar- pear to be on the decline. China, the lead to improved demand for scrap in 2.5% increase in the quota for 2007, ter of 2007. The world’s main three world’s largest iron ore producer October but, this year, prices have but it is doubtful whether they will iron ore producers - CVRD of Brazil, with an output of 300 million tonnes yet to move higher. At best, they secure this without a major reduc- and BHP/Billiton and Rio Tinto of in the first seven months of this have trended sideways over the past tion in the scrap export tax - or at Australia - hold over 70% of the glob- year, saw its production rise 35% to month. least the promise of a concession. al export market. Rumours suggest leave the country considerably less that they have already asked for at dependent on imports. That said, The Ukraine - Competing commodities least a 5% price increase for 2007. the ferrous content of China’s do- the last OHS outpost Steel mills fear that iron ore prices However, insiders doubt whether mestic iron ore is low. The Ukraine, the world’s largest will rise again next year. An increase this trio of companies - whose share The decline in pig iron prices be- remaining producer of open hearth of 71% for 2005 and 19% for the cur- of the world iron ore trade jumped low US$ 300 fob was very painful for steel (OHS), has confirmed that it rent year means that prices are cur- 9.5% from 422 million tonnes in major exporter Brazil as their manu- facturing costs have continued to rise this year as a result of higher iron ore and energy bills. Normally, pig iron prices are some US$ 20-30 per tonne above those of HBI which, in turn, generally hover some US$ 20-30 per tonne above scrap levels. This is certainly the situation at the moment with pig iron at around US 295 per tonne fob. With a dramatic rise in bulk carri- ers’ deep-sea rates plus a still-weak US dollar, only those producers with abundant natural gas reserves and a mainly ‘captive’ offset (ie where the steel mill owns the mine and/or the

Recycling International • November 2006 3 MARKET ANALYSIS

HBI/DRI producing units) are able months of this year appear to have to make a profit on their pig iron and been extinguished as we are now fac- DRI/HBI production. ing worldwide over-production. Janu- ary-September figures from the In- Will steel prices start to fall? ternational Iron & Steel Institute Steel, and especially those prod- (IISI) reveal a spectacular 9.4% in- ucts aimed at the construction and crease in world production, with engineering sectors, has enjoyed an 18.4% growth in China giving the excellent year thanks to a much im- country a steel production total for proved world economy. Steel prices the period of 308 million tonnes, or had to rise as a consequence of this 34% of world output. Most alarming year’s 19% increase in iron ore of all, China has reversed its tradi- prices, which followed up the huge tional role as a net importer of steel to 71% rise in 2005. It was not possible become a net exporter (see Table 3). to absorb all of this latter increase in Meanwhile, Europe recorded growth the second half of the previous year of 5.8% and North America of 6.6% given that long-term steel contracts (USA 9%), while the South American had already been fixed. total was virtually unchanged from The second consecutive rise in iron the same period in 2005. ore prices was offset only slightly by a IISI’s Director General Ian somewhat lower coke price. But ever- Christmas has predicted a slow- surge is still not in sight as analysts tonne lower than in mid-September. rising energy prices in the first three down in global steel consumption are predicting more growth in 2007, For hot rolled coil (HRC), the price is quarters of this year, fuelled by sky- growth next year due to softening with India following - albeit at a US$ 579 per tonne. high oil and hence natural gas prices, economies in Europe and the USA. slower pace. Focusing on the world’s served to jeopardise steel industry He anticipated an increase of no large importers of scrap, steel pro- Fear of steel dumping profits. Other negative factors includ- more than 5.2% and total steel con- duction in the January-September There are fears that several coun- ed the lower value of the US dollar sumption of 1.179 billion tonnes. period of this year showed the fol- tries are now attempting to dump and mounting ocean freight rates in Steven Mackrell, Director of the lowing trends: their over-production in the Western the third and fourth quarters. London-based Iron and Steel Statis- World. This has caused some panic Steel mills in the USA and Europe tics Bureau (ISSB) has estimated among the receiving countries’ steel were able to adapt their sales prices global crude steel demand at 1.24 bil- Scrap importing countries mills and many of them are again to rising raw material prices, and lion tonnes for 2008 compared to pro- China +18.4% urging their governments to put an were even able to secure additional duction of 1.36 billion tonnes. He has India +14.1% end to the threat. Some US mills have margin when it became clear that also suggested that the gap between Turkey +10.2% already been forced to idle furnaces or steel supply was becoming short. global steel production and demand South Korea +1.8% to peg back production in the face of However, there is still the looming is likely to rise from the current esti- Taiwan +8.8 high service centre inventories. spectre of Chinese over-production mate of 118 million to 160 tonnes per Italy +6.9% Mini-mills such as Nucor, Gerdau which many had hoped to see ease year. Chris Plummer, Director of US Spain -2.6% and Mittal USA have lowered or even during the course of the present year Metal Strategies Inc., told a recent withdrawn so-called ‘scrap sur- - only to see the reverse occur. The conference: ‘Over-supply in steel has charges’ on their base sales prices of only major steel product which Chi- pushed the steel industry into some- The three large scrap construction and flat steel. Nucor has na had to import in large volumes thing of a mini-crisis.’ AISI statistics exporters said that lower scrap prices have al- was cold rolled coil (CRC) which is show a 42% increase in US steel im- USA + 9.0% lowed them so to do, pointing by way the most expensive and complicated ports so far this year. Russia + 7.4% of example to the dramatic US$ 50 flat product to roll. But in the first UK + 7.3% per tonne fall in automobile factory nine months of 2006, China’s CRC In order of volumes dispatched, bundle auction levels at the end of capacity jumped no less than 43.6%. exports were destined mainly for September. Several blast furnaces South Korea, other countries in Steel prices had risen to unexpected have been idled - ‘for maintenance’, Worldwide Asia, the USA and the EU. Imports highs this year - especially in the according to Mittal USA, whose ex- over-production of steel came mainly from Japan, South Ko- USA and Europe - but are now slow- ample has been followed by US Steel. All hopes for stable or even better rea and Taiwan. ly declining. In mid-October, rebar In common with a few other coun- steel prices during the final two The end to China’s production prices ended a run of strong months tries, Italy dropped its export prices by exhibiting the first signs of a for flat steel in the final week of decline - albeit of only a few US dol- October by Euro 20-30 per tonne China’s steel import/export figures for January-August lars per tonne. Turkish debar (US$ 25-38) for HRC and Euro 20 for (x millions of tonnes) exports to the USA more than dou- CRC. bled in the January-May period from Year 2004 2005 2006 210 000 tonnes in 2005 to 520 000 Conclusion Exports 8.4 19.9 (+126%) 27.8 (+46%) tonnes this year. The world export Now-customary ‘scrap surcharges’ Imports 25.3 18.2 (-28%) 12.6 (-31%) price is now around US$ 530 per allow mills to maintain their fixed, tonne, which is some US$ 12 per often long-term prices since they can

Recycling International • November 2006 5 MARKET ANALYSIS

amend these surcharges without dis- with quite a few deals being done at turbing their own market. However, US$ 580 or lower. This is equivalent as mentioned above, several mills in to a decline of US$ 50 per tonne. In the USA and elsewhere either re- the EU too, some sharp HRC price duced or dropped these surcharges in falls have been recorded. This may Euro vs. Dollar Oil price per barrel the second half of October. They stat- mean that mills will strive to cut 1,30 80 ed by way of explanation that scrap scrap prices for the final quarter of prices had fallen materially at the this year and maybe also for Janu- 1,27 73 start of the fourth quarter. At the ary deliveries. If deep-sea freight 1,24 66 same time, of course, they were able rates remain high and the value of to maintain their still-high base the US dollar remains low, scrap ex- 1,21 59 prices. porters may have to grant quite a 1,18 52 The HRC price in the USA has few fob price concessions during No- Januari 2006 - October 2006 Januari 2006 - October 2006 now fallen below US$ 600 per tonne, vember and December.

Ferrous Scrap Prices (Reference date: 2 October, 2006)

260 270 255 260 250 260 255 240 240 250 240 250 250 255 231.83 245 230.83 Highest price 250 230 235.67 245 235 240 240 227 220 230 225 220.17 230 230 220 210 220 215 220 207.17 200 210 201.33 205 215 195.33 210 190 194 200 200 190 190 180 190

185 170 180 Lowest price 180 160 170

150 160

140 USA Domestic Scrap Prices 150 (US$/GRT) 130 140 HMS 1 heavy steel scrap (1/4 Inch) Fob Rotterdam Export Prices (US$/t) 120 composite price delivered at mills 130 HMS 80/20 heavy steel scrap

110 120 Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct

270 270

260 260 255 255 255 Fob West 250 250 250 Coast price 245 250 240 240 240 236.1 240 240 230 234.9 230 230 230 230 220 220 215 220 220 220.80 210 210 210 215 210 206.30 211 200 203.70 200 205 200 205.50 200 185 190 190

190 186.6 180.5 187.80 180 Fob East 180 180 Coast price 181.0 179.5 170 170

160 160

150 150 * Average German Scrap € 140 140 Prices ( /t) USA Export Prices (US$/GRT) S2 / E2, steel scrap (3 mm) 130 HMS 1, heavy steel scrap (1/4 Inch) 130 Delivered at mills

120 120 Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct

Recycling International • November 2006 7 MARKET ANALYSIS

Nickel & Stainless

By Alfred Nijkerk et al

Closed: November 5 2006

Nickel - According to latest statistics from Instead, it predicts significant usage the Brussels-based International increases in both the third and where will the peak come? Stainless Steel Forum (ISSF), world- fourth quarters of 2006. wide stainless steel production Meanwhile, the Nickel Institute reached an all-time high during the has predicted that the nickel deficit At the end of October, the cash price of nickel was nearing second quarter of 2006 (for more will reach 70 000 tonnes this year, another all-time high of US$ 35 000 per tonne after having information, visit www.worldstain- which is materially above the figure less.org). for 2005. With world nickel output once attained US$ 34 750 earlier in the year. The global Crude steel production climbed to at around 1.4 million tonnes, con- 13.9 million tonnes in the first half cern is being expressed at the lack of stainless steel industry’s full order books are expected to of this year - a 6.5% increase over new production capacity to have continue to fuel demand for nickel over the next few months. the same period in 2005. The 7.3 come on stream in 2006. million tonnes produced during the In early November, LME nickel stocks had fallen to around April-June period represented an Special alloys 5000 tonnes. Rotterdam prices for 304 and 316 scrap were all-time high for a single quarter The price of ferro-molybdenum is and was 12.6% higher than the 6.4 flat for the moment at around US$ 61 standing at, respectively, US$ 2760 and US$ 3950 per million tonnes produced during the per kg compared to US$ 64 at the end same quarter in 2005, reports ISSF. of September. Ferro-titanium (70%) tonne, while ferritic 430 (17% chromium) was stable at to Asia - and particularly China - has been trading sideways at around US$ 390, as was 409 (13% chromium) at US$ 320. provided the main engine room of US$ 15 per kg, while ferro-vanadium growth (see below). Meanwhile, dropped more than US$ 2 per kg in stainless production in the Americas October to US$ 36 because of avail- increased 7.4% to 1.6 million tonnes. ability outpacing demand; indeed, Output in Central and Eastern Eu- since September, the price has fallen rope rose almost 24%, largely as a by almost US$ 5 per kg. There has result of a major increase in Russia. also been a decline in cobalt prices Armed with this new data which (99.8%) to around US$ 17 per lb indicates higher stainless steel de- Europe mand than earlier anticipated, ISSF has revised its 2006 production fore- Since the previous report, LME cast to 27.8 million tonnes - repre- nickel prices have attained all-time senting a 14.3% increase over last highs, with three-month levels in- year. The group does not expect a re- creasing from around US$ 27 100 to currence in 2006 of the production some US$ 31 775 per tonne. As ex- cuts seen in the second half of 2005. pected, stocks in LME warehouses

Recycling International • November 2006 2 MARKET ANALYSIS

have continued to fall. Although nick- first half of this year - or 44% more ence’, the consensus was that nickel North America el demand is satisfactory, experts say than in the corresponding period of prices would be operating in a range it is insufficient to justify current 2005. As a whole, Asia churned out The nickel market was boosted in between US$ 9.07 and US$ 11.34 per high price levels in the longer run. 7.1 million tonnes of stainless steel in October by a drop in LME inventories lb this time next year. Macquarie it- By early November, nickel cath- January-June 2006, or 8.1% more to a 15-year low. At the annual Mac- self is predicting a nickel price aver- ode prices in Germany were stand- than in the same period last year. quarie Bank ‘Metals Outlook Confer- age of US$ 9.75 per lb for 2007. ing at US$ 30 446 per tonne. V2A (304) alloy scrap has been yielding some US$ 2748 and V4A (316) scrap US$ 3771 per tonne. In the Nether- lands, alloyed stainless steel scrap 18/8 has been trading at US$ 2892 per tonne of late, while alloyed stain- less steel scrap 316 has been attract- ing US$ 4150. High nickel prices are currently a burden to the European stainless steel processing industry and many consumers are frantically searching for alternatives. However, industry representatives continue to point out that high-quality stainless steel can be produced only when a sufficient amount of nickel is added as an al- loying metal. Asia & Pacific Rim According to the ISSF statistics mentioned above, China produced 2.3 million tonnes of stainless steel in the

advertisement MARKET ANALYSIS

According to market players, Non-Ferrous plenty of copper cable has been available to the market in early No- vember and cable processors are claiming to be operating at full ca- pacity. However, as a result of the current high prices, copper thefts have continued to increase, leading to ever more urgent calls for a Eu- rope-wide warning and track-and- trace system. Several national recy- cling associations already have such systems in place and plans are afoot to link these in the near future.

Lead & Zinc Last month produced a sharp in- crease in LME lead, with three- month prices rising from around US$ 1364 per tonne to some US$ 1569. In view of these high levels, Sufficient scrap to meet (Autor) were recently yielding a the lead processing industry has de- price of US$ 1569 per tonne. clined to build up its stocks and has consumer demand Over in the UK, prices for com- been ordering only against its imme- mercial pure cuttings were recently diate needs in the hope that prices Over the last month, European metal traders’ stocks have standing at US$ 1847-1866 per would fall. However, experts claim tonne, while mixed alloy/old rolled that, despite some volatility, the fun- been at relatively high levels and more than enough scrap is cuttings were trading at US$ 1325- damental outlook for lead remains to be found on the market. Asian buyers have continued to 1362. Meanwhile, commercial turn- quite positive. ings were fetching US$ 1231-1306 Meanwhile, supply of lead scrap order only limited volumes, although experts believe this sit- per tonne. In the Netherlands, new in Europe is still relatively healthy. pure aluminium scrap was trading In Germany, new soft lead prices uation will change in the coming weeks. In North America, recently at around US$ 2326 per have jumped from US$ 1516 per meanwhile, scrap merchants have noted a slight fall in activ- tonne, while first-quality old rolled tonne to US$ 1656, while soft lead aluminium scrap was attracting scrap (Paket) has advanced from ity levels as well as increased pressure on margins. In gen- some US$ 1823. US$ 1111 to US$ 1130. In the Netherlands, old lead scrap prices eral, consumers appear to have sufficient scrap available Copper leapt some US$ 300 per tonne to to meet their needs. In the context of recent develop- trade recently at US$ 1446. ments, the copper market remained As with lead, rising zinc prices Closed: November 3 2006 relatively stable last month, with have dented demand for material traders suggesting that supply of and processors are restricting them- material has been adequate while selves to ordering only relatively Europe prices have remained at high levels. small volumes. Not so long ago, zinc Expectations of stability In early November, the LME three- was trading at around US$ 1000 per month price for copper grade A stood tonne but LME three-month prices Aluminium fects of higher energy prices, while at around US$ 7455 per tonne. have subsequently climbed to LME aluminium prices increased price developments surrounding In general, prices in Germany around US$ 4000. This surge has substantially during the month of bauxite are also proving to be a have been following the trends set prompted many processors to look October, with three-month high- source of general concern. on the LME. Prices of bright wire for alternative materials. grade prices rising from US$ 2470 Overall, levels of demand are de- scrap (Kabul) were recently around In Germany, special high-grade per tonne to around US$ 2714 by scribed as quite healthy and there is US$ 7152 per tonne while copper zinc prices have risen recently from early November. Aluminium alloy sufficient scrap available to the market. granules 1A (Kasus) were trading at US$ 3668 per tonne to US$ 4417 prices also improved - by some In Germany, prices of primary US$ 7090. Non-alloyed bright wire while old zinc scrap has jumped US$ 40 per tonne - to reach US$ 2255. aluminium 99.7 have risen over scrap (Kader) was yielding US$ from around US$ 2000 in late Sep- Experts believe the aluminium recent weeks from US$ 2602 to 6901 - some US$ 100 more than in tember to US$ 2459 by early Novem- market will remain relatively stable US$ 2855 per tonne, while alumini- early October. Copper prices have ber. In the Netherlands, old zinc al- over the coming months. However, um wire scrap (Achse) was trading also firmed strongly in the Nether- loy scrap was recently fetching some factors could trigger yet more in early November at US$ 2591 - lands: bright wire scrap has been US$ 2704 per tonne - a considerable volatility: for example, the process- some US$ 250 above its level of four traded of late at US$ 7419 per tonne increase over its price of four weeks ing industry is still suffering the ef- weeks earlier. Aluminium turnings and mixed scrap at US$ 6036. earlier.

Recycling International • November 2006 64 MARKET ANALYSIS

Asia & Pacific Rim quite good, the aluminium market in a year from now. The exercise pro- Those engaged in the aluminium was more difficult to call, he added. duced a range which stretched from market are closely monitoring news Few signs of slowing According to Mr Lion, the Chinese US$ 0.91 to US$ 1.15 per lb. Accord- coming out of the US automotive growth non-ferrous market was heavily in- ing to Macquarie’s own forecasts, the sector, which is continuing to face Gross domestic product growth in fluenced by ‘mood swings’ - or in oth- aluminium price will average some challenging issues. Primary China has barely taken its foot off er words, ‘by what importers feel around US$ 1.05 per lb next year. aluminium rolling mills are achiev- the accelerator in reaching 10.4% for will do well for them’ the third quarter of this year. This An Indian government official ad- compares to 11.3% GDP growth in dressing the same BIR Non-Ferrous Copper the second quarter and 10.7% for the Metals Round-Table meeting insist- 250 8000 first nine months compared to Janu- ed that ferrous and non-ferrous ary-September 2005. scrap would be treated equally un- 200 7000 Latest customs data from China der his country’s new overseas sup- itself suggests that the Asian giant plier registration scheme which is is importing approaching 390 000 due to come into effect from April 1 150 6000 tonnes of copper scrap every month, next year. Neeraj Kumar Gupta, of which almost exactly 10% has Addl. Director General of Foreign been coming from the USA. By con- Trade within the Indian govern- 100 5000 trast, the USA is currently account- ment’s Ministry of Commerce & In- (in U.S. dollars/MT) ing for more than 50% of China’s dustry, insisted that the new con- 50 4000 aluminium scrap imports. trols were designed to prevent mu- LME stocks (x 1000 metric tonnes) LME prices As for latest market conditions in nitions scrap and that the country China, trading in No 2 copper has was extremely keen to maintain the 0 3000 been quite restricted of late while flow of scrap metal imports. ‘We NOV DEC JAN FEBR APR MAY JUNE AUG SEPTOCT NOV spot supply of aluminium has been don’t want to reduce the number of relatively tight. Meanwhile, con- suppliers to India,’ he told delegates. stant price fluctuations have creat- Nickel ed a certain amount of caution with- 50 32.000 North America in the zinc market. Asked to com- ment on the Chinese market during 29.000 Challenging issues 40 the late-October BIR Convention in Brussels, Michael Lion of the Sims Aluminium 26.000

Group suggested recent tax duty At Macquarie Bank’s annual Met- 30 23.000 changes would probably result in in- als Outlook Conference in October, creased demand for copper scrap. delegates were asked to predict 20.000 But while the outlook for copper was where the aluminium price would sit 20 (in U.S. dollars/MT) 17.000

10 14.000 LME stocks (x 1000 metric tonnes) LME prices

0 11.000 NOV DEC JAN FEBRAPR MAY JUNE AUGSEPT OCT NOV

Lead 120 1800

1700

100 1600

1500

80 1400

1300

60 1200 (in U.S. dollars/MT) 1100

40 1000 LME stocks (x 1000 metric tonnes) 900 LME prices

20 800 NOV DEC JAN FEBR APR MAY JUNE AUG SEPT OCT NOV

Recycling International • November 2006 65 MARKET ANALYSIS

ing steady consumption although, of try is estimated to be as high as 25%, Aluminium late, sales levels have reportedly with demand for No 1 copper scrap 1300 2900 showed signs of slowing. Secondary wire and tubing said to have de- smelters in the USA have been en- clined accordingly. countering no difficulties in pur- US traders have been reporting a 1100 2600 chasing whatever volumes of scrap noticeable upturn in China’s copper they need in relation to their current scrap buying activity over recent order books. weeks. Meanwhile, official figures 900 2300 Meanwhile, latest export statis- for the eight months of 2006 confirm tics show that the USA shipped US copper scrap exports of 497 028 700 2000 overseas more than 1 million tonnes tonnes - an increase of 14% over the (in U.S. dollars/MT) of aluminium scrap during the first 435 052 tonnes recorded in the cor- eight months of this year: the total responding period last year. Yellow 500 1700 LME stocks (x 1000 metric tonnes) for the period was 1.015 million brass remains a strong export com- LME prices tonnes - equivalent to an increase of modity but US ingot-makers are less 48% over the 687 336 tonnes record- willing to see red brass leaving their 300 1400 NOV DEC JAN FEBR APRMAY JUNE AUG SEPT OCT NOV ed for January-August 2005. shores, traders report. As a footnote, preliminary figures Copper from the International Copper Study As if to prove that copper’s recent Group reveal a small 26 000-tonne Zinc volatility is unlikely to disappear in a surplus in the global copper market 600 4500 hurry, delegates at last month’s Met- for July. als Outlook Conference predicted the 4000 500 red metal’s price could be anywhere Lead & Zinc between US$ 2.72 and US$ 3.63 per Latest figures from the Interna- 3500 lb this time next year. Macquarie tional Lead and Zinc Study Group 400 3000 Bank is forecasting that the copper (ILZSG) suggest that the USA will price average for 2007 as a whole will buck the overall Western World 2500 be well towards the bottom of this trend in recording an estimated 3% 300 (in U.S. dollars/MT) range at US$ 2.75 per lb. Meanwhile, reduction in lead demand next year. 2000 analysts at CRU have suggested that The organisation also predicts that 200 the world copper market will come supply of refined lead in the West- 1500 LME stocks (x 1000 metric tonnes) into balance next year when, they ern World will exceed demand to a LME prices say, the LME cash average will ap- slight extent both this year and next. 100 1000 proach US$ 7000 per tonne - equiva- Latest forecasts suggest a surplus of NOV DEC JAN FEBR APR MAY JUNE AUG SEPT OCT NOV lent to US$ 3.18 per lb. 32 000 tons for 2006 and 55 000 tons This prolonged period of high red for 2007. metal prices has prompted con- Macquarie Bank is predicting will post a deficit of 354 000 tons this Researchers at Natexis are in sumers to seek out alternatives. As that the LME lead price will average year and 154 000 tons in 2007. Glob- broad agreement with the deficit reported at the latest BIR Non-Fer- some 60 cents per lb in 2007 while al demand for refined metal is ex- projections of Merrill Lynch, predict- rous Metals Round-Table by Robert zinc will be nearer US$ 1.40. Accord- pected to jump 3.9% to 11.06 million ing that global demand will outstrip Stein of Alter Trading, substitution ing to the latest ILZSG figures, the tons this year and by a further 2.6% supply by some 300 000 tons this by plastics within the tubing indus- Western World refined zinc market to 11.35 million tons in 2007. Unlike year. Natexis expects the gap be-

advertisement with lead, ILZSG forecasts that the tween supply and demand to narrow USA will follow the general trend in very quickly next year, with the recording a 7% increase in its zinc market expected to move into sur- Trader & processor in China consumption this year. However, plus as early as the second half of (Plants in Shanghai, Guangdong) US demand is expected to remain 2007. Its analysts are forecasting largely flat in 2007. that LME cash zinc will average Specialized in On the LME, the zinc price US$ 1.36 per lb this year and reached its highest level for five US$ 1.27 in 2007.

I Non-ferrous metal scrap, AL, Zinc, Cu, Brass, Honey… months during October. Analysts at Merrill Lynch are using their predic- I Mixed metal scraps, motors, transformer, cable, meters … Contributing to the tion of a global zinc shortfall of Non-Ferrous I Shredded AL, Zorba, heavy metals … around 292 000 tons this year to sup- Metals Market Analysis: port a price forecast of US$ 1.63 per lb for the remaining portion of this * Ralf Schmitz, German non-fer- year. They believe the zinc price will rous trade association VDM peak in early 2007 at around US$ * Ian Martin, Recycling Interna- 1.66 per lb before easing to US$ 1.32 tional’s Editorial Consultant by the fourth quarter of next year.

Recycling International • November 2006 67 MARKET ANALYSIS

Textiles

Closed: November 3 2006

Supply shortage pushes up Despite the problems still facing These conditions have been creat- the sector, collectors and sorters are ed by a number of factors, such as American prices currently relatively satisfied with collections yielding less material the general situation in the used- than in previous years. However, the clothing market: supply is sufficient higher prices are being attributed Europe’s collectors and sorters are generally satisfied with and demand for sorted grades is mainly to the increased flow of sales conditions in the used clothing market given that supply is widely described as ‘good’. This ap- to India, Pakistan and Malaysia, plies to the whole range of material - where grading can be carried out at sufficient and demand for sorted grades is quite healthy. from second-hand clothing to wiping far lower cost than in North Ameri- cloths and the recycling grades. ca. Shipping original material is cur- Across in North America, sorters’ margins have come under Demand for used clothing from rently quite cheap because, for some pressure as a result of a shortage of material and resultant Africa and Eastern Europe is deemed time, freight rates have been rela- relatively healthy, especially when tively stable at comparatively low higher prices. taking into consideration that this is levels. traditionally a slow time of year for As is traditional at this time of In terms of collections of original proportion of high-quality goods. trade. Demand for premium and top year, there is healthy African de- material, supply and demand are This trend appears irreversible be- winter qualities has been proving mand for used clothing because largely in balance at the present cause of factors such as the general particularly strong of late. traders are looking to stock up for time. Sorting companies have en- economic situation in Europe and Demand for wiping cloths in- the Christmas season. countered no real problems in acquir- the increase in cheap, low-quality creased considerably during late Oc- Sorting companies have been ing material while collectors have ex- textile imports - especially from tober. Orders for tricot have been boosted by a recent firming in the perience few difficulties with selling Asian countries. Hit by several easily exceeding supply while other price of wiping grades. However, the material or with surpluses. As a re- crises over recent years, Europe’s wiping grades too have been much prices secured by companies selling sult, prices have remained stable sorting companies are responding by more in demand. After many years the finished wipers are still low and over the last six weeks at levels satis- trying to take the most appropriate of falling prices, wiping cloths have profit margins are under pressure factory to all of the market players. measures in terms of both their pro- shown welcome evidence of slight because of the difficulties involved in As before, however, the main duction and their business econom- upward movement. passing on the higher prices of origi- problem surrounds the decline in the ics. For both the recycling grades and nals to their customers. bed feathers, demand has been sta- If original material prices contin- ble at relatively unchanged price ue to rise as expected, conditions in levels. the North American textile recycling markets will remain problematical for the rest of the year. North America Conditions remain strong in the Contributing to the North American textiles recycling Textiles Market Analysis: market. Operators are currently fac- ing a shortage of material; as a con- * Günther Krippendorf, sequence, prices have undergone FWS-Alta West, Germany substantial increases and sorting * Jerry Usatch, Dumont Export company margins have come under Corp., Philadelphia, USA significant pressure.

Recycling International • November 2006 3 PAPER RECYCLING

New Declaration targets 66% By Ian Martin paper recycling rate

Europe already leads the world in paper recycling. However, the continent’s paper and board industry luminaries - includ- ing representatives of the European Recovered Paper Association - are now setting their sights on boosting Europe’s recycling rate by a further 10 percentage points over the next four to five years.

In agreeing a new ‘European Dec- Europe (CITPA), the European Tis- laration on Paper Recycling’, mem- sue Symposium (ETS), the Interna- bers of the European Recovered Pa- tional Association of the Deinking In- per Council (ERPC) have set them- dustry (INGEDE) and the Interna- selves a goal of increasing the tional Confederation for Printing and continent’s paper recycling rate to Allied Industries (INTERGRAF). In 66% by the year 2010. Europe is al- total, 12 different sectors in the paper ready the ‘global champion’ in terms value chain have pledged their sup- of paper recycling and this latest ini- port for the Declaration, which ap- The Declaration gives priority to improving the recyclability of paper and board products and - tiative reflects a desire among paper plies to all paper and board products. where applicable - their ‘deinkability’. and board industry leaders to ‘raise the bar’ still higher, the organisation Complementary actions ERPC envisages that the Declara- national paper market’. The target insists. The Declaration, which covers the tion will translate into ‘ground- recycling rate includes net recovered The initial ‘European Declaration EU’s 25 member states as well as breaking research and development paper exports to countries outside on Paper Recovery’ launched in 2000 Bulgaria, Norway, Romania and in paper recycling technology, a focus Europe, it adds. has helped drive the recycling rate in Switzerland, focuses on complemen- on quality and responsible sourcing The Declaration calls on Europe’s Europe to 55.4%, which is higher than tary actions by all of the sectors in- and on raising public awareness’. paper and board packaging produc- the rates currently being recorded in volved, and gives priority to: ers to ensure that the design of their either Asia or America. ERPC notes * The prevention of waste, including Striving to do better packaging ‘includes consideration of that 46.6 million tonnes of paper and its environmental impact during Commenting on the new Declara- aspects significant for the recycling of board were recycled in Europe last the manufacture of paper and tion, ERPC President Dr Kevin the materials from which it is pro- year, and that more than half of the board products, through to collec- Bradley says: ‘Paper and board al- duced in line with relevant European paper used in Europe today is made tion and processing of used prod- ready boast the highest recovery and standards’. At the same time, the con- from recovered paper. ‘The new tar- ucts and the recycling of recovered recycling rates of materials in Eu- tinent’s printing ink and adhesives get would mean that some two tonnes paper, thus reducing the quantity rope. Even so, we are striving to do manufacturers are urged to promote of paper is recycled in Europe every of used paper-based products des- better. The sectors involved in this the development and availability of second,’ the council observes. tined for final disposal. Declaration have committed them- products that ‘do not hamper the re- Signatories of the Declaration in- * Improving the recyclability of pa- selves to closer co-operation and cycling and deinking processes and clude the Confederation of Paper In- per and board products and - where complementary actions that will the quality of recycled products’. dustries (CEPI) and the European Re- applicable - their ‘deinkability’; help us reach our target of 66%. The The Declaration’s signatories and covered Paper Association (ERPA), as * Further improvements to the industry also has an important role supporters are asked to provide in- well as the International Confedera- quality of recovered paper avail- to play in helping Europe meet the formation that will help educate and tion of Paper and Board Converters in able for recycling. European Commission’s goal of a raise the awareness of consumers “recycling economy”, supporting Eu- and public bodies about their respec- rope’s sustainable development as tive roles in completing the paper well as assuring long-term, robust loop. ‘A common communication growth and employment.’ strategy will be considered and co- In confirming a recycling rate tar- ordinated by the European Recov- get of 66% for all paper and board ered Paper Council,’ it states.

Although Europe is consumed in Europe, the Declara- The ERPC will report on the already the ‘global tion document points out that a mar- progress of the Declaration in Sep- champion’ in terms of paper recycling, paper gin of +/- 1.5 percentage points has tember of each year. and board industry to be taken into consideration ‘to ad- Download a copy of the declara- leaders want to ‘raise the bar’ still higher. just for the fluctuations of the inter- tion at www.paperrecovery.org

Recycling International • November 2006 1 TECHNOLOGY Opportunities for particle

In this second and final article in our series on sensor-based sorting, 2. X-ray absorption in two selected energy bands. 3. Disruption of the varying magnetic field ampli- the authors highlight the challenge posed by the organic fraction of tude and phase by the passage of the particle. shredder residue owing to its complex mix of unknown compositions From this basic information, the controlling com- puter can infer colour, shape, size, average atomic that is contaminated with substances of environmental concern. It is number, thickness, metal/non-metal, metal type, concluded that collaboration will be required between shredder absorption/remission IR or NIR spectra correlated with polymer type, and finally, UV-VIS emission operators and downstream processors of organic shredder residue line intensity, which is correlated to the concentra- concentrates to develop suitable recycling, decontamination and tion of a particular element. Industrially, particle sorters are already applied to sorting: recovery systems. 1. Glass by colour and transparency. 2. Plastic bottles by polymer resin type. he most successful industrial particle sorters 3. Stainless steel by the ECC magnetic field signature. T distribute and separate a moving stream of 4. Non-magnetic metals by colour, size and shape. particles randomly in a plane. They use either a 5. Shredder residue organic concentrates. scanning or line array sensor or sensors to identify and locate individual particles. A linear array of The combination of sensor-based particle sorting blowholes, known as a blowbar, is then used to offers four potential applications where this tech- divert the selected particles in freefall from their nology can prove both practical and economic: ballistic trajectory. Up to three blowbars have been 1. Particle sorting of very high value ores: dia- implemented industrially on one sorter, leading to monds, precious metals and coins. four output streams. 2. Particle sorting of individually-diverted large par- Sensor-based sorting is an exciting, rapidly devel- ticles. oping field driven by exponential growth in the com- 3. Product clean-up: removal of a low fraction of puting power of process controllers and of sensor contaminants from a small particle-size stream. capabilities. In this case, each contaminant particle is divert- Non-contact sensors in industrial use that are of ed with a number of surrounding particles. A multi-bin system lab scale blowbar for glass relevance to shredder residue particle sorting can 4. Product inspection: particles are not diverted and cullet quality control at the Delft University of Technology. identify and sometimes image: the sensor is used for quality control inspection of the product. 1. Light spectral line intensity over the hyperspec- tral range of ultraviolet (UV: 150-400 nm) Limited value added through visible (VIS: 400-900 nm) into the near What can such a technology contribute to the sort- By Dr Adam J. Gesing and infrared (NIR: 900 nm-5 ìm) and infrared (IR: 5- ing of organic concentrates produced by shredders? Prof Ir Wijnand Dalmijn 15 micrometers). These are low-value materials and the value added

The infeed of a shredder is usually a mixture of vehicles and consumer durables. TECHNOLOGY sorting of shredder residue

by sorting is also limited by the value of the source- segregated scrap, which in most cases is sold at a significant discount to virgin plastics or rubber. Sorting of valuable particles does not apply here. The concentrates produced by the shredder will inevitably have a high concentration of both the particles of interest and of contaminants, so at this stage product clean-up is not relevant to the shred- ding plant organic concentrates. However, the individually-diverted large particles application can be of relevance. Of particular inter- est is the 30-100 mm shredder output. For grate sizes typical of large hammer mills, without further size reduction, this size fraction recovers around 50% of the more brittle plastics and a significantly larger proportion of tough elastomers (flexible PUR foam and tyre rubber) from the shredder feed. Particle sorters in product clean-up mode and sen- sors in product inspection mode can be applied to sink-float density-separated plastic outputs. Here, a minor volume fraction of harmful residual conta- minants can be eliminated. Sorting of polyolefin product, for example, could eliminate inorganic, metal and fire-retardant particles. The quality of the product could be certified by an automated inspec- tion of each particle by an appropriate sensor.

Sorting of individual particles Three 30-100 mm shredder residue organic con- centrates could potentially be sorted as individual particles. They correspond to the three basic shred- ding plant process options: 1. Dry shredder dense fraction (SDF) >30 mm organic concentrate. 2. Moist organic >30 mm concentrate. Anmong other things, industrial particle sorters are already applied to sorting plastic bottles by polymer resin type. 3. Wet organic >5 mm concentrate. using a secondary shredder to limit the top particle Hydrodynamic separation of The dry SDF organic concentrate has few low- size to less than the 100 mm nominally produced polyolefins and low-density sink density/high-aspect-ratio components such as foam, by the primary shredder; a good top size would be plastics can eliminate high- textiles, film and paper, and consists mainly of plas- 75-80 mm. The feed can be wet screened to elimi- aspect-ratio particles such as plas- tics and rubber contaminated with wood, insulated nate the <30 mm fraction. The sized 30-75 mm frac- tic films and textiles. These are wire and residual inorganics. Moist and wet organic tion can be sink-float separated at various media impossible to uniformly distribute concentrates contain all the organic components of densities to yield concentrates of: and to divert in particle sorters. the shredder feed. Such concentrates can be eco- 1. Polyolefins (<1.0 g/cm3). nomically transported from several shredders to a 2. Unfilled low-density sink polymers (>1.0 <1.15- Additional washing single plastics and rubber sorting plant. 1.20 g/cm3). For a sensor that depends on Further pre-grouping of these concentrates prior 3. Dense plastics, filled or reinforced plastics and surface inspection, additional to particle sorting is a necessity for the complex, those containing fire retardants (>1.15-1.20 <1.6 washing of the sorter feed may be unknown mixture of polymers present in shredder g/cm3). necessary to remove paint, residue. The sorting plant feed should be re-sized 4. Inorganics and metals (>1.6 g/cm3). labels, oils, etc. Industrial friction

Recycling International • November 2006 51 TECHNOLOGY

washers have impellers that generate high shear pass composite materials with significant volume tle sorter-type sensor for a good between particles and actually mechanically heat fractions of fillers and reinforcements, plus dense signal. A dark-plastic NIR the liquid. Abrasive grit and caustic soda or surfac- additives containing high atomic weight chlorine sorter can resolve this by deliv- tants can enhance the cleaning action. After rinsing and bromine atoms. The value added to a small ering the light through optic and grit separation, the particle mix can be fed wet fraction of any two polymers that could be sorted in fibres and collecting the remit- to the particle sorter or dewatered by spinning. one pass by a particle sorter is unlikely to justify ted light in a sensor fibre. The Depending on the sensor, additional drying of the the cost of such a process. A more appropriate use signal strength of the dark- feed may be necessary. Colour is actually enhanced for this fraction is for mixed-polymer filler in a com- plastic sensor is increased by by a water film on the particle; magnetic fields and posite product such as plastic lumber, for the core minimising the source-particle- NIR and X-rays can ignore surface moisture. For a of spiral wound pipe or for coastal pilings. Such a sensor distance. LIBS chemical analysis sensor, however, evapora- fraction can be converted to oil feedstock through This type of sorter would also tion of water film from the particle surface domi- hydrocracking or used in the preparation of solid improve the signal-to-noise nates composition of the plasma in the ablation refuse-derived fuel (RDF) for combustion in a ratio for light plastics. spark and the required correlation between the cement kiln, metal smelter or power plant. Standardising on the dark- spectral emission from the plasma spark and the plastic type sensor for all particle bulk composition is lost for wet particles. Plant possibilities shredder residue NIR sorting After such preparation for particle sorting, the How would the particle sorting lines look for would be appropriate. Pre- result is low-aspect-ratio particles - thick sheet/plate these three feed streams? A flowsheet for a plastic sorting the NIR sorter feed by and chunks - in three feed streams ready for sorting: particle sorting plant is suggested in Figure 1. colour is still preferable as the * Polyolefins with low-density rubber contamina- available dynamic range of the tion. The polyolefin feed would benefit from sepa- 1. A particle sorting line for polyolefins would first dark-plastic sensor would be ration of contaminants and possibly separation sort by colour and shape. The sorter would sepa- matched to a narrower range of polyethylene (PE) from polypropylene (PP). rate the feed into light shades, dark shades, and of signal strengths, allowing * Low-density sink plastics dominated by filled PP, black + contaminants. The contaminants would higher sensor sensitivity. ABS and HIPS (high-impact polystyrene). From be recognised by shape or by a particular colour Additionally, a separate light the low-density sink plastics, one would like to hue. One could then attempt separately to recog- colour product might be in sort the most abundant and highest value parti- nise polyolefin type in the light- and dark- demand at a significant price cles, namely ABS, filled PP, and polystyrene (PS) coloured fractions - either sequentially on one premium. + HIPS. Two of these three could be separated on sorter or in parallel on two. This step would sepa- 2. The sort logic for low-density the first pass; the third would be concentrated in rate ‘other’ plastics from the polyolefins, and sink polymers follows the pat- the residue mix and could be targeted separately. maybe PP or PE from the polyolefins. tern established for polyolefins In this case, particle sorting would have an For the light-coloured fraction, one could use a - in this case, colour sorting advantage over a density-based sort, where the bottle sorter-type NIR sensor where the illumina- light and dark plastics and densities of filled PP and other filled plastics and tion and NIR collection optics are located some 50 colour/shape rejecting wood, rubbers can overlap those of ABS and PS. cm above the belt. For the dark-coloured fraction, wire and other contaminants, * Dense and filled organics. Dense organics encom- there is insufficient light reflected back to the bot- before sequentially using dark-

1 Sorting of Brominated flame retardants (BFRs) and impurities

>30<100 Sizing >75 mm Cleaning plastic rubber Secondary Screen Turbo woodPlasticshredder particle sorting20/75 mm plantwash >20<75 mm 2 Plastic particle sorting plant other Colour light Shape <20 Colour dark ECC plastic sort resin rubber n wood black light dark Colour Colour Fire retardant and impurity sort wood mix mix light metal dark DE mix BFRs black Plastic X-ray + sort resin n impurities NIR mix n n mix NIR resin resin NIR high filler low filler n mix resin resins Sensor-based particle sorting can also be used for sorting shredder residues.

Recycling International • November 2006 53 TECHNOLOGY

plastic NIR sorters to sort the target polymer sensor-based particle sorters. To maintain econom- Dr Adam J. Gesing types from the light and dark fractions. The ban ic throughput for small particle sizes, a high-area on pentabromodiphenylether-type (pentaBDE) concentration of particles would have to be used in a fire retardants in recycled products may require particle sorter. The blowbar then diverts some of an additional sorting step for each final product. the product particles with each contaminant parti- A dual energy X-ray sensor could be used to iden- cle, resulting in a reduced product recovery. This tify and eliminate chlorine- and bromine-con- makes such a process economically feasible only for taining particles from the product. In the same low levels of contamination. Suitable sensors would sorting step, one could also eliminate non-liber- be vision, ECC, NIR and dual energy X-ray, which ated particles and, if necessary, those with a high would be used either in a sequence of sorters or in a Dr Adam J. Gesing is filler content. sorter using a combination of sensors. owner of Gesing Consultants 3. As for RDF-bound dense organics, the ECC sensor Inc. of Windsor, Ontario, is well suited to the task of detecting and remov- Summary and conclusions Canada. He can be reached at: ing, for example, residual copper wire buried in The challenging organic fraction of shredder [email protected] PVC insulation or steel wire under a tyre tread. residue contains a mixture of materials from vehi- Prof Ir Wijnand Dalmijn is a Dense organic fractions contain a large proportion cles, demolition work and consumer durables, mak- professor at Delft University of fire-retardant-containing particles. Even ing it a very complex mixture of unknown composi- of Technology in the though some users may specify chlorine- and tions that is contaminated with substances of envi- Netherlands, where he bromine-free RDF, they are not willing to pay for ronmental concern (SOCs) from various industries. teaches recycling technologies. the cost of sorting them out as long as regulations Individual shredding plants are usually too small He can be reached at: allow fire retardants in RDF. Even if chlorine- and do not have adequate technical sophistication [email protected] and bromine-containing particles are sorted out, to invest in a sorting system for shredder residue the problem remains of dealing with what is now organics. Downstream processors would be better Prof Ir Wijnand Dalmijn considered hazardous waste. At this point, there equipped than shredding plants to recover the recy- is no business case for sorting fire-retardant-con- clables. There is a trade off between plastics/rubber taining particles out of RDF, even though dual recovery from the residue at the shredder, and the energy X-ray sensor sorters are technically capa- transportation, waste disposal and sorting costs at ble of accomplishing this task (see Figure 2). the downstream processor. Collaboration will be required between shredder operators and down- More control stream processors of the organic shredder residue over separation concentrates to develop suitable recycling, deconta- Acknowledgements With the notable exception of plastic bottles, mination and recovery systems. The analysis reported in this paper industrial sorting of plastic scrap from industrial or It is the SOCs and their environmentally responsi- has been performed under a post-consumer packaging and electrical/electronic ble handling that will dictate which products can consulting contract to Argonne equipment is currently achieved via wet sink-float utilise recycled plastics, and which processes and National Laboratory, Illinois, USA. or hydrodynamic separation. This approach is also technologies will produce them. Production of plas- The authors acknowledge and being proposed for shredder residue organic con- tics for the transportation sector can tap into the express their thanks for insightful centrate. Organic concentrate feed material is available supply of recycled packaging plastics that discussions with Edward Daniels and Dr Bassam Jody. reduced and sized to around the 5-10 mm particle are relatively pure and can be compounded to vehicle diameter range; hence, all the shredder organic con- plastic specifications. There are few automotive appli- centrates listed in Table 1 are suitable as feed mate- cations that can directly utilise shredder residue- rial in this product clean-up option. The sized mate- sourced recycled plastic scrap. Production of plastics pounded plastics with recycled rial is friction-washed, pre-wetted, surfactant-treat- for the construction sector has more applications that content. If high-value-added ed and sequentially separated at a number of can consume the type and volume of recycled plastics applications for shredder residue- density cut points. Control of surface tension and available from shredder residue. Additional effort is sourced recycled plastics are spec- pH allows attachment of gas bubbles to selected required for the development of specific large-volume, ified, sensor-based sorters are types of particle to give another measure of control recycled-content-friendly products for this market. likely to be necessary to sort cont- over the separation process. Dedicated sensors and particle sorters are unlike- aminants. If complete and costly In the end, for mixed post-consumer scrap of ly to emerge for shredder residue; it is more proba- destruction of Brominated flame unknown composition, one cannot achieve unconta- ble that sensors and sorters developed for scrap retardants (BFRs) is mandated minated products through wet sink-float or hydro- metal, glass, ores, coal and plastic packaging will by regulations, sensor-based sort- dynamic separation because of density overlap be adapted for shredder residue sorting. ing of BFR-containing particles between different polymeric materials. There may Sensors are likely to find use in the automated would be economically justified to be a potential for cleaning up these products using inspection of recycled plastic particles and of com- reduce BFR treatment costs.

Recycling International • November 2006 55 PAPER RECYCLING China will dictate

Some 16 nations were represented at the second annual European included: the Confederation of European Paper Industries (CEPI); the UK-based Independent Waste Paper Recycling Conference, which took place during late Paper Processors Association (IWPPA); recovered September in Barcelona, Spain. Delegates were told that China’s paper giant ACN (Europe); consulting firms Moore & Associates and Pira; and German-based publication already massive influence on the global recovered paper market EUWID Recycling and Waste Management. was likely to grow in the years ahead. In addition to forecasts of Having noted that the rate of China’s purchas- ing in Europe was still on the increase, Mr Moore strong collection growth in Eastern Europe, there was also a stark pointed out that the country’s mill operators were warning for the world’s deinkers and recyclers that newspapers are now establishing buying arms in Europe - ‘as they did in the USA in the late 1990s’. With only 4% of becoming ‘an endangered species’. the world’s forests located in China, the country’s paper industry has had to look elsewhere for its hinese paper mills had been relying on North fibre requirements. According to Kevin Duncombe, C America for 80% of its recovered fibre imports President of Western Pacific Pulp & Paper (WPPP) as recently as the year 2000, whereas in that same in California, the Asian giant now consumes 53% year volumes supplied by Western Europe had been of all US fibre exports. He also acknowledged that negligible. And yet, by 2005, Western Europe had the flow of fibre from Western Europe to East Asia claimed a 27% share of a now much larger Chinese had increased massively over recent years. In this import market while North America’s contribution context, he called on Europe’s paper and board recy- had fallen to 46%. Over the same five-year period, clers to ‘look domestically first’ - but without ignor- the share of Chinese recovered paper imports ing export market opportunities. Mill consumers claimed by Japan had jumped from 1% to 18%. closer to home would be ‘happier customers if they These observations formed part of a keynote can count on you month after month’, he suggested. address from Bill Moore of Moore & Associates of Atlanta, USA, to the second annual European Paper More closures likely Recycling Conference hosted by the US-based The surge in European exports to Asia also Recycling Today Media Group. Recyclers and mill attracted comment from Paul Briggs of Sonoco buyers from 16 nations and covering almost every Alcore Recycling Europe, which is based in the UK grade of paper gathered for the event, which was town of Halifax. Thanks to the combination of con- staged at the Hotel Tryp Apolo in Barcelona during sistently strong demand from China and domestic late September. Speakers were drawn from nine mill closures, the UK had recently reached a water- nations, including multi-national enterprises such shed where it was ‘exporting more material than it as Stora Enso, the Smurfit Kappa group, Europac, consumes’. The speaker’s figures indicated that, over China already consumes 53% of all U.S. fibre exports. Sonoco and America Chung Nam (ACN). Sponsors the last six years, 36 mills with a combined 1.6 mil-

Regional Share of Recovered Paper Consumption China Recovered Paper Imports by Region

1990 2004 2000 2005 Other regions Other regions 7% 1% 6% 6% N. America N. America 1% L. America 26% L. America 21% 18% 18% 6% 6% China/Far East 16% China/ Far East 31% 46% 27% Japan W. Europe 17% W. Europe 25% 80% 28% Japan 3% 11% 86.6 million tons - Total Consumption - 178.6 million tons Asia Far E N. America Oceania Japan Asia Far E N. America Oceania W. Europe Japan

Recycling International • November 2006 20 PAPER RECYCLING

price and quality By Ian Martin

lion tonnes of capacity had shut down in the UK - Ukraine compared to those Eastern European coun- and that more closures were likely. In the first three tries now forming part of the EU. As for Western quarters of 2006 alone, the UK had announced the Europe, Mr Uutela predicted that the recovery rate closure of a further 500 000 tonnes of paper and would rise from around 63% in 2005 to some 67% in board capacity, he reckoned. ‘From 2010 onwards, 2008, before hitting 73% in 2012. 150 000-tonne machines may be uncompetitive in Turning his focus on the UK, Mr Uutela expected the global arena - many already are,’ Mr Briggs con- the country’s recovered paper exports to top 4 million tended. ‘I’m convinced there will be more machines tonnes this year compared to only 555 000 tonnes at in the USA and the EU that will close.’ the turn of the Millennium and 3.286 million tonnes He went on to forecast that recyclers would short- in 2005. Indeed, the UK’s own statistics support his ly become reliant on an export market in which the view in that they confirm exports of more than 2 mil- global price and quality requirements would be dic- lion tonnes of recovered paper in the first half of 2006. tated by China. Meanwhile, the emergence of a According to Mr Uutela, UK shipments to China recovered paper ‘mountain’ would ‘force EU policy- would soar from 1.527 million tonnes in 2005 to makers to review energy recovery’. around 2 million tonnes in the current year. Exports to Asia (excluding China) would hold relatively steady Collections in Eastern Europe at approaching 1 million tonnes while deliveries to Paper collections in Germany have reached 12.9 million tonnes per annum and might peak The countries that have recently joined the EU Western European neighbours would improve from at 14.3 million tonnes. offer great scope for increasing collected volumes of

recovered paper, it was noted at the Barcelona con- Shipped In Commodity Ranking ference. By comparison, Western European nations Global Investment in Additional China were relatively ‘mature’ and therefore provided limit- Recycling Capacity 2005-2009 2004 – Total Market – 1,397,234 TEUs*

ed opportunities for increasing collection volumes. million MT Commodity TEUs 16 Esko Uutela, Principal of EU Consulting of Starnberg Recovered Paper 524,302 in Germany, illustrated the point by suggesting that 14 Mixed Metal Scrap 172,092 the Benelux region had almost achieved maximum 12 Cotton 94,439 Resins 77,285 collection levels while those Eastern European 10 Drugs & Chemicals 75,265 nations that had joined the EU would soon have to 8 Plastic Scrap 49,959 meet similar goals. He predicted that, as a proportion 6 Machinery & Parts 41,225 of total paper and board consumption, the recovery Wood Pulp 40,804 4 rate in Eastern Europe would soar from below 30% in Lumber 32,053 1994 to just over 40% in 2008 and to nearer 45% in six 2 Kraft Linerboard 28,417 years from now. Partly as a result of an uncertain 0 Source: COSCO North Europe Japan China Asia/ Other * Twenty foot equivalent unit investment climate, the rate was likely to be lower in America Pasific Regions Russian and other non-EU nations such as the

Total Shipping Containers Handled Globally Ocean Container Shipping Forecast

(millions of containers - 20 - foot equivalent units) Average Annual Growth - 2004 to 210 600 12.0%

10.0% 450 8.0%

300 6.0%

4.0% 150 2.0%

0 0.0% Far East Southeast Asia South Europe North Europe North America 2005 * 2006 2007 2008 2009 2010 11.0% 9.3% 8.8% 7.0% 5.8%

* Estimate NOTE: Based on confirmed capacity plans Source: Drewry Shipping Consultants Ltd.

Recycling International • November 2006 21 PAPER RECYCLING

a 2005 level of 761 000 tonnes to around 900 000 Mills target traceability tonnes. Intriguingly, annual UK exports to Asia as a During a mill buyer’s discussion panel, it was whole were below the 100 000 tonnes mark as recent- emphasised that recovered paper purchases are ly as the year 2000. among the major costs run up by producers. Francisco Galindo, Purchasing Director at the Stora Improved UK collections Enso Barcelona paper mill, confirmed that 19% of For many years, Western Europe’s surplus of his facility’s outgoings were devoted to recovered recovered paper had owed much to the ‘Green Dot’ paper - almost exactly the same proportion as for system in Germany, explained Henri Vermeulen of energy and well ahead of all other costs. The mill’s the Smurfit Kappa Group, Eindhoven, The management team was keen to increase its num- Netherlands. More recently, however, the UK had ber of long-term recovered paper contracts, to buy taken over as Western Europe’s leading recovered more from local recyclers, and to improve the trace- fibre exports owing to a combination of improved col- ability of its supplies, he commented. lections and significant mill closures. Mr Vermeulen The theme of traceability was also taken up by agreed that the most promising opportunities for Nuno Messias, Raw Materials Purchasing Manager increasing collection volumes were focused on for the Europac kraft linerboard mill in Burgos, Eastern Europe. According to his company’s own pro- Portugal. He argued that traceability of shipments jections, collections in the region were set to double was required to improve quality, especially when between 2004 and 2012 to 10 million tonnes. manufacturing food-contact grades of paper. As a proportion of total paper and board con- Michael Kuehl, a Director of paper recycler Rolf Having noted that he had worked previously in the sumption, the recovery rate in Eastern Europe will soar from below 30% in 1994 to just over Kuehl Papierhandels GmbH, Diedorf, Germany, semi-conductor industry, he commented: ‘Quality 40% in 2008. pointed out that domestic collections in Germany in the paper industry is measured by (whole) per- had reached 12.9 million tonnes per annum and centages; in the semi-conductor industry, it’s parts might peak at 14.3 million tonnes. With the land- per million. It is time for us to have 21st century filling of paper now illegal in Germany, mixed or quality systems in the paper industry.’ commingled collections had become more common. According to Carl Sundberg of Holmen Paper in Indeed, according to the speaker, Germany had wit- Madrid, a subsidiary of Sweden’s Holmen Paper nessed a 30% increase in the production of mixed group, the proliferation of Chinese buyers had put ‘a paper grades over recent years. lot of pressure on the Spanish market’ for recovered In Spain, both consumption and collection of recov- fibre. In Spain, Holmen is examining the collection ered fibre have been increasing throughout this and sorting of more mixed material in readiness for decade. According to Luis del Molino of Spanish recy- shipping out the OCC and other grades that it does Over the last six years, 36 mills with a com- cling association Repacar, the nation’s consumption not consume itself. ‘For quality reasons and cost rea- bined 1.6 million tonnes of capacity have shut of recovered paper has soared from 1.2 million tonnes sons, we have to do our own sorting,’ he said. down in the UK and more closures are likely to follow. in 1985 to 4.3 million tonnes last year. Even with In common with Mr Galindo, Mr Sundberg these healthy domestic consumption levels and with underlined a desire to establish an increasing num- Spain being ‘a historic 20% deficit market’, the coun- ber of long-term supply contracts - not only with try’s recyclers were still receiving numerous offers to recovered paper merchant processors but also with export their fibre, he noted. generators such as printers and the municipalities.

Expected European Recovery Leading European Sources for Rates 1994-2012 Paper and Board Recovery 2005 - % of total P&B consumption - 80 All others Germany W. Europe 17% 24% 70 E. Europe E.Europe 10% 60 Spain UK 7% 13% 50

Benelux France Italy 40 8% 11% 10% 30 Total recoveries 58 million tons 20 In 2006, UK recovered paper shipments to Asia are expected to be around three million tonnes.

10

0 1994 1998 2002 2004 2005 2008 2012 Recycling International • November 2006 23 PAPER RECYCLING

More work ahead Read all about it - while you still can While the recovered paper industry and its mill Deinkers and recyclers should prepare themselves for a dramatic buyers agreed on the need for universal specifica- decline over the coming years in the volume of newspapers avail- tions to be put in place, there was ‘more difficult able for processing, according to Dr Graham Moore of the Pira work ahead’ to finalise recovered paper quality International research and consulting firm in the UK. standards and definitions, according to Dr Maarten His presentation in Barcelona outlined some of the findings of a Kleiweg de Zwaan, long-time President of the study conducted on behalf the International Association of the European Recovered Paper Association and Deinking Industry (INGEDE), with financial backing from CEPI. Managing Director of the Dutch Paper Industry And his stark conclusion was that, beyond the year 2016, ‘printed Federation. paper products may be in serious decline’. However, he tempered Noting that tolerance levels for contaminants this view with the observation that ‘no rapid demise of any printed and off-grade materials within bales remained a paper products is expected in the next five years’. Instead, there sticking point, he added: ‘We’ve always had prob- would be ‘a continual slow reduction’. lems with the commingled issue.’ In Europe, there Key drivers of this trend included a steady decline in newspaper had been a proposal to ban the use of fibre from the circulation and high-profile moves away from broadsheet to tabloid commingled stream in relation to food-contact newspaper formats, thus reducing overall newsprint requirements. applications, but CEPI had not wanted to go this Furthermore, pagination levels were suffering as a result of compe- far, the speaker maintained. tition from other advertising media: newspapers’ share of the adver- Mr Kleiweg de Zwaan went on to note that ERPA tising market has dropped from just under 35% in 1996 to below and CEPI had agreed to update EN 643 which cur- 30%. The gradual decline in newsprint requirements would be min- rently made no mention of the contraries/out-throws imised in the short term by the growth in free newspapers, he added. allowed or of certain grades. There was also a need to Dr Moore also concluded that magazine numbers would continue devise ‘better definitions’, he added. The speaker said to increase in terms of titles, but that individual circulations would this update to EN 643 was ‘essential’, not least be smaller. ‘Expect greater changes in paper grades and more recy- because merchants had been experiencing difficul- cled content,’ he noted. ‘Office paper use is expected to remain at ties at customs and with trans-border shipments - high levels … and may experience higher recovery if environmen- for example, involving kraftbags with plastic. tal/legislative pressures take effect.’ The presentation ended with reference to two bleak predictions Reduced chance of injury for the newspaper sector. Only weeks before the Barcelona confer- Among those presentations adopting a more tech- ence, the Economist magazine had contended: ‘The business of sell- nical theme, Loud van Kessel of Smurfit Kappa ing words to readers and selling readers to advertisers is falling Roermond Paper, Roermond, The Netherlands, apart. Newspapers are an endangered species.’ Some time earlier, argued that plastic baling wire greatly reduces the Professor Philip Meyer, author of ‘The Vanishing Newspaper: chance of injuries among those mill employees Saving Journalism in the Information Age’, argued: ‘If present read- responsible for breaking open bales. Also in the ership trends continue indefinitely, the last daily newspaper reader pulping process, plastic wire offered a more ‘trouble- will check out in 2044.’ free’ presence compared to the steel alternative, he said. Newspapers Professor Samuel Schabel of the Darmstadt Continue to lose share of advertising market University of Technology in Germany helped con- • fallen from just under 35% in 1996 to under 30% in 2006 duct a study of 10 different sorting systems on • much of loss attributable to new forms of advertising behalf of his nation’s paper industry. He concluded • despite this newspapers remain 2nd largest advertising that a properly thought-out, funded and managed medium sorting system could produce grades from a com- mingled stream of equal quality to those from source-separated material. Key components of an efficient system included the experience and moti- vation of workers as well as the effective screening out of fines, he added.

* Coverage of the panel discussions and presen- tations offered at the European Paper Recycling Conference can be found at: www.RecyclingToday.com

Recycling International • November 2006 25 SHIPBREAKING UK

‘Placard-waving cranks’ derail Able UK’s ship recycling bid

tion and recycling of 13 redundant studying all aspects of our proposals vessels from the US Reserve Fleet; and the outcome is that they have all the first four vessels from the con- - including the council’s own officers tract have been at the TERRC since - come to the conclusion that this is a late that year. Three UK vessels are development which benefits the en- also awaiting dismantling at the fa- vironment and economy.’ Hartle- cility. pool’s own Economic Forum, for ex- ample, has described the proposal as ‘Entirely unjustified’ The James River Fleet, better known as ‘the Ghost Fleet’ is mostly made up of elderly craft put a ‘unique opportunity to develop a on one side for use to support the US Navy in time of war. Some of the ships are now well over Mr Stephenson dismisses the lo- world-class facility in a key emerg- 50 years old, and well past any possible commercial use. cal council planning committee deci- ing industry’ and has rejected claims sion as ‘entirely unjustified’. The that any such development would Able UK, the company at the centre of the so-called ‘US TERRC is ‘undoubtedly one of the adversely affect tourism. best sites in Europe to meet the ghost ships’ saga, has been refused permission to extend growing demand for environmental- ly acceptable facilities for marine re- the use of its site in north-east England to encompass ship cycling, whether ships or other recycling. Widespread exasperation has greeted the news, structures such as oil and gas plat- forms’, he claims. with one supporter of the scheme claiming that the views of Mr Stephenson adds: ‘No-one should be in any doubt about the ‘placard-waving cranks’ have been allowed to scupper plans scale of the damage caused. The de- for an environmentally important facility. The company itself lays in this project to date mean that around £70 million which would is planning an appeal. have been paid in wages to local peo- ple - and would, of course, have gone By Ian Martin into the local economy along with around £80 million (US$ 152.5 mil- Able UK has received another set- mitted to the goal of recycling ships lion) of business for local suppliers - back in its bid to establish a major at the TERRC. ‘We are doing every- has been lost, as well as £100 million Able UK’s Chairman and Chief Executive Peter Stephenson ‘We remain committed to the goal state of the art ship recycling facility thing in our power to get an early worth of scrap steel which would of recycling ships at the TERRC.’ (Photograph courtesy of Middlesbrough in north-east England. Hartlepool date for a public enquiry,’ he tells have been recovered, much of it for Evening Gazette) Council has overwhelmingly reject- Recycling International. our local steel industry. Those losses ed the company’s planning applica- Able UK has been decommission- will continue at a total rate of over ‘Approval should be given’ tion to extend its Teesside Environ- ing oil and gas platforms at the site £6 million (US$ 11.4 million) per In another twist to this long-run- mental Reclamation and Recycling for more than 20 years. month because of the fact that we ning saga, Hartlepool Council’s Centre (TERRC) for the construc- However, Able UK leapt to inter- are forced to go to appeal.’ Planning Committee Chairman Bill tion, repair, refurbishment and de- national prominence in 2003 when He continues: ‘What is astound- Iseley - who was unable to attend commissioning of all types of ships, it was awarded a £11 million ing is that over the past three years the recent vote owing to illness - has vessels and other craft. (US$ 21 million) contract by the literally hundreds of people from attacked the decision of his fellow The refusal reflected the commit- US government’s Maritime Admin- dozens of different organisations committee members to reject the tee’s concerns about the effects of the istration (MARAD) for the remedia- have spent many thousands of hours proposal. He told a local newspaper development on the environment, that he was ‘shocked and surprised’ tourism, people’s health and wildlife at the result, and that the applica- habitats, despite officers of the coun- tion refusal ‘will cost Hartlepool tax- cil recommending approval and the payers dear in the long run’. He re- Environment Agency and English portedly accused fellow councillors nature organisations confirming of being swayed by the views of ‘plac- that they had withdrawn their objec- ard-waving cranks’ and added: tions. Able UK has already con- ‘I have read every word that’s been firmed its intention to appeal printed on the subject. Every gov- against the decision, with Chairman ernment authority has examined the and Chief Executive Peter Stephen- process and said it’s quite safe and Two vessels of the ‘Ghost Fleet’, the Canisteo and Caloosahatchee leaving the James River son insisting that he remains com- October6, 2003 at the start of their tow to the UK. approval should be given.’

Recycling International • November 2006 49