2013 Technical Report The U.S. Copper-base Scrap Industry and Its By-products www.copper.org A1309-12/13 The U.S. Copper-base Scrap Industry And Its By-products An Overview Thirteenth Edition, 2013 Copper Development Association Inc. 260 Madison Avenue New York, NY 10016 (212) 251-7200 www.copper.org Janice L. Jolly Dayton, Maryland i PREFACE The purpose of this report is to provide a brief historical and current background on the U.S. copper and copper alloy secondary processing industry. It is felt that policy and decision-makers can use a ready reference on an industry that is generally so little understood. The industry has undergone many changes over the past few decades and has been in decline over much of the last ten years. While the coverage is not comprehensive, a brief mention is made of the many problems impacting the health of the industry. The secondary industry and the Government agencies most concerned with legislation affecting the collection, processing and markets for scrap are both working to overcome some of the current difficulties. Nevertheless, for some sectors of the secondary copper industry, the past decade has been particularly difficult, given the restrictions within which they have operated, the potential for new restrictions, and the variable copper markets. The author would particularly like to thank those in the industry who were kind enough to host informative visits to their plants and to provide much of the information contained in this report. In particular, the Late Alan Silberof RECAP, who was of tremendous help in outlining the original report. Daniel Edelstein, Copper Specialist with the U.S. Geological Survey, also provided substantial help and advice. The International Copper Study Group, was, and continues to be of great assistance in providing world copper industry statistics. The research for this report was supported by the Copper Development Association. This thirteenth edition presents updated data tables and observations made since the first report was written in 1999. It is hoped that the historical perspective presented will help in understanding future events and making new decisions. ABOUT THE AUTHOR Janice L.W. Jolly has had more than 35 years experience in both the primary and secondary copper industries. She first spent 14 years as a research geologist with the U.S. Geological Survey and with Roan Selection Trust in the Zambian Copperbelt. Following this, she served 18 years as a foreign mineral and commodity specialist with the U.S. Bureau of Mines. She was the copper commodity specialist for the Bureau of Mines for more than 10 years, responsible for that agency’s data collection and reports on copper and copper scrap. She also worked briefly with the Armed Services Committee of the House of Representatives and the World Bank. She is author of many articles and reports on copper and copper scrap and is especially familiar with the statistics relating to these subjects. She spent almost 4 years in Portugal with the International Copper Study Group (ICSG) as its first Chief Statistician and was instrumental in establishing the ICSG statistical collection and publishing effort on copper. She retired from the U.S. Bureau of Mines in 1993 and from the International Copper Study Group in 1997. Currently a copper industry consultant, she resides in Dayton, Maryland. ii TABLE OF CONTENTS EXECUTIVE SUMMARY ………………………………………………………………………………………………1 CHAPTER 1 — INDUSTRY PERSPECTIVES Global Industry Perspective ....................................................................................................6 World Copper Consumption and Production.............................................................6 World Trade in Copper Scrap..................................................................................10 World Production and Trade in Copper Alloy Ingot .................................................13 Domestic Industry Perspectives............................................................................................14 Domestic Uses for Copper ......................................................................................14 U.S. Consumption of Copper ..................................................................................15 U.S. Trade in Copper and Copper Alloy Scrap .......................................................17 U.S. Export Controls on Scrap ................................................................................18 Products and By-products Produced from Scrap..................................................................18 Wrought Copper and Copper Alloys........................................................................18 Brass and Bronze Ingots .........................................................................................19 Refined Copper .......................................................................................................20 Copper Anodes for Plating ......................................................................................20 Black Copper...........................................................................................................20 Copper Chemicals and Powders .............................................................................20 Secondary Copper By-products ..............................................................................21 Baghouse Dusts ......................................................................................................22 Other Metal Recovery .............................................................................................22 Items that Go to the Landfill ....................................................................................22 Description of the U.S. Secondary Industry ..........................................................................22 Brass Mills ...............................................................................................................24 Foundries ................................................................................................................25 Ingot Makers............................................................................................................25 Secondary Smelters and Refiners...........................................................................25 Hydrometallurgical Plants........................................................................................25 Metal Finishing Facilities .........................................................................................65 Flow of Materials ...................................................................................................................26 Summary of Scrap Flow ..........................................................................................26 CHAPTER 2 — OVERVIEW OF SCRAP SOURCES AND TYPES Scrap Sources and Types.....................................................................................................28 EPA Secondary Product Definitions .....................................................................................28 Consumption by Scrap Type.................................................................................................29 Volumes of Scrap Generated................................................................................................31 Use of Home Scrap...............................................................................................................33 At Brass and Wire Mills ...........................................................................................33 At Secondary Smelters and Refiners ......................................................................34 At Foundries ............................................................................................................34 Use of Purchased Scrap .......................................................................................................34 Life Cycles and the Theoretical Resource for Scrap.............................................................34 Resource Theory and Calculations .........................................................................36 CHAPTER 3 — OVERVIEW OF SCRAP PREPARATION, MELTING AND PROCESSING Scrap Preparation .................................................................................................................41 Laboratory Testing ................................................................................................................43 Energy Use ...........................................................................................................................43 Scrap Preparation ...................................................................................................43 Melting Scrap ..........................................................................................................43 Scrap Melting and Processing ..............................................................................................43 Melt Control .............................................................................................................44 Drosses and Dross Formation.................................................................................44 iii Melt Covers (Fluxes) ...............................................................................................45 Use of Deoxidizers ..................................................................................................45 Vapor Losses ..........................................................................................................46