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Transcript of The Isri Scrap Yearbook 2012 Final
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THE ISRI SCRAP
YEARBOOK 2012
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The ISRI Scrap Yearbook 2012
1 Institute of Scrap Recycling Industries, Inc.
Executive Summary 2 Life Cycle of the Aluminum Can 2
About ISRI 3 U.S. Aluminum Beverage Can Recycling 2
About the Scrap Recycling Industry 4 Copper Scrap 2
Scrap Recycling and the Economy 5 Copper and Copper Alloys 2Domestic Scrap Recycling Facilities 6 Copper Scrap Exports 2
U.S. Scrap Exports 7 The Flow of Copper 2
Scrap Recycling and the Environment 8 Nickel and Stainless Steel Scrap 2
Recycling and Energy Savings 9 Lead and Zinc Scrap 3
What Materials Can Be Recycled? 10 Lead and Zinc Scrap Exports 3
Iron and Steel Scrap 11 Recovered Paper and Fiber 3
Where Does Ferrous Scrap Come From? 11 Paper Grades 3
U.S. Ferrous Scrap Supply 12 Recovered Paper Exports 3
How Is Ferrous Scrap Processed? 13 Recovered Paper Life Cycle 3
How Is Ferrous Scrap Transported in the U.S.? 14 Plastic Scrap 3Who Uses Ferrous Scrap? 15 Plastic Scrap Exports 3
Ferrous Scrap Exports 16 Electronics Scrap 4
Global Demand for Ferrous Scrap 17 Outputs of Electronics Recycling in the United States 4
Ferrous Scrap Life Cycle: From Cars to Bridges 18 Scrap Tires 4
Nonferrous Metal Scrap 19 Recycled Glass 4
Aluminum Scrap 20 Textiles 4
Aluminum Scrap Exports 21 Appendix: Global Scrap Exports by Commodity, Volume and
Value, 2011
4
TABLE OF CONTENTS
All photos courtesy of Scrap magazine. Special thanks to Bureau of International Recycling, The Jason Project, the InternationalCopper Study Group, the American Forest & Paper Association, the Aluminum Association, the Can Manufacturers Institute,
NAPCOR and the Council for Textile Recycling. © 2012 Institute of Scrap Recycling Industries, Inc.
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The ISRI Scrap Yearbook 2012
2 Institute of Scrap Recycling Industries, Inc.
Executive Summary
The ISRI Scrap Yearbook 2012 is the most up-to-date
and comprehensive overview of the scrap recycling
industry in the United States. The yearbook not onlyincludes useful information about the economic and
environmental benefits associated with scrap
recycling, but also provides readers with commodity-
specific overviews of how scrap is generated,
processed, traded and used. In addition, the
yearbook contains practical examples of the life
cycles and material flows of key recycled goods and
commodities.
The yearbook is intended as a valuable resource
both for members of the scrap industry and related
sectors as well as for those looking to learn more
about our industry. Teachers and students,
policymakers, members of the press and the general
public can benefit from learning more about how the
scrap recycling industry provides manufacturers with
vital and cost-efficient raw materials, while at the
same time supporting thousands of good-paying jobsand conserving our natural resources.
The initial section of the yearbook provides readers
with an introduction to ISRI, followed by selected
economic and environmental-related highlights. For
example, in 2011 alone the U.S. scrap recycling
industry processed approximately 135 million metric
tons of scrap commodities valued at $100 billion
while directly and indirectly supporting nearly
460,000 jobs. Subsequent sections provide
commodity-specific data and information across a
range of scrap commodities, including recycled iron
and steel, nonferrous metals, paper, plastics,
electronics, tires, glass and textiles. The yearbookappendix breaks down global scrap exports by
commodity, volume and value for 2011.
Data for the yearbook were provided by U.S.
government agencies, international sources
(including the United Nations Commodity Trade
Statistics Database), other industry associations,
independent studies and ISRI estimates. For more
information about ISRI and the scrap recycling
industry, visit the ISRI website at www.isri.org.
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3 Institute of Scrap Recycling Industries, Inc.
About ISRI
The Institute of Scrap Recycling Industries, Inc.
(ISRI) was formed by the merger of two parent
organizations in 1987: the National Associationof Recycling Industries (NARI) and the Institute
of Scrap Iron and Steel (ISIS), both of which
traced their roots to the early 1900s. Today, ISRI
represents more than 1,700 member
companies that process, broker and consume
scrap metals, paper, plastics, glass, electronics,
textiles, tires and rubber. ISRI members range in
size from small-family owned operations, manyof which have been in business for generations,
to large multinational corporations.
With headquarters in Washington, D.C., ISRI
provides education, advocacy, and compliance
training and promotes public awareness of the
vital role recycling plays in the U.S. economy,
global trade, the environment and sustainable
development.
For more information about ISRI, visit our
website at www.isri.org.
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4 Institute of Scrap Recycling Industries, Inc.
About the Scrap Recycling Industry
From the earliest uses of scrap thousands of
years ago to the optical scanners, X-rays and air
jets separating materials in today’s high-techshredders, scrap recycling has evolved as a
major industry. As the original recyclers, for
decades — and indeed, centuries — the scrap
recycling industry in the United States has been
purchasing, processing and brokering old
materials to be remade into new products. The
scrap industry is truly the first link in the supply
chain, serving as the backbone for America’smanufacturing sector while simultaneously
promoting a more sustainable society.
Today, the U.S. scrap recycling industry is a
sophisticated, capital-intensive industry that
directly employs approximately 138,000 people.As society increasingly focuses on the need to
protect our natural resources and reduce
greenhouse gas emissions, the scrap recycling
industry is recognized as one of the world’s first
green industries while serving as an economic
leader, job creator, major exporter and
environmental steward. See below for more
information about how the scrap recyclingindustry generates sizable economic and
environmental benefits.
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5 Institute of Scrap Recycling Industries, Inc.
Scrap Recycling and the EconomyRecycling goes far, far beyond the bin at the edge of
the curb. In fact, in 2011 alone nearly 135 million
metric tons of scrap metal, paper, plastic, glass,
textiles, rubber and electronics valued atapproximately $100 billion were manufactured into
specification-grade commodities by the U.S. scrap
recycling industry. These commodities were sold as
valuable feedstock material to industrial consumers
in the United States and in more than 160 countries
around the world.
The scrap industry is also a job creator. According to
a recent study by John Dunham & Associates, U.S.
scrap processors and brokers directly employed
nearly 138,000 people in 2011. Including jobs
indirectly supported by the industry, the Dunham
study shows the scrap industry supported a total of
459,100 jobs last year. These workers earned more
than $26.1 billion in wages and benefits, while the
industry paid $10.3 billion in direct federal, state andlocal taxes, excluding state and local sales taxes.
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6 Institute of Scrap Recycling Industries, Inc.
Domestic Scrap Recycling Facilities
Source: John Dunham & Associates, 2011
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7 Institute of Scrap Recycling Industries, Inc.
U.S. Scrap Exports
As the United States annually generates more
scrap than it is able to consume domestically,
overseas demand for U.S. scrap provides auseful outlet while at the same time scrap
export sales significantly benefit the U.S. trade
balance. According to figures from the U.S.
Census Bureau and U.S. International Trade
Commission, the United States exported more
than 51 million metric tons of scrap
commodities valued at more than $39 billion in
2011. Ferrous scrap and recovered paperexports represent the bulk of the volume of
overseas shipments, accounting for
approximately 45 million metric tons combined,
while nonferrous and precious metal scrap
have some of the highest per-unit scrap values.
Major overseas destinations for U.S. scrap last
year included China ($11.5 billion), Canada
($3.7 billion), Turkey ($2.4 billion), South Korea($2.1 billion) and Taiwan ($1.9 billion).
2010 2011
Value of ScrapCommodities
$29.6 Billion $39.2 Billion
Metric Tons of Scrap 45.3 Million 51.7 Million
Exports Included:
Iron and Steel (ex-Stainless and Alloys)
18.7 Million 22.7 Million
Paper 18.9 Million 21.1 Million
Aluminum 1.9 Million 2.1 MillionPlastic 2.0 Million 2.1 Million
Nickel, Stainless & Alloy 1.9 Million 1.6 Million
Copper 1.0 Million 1.2 Million
Lead 44,000 31,000
Zinc 78,000 86,000
Rubber 172,000 135,000
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8 Institute of Scrap Recycling Industries, Inc.
Scrap Recycling and the Environment
Scrap recycling offers real sustainable solutions
for balancing economic growth and
environmental stewardship. While marketfundamentals provide the incentives to recycle
and consume scrap material, recycling has
numerous positive externalities, including
significant environmental benefits.
Recycling reduces greenhouse gas emissions by
significantly saving the amount of energy
needed to manufacture the products that we
buy, build and use. In addition to energy
savings, recycling reduces the amount of
material that would otherwise be sent to
landfills, saving land for more productive uses.
Recycling also reduces the need to mine for
new ore or cut down more trees to make our
products. The scrap industry takes the job of environmental stewardship extremely seriously.
Did you know?
Energy saved using recycled materials is up to:
92% for aluminum 90% for copper
87% for plastic 68% for paper
56% for steel 34% for glass
Recycling 1 ton of:
Paper saves 3.3 cubic yards of landfill space.
Steel conserves 2,500 lbs. of iron ore, 1,400
lbs. of coal and 120 lbs. of limestone.
Aluminum conserves more than 5 metric
tons of bauxite ore and 14 megawatt hours
of electricity.
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9 Institute of Scrap Recycling Industries, Inc.
Recycling and Energy Savings
Sources: BIR, U.S. EPA Durable Goods Calculator, WARM Calculator
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10 Institute of Scrap Recycling Industries, Inc.
What Materials Can Be Recycled?
The scrap recycling industry is
extremely innovative, continually
adapting to the new products thatenter the marketplace every day.
While in the early days of the
industry, scrap peddlers would
typically buy and trade relatively
small quantities of used household
and other goods, today the U.S.
scrap industry annually processes
more than 130 million metric tons of scrap metal, recovered paper,
plastic scrap, used electronics and
other scrap commodities generated
by the manufacturing process and
end-of-life products. For more
commodity-specific information on
how scrap is recovered, processed,
traded and used, please see below.
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11 Institute of Scrap Recycling Industries, Inc.
Iron and Steel Scrap
Ferrous scrap is a vital raw material for the
production of new steel and cast iron products.
Approximately two out of every three pounds of steel made in the U.S. is made using ferrous scrap.
Where Does Ferrous Scrap Come From?
Iron and steel scrap, also referred to as ferrous
scrap, comes from two main sources: obsolete scrap
and prompt scrap. Obsolete ferrous scrap is
recovered from automobiles, steel structures,
household appliances, railroad tracks, ships, farm
equipment and other sources. According to the U.S.Geological Survey (USGS), the primary source of old
steel scrap in the U.S. is the automobile, with more
than 13.5 million tons of ferrous scrap recycled from
automobiles in 2010. In addition, prompt scrap,
which is generated from the manufacturing process,
accounts for approximately half of the ferrous scrap
supply. Home or “runaround” scrap, which is also
generated by manufacturing, is typically consumed
at the same mill at which it is generated and
therefore is not usually processed by the scrap
recycling industry.
Today, ferrous scrap is the most recycled material in
the United States and worldwide. In the United
States alone, 74 million metric tons of ferrous scrap
was processed by the scrap recycling industry last
year: more than 55% of the volume of all
domestically processed scrap.
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The ISRI Scrap Yearbook 2012
12 Institute of Scrap Recycling Industries, Inc.
U.S. Ferrous Scrap Supply
Thanks in part to our significant
manufacturing base and
developed economy, the U.S.already has a large inventory
of ferrous scrap in place,
in addition to the prompt
scrap that is continually being
generated by manufacturing.
A recent study commissioned
by ISRI reports that the U.S.obsolete scrap inventory
as of December 31, 2009
stood at nearly 1.2 billion tons.
As a result, the U.S. supply of
ferrous scrap is more than
adequate to meet the growing
demand for scrap both at home
and overseas.
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13 Institute of Scrap Recycling Industries, Inc.
How Is Ferrous Scrap Processed?
While a small proportion of unprepared
obsolete ferrous scrap can be directly used by
consumers, the vast majority of purchased ironand steel scrap is sorted and processed by the
scrap recycling industry. Scrapyards use a
variety of processes including sorting, shearing,
shredding, torching and baling to sort and
prepare ferrous scrap to commodity-grade
specifications.
The process of shredding,
which was
developed in
the late 1950s,
allows for
whole cars,
appliances and other end-of-life products to be
quickly shredded into fist-size pieces of metal,greatly increasing scrap processors´ ability to
handle large items and to separate nonferrous
material. In 2011, more than 340 shredders
were in operation in North America, up from
just 120 shredders in the early 1970s.
In addition to shredded,
ferrous scrap can be
grouped by prime scrap
(including busheling,
bundles and clips), cut
grades such and heavy
melting steel, and foundry
and miscellaneous gradessuch as machinery cast. To
assist members with the buying and selling of
their materials, ISRI has developed standard
specifications for scrap commodities including
over 100 ferrous scrap specifications. ISRI´s
“specs” are regularly updated and published in
the ISRI Scrap Specifications Circular . For more
information, visit www.isri.org/specs.
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The ISRI Scrap Yearbook 2012
14 Institute of Scrap Recycling Industries, Inc.
How Is Ferrous Scrap Transported in the U.S.?
The three most common modes of domestic
transport of ferrous scrap in the U.S. are by truck,
rail and barge, with intermodal shipments using
more than one mode. While shipping via trucks can
be a high per-unit cost option, trucks are a
significant mode of domestic transport for ferrous
scrap, especially for intra-regional scrap flows.
Shipment by rail can be a less costly option per ton
than trucking and railcars have a greater tonnage
capacity than trucks, although during times of tight
railcar availability this mode of transport can be less
predictable. According to figures from theAssociation of American Railroads, more than
240,000 carloads of iron and steel scrap were
originated by major railroads in the U.S. in 2011, a
6.8% increase over 2010.
Barges and domestic waterborne shipments are a
third major mode of transport for ferrous scrap.
Although adverse weather conditions can
significantly impact barge traffic, barges are oftenthe lowest-cost option on a per unit basis. According
to figures from the U.S. Army Corp of Engineers,
more than 7.3 million short tons of domestic iron
and steel scrap were transported on U.S. waterways
in 2010, the latest year of available data.
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The ISRI Scrap Yearbook 2012
15 Institute of Scrap Recycling Industries, Inc.
Who Uses Ferrous Scrap?
In recent years, approximately 70 percent of the
ferrous scrap processed in the United States has
been consumed domestically, with the
remaining 30 percent exported. Scrap dealersand brokers sell ferrous scrap to steel mills,
foundries and other
industrial consumers
to produce new steel
and cast iron products.
USGS data show that
of the 56 million tons
of domesticallyconsumed ferrous
scrap last year, electric
furnaces consumed
44.5 million tons, basic
oxygen process steelworks accounted for 8.8
million tons, and blast furnaces consumed 2.3
million tons.
By grade, shredded scrap is the single largest
grade of domestically consumed ferrous scrap,
accounting 25 percent of total scrap usage:
U.S. Consumption of Iron and Steel Scrap, by Grade,
2011 (thousand metric tons)Cut structural and plate 4,480
No. 1 heavy melting steel 5,710
No. 2 heavy melting steel 6,290
No. 1 and electric furnace bundles 3,230
No. 2 and all other bundles 997
Railroad rails 303
Turnings and borings 2,310
Slag scrap 1,490Shredded and fragmentized 14,100
No. 1 busheling 4,610
Steel cans (post consumer) 112
All other carbon steel scrap 6,440
Stainless steel scrap 1,300
Alloy steel scrap 736
Other scrap 3,740
TOTAL 56,000Source: U.S. Geological Survey
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16 Institute of Scrap Recycling Industries, Inc.
Ferrous Scrap Exports
The United States is the world’s leading exporter of
ferrous scrap. A key development in the global trade
of scrap was the introduction of containerized scrap
shipments, which opened the export market to a farwider range of domestic scrap processors.
Including stainless steel and other alloy steel scrap,
the U.S. exported over 24.3 million tons of ferrous
scrap valued at more than $11 billion to around 90
countries last year. Major overseas markets includeTurkey, China, India, Taiwan and South Korea:
Source: Bureau of International Recycling
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The ISRI Scrap Yearbook 2012
17 Institute of Scrap Recycling Industries, Inc.
Global Demand for Ferrous Scrap
As iron and steel scrap has become a key
feedstock utilized in manufacturing new
products worldwide, the ferrous scrap markethas become increasingly global. Ferrous scrap is
now a world-traded commodity that becomes
less dependent on local supplies and markets
every day, moving to where demand directs it
regardless of its original location.
Trade data from the United Nations Commodity
Trade Statistics Database show that the volume
of global scrap exports surged from just 9.3
million metric tons in 1990 to a record of more
than 106 million metric tons in 2011. In
addition, figures from the Bureau of
International Recycling show that total world
steel scrap use increased 7.6% in 2011 to reach
570 million metric tons.
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18 Institute of Scrap Recycling Industries, Inc.
Ferrous Scrap Life Cycle: From Cars to Bridges
Old Cars Can Become a New Bridge
The steel in cars can be recycled and used to build other items, like bridges. Did you know:
Recycling one car saves more than 2,500 lbs. or iron ore, 1,400 lbs. of coal and 120 lbs. of limestone?
Steel is the most recycled material in the United States. On average, the U.S. processes enough
ferrous scrap daily, by weight, to build 25 Eiffel Towers every day of the year.
Recycling steel requires 60% less energy than producing steel from iron ore.
By using ferrous scrap rather than virgin materials in the production of iron and steel, carbon dioxide
emissions are reduced by 58%.
Sources: The Jason Project/ISRI
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19 Institute of Scrap Recycling Industries, Inc.
Nonferrous Metal Scrap
Nonferrous metals, including aluminum,
copper, lead, nickel, tin, zinc and others, are
among the few materials that do notdegrade or lose their chemical or physical
properties in the recycling process. As a
result, nonferrous metals have the capacity
to be recycled an infinite number of times.
While in terms of volume, nonferrous scrap
makes up around one quarter of the total
quantity of material recycled in the UnitedStates, by value nonferrous metal scrap —
including precious metal scrap — accounted
for nearly 70 percent of total U.S. scrap
recycling industry earnings in 2011. More
than 9 million metric tons of nonferrous
scrap was processed in the United States
last year from a wide array of consumer,commercial and industrial sources:
everything from
copper and precious
metal circuitry in
electronic devices, to
soft-drink containers,
automobile batteries
and radiators,
aluminum siding,
airplane parts and
more.
Nonferrous scrap is then consumed by
secondary smelters, refiners, ingot makers,
foundries and other industrial consumers in
the U.S. and in more than 100 countries
worldwide. These consumers rely on
nonferrous scrap as a competitive,
environmentally friendly and energy-
efficient input to make brand new products,
continuing the nonferrous metal life cycle.
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20 Institute of Scrap Recycling Industries, Inc.
Aluminum Scrap
Aluminum holds the distinction of being
both the youngest and the most widely
used among all the base nonferrous metalsin the U.S. In 2011, USGS figures show
aluminum recovered from purchased scrap
in the United States was about 3 million
metric tons, of which about 54% came from
new (manufacturing) scrap and 46% from
old scrap (discarded aluminum products).
USGS figures also show that secondary
smelters were the largest consumers of
domestically purchased aluminum scrap last
year, recovering over 1.6 million metric tons
of aluminum by metallic content, followed
by independent mill fabricators (1.3 million
metric tons), foundries (53,000 metric tons)
and other consumers (8,000 metric tons).
The U.S. Aluminum Market
Domestic
ScrapConsumption
(mt)
Apparent
AluminumConsumption
(mt)
Scrap
MarketShare
U.S
ScraExpo
(m
2007 3,750,000 7,484,000 50% 1,546
2008 3,320,000 6,408,000 52% 1,982
2009 3,000,000 5,697,000 53% 1,658
2010 2,700,000 5,053,000 53% 1,913
2011 3,020,000 5,520,000 54% 2,144
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21 Institute of Scrap Recycling Industries, Inc.
Aluminum Scrap Exports
Given the tremendous energy savings
associated with using aluminum scrap – which
can reach up to92% compared
with primary
metal, global
demand for
aluminum
scrap has been
rising sharply in
recent years. U.S. exports of aluminum scrap – including used beverage containers and remelt
scrap ingot increased 12% by volume last year
to more than 2.1 million metric tons. China was
the largest overseas customer, accounting for
68% of the export total. By value, U.S.
aluminum scrap exports jumped 27% higher to
more than $4 billion in 2011 – a record.
*Includes UBCs and Remelt Scrap Ingot.
*Includes UBCs and RSI.
Th ISRI S Y b k 2012
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22 Institute of Scrap Recycling Industries, Inc.
Life Cycle of the Aluminum Can
Th ISRI S Y b k 2012
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The ISRI Scrap Yearbook 2012
23 Institute of Scrap Recycling Industries, Inc.
Sources: Aluminum Association, Can Manufacturers Institute, ISRI
The ISRI Scrap Yearbook 2012
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The ISRI Scrap Yearbook 2012
24 Institute of Scrap Recycling Industries, Inc.
Copper Scrap
Copper was one of the first metals used by
humanity, with archaeological evidence
indicating its use more than 10,000 years ago.Today, copper remains a vital commodity used
in construction, electrical equipment,
transportation, consumer goods and other
products. Copper scrap is used at smelters and
refineries to produce refined copper and is used
at the semi-fabrication stage to produce copper
rods, bars, wire and other semi-fabricated
shapes, which are transformed into powercables, plumbing tubes and other end-use
products.
According to the U.S. Geological Survey, in 2011
old scrap provided 130,000 metric tons of
copper and purchased new scrap – derived
from fabricating operations – contributed
650,000 metric tons of contained copper.
Major consumers of copper and copper alloy
scrap in the United States last year includedbrass mills (73%), foundries, chemical plants
and miscellaneous manufacturers (13%) ingot
makers (9%) and copper smelters and refiners
(5%). Globally, the International Copper Study
Group estimates that in recent years more than
30 percent of world copper usage came from
recycled copper scrap.
The ISRI Scrap Yearbook 2012
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25 Institute of Scrap Recycling Industries, Inc.
Copper and Copper Alloys
There are literally hundreds
of different types of copper
and copper alloys that use tin,lead, zinc and other metals to
form metal alloys. These
metals can be subdivided into
several main categories
including:
Coppers
High-copper alloys
Brasses Bronzes
Copper Nickels
Copper-nickel-zinc
alloys
Leaded coppers
Special alloys
ISRI specifications with names like Berry,
Birch/Cliff, Druid, Honey, Ocean and Pales cover
a wide range of red metal products such as bareand insulated wire, light copper, refinery brass,
red brass, yellow brass, brass ammunition,
clippings, radiators, tubes and more. For the full
listing of ISRI nonferrous specifications, visit
www.isri.org/specs.
The ISRI Scrap Yearbook 2012
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26 Institute of Scrap Recycling Industries, Inc.
Copper Scrap Exports
Due to the plentiful supply of
copper scrap in the United States –
as confirmed by research
conducted by Nathan & Associates
in 2004 – the U.S. is able to export
significant tonnages of copper
scrap overseas. In 2011, the U.S.
exported more than 1.2 million
metric tons of copper scrap valued
at nearly $5 billion, a remarkable
increase from the $500 million of
copper scrap exported in 2000. As
with other commodities, China is a
significant consumer of U.S. copper
and copper alloy scrap. The value
of copper scrap exports from the
U.S. to China jumped from
approximately $165 million in 2000
to nearly $3.5 billion last year.
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27 Institute of Scrap Recycling Industries, Inc.
The Flow of Copper
Concen-
trates/
Matte
Trade Blister/
Anode
Refined
Copper
Mine Smelter Refinery
Alloy
Ingot
Semis
Net Trade
Wire rod plant /
Wire mill
Brass
mill
Foundry
Other Plants
Direct
MeltHydromet.
Plant
Low Grade
Residues
Semis Supply
Ingot
Maker
Scrap for
Smelting
Scrap
RecyclingScrap for
Refining
ProductionFabrication
Alloy
Metals
Refined
Usage
incl. low grade scrap987
By-products/
slag/ashesTailings
Mining
Chemicals
SX/EW
New Scrap
Wire rod
refined
alloys
Concen-
trates/
Matte
Trade Blister/
Anode
Refined
Copper
Mine Smelter Refinery
Alloy
Ingot
Semis
Net Trade
Wire rod plant /
Wire mill
Brass
mill
Foundry
Other Plants
Direct
MeltHydromet.
Plant
Low Grade
Residues
Semis Supply
Ingot
Maker
Scrap for
Smelting
Scrap
RecyclingScrap for
Refining
ProductionFabrication
Alloy
Metals
Refined
Usage
incl. low grade scrap987
By-products/
slag/ashesTailings
Mining
Chemicals
SX/EW
New Scrap
Wire rod
refined
alloys
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28 Institute of Scrap Recycling Industries, Inc.
FinishedProducts
NetTrade
EOLProducts
NewScrap
OldScrap
Recycling
Scrap &
Low grade Net Trade
Disposal/Other Uses
Other Metal
Loops
Manufacture
DissipativeUses
Product Use(Lifetime)
End-of-Life Man agement
Construction
E&E Equipment
Ind. equipment
Transport
Consumer/ Gen.
Other Uses
C&D
INEW
IEW
ELV
WEEE
MSW & Other
Abandoned/Stored/
ReusedEnd-of-Life
Products
Copper Reservoir
in UseFinishedProducts
EOLProducts
ProductSupply
Low gradefrom Fabr.
Recycling
Recyclinglosses new
scrap
SemisImport
(EOL Managementadjusted for
export/reuse after collection)
Source: International Copper Study Group
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p
29 Institute of Scrap Recycling Industries, Inc.
Nickel and Stainless Steel Scrap
According to the U.S. Geological Survey, nickel is a
transition element that exhibits a mixture of
nonferrous and ferrous metal properties. In metal
circles, it’s much less common for nickel to beexamined on its own than as an element of
corrosion-
resistant
alloys such as
austenitic
stainless
steel. And no
wonder: 18-8
varieties of
stainless steel
(named for
their 18% chromium and 8% nickel content) account
for large quantities of nickel consumption and also
serve as an important scrap source for nickel.
USGS figures show that 46% of the primary nickel
consumed in the U.S. last year went into stainless
and alloy steel production, followed by nonferrous
alloys and superalloys (34%), electroplating (14%)
and other uses (6%). By end use, the most important
consuming sectors include transportation (30%),
fabricated metal products (14%), electrical
equipment (12%), the petroleum industry (10%), and
chemicals, construction, household appliances and
industrial machinery at 8% each.
The process of recycling stainless steel scrap can
include numerous steps, including sorting, baling,
shearing, media separation and melting.
The U.S. Nickel Market
Nickel
RecoveredFrom Scrap
(mt)
Total U.S.
NickelUsage
(mt)
Scrap
MarketShare
(%)
Stainless
SteelScrap
Exports
2007 98,600 212,000 47% 882,000
2008 84,500 201,000 42% 1,001,00
2009 63,500 173,000 37% 1,131,00
2010 100,000 217,000 46% 937,000
2011 99,000 228,000 43% 656,000
Sources: USGS, Census Bureau, ISRI Estimates
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30 Institute of Scrap Recycling Industries, Inc.
Lead and Zinc Scrap
Zinc and lead are the two most widely used non-
ferrous metals after aluminum and copper. Lead’s
emergence as an important industrial metal dates
from the development of storage battery technologyin the mid-19th century. The recycling of
automotive-type batteries spawned a viable
secondary lead smelting industry in the United
States. In 2011, the U.S. Geological Survey reports
that lead-acid batteries accounted for 86% of
domestic lead use in 2011.
Other uses of lead include rolled and extruded
products, shot and ammunition, alloys, pigments
and compounds and cable sheathing. USGS figures
show that approximately 1.2 million metric tons of
secondary lead was produced in the U.S. last year –
an amount equivalent to 80% of apparent domestic
lead consumption, of which the vast majority was
recovered from postconsumer scrap.
The U.S. Lead Industry
Secondary
Lead
Production
(mt)
Apparent
Lead
Consumption
(mt)
Scrap
Market
Share
U
S
Ex
(2007 1,180,000 1,540,000 77% 12
2008 1,150,000 1,500,000 77% 17
2009 1,120,000 1,410,000 79% 14
2010 1,150,000 1,500,000 77% 44
2011 1,200,000 1,500,000 80% 31
Sources: USGS, US Census Bureau, ISRI estimates
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31 Institute of Scrap Recycling Industries, Inc.
According to the International Lead and Zinc
Study Group, the principal uses for zinc
include galvanizing (50%), zinc alloying
(17%), brass and bronze (17%), zinc semis
(6%), chemicals (6%) and other uses (4%). Inthe United States, USGS figures show that
about 53% (or 134,000 metric tons) of the
slab zinc produced in the United States was
recovered from secondary materials.
Drosses from galvanizing, skimmings, ashes,
and die castings make up the bulk of
feedstock for zinc recycling. Steelmaking
dusts and zinc-coated steel scrap, however,remain rich sources of recoverable zinc.
Prices for scrap zinc, such as galvanizing
drosses, are normally quoted as a percentage of
the LME price. Other scrap items – such as die
cast – are quoted in cents per pound.
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32 Institute of Scrap Recycling Industries, Inc.
Lead and Zinc Scrap Exports
Over the course of the last decade,
the volume of U.S. zinc scrap exports
more than tripled from nearly 27,000
mt in 2001 to more than 85,000 mt
valued at almost $94 million in 2011.
Leading zinc scrap destinations last
year included China ($74 million),
Japan ($7.5 million), India ($6 million),
and Taiwan ($3 million).
In contrast, the volume of lead scrap
exports plunged more than 70%during the same time period to just
over 31 million mt last year valued at
$36.7 million. Leading overseas
destinations for U.S. lead scrap in
2011 included South Korea ($13.1
million), India ($9.6 million), Canada
($8.5 million), China ($1.3 million) and
the Netherlands ($1.2 million)
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33 Institute of Scrap Recycling Industries, Inc.
Recovered Paper and Fiber
Recovered fiber, also
known as recovered
paper and board, is
one of the mostwidely recycled
materials in the
world. Since 1990,
Americans have
recycled about 1
billion tons of
recovered fiber as the
recovery rate for paper and paperboard in theUnited States nearly doubled to reach 66.8% in
2011, according to the American Forest & Paper
Association. The paper recycling segment of the
scrap recycling industry collects, sorts and
processes the recovered fiber into specification-
grade products that were valued at more than
$9 billion in 2011.
These products are sold and transported to
paper mills at home and worldwide for
production into new packaging, office paper,
tissue, newsprint and a multitude of other
paper products. In the United States,approximately 77% of paper mills rely on
recovered fiber to make some or all of their
products thanks in part to recovered paper’s
significant cost and energy savings.
The U.S. Paper and Recovered Fiber Industry
New Supply
(short tons)
Recovered
(short tons)
Recovery
Rate2007 97,007,000 54,325,000 56%
2008 89,838,000 51,822,000 58%
2009 78,902,000 50,036,000 63%
2010 81,209,000 51,545,000 63%
2011 78,959,000 52,767,000 67%
Source: American Forest & Paper Association
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34 Institute of Scrap Recycling Industries, Inc.
Paper Grades
Recovered paper can be grouped into several main
categories including:
OCC: An acronym forold corrugated
containers, OCC
contains a rippled
middle layer that is
sandwiched between
two layers of
linerboard. Mills use
old corrugated containers to make new recycled-
content shipping boxes, as well as recycledpaperboard for product packaging.
ONP: Before your daily newspaper becomes old
newspaper, or ONP, that is ready for recycling, it
goes through several name changes. It begins life as
newsprint, defined as the paper purchased and used
by newspaper publishers. Once printed, it is called
newspaper, which is shipped to distributors and
newsstands. Only after being distributed to
customers does it become ONP. Mills primarily use
ONP to make new newsprint and in recycled
paperboard and tissue, among other grades.
Mixed paper: Mixed paper is a broad category that
often includes items such as discarded mail,telephone books, paperboard, magazines, and
catalogs.
High-Grade Deinked Paper: This grade is made of
high grade paper such as letterhead, copier paper,
envelopes, and printer and converter scrap that has
gone through the printing process. It must first be
deinked before it can be reprocessed into high-grade
paper products such as printing and writing papers
or tissue.
Pulp substitutes: Also high-grade papers, pulp
substitutes are often shavings and clippings from
converting operations at paper mills and print shops.
Mills can use pulp substitutes in place of virgin
materials to make high-grade paper products.
Sources: ISRI and EPA
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35 Institute of Scrap Recycling Industries, Inc.
Recovered Paper Exports
In addition to being consumed by domestic
paper mills, the paper and fiber recovered in
the U.S. helps to meet growing export demand
as well. In 2011, recovered paper exports from
the U.S. reached $3.8 billion, up 14% from 2010
and double the 2005 total. Last year’s biggest
customers for recovered paper and fiber
shipments included China ($2.28 billion),
Mexico ($315 million), India ($302 million),
Korea ($223 million) and Canada ($194 million).
U.S. Paper Stock Exports(short tons)
Jan-Dec 2011
Corrugated 10,321,992
High-Grade Deinking 661,454
Mixed 4,576,713
Printed News 2,415,581
Pulp Substitutes 2,168,263
Other 3,110,487
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36 Institute of Scrap Recycling Industries, Inc.
Recovered Paper Life Cycle
Sources: BIR, The Jason Project, ISRI
According to estimates reported by the Bureau of International Recycling, paper can be recycled anaverage of four to six times. Steps involved in the paper recycling process can include sorting, baling,
shredding, washing, bleaching, pressing and rolling. Newspapers go through a paper recycling
process so that trees don’t have to be chopped down to make new paper.
Did you know that recycling 1 ton of paper saves 17 trees, 79 gallons of oil, 7,000 gallons of water
and 3.3 cubic yards of landfill space?
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37 Institute of Scrap Recycling Industries, Inc.
Plastic Scrap
The manufacture
and distribution
of plastics iseverywhere.
Between 1950
and 2009, the
global production
of plastics grew
at an average
rate of 9 percent annually, and all indications
point to continued growth at a similar rate.With the explosive growth in the manufacture
of plastics comes the need to ensure that these
materials are recycled in an environmentally
responsible manner once they reach the end of
their useful lives. In addition, recycling of
engineered and industrial plastics present
tremendous opportunities that demonstrate
plastics recycling today is “Bigger Than the Bin.”
From an environmental perspective, recycled
plastic can provide enormous benefits over the
use of its virgin counterparts. For example,
plastic lumber made with scrap plastic bags,
and other materials, conserves trees andeliminates the need to use hazardous chemicals
to treat wood that will be used outdoors.
According to
the U.S.
EPA, plastic
recycling
results in
significantenergy
savings (an
estimated
50 million to
75 million Btus/ton of material recycled)
compared with production of new plastics using
virgin materials.
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38 Institute of Scrap Recycling Industries, Inc.
U.S. Postconsumer PET Container Bottle
Recycling Activity, 2001 - 2011
Source: NAPCOR
But despite the ubiquity of plastics, plastic
recycling is still a young industry because no
one really thought about recycling when
plastics were first put into use. The technology
to cost-effectively sort and recycle plastics has
been developed only in the past 20 years.
While one can picture so much opportunity for
growth in plastics recycling, many challenges
exist, ranging from the false perception by
many that recycled materials are somehowinferior to virgin materials to archaic laws and
regulations that never contemplated the
possibility of recycling plastics.
In addition to these operational challenges, a
patchwork of state laws and a lack of direction
from industry stakeholders make the collection
and recycling of scrap plastic difficult. These
challenges are not insurmountable, and plastic
recyclers are providing leadership to overcome
them. The next time you tote that box to the
curb, remember that plastics recycling is much
bigger than the bin!
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39 Institute of Scrap Recycling Industries, Inc.
Plastic Scrap Exports
U.S. Census Bureau data show the value of
plastic scrap exports from the U.S. surpassed
the $1 billion mark in 2011 for the first time.
Full year 2011 shipments were up 4% over
2010 to $1.05 billion. By volume, plastic
scrap exports also advanced, increasing 4%
to 2.1 million mt.
Census figures show the top five overseas markets
for U.S. plastic scrap last year were: China ($547
million), Hong Kong (counted separately from
China, $240 million), Canada ($94 million), India
($48 million) and (Mexico $17 million).
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40 Institute of Scrap Recycling Industries, Inc.
Electronics ScrapThe U.S. electronics recycling industry has shown
tremendous growth in recent years. This maturing
segment of the scrap industry generates revenues of
approximately $5 billion (up from less than $1 billion
in 2002) and employs more than 30,000 full-timeworkers according to a recent IDC study.
Last year, the U.S. electronics recycling industry
processed 3 million to 4 million tons of used and
end-of-life electronics equipment. More than 70
percent of the collected equipment is manufactured
into specification-grade commodities — including
scrap steel, aluminum, copper, lead, circuit boards,plastics and glass. These valuable commodities are
then sold to
basic material
manufacturers in
the United States
and globally as
raw material
feedstock for
new products, such as steel, copper, aluminum,plastic and glass.
Electronics recyclers repair, refurbish and resell
functioning electronics equipment as used products
into domestic and international markets. Companies
also provide a number of logistical services, like
collection, storage and transportation, as well as
scrubbing hard drives of sensitive personal and
commercial data.
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41 Institute of Scrap Recycling Industries, Inc.
The industry is driven
by equipment
collected from
businesses and
commercial interests,
comprising up to 75%
of the market on a
volume basis. The
electronics recycling
industry is poised to
meet the anticipated
increased demand for
more used products and specification-grade
commodities, with companies currently
operating at about 50% of their operational
capabilities.
The electronics recycling industry has seen a
dramatic increase in the use of third-party
certifications. The marketplace is pushing
electronics recyclers to become certified to
programs like ISRI’s R2/RIOS™ program
(www.isri.org/certifyme) to improve
operational controls, meet customer demands
and secure a competitive advantage.
The reuse of used electronics equipment and
consumption of commodity-grade materialsrecovered from electronics to manufacture new
products boosts the U.S. economy, creates jobs
and sustains natural resources, conserves
impressive amounts of energy in the
manufacturing process and reduces greenhouse
gas emissions from those facilities.
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42 Institute of Scrap Recycling Industries, Inc.
Outputs of Electronics Recycling in the
United States(by weight %)
Source: IDC Survey: Inside the Electronics
Recycling Industry (2011)
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43 Institute of Scrap Recycling Industries, Inc.
Scrap Tires
Each year, the American public generates
approximately 300 million scrap tires. In the
past, scrap tires — generated when an old,
worn tire is
replaced with a
new tire — were
often dumped
illegally in lakes,
abandoned lots,
along the side of
the road and in sensitive habitats. Today, scrap
tires are playing a much different role as an
important part of the manufacturing process.
Scrap tire rubber is used in the manufacture of
new tires, playground surfaces, equestrian mats
and rubberized asphalt, among other products.
Other cutting-edge manufacturers are
combining scrap tires with materials such as
scrap plastic to produce flower pots, roofing
tiles and auto parts.
A tire is a highly engineered and extensively
designed product that is meant to be virtually
indestructible under a variety of conditions.Because of this, tires can be difficult to recycle,
but that has changed. Tire recyclers have
invested millions of dollars in technologies and
equipment to recycle tires, allowing scrap tires
to play an important role in strengthening our
economy and protecting our environment.
At tire recycling facilities, the main piece of
equipment is the tire shredder, which uses
powerful, interlocking knives to chop tires into
smaller pieces. Shredding a tire at room
temperature using such knives is called ambient
shredding. Tires can also be shredded through a
cryogenic process that uses liquid nitrogen to
freeze them at a sub-zero temperature. Such
temperatures cause the physical properties of
the tires to change dramatically and become
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44 Institute of Scrap Recycling Industries, Inc.
very brittle. The tire is placed in an enclosure in
which powerful hammers smash the tire apart.
Cryogenic grinding is used to make fine crumb
rubber powders that are then used in products
such as synthetic turf.
The non-rubber portions of the tire also are
recycled. For example, the steel beads that give
the tire its shape and structure are recovered by
recyclers and processed into specification grade
product used by steel mills for the production of
new steel.
Scrap tire rubber is a highly sought material. In
2010, scrap processors produced more than 1
billion pounds of crumb rubber that was used in
the creation of new products ranging from
sidewalks to horse tracks. Tire recycling is an
economically sound, environmentally friendly
activity that can contribute to the reduction of a
product’s overall carbon footprint. In fact, the
use of recycled rubber in molded products
provides a substantial carbon footprint
advantage compared with the use of virgin
plastic resins, having between four and 20 times
lower carbon footprint.
The future for tire recycling is strong.
Applications for scrap tire rubber — such asrubberized asphalt — have become recognized
for their
preferable
properties
and is
gaining in
prominence
andwidespread
use. Many states already use rubberized asphalt
when they design, reconstruct or repair their
roadways, and it is used for several simple and
straightforward reasons: it can cost less,
provide safety benefits and last longer than
conventional asphalt.
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45 Institute of Scrap Recycling Industries, Inc.
Recycled Glass
Glass is made from
readily available
domestic materials,
such as sand, sodaash, limestone and
“cullet,” the
industry term for
furnace-ready scrap glass. Glass can be recycled
again and again with no loss in quality or purity.
In 2009 (the latest data available), 31 percent of
all glass containers were recycled.
For every ton of glass recycled, more than a ton
of raw materials is saved, including 1,300 lbs. of
sand, 410 lbs. of soda ash, 380 lbs. of limestone
and 160 lbs. of feldspar.
Recycled glass is substituted for up to 70% of
raw materials used in making new glass. An
estimated 80% of recovered glass containers
are made into new glass bottles. In 2009, the
latest figures available, 39 percent of beer and
soft drink bottles were recovered for recycling.
Another 18 percent of wine and liquor bottles
and nearly 18 percent of food jars also were
recycled. Manufacturers benefit from recycling
in several ways: it reduces emissions and
consumption of raw materials, extends the life
of plant equipment (such as furnaces) and saves
energy. Glass recycling creates no additional
waste or byproducts.
Glass manufacturers are requiring more and
more high-quality recycled container glass to
meet market demands for new glass containers.Color-sorted, contaminant-free recycled glass
helps ensure that these materials are recycled
into new glass containers.
While curbside collection of glass recyclables
can generate high participation and large
amounts of recyclables, drop-off and
commercial collection programs are also
effective at yielding high-quality container glass.
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46 Institute of Scrap Recycling Industries, Inc.
Textiles
The textile segment of the
recycling industry
processes billions of
pounds of cotton, wool,
synthetic and synthetic-
blend products each year.
These scrap materials
come from a number of
sources, ranging from
apparel and home furnishing manufacturers to
textile mills and consumers.
Each year, 1.1 million tons of textiles recovered
from individuals (postconsumer) and
manufacturers (preconsumer) are recycled as
new raw materials for the automotive,
furniture, mattress, coarse yarn, home
furnishings, paper and other industries. This
translates to about 8 lbs. of textiles per person
in the Unites States in 2010.
Used clothing collected from households is
graded into a number of categories. Garments
in good condition are exported for resale in
parts of the world where new clothing is not
affordable for many. This trade provides
employment not only among the exporting
nations, but also in the importing countries.
Source: Council for Textile Recycling
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47 Institute of Scrap Recycling Industries, Inc.
Commodity Volume (mt) Value ($)
Aluminum scrap 7.5 million $13.2 billionCopper scrap 5.6 million $25.5 billion
Ferrous scrap 106.7 million $53.9 billion
Glass 3.2 million $386 million
Lead scrap 272,000 $417 million
Nickel scrap 131,000 $751 million
Plastic scrap 15 million $6.9 billion
Precious metal scrap 122,000 $28 billion
Recovered paper 59 million $12.1 billionRubber scrap 1 million $514 million
Textiles 911,000 $496 million
Tin scrap 151,000 $251 million
Zinc scrap 373,000 $644 million
Other base metal scrap 440,000 $2.1 billion
TOTALS 200.6 million $145.2 billion
Appendix: Global Scrap Exports by Commodity,
Volume (metric tons) and Value (US $), 2011Source: UN Comtrade Database
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48 Institute of Scrap Recycling Industries, Inc.
© 2012 Institute of Scrap RecyclingIndustries, Inc.
1615 L Street, NW, Suite 600
Washington, DC 20036-5664
Tel: 202/662-8500 Fax: 202/626-0900