The trend has turned to favor aluminum scrap producers and processors.

In the scrap aluminum industry, sources report that this is a seller's market, and although demand has rebounded, power generation is still less than normal. However, in the field of red metals, sources said that as 2020 approaches the end, demand will be slightly tepid.

Chad Kripke, executive vice president of Kripke Enterprises Inc. in Toledo, Ohio, said: “Consumers want to ensure a stable flow of materials before 2021.” The company is a non-ferrous scrap brokerage company mainly engaged in aluminum business. He added: “There are more sellers who have decided to increase the weight of contract business in the spot market in 2021 than normal.” “Scrap processors are confident that 2021 will be a year of regaining some influence. Because of this. The spread is still small, and it will still be a seller's market for the foreseeable future."

He added: “Whether these higher prices and smaller spreads will continue remains to be seen, but at the same time, scrap dealers will definitely enjoy it.”

A trader with a multi-site scrap processing and brokerage company based in the Midwest is as enthusiastic about the coming year as Kripke. "If we can keep the manufacturing industry buzzing through COVID, you can argue that the demand for scrap will be very strong [in 2021]. This argument is important now."

Contacts with a scrap brokerage and trading company that mainly operates on the West Coast also mentioned the shift to a seller’s market, noting that the same is true for exports. "The reduction in scrap flow has led to a full tightening of spreads." He added that he expects this situation to continue for several years.

The Midwestern trader said that secondary smelters that supply the automotive industry have a large demand for scrap aluminum. He added that these consumers are also competitive in factory-level aluminum scrap. Rolling mills also need aluminum scrap. "Even the segs are getting hot again," he said, referring to isolated low-copper clips.

According to survey pricing data from Fastmarkets AMM, during the December 2020 purchase period, the US monthly average price of isolated low-copper clips was 42 cents per pound, which was higher than the November purchase period of nearly 30 cents per pound.

The trader in the Midwest mentioned the anxiety of some secondary producers. They worry that if they think the price is too high, they may not be able to obtain scrap if they transfer materials. He added that buyers of mill-grade scrap are not too worried about this.

"Demand for extrusion and common alloys is very strong, and the spreads are still very tight," Kripke said. "The prices of secondary schools are also rising sharply."

Arranging deliveries has also become easier. "The delivery window is relatively open," Kripke said. "In the worst case, the dealer will wait for a 30-day delivery appointment."

The Midwest trader said that the demand for red metal is not as strong as aluminum. Export demand for red metals has also been weak. "Domestic consumers can buy at any price difference they see fit," he added.

According to the trader, some red metal consumers have withdrawn from the market in the past few months, and another consumer announced that they will withdraw from the market in February. Nevertheless, he added, "We can see what we need."

Since China began accepting shipments of non-ferrous scrap "usable for furnaces" on November 1, the Midwest trader stated that he has been following the progress of customs clearance, adding that he is not sure whether inspectors will strictly abide by the published specification. His company is not ready to start shipping materials there until the situation becomes clearer. The trader said that high-end copper bars and No. 1 copper should have no problem entering the country, but he is not sure about No. 2 copper, honey and aluminum zorba. "We are looking for more specific information and feedback."

The West Coast source said that some suppliers "take greater risks in China." He added: "We have seen early on the long-term impact of China's withdrawal of products from other consumers who did not have to compete with China in the past few years."

He added that if the second batch of copper cargo is allowed to enter China, "I suspect that the amount of copper shipped to China will be much more than it is now."

The Midwest trader said that domestic red metal scrap buyers may find it more difficult to obtain the materials they need at a price they like. He added that if China's purchases increase, the red metal price difference may be reduced, and he said in the past that they were "willing to pay any price" to obtain scrap. "Demand for high-grade copper entering China may become very strong. Compared with weakening demand and widening spreads, I will be more [bullish]."

Bernard Schilberg, chief executive of Prime Materials Recovery Inc. (PMR), a non-ferrous metal processor and broker based in East Hartford, Connecticut, said he expects higher-grade waste Copper will not be exported from the United States to China. "For copper, I always say that high grades are mainly in deficit."

Instead, he said he believes that smelter and refinery grade exports from the United States to China will increase.

Although non-ferrous scrap production has been increasing since the summer, as of mid-December 2020, it has not fully recovered to pre-pandemic levels. The Midwest trader said that the industrial flow was 90%.

Kripke described the outdated generation as "ragged", although he added that it seems to be increasing. “Due to the rising market, it is difficult to determine the products in wood products compared with the stagnant prices.”

Schilberg described this generation as "quite active." Copper accounts for about 80% of the company's waste disposal, while aluminum accounts for about 15%.

He added that approximately 70% of PMR waste is generated by industrial customers, even though one of its departments handles a large amount of demolition materials. Schilberg said that the demolition department had very little power generation, adding that the company had been using containers on site for months that did not require maintenance. He said the pandemic-related agreements that contractors must comply with made the project difficult.

The Midwest trader said that ensuring that scrap is transported by truck is an ongoing problem. Prices have also risen, and the trader said they have risen by an average of 33%.

Kripke also noticed a significant increase in freight rates. "Although we can still move goods, sometimes we have to pay 50% to 75% more for certain lanes than before."

He added that this makes domestic transportation more difficult because transportation in the central United States may cost US$2,000. Or port," Kripke said.

Contacts on the West Coast say it is becoming more and more difficult to try to get containers out of the port. "It puts pressure on inventory turnover, which increases financing costs."

Schilberg also mentioned the port issue and pointed out that compared with the previous four or five days, the booking must be handed in within 36 hours.

For demolition contractors, delays in truck transportation may affect the speed at which waste processors can provide services to customers. However, in terms of pricing, most of the aluminum and red metal scrap generated on the job site now seems to be more valuable than it was at the beginning of the year.

This article originally appeared in "Construction and Demolition Recycling" in January and February. The author is the editor of "Recycling Today", a sister publication of "Construction and Demolition Recycling". You can contact her at dtoto@gie.net.

Higher prices induce more scrap copper to enter the market.

According to data from the Management Science Association's Raw Material Data Aggregation Service (RMDAS), the price of ferrous scrap has been climbing since November, and the combined industrial price quickly reached the US average of US$499 per ton in January. This is an increase of $186 from November. The increase in the price of ferrous metal scrap also tends to lead to the loss of non-ferrous metal scrap, but the increase in the price of aluminum and copper scrap is also commendable.

The London Metal Exchange (LME) copper cash settlement price on January 15 was US$7,979.50, compared with US$6,231 a year ago, while the price of aluminum alloy on January 15 was US$2,000.50, compared to US$1,778 in the same period last year.

“As prices rise, the amount of scrap available increases,” said Randy Goodman, vice president of Greenland (America) Inc., a brokerage firm based in Roswell, Georgia. At the end of 2020, “when the market soars, I am very surprised how much red metal scrap is available”.

Mitchell Goldberg, chief executive of Philadelphia Northeast Metal Traders, said that historically, the flow of scrap copper has been good. However, he added, “Some of our suppliers seem to be facing a cash shortage, causing them to pay less attention to traditional pricing considerations and pay more attention to the speed of payment terms.”

A trader with a company's processing operations in the Midwest and Southeast said that the supply and demand of scrap copper has been "ragged." Regarding demand, he added, “It depends on the situation on the day. Some consumers move in and out of the market very quickly. Others have been strong, while others have been out. The same goes for exports.”

Although most domestic scrap copper buyers are in the market, he said that their purchases are conservative and avoid excessive purchases. "As the market rises, they are reducing inventory and ensuring timely delivery."

"Everyone is reading a very complete book now," Goodman said of domestic red metal consumers. "A lot of orders are in the book."

Nevertheless, he added that despite this, many factories are already full and did not start deliveries until the end of February or early March.

As of mid-January, the company’s traders in the Midwest and Southeast said: “Most places in February are full.” “We are already selling in March. We sold 2 in December or early January. Month. It always gets farther and farther."

He said that the supply of scrap aluminum appears to be tighter than the supply of copper scrap, and he expects it to become tighter. "They seem to need this metal," he said of aluminum scrap consumers.

The trader said that primary steel mills are more aggressive than secondary producers in terms of pricing and demand, and primary steel price differentials have narrowed. He added that the factory can make an appointment for delivery at any time.

Michael Diehl, senior vice president of New York City-based Coremet Trading Inc. in Southern California, also mentioned the strong demand for recycled aluminum grades. Due to the pandemic-related shutdowns in early 2020, “car sales surprised automakers with short inventories”.

"In addition, as Boeing is back on track, we are beginning to see a small increase in aerospace materials,​​" Diehl added.

Goldberg said that in the early stages of the pandemic, the supply of scrap dealers was greatly reduced, but it is now close to pre-pandemic levels. "It is easy for us to sell our metals, but transportation restrictions make production and dispatch more difficult than we have experienced before. High commodity prices should maintain the inflow of non-ferrous metals. We believe that with the pent-up demand from manufacturers and consumers, Business momentum will continue to grow."

The instant scrap purchased in two regions of the United States in January averaged US$500 per ton.

Based on spot transaction pricing collected by Pittsburgh-based MSA Inc. for its Raw Material Data Aggregation Service (RMDAS), the soaring black scrap market depicted in the Fastmarkets AMM survey in early January continued into this month.

RMDAS collects US transaction pricing for the entire month that its customers can access. It publishes a 30-day snapshot on the 20th of each month. According to its January spot pricing index data (covering from December 21, 2020 to January 20, 2021), buyers in southern steel mills paid an average of US$502 per ton for instant scrap, while in RMDAS north, central and western regions, the price The average is US$504 per ton. Ton.

National RMDAS averages for January showed that the price difference of No. 1 heavy melting scrap (HMS) was US$429 per ton, while the fast grade was US$499 per ton. Shredded steel is somewhere in between, and the national average is US$460 per ton.

Steel mill buyers seeking to bargain will have to accept a payment of US$415 per ton for Southern No. 1 HMS scrap. The average price of the same grade in the northern Midwest is $440, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Wisconsin, and Northwest Indiana Department’s spot purchases.

According to data from RMDAS, the value of non-ferrous scrap rose from US$80 per ton to US$111 in January, depending on the grade and region. Prior to this, during the December purchase of RMDAS, the price per ton rose by US$75 to US$85.

Traders and processors do not believe that this momentum will continue until February. Recent reports from traders indicate that overseas buyers are not making bulk purchases at US ports. China rarely buys American scrap, but produces half of the world's steel in any given month. It is prepared to remain idle during the Lunar New Year holiday on February 12. This annual event usually causes ripples in the entire global supply chain.

On the supply side, higher scale prices have increased the flow into many scrap yards in the United States, resulting in reduced inventories that some speculators may hold for months.

A non-ferrous metal wire and cable processor told Recycling Today that his inflow decreased significantly in December and early January. He suspects that many small dealers who usually provide him with non-ferrous materials are "busy in moving scrap at these incredible levels."

The first new model in the 440 series is the TANA 440DTeco shredder.

Finland Tana, a leading manufacturer of solid waste mechanical processing machines and equipment, announced that its TANA 440 shredder has been further improved based on feedback from customers and distributors.

The first new model in the 440 series is the TANA 440DTeco shredder, which the company claims is more versatile, more productive and easy to use.

The biggest external change of the 440DTeco shredder is the new, higher frame, which allows more than 200 millimeters (mm) of extra space between the conveyor and the track model rotor. According to the company, this new frame structure provides more space for material flow under the rotor and is especially helpful for pre-shredding large materials such as plastics and mattresses. Likewise, the new hopper design has raised walls to prevent unshredded material from falling onto the discharge conveyor.

In addition to the traditional 33-knife rotor, Tana also provides a 44-knife option to improve paper shredding performance. The expanded rotor product includes options for heavy-duty use and optimized operating costs. The shredder is also equipped with an updated labyrinth seal and an improved rotor end structure to protect the gearbox from external objects and interference.

To further increase productivity and improve the quality of the final product, Tana said it designed 440DTeco to promote clean and efficient material flow.

The cleaning comb is now bolted instead of welded and can be repaired faster when needed. Different cleaning combs can be used for different purposes, such as shorter combs for harder and coarser materials to ensure the best durability and abrasion resistance. Longer combs can be used for simpler materials and fine crushing to ensure the best output quality in terms of uniform particle size.

The conveyor system has also been completely redesigned with a new structure, with two independent conveyors: a transfer conveyor under the rotor and a discharge conveyor at the end of the machine. The speed of the two conveyor belts can be adjusted individually.

The frame of the unloading conveyor is now self-supporting and the angle can be easily adjusted even during operation. In addition, the scale system will be automatically calibrated according to the angle of the unloading conveyor.

The shredder will be equipped with the new TANA control system (TCS), which is a touch screen display on the side of the machine, which can be used to control all functions of the shredder. According to Tana, the new user interface is easy to use and helps operators find the most effective settings for each process.

The decree stipulates that building permits for new, additional, or altered buildings with an area of ​​more than 5,000 square feet can transfer at least half of the project’s waste from the landfill.

Since its implementation in 2016, the Zero Waste Advisory Committee in Austin, Texas has voted to reconvene the Construction and Demolition (C&D) Recycling Regulation Subcommittee to evaluate the law.

According to Austin Monitor, the decree stipulates that a building permit for a new, additional or altered building area of ​​more than 5,000 square feet can transfer at least half of the construction project waste from the landfill. Another requirement is for builders to dispose of no more than 2.5 pounds of material per square foot of floor space in the landfill.

The law also requires contractors to submit construction recycling reports online, showing how many tons of construction waste are recycled and how much is sent to landfills.

The regulation is part of a broader zero waste strategic plan passed in 2018, which aims to divert 90% of waste from landfills and incinerators by 2040.

In 2015, while the ordinance was still being developed, Woody Lane, a zero-waste planner at Austin Resource Recovery, told the city council that the cost per ton of trash moved was about $20, an increase of 5 to 18 cents per square foot. Construction of a new multi-family structure, this estimate confirmed the demolition contractor's concerns about costs at the time.

At the January 13th meeting of the Zero Waste Advisory Committee, the Austin Monitoring Report discussed many of the same issues.

Adam Gregory, who represents Texas Disposal Systems in Creedmoor, said that although the city has made great strides in reducing its environmental impact, the ordinance deserves a reexamination. He said that if Austin’s C&D recycling program has a chance to succeed, it’s time to review it more fully and assess the “good and bad” impact.

In an interview with Austin Monitor, Gregory stated that according to the current law, the main issue is not about environmental sustainability, but about law enforcement by bad actors. Circumventing regulations is a way for companies to save operating costs, which means that compliance with the law puts the company at a competitive disadvantage.

"According to the regulations, when any company operates in a way that does not meet environmental standards, they will save money by cheating the system," he said. "If you want to operate honestly, you have to spend more money to do this. This is an unfairly competitive market."

At the meeting, Commissioner Gerry Acuna pointed out the problems with the current system. He said: "Yes, some changes must be made to the [Regulations]-not only in keeping with the report, but also in keeping with the actual environmental challenges that we can solve. . Face it on the road later."

Since then, the committee has officially reconvened the subcommittee. Committee members Amanda Masino, Ian Steyaert, and Cathy Gattuso volunteered to lead the work and will start discussing improvement measures next month.