Era of using cathode in place of scrap at some melt shops seems to have dried up for the foreseeable future.

China’s property market may be a growing source of concern, but at least one metals industry analyst identifies other likely sources of copper demand rising in that nation in 2022.

Gary Gao of Shanghai Metals Market (SMM), in a mid-January online presentation, said the growing market share of electric vehicles (EVs) and other new energy vehicles (NEVs) in China was poised to absorb more copper in 2022.

Unlike in the United States, where EV share remains in the low single digits, Chinese policymakers via the 14th Five-Year-Plan and demand from Chinese drivers alike are boosting prospects for EVs. EVs and the charging infrastructure needed to support them will help consume copper in 2022, Gao said.

Gao also cited urban rail transit funding and construction tied to “satellite cities” as government spending priorities that could spur demand for copper. He also acknowledged the countereffects of a “slowing” real estate market. (Some observers of China’s economy fear an abrupt halt versus a slowdown in that sector.)

Figures gathered by Gao and SMM show copper cathode inventories have declined in London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) warehouses. “We believe that comes from the tight logistics,” Gao said, including considerable amounts of copper cathode and blister copper “just floating in the sea.” SMM would like to produce a number for stalled copper, but Gao described that as “challenging.”

In 2021, Gao said China imported some 9.95 million metric tons of copper cathode to help meet its needs. Additionally, some 2.69 million metric tons of copper scrap were used in China last year to produce cathode.

SMM’s forecast sees copper concentrates being made at a surplus in 2022. If China taps into what would then be a lower cost concentrates market this year—combined with avoiding enforced factory power outages—the need for China to import cathodes will likely diminish.

In 2020, some 2.5 million metric tons of copper cathode were used to replace copper scrap, in part because of Chinese regulations and a lack of global scrap supply. That figure was reduced to 1 million metric tons of replacement cathode in 2021, SMM says. The firm sees cathode being used in lieu of scrap as a method that will disappear in 2022 and 2023.

At the same online event, Phoebe Yang of SMM portrayed the rise and fall of China’s hunger for imported zinc ingots in 2020 and the first half of 2021. That arbitrage window, Yang said, seems to have closed late last year and is not likely to reopen in 2022.

Investments to smelt more zinc within China are likely to make the nation self-sufficient for the metal in 2022 and even position it as an exporter. Yang noted that rising energy costs in Europe were causing smelter operators there to greatly reduce capacity this January.

ELV recycling efforts in India point to a larger role for shears and balers.

Steel producers and the government of India seem largely aligned in efforts to invest in that nation to maximize metals recovery from end-of-life vehicles (ELVs).

Shredding auto hulks has long been the dominant processing method for ELVs in Europe and North America. Initial investments in India, however, point to a significant role for ferrous shears and balers in the process.

In much of the world the old “auto bundle,” or baled auto hulks that decades ago traded as No. 2 dealer bundles in the United States, have faded away as a traded grade. (This is not to be confused with auto factory bundles, a higher grade of scrap comprised of baled auto component plant stampings.)

Might developments in India cause the baled auto hulks grade to re-emerge?

In August of last year, New Delhi-based Tata Steel commissioned its first ferrous scrap shredding and recycling plant, located in the city of Rohtak in the state of Haryana, India, in the northern part of that nation.

As it did so, the steelmaker also launched two new brands of ferrous scrap known as Tata FerroBaled and Tata FerroShred, tied to the sale of the baled and shredded ferrous scrap produced at the Rohtak facility, which has 500,000 metric tons per year of processing capacity.

The steelmaker says its Tata FerroBaled and Tata FerroShred brands will offer “high cleanliness, low contamination, high bulk density, lower tramp elements and no radioactivity” and shipments will be accompanied by test certificates, calling that “another first for the scrap industry.”

In November of last year, a ceremony in Noida, India, near New Delhi, was held to inaugurate another ELV disassembly and processing facility. This one is being operated by a joint venture (JV) company called Maruti Suzuki Toyotsu India Private Ltd. (MSTI).

That 10,990-square-meter (118,000-square-feet) facility, at least initially, does not include a shredding plant. Instead, JV partner MTSI says the facility “uses modern and technologically advanced machines to dismantle and scrap ELVs in a scientific manner.”

A graphic image depicting operations at the MSTI Noida facility, posted to the Maruti Suzuki website, shows vehicle disassembly and metals baling operations. It does not indicate the presence of a shredding plant. The plant nonetheless has the capacity to scrap and recycle more than 24,000 ELVs annually, says MSTI.

At the opening ceremony, Naoji Saito, CEO of Toyota Tsuho’s Metal Division), remarked, “Recently we have run environmentally friendly ELV dismantling and recycling businesses in several major countries of the world. Our experience of over 50 years in Japan helped in these projects. Now we will achieve the best practice for ELV recycling and contribute to the circular economy in India by combining our experience and equipment made in India.”

A decision to engage in more dismantling and less shredding in India could have several underlying reasons. Labor is generally more available for dismantling in the Indian subcontinent compared with Europe or North America.

Emissions reduction and environmental reasons also could be playing a role. Shredder emissions are under scrutiny in Europe and the United States, a circumstance Indian environmental authorities likely are aware of as they combat ongoing air pollution problems in that nation.

Stated Yogesh Bedi, who leads the Steel Recycling business unit of Tata Steel, at a late 2021 online event hosted by India-based SteelMint, “In this carbon-conscious world where carbon emissions are a big ‘no’ and climate change is of concern, recycling is going to be important. Any opportunity related to recycling should be considered going forward. Scrap is becoming an important future raw material.”

Data show a 5.6 percent increase in production compared with 2020, and OCC consumption also could reach record numbers.

The American Forest & Paper Association (AF&PA), Washington, has released preliminary data from U.S. paper and paperboard mills in 2021 revealing record containerboard production. The data indicate total containerboard production last year increased 5.6 percent compared with 2020—the ninth increase in the last 10 years.

“Paper products and materials like containerboard help to meet the needs of consumers seeking sustainable choices,” says AF&PA President and CEO Heidi Brock. “These are some of the most-recycled materials in the United States.” Brock adds that more paper by weight is recycled from municipal waste streams than plastic, glass, steel and aluminum combined.

According to information from the AF&PA, the consumption of old corrugated containers (OCC) also may reach record numbers when it publishes new data Thursday, Jan. 20. Through November 2021, OCC consumption already had reached 22.2 million tons, just shy of the previous full-year record (22.8 million) set in 2020.

The AF&PA also says paper recycling rates have grown over time and remain consistently high—meeting or exceeding 63 percent since 2009. In 2020, the paper recycling rate remained largely unchanged at nearly 66 percent. Paper recycling has seen significant growth since 1990, which was the base year against which the AF&PA began setting its recycling goals. At that time, the rate was 33.5 percent.

“Consumer demand is growing for sustainable paper products, and our industry is investing to meet evolving customer and consumer needs,” Brock says.

“Paper recycling is a success story,” she adds. “That’s because of the industry’s investments, education efforts, the wide availability of paper recycling programs and the many millions of Americans who recycle each day.”

The paper industry has completed or announced nearly $5 billion in manufacturing infrastructure investments from 2019 to 2023, according to a news release from the AF&PA. The investments will help increase the amount of recovered paper used by U.S. mills by approximately 8 million tons—a 25 percent increase over levels seen in 2020.

The platform aims to increase the efficiency of recycling plastic at scale.

United Arab Emirates-based International Holding Co. (IHC) has formed Rebound Ltd. to address global plastic pollution. Rebound Ltd. also will launch Rebound Plastic Exchange as a global quality-assured trading platform for plastic feedstock to enable buyers and sellers to trade recycled plastic.

The new platform aims to increase the efficiency of recycling plastic at scale. According to IHC, Rebound Plastic Exchange “will introduce globally recognized standards, certification, insurance and quality assurance into the supply chain.”

“We’ve developed a global trading solution that offers a large-scale opportunity to reduce some of the world’s plastic pollution via recycling,” says Maryam Al Mansoori, general manager of Rebound Ltd. “By capturing the value of plastic feedstock, we allow companies across all sectors—from apparel to automotive—to access recycled content with confidence while creating new opportunities for communities in the value chain to grow their economies.”

According to a news release from IHC, the current market for recycled plastic “is fragmented” and complex, making it difficult to source quality products. The company says it hopes Rebound Plastic Exchange will fill that gap in the market to facilitate a circular economy through a quality-assured platform to purchase and provide feedstock of recycled plastic to meet the growing demand from multinational companies.

Syed Basar Shueb, IHC’s chief executive officer and managing director, adds, “This is a breakthrough concept coming from the UAE to the world with significant potential. The availability of a reliable advanced recycling system will play an essential role in helping address plastic in the environment of many countries around the globe. We are confident our investment in Rebound Plastic Exchange will be another successful business for IHC.”

Craig Foster will lead the company as it develops plans for plants to turn low-grade plastic scrap into PCR for commercial and industrial applications.

Circulus Holdings, a Houston-based public benefit limited liability company that produces postconsumer resin (PCR) from recycled low-density polyethylene (LDPE), has appointed Craig Foster as its CEO. Circulus plans to build plants that use advanced technologies to transform lower grade plastics into PCR suitable for commercial and industrial applications.

David Hudson, founding CEO of Circulus, plans to stay with the company as its chief strategy officer, focusing on business development, innovation and commercial growth.

According to a news release from Circulus, Foster has executive leadership and operational experiences that he brings to Circulus. Most recently, he was executive officer and senior vice president of CSW Industrials’ specialty products business. Prior to that he served as president of Whitmore Manufacturing Co., a CSW Industrials company.

“Having Craig join as CEO will strengthen Circulus as it executes its ambitious growth plans,” says Troy Thacker, a managing partner at Ara Partners, a private equity firm specializing in industrial decarbonization investments that is Circulus’ financial sponsor. “Craig has an established track record of successfully leading organizations as they accelerate innovation-driven growth and deliver top-tier operating results.”