The global scrap industry is booming
Scrap helps the primary metals industry feed these needs – but not only in the developing world. In the United States, two-thirds by weight of domestically produced steel is made from scrap, and nonferrous scrap is used to make 60% of the alloys and metals produced domestically. Even back in 2004, steelmakers worldwide used scrap for nearly half their furnace feedstock.
In the steel industry, because it is so massive – and quite apart from the matter of its cost – the use of scrap as opposed to virgin ore has a single major advantage: very significant energy savings, some 74% for both steel and iron in fact.
If one of the attractions of ferrous and nonferrous scrap is in energy savings, it is the current price levels that are particularly attractive. With silver and Gold Prices at or near record highs, the metals can be recovered from old electric scrap, electronic equipment including computers, military equipment and, of course, jewelry.
In addition, while both silver and platinum can be recovered from spent catalytic converters, platinum can also recovered from old hard disk drives, oxygen sensors, spark plugs and disposable medical devices.
In fact, according to the US Department of Defense, sales of military scrap under its Precious Metals Recovery Program between 1975 and 2005 saved the government some US$250 million.
At a current price level around $3,400 per lb, sales of rhenium alone recovered from spent bimetallic catalysts used in the oil refining industry makes them valuable scrap. And with the price of cobalt (a key component in lithium-ion batteries) having skyrocketed some 70% in the last year to a current price of around $45 per lb, the scrap value of old jet engines, magnets, spent rechargeable batteries and cutting tools have risen significantly.
Scrap Metal: The Environmental Angle
The greatest environmental benefit from using scrap, instead of virgin ore, is the reduction in greenhouse emissions. Recycling metals saves new energy use by the mining industry. If the savings in the steel industry is large, for other base metals it can be even more significant:
Aluminum: 95% energy saving
Copper: 85%
Zinc: 63%
Lead: 60%
It is no wonder, therefore, that around 40% of the world's need for copper is provided for by scrap. Using scrap not only reduces air pollution and water use, it also conserves natural resources.
For example, recycling one ton of steel conserves 120 lbs of limestone, 2,500 lbs of iron ore and 1,400 lbs of coal with an 86% reduction in air pollution, 40% in water use and 76% in water pollution.
Scrap Metal: Don't Try This at Home
While recyclable rustling, stealing beer kegs and stripping church roofs of lead may be increasingly popular and highly profitable, they are also all illegal. In addition, trying to steal copper wiring can also be lethal.
For the committed entrepreneur, there are books and websites out there devoted to the "home" recycler telling how to recycle everything from old alternators to electronics to government surplus. You can even download a scrap metal business plan from the web.
Unfortunately for those of us who do not want either to set up our own scrap yard or turn over the basement for dismantling old TVs, a large proportion of the scrap metal/recycling industry is privately owned, not least because many of the businesses are small operations, often family firms, employing just a handful of employees. There are, however, a number of US publicly quoted companies seriously involved in scrap metal, even if it may not be their only activity.
Each week the ISRI publishes its Friday Report, with a section at the back entitled "ISRI's Eye on Equities". While all of the companies listed have an interest in recycling of one sort or another, among those with a particular interest in scrap metal are Commercial Metals Company (CMC), Gerdau Ameristeel (GNA), Industrial Services of America (IDSA), Metalico (MEA), Metal Management (MM), Schnitzer Steel Industries (SCHN), Sims Group (SIMYY) and Steel Dynamics (STLD).
Whether or not base metal and Gold Prices remain at their current levels, there will always be a need for scrap metal. With energy looking to remain costly for a while yet and concern for our environment set only to increase, scrap yards will be with us for a while. And there will still be plenty of brass in old muck.
Scrap helps the primary metals industry feed these needs – but not only in the developing world. In the United States, two-thirds by weight of domestically produced steel is made from scrap, and nonferrous scrap is used to make 60% of the alloys and metals produced domestically. Even back in 2004, steelmakers worldwide used scrap for nearly half their furnace feedstock.
In the steel industry, because it is so massive – and quite apart from the matter of its cost – the use of scrap as opposed to virgin ore has a single major advantage: very significant energy savings, some 74% for both steel and iron in fact.
If one of the attractions of ferrous and nonferrous scrap is in energy savings, it is the current price levels that are particularly attractive. With silver and Gold Prices at or near record highs, the metals can be recovered from old electric scrap, electronic equipment including computers, military equipment and, of course, jewelry.
In addition, while both silver and platinum can be recovered from spent catalytic converters, platinum can also recovered from old hard disk drives, oxygen sensors, spark plugs and disposable medical devices.
In fact, according to the US Department of Defense, sales of military scrap under its Precious Metals Recovery Program between 1975 and 2005 saved the government some US$250 million.
At a current price level around $3,400 per lb, sales of rhenium alone recovered from spent bimetallic catalysts used in the oil refining industry makes them valuable scrap. And with the price of cobalt (a key component in lithium-ion batteries) having skyrocketed some 70% in the last year to a current price of around $45 per lb, the scrap value of old jet engines, magnets, spent rechargeable batteries and cutting tools have risen significantly.
Scrap Metal: The Environmental Angle
The greatest environmental benefit from using scrap, instead of virgin ore, is the reduction in greenhouse emissions. Recycling metals saves new energy use by the mining industry. If the savings in the steel industry is large, for other base metals it can be even more significant:
Aluminum: 95% energy saving
Copper: 85%
Zinc: 63%
Lead: 60%
It is no wonder, therefore, that around 40% of the world's need for copper is provided for by scrap. Using scrap not only reduces air pollution and water use, it also conserves natural resources.
For example, recycling one ton of steel conserves 120 lbs of limestone, 2,500 lbs of iron ore and 1,400 lbs of coal with an 86% reduction in air pollution, 40% in water use and 76% in water pollution.
Scrap Metal: Don't Try This at Home
While recyclable rustling, stealing beer kegs and stripping church roofs of lead may be increasingly popular and highly profitable, they are also all illegal. In addition, trying to steal copper wiring can also be lethal.
For the committed entrepreneur, there are books and websites out there devoted to the "home" recycler telling how to recycle everything from old alternators to electronics to government surplus. You can even download a scrap metal business plan from the web.
Unfortunately for those of us who do not want either to set up our own scrap yard or turn over the basement for dismantling old TVs, a large proportion of the scrap metal/recycling industry is privately owned, not least because many of the businesses are small operations, often family firms, employing just a handful of employees. There are, however, a number of US publicly quoted companies seriously involved in scrap metal, even if it may not be their only activity.
Each week the ISRI publishes its Friday Report, with a section at the back entitled "ISRI's Eye on Equities". While all of the companies listed have an interest in recycling of one sort or another, among those with a particular interest in scrap metal are Commercial Metals Company (CMC), Gerdau Ameristeel (GNA), Industrial Services of America (IDSA), Metalico (MEA), Metal Management (MM), Schnitzer Steel Industries (SCHN), Sims Group (SIMYY) and Steel Dynamics (STLD).
Whether or not base metal and Gold Prices remain at their current levels, there will always be a need for scrap metal. With energy looking to remain costly for a while yet and concern for our environment set only to increase, scrap yards will be with us for a while. And there will still be plenty of brass in old muck.