IDENTIFICATION OF OPPORTUNITIES
FOR INCREASED RECYCLING
OF FERROUS SOLID WASTE
A Summary Report
U.S. ENVIRONMENTAL PROTECTION AGENCY
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IDENTIFICATION OF OPPORTUNITIES FOR INCREASED RECYCLING
OF FERROUS SOLID WASTE
A Summary Report
This open-file report (SW-45d.l) summarizing a study
performed under a Federal solid waste management demonstration grant
(No. G06-EC-00298) to the Scrap Metal Research and Education Foundation,
Institute of Scrap Iron and Steel, Ino.,
was written by W. J. REGAN, R. W. JAMES, and T. J. McLEER
of Battelle Memorial Institute, Columbus Laboratories;
and is reproduced as received from the grantee.
This summary consists of the first two chapters of a
384-page report of the same title, which is available
from the National Technical Information Service, De-
partment of Commerce, Springfield, Virginia. The full
report (SW-45d) of which this is an excerpt contains
126 tables and 46 figures and consists of the follow-
ing sections:
Introduction
Summary
Environmental Perspective
Ferrous Solid Waste
Markets for Iron and Steel Scrap
The Ferrous Scrap Processing Industry
The Auto Wrecking Industry
Technology of Iron and Steel Scrap Utilization
Other Major Areas
U.S. ENVIRONMENTAL PROTECTION AGENCY
1972
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This report has been reviewed by the U.S. Environmental
Protection Agency and approved for publication. Approval
does not signify that the contents necessarily reflect
the views and policies of the U.S. Environmental Protec-
tion Agency3 nor does mention of commercial products con-
stitute endorsement or recommendation for use by the U.S.
Government.
An environmental protection publication (SW-45d.l)
in the solid waste management series
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IDENTIFICATION OF OPPORTUNITIES
FOR INCREASED RECYCLING OF FERROUS SOLID WASTE
ABSTRACT
The study on which this abstract is based was conducted by Battelle-Columbus for the
Office of Solid Waste Management Programs of the Environmental Protection Agency and the Scrap Metal
Research and Education Foundation of the Institute of Scrap Iron and Steel, Inc., the national
association of the ferrous scrap processing industry.
The United States and her people, faced with mounting environmental deterioration, are
taking action to improve our environmental quality. The economic implications are large, yet the
social costs of continued pollution have serious consequences.
The accumulation and increasing generation of solid waste is one important aspect of en-
vironmental damage, in addition to air and water pollution. Its problems are caused by many complex
factors, which do not lend themselves to easy solution.
Ferrous solid waste is the portion of discarded iron and steel materials and the ferrous
components of discarded products which is not collected and processed into iron and steel scrap by
the ferrous scrap industry. While it is a minor portion of the total solid waste generated annually,
it nevertheless is a highly visible and contributing factor to solid waste problems. Representing
an under-utilization of a potentially valuable resource for iron and steel production, it is inti-
mately bound to the total solid waste problem. Its alleviation should therefore have positive
consequences for solid waste management.
Recycling, the continuing reuse of materials, is the positive response to the problem of
waste disposal. It offers the most suitable alternative for lessening solid waste problems.
From inception, the ferrous scrap processing industry has had as its basis the recycling
of ferrous solid waste into raw materials of value. This industry is best equipped to continue and
accelerate solutions to the problems. Its orientation must continue to be action, and not reaction.
The industry, however, must merit and receive increased cooperation from industry, its markets,
government, private organizations, and individuals if success in increased recycling of ferrous
solid waste is to be achieved.
Numerous problems and obstacles for increased recycling of ferrous solid waste exist.
Major among t\\etn are: low growth rate of consuming industries; changing iron and steel making tech-
nology; low scrap quality from ferrous solid waste; reduced requirements for the purchased scrap
proportion of total scrap consumption; poor economics of recycling ferrous solid waste; apparent
discriminatory restrictions; and a lack of public awareness of the scrap processor's role in
economic recycling.
The key to achieving recycling success is increased market demand for iron and steel scrap,
the value produced from ferrous solid waste. However, if normal market demand does not provide for
both profitable processing of ferrous solid waste by the scrap industry and its subsequent economic
use by the iron and steel consuming industries, a reordering of our traditional commercial objectives
based on profit and efficiency will be required in order to include the social cost of an increas-
ingly deteriorating environment.
A number of potential opportunities exist for increased recycling of ferrous solid waste.
But with few exceptions, significant effort and cooperation by all concerned--the ferrous scrap
industry, the iron and steel industries, and governmental bodies--is required if the problems and
obstacles to increased recycling are to be overcome and turned into opportunities. The opportunities
are offered through the following channels: increased participation in current markets; development
of new markets; improved scrap economics; improved scrap quality; improved logistics; minimized
legal constraints; improved definition and analysis of the scrap situation; and increased public
awareness of the importance of recycling and the scrap processor's role. The study presents recom-
mendations for fulfillment of these opportunities.
ill
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TABLE OF CONTENTS
Chapter I
INTRODUCTION ............................... 1
Background of the Study ....................... 1
Objectives and Scope ........................ l±
Research Methods .......................... k
Chapter II
SUMMARY ................................. 7
Environmental Quality ........................ 7
Solid Waste Alternatives ...................... 8
Ferrous Solid Waste ....................... , . 9
Markets for Ferrous Solid Waste ................... 10
The Ferrous Scrap Industry—The Vital Link Between Ferrous Solid
Waste and Its Markets ....................... 13
Major Problems and Obstacles to Increased Recycling ......... 15
Low Growth Rate of Consuming Industries ............ 15
Changing Iron and Steelmaking Technology ............ yj
Quality of Scrap From Ferrous Solid Waste . .......... 19
Reduced Requirements for Purchased Scrap of Total Scrap
Consumption ......................... 20
Poor Economics of Recycling Ferrous Solid Waste ........ 21
Apparent Discriminatory Restrictions .............. 21
Lack of Public Awareness of the Scrap Processor's Role in
Economic Recycling ...................... 23
Major Opportunities for Increased Recycling of Ferrous Solid Waste
and Recommendations for Achievement ................ 2^4-
Increased Participation in Current Markets ........... 2k
Development of New Markets ................... 28
Improved Economics ....................... 29
Improved Scrap Quality ....... .... .......... 32
Improved Logistics ....................... 33
Minimized Legal Constraints .................. 3!^.
Improved Definition and Analysis of Scrap Situation ...... 35
Increased Public Awareness of the Importance of Recycling and
the Scrap Processor's Role .................. 37
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CHAPTER I
INTRODUCTION
In June, 1970, Battelle-Columbus undertook a research program for the
Scrap Metal Research and Education Foundation of the Institute of Scrap Iron and
Steel, Inc. (ISIS). This was through a demonstration grant of the Office of
Solid Waste Management Programs of the Environmental Protection Agency.
Background of the Study
The increasing volume of solid waste in the United States is causing
significant environmental problems with consequences affecting our aesthetic
senses, economic costs, health, social welfare, land usage, governmental policy,
and natural resources.
One approach to the reduction of solid waste pollution is to reclaim
waste materials for reuse—the recycling concept. A well established industry--
the ferrous scrap industry—exists to accomplish the recycling of iron and steel.
Member firms of the industry have capably performed their difficult and essential
functions of preparing ferrous waste materials for economic recycling as iron and
steel (ferrous) scrap. This has taken place in the traditional economic environment
However, additional dimensions have recently been added to this tradi-
tional economic environment. Improvement of the living environment and increased
national concern with conservation of natural resources, the new dimensions,
provide new challenges and opportunities for the recycling industry. No longer
is economic gain the only driving force for recycling of waste materials. Social
benefit has been added in the form of improved living conditions and preservation
of resources for future generations. In an economics-based nation, this creates
problems of interpretation and evaluation of noneconomics-based goals and
activities.
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The Institute of Scrap Iron and Steel, established in 1928, is a
national association made up of approximately 1,300 processors and brokers of iron
and steel (ferrous) scrap, and allied members. Member firms handle more than
90 percent of all purchased scrap consumed in the United States and exported, a
$4 billion annual industry. The scrap industry plays an important part in pro-
viding three major services to our nation: reclamation or recycling of discarded
ferrous products of our society and processing them into raw materials valuable
for new products; conservation of natural resources through the utilization of
these reclaimed materials; and beautification through the removal and elimination
of these discarded materials from our landscape. The Institute, besides serving
its membership's needs, is also active in projects that serve the public interest,
such as beautification and training programs for the hard-core unemployed. Early
recognition was given to the problems of abandoned automobiles through sponsor-
ship of a national conference in 1964, and again in 1970.
Recognizing the need for research in the reclamation of ferrous metallics,
the Institute, in 1967, formed the Scrap Metal Research and Education Foundation.
The Foundation's main objective is to place more emphasis on research in the
industry, though considerable work had been done in the past.
For many years, the Institute has evaluated, discussed, and worked on
numerous technological, operating, and marketing problems of ferrous scrap. This
has been done through its Special and Standing Committees, research contracts,
government agencies including the Bureau of Mines and the Bureau of Domestic
Commerce in the Departments of Interior and Commerce respectively, consumers and
suppliers, and the American Iron and Steel Institute and foundry associations.
Examples of studies conducted are included in the Bibliography of this report.
During this period, significant changes have occurred in the iron and
steel industries, the major markets for iron and steel scrap. Iron and steel
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scrap represents 50 percent of the ferrous raw material input to raw steel and
iron and steel castings production; the remainder comes from iron ore based
pig iron and hot metal (molten pig). The changes occurring and having major impact
on the scrap industry and ferrous solid waste accumulation include: changes in
iron and steelmaking technology; changes in demand for iron and steel products;
changes in types of iron and steel products; and increased quality and economic
considerations in scrap processing and iron and steelmaking.
To offset these changes diminishing the demand for scrap by its markets,
improved scrap processing equipment has been developed to supply the desired
quality product. But even with this and other improvements in the scrap industry,
the demand for scrap has lagged the available supply. This results in both
ferrous solid waste* and an underutilization of an important raw material resource.
It was therefore deemed appropriate by the Office of Solid Waste
Management Programs of the Environmental Protection Agency and the Scrap Metal
Research and Education Foundation of the Institute of Scrap Iron and Steel, both
vitally concerned with iron and steel (ferrous) scrap and its movement, or lack
thereof, that a major study should be conducted to define the problems and seek
their solutions.
The starting point for such a study is an assessment of the ferrous scrap
processing and brokerage industry, and its relationship to both its sources of
supply and its markets. The study should outline problem areas that inhibit more
effective recycling, and should provide a data base for further policy and in-
vestment decisions by both public and private bodies concerned with solid waste
programs. The study should further identify opportunities for increased recycling,
and recommend action programs to achieve this objective. It is toward those ends
that Battelie-Columbus has conducted this study.
* Ferrous solid waste is defined as that portion of discarded iron and steel
materials and the ferrous components of discarded products which is not
collected and processed into iron and steel scrap.
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Objectives and Scope
The major objective of the study on which this report is based was to
identify opportunities for increased recovery and recycling of ferrous solid
waste. In order to achieve this, the following subobjectives were undertaken:
• Provision of a data base on the present iron and steel scrap
processing industry
• Examination of the structure and functions of the ferrous scrap
industry, and its relationships to its sources of supply and
markets
• Examination of those factors that tend to inhibit the industry
from performing its role to a greater extent than at present
and which thereby lead to ferrous solid waste problems
• Identification of opportunities for the industry to more
effectively contribute to solutions of the metallic solid
waste problems of this nation.
Research Methods
To provide overall guidance and assistance in the study, a Task Force
was established from the Institute's active committees having a direct bearing
on the goals of the research study. These men, brought into the active participa-
tion of the Scrap Metal Research and Education Foundation, met quarterly as a
group and individually as required with Battelle, and provided invaluable
assistance during the progress of the study. In addition, Institute staff and
consultant personnel made frequent contributions to the project.
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Battelle Memorial Institute, as prime contractor, used its interdisci-
plinary approach to carry out five primary functions :
(1) A literature search and evaluation to assess the current
documented and published information was made. References
cited and having implications for the study are listed in the
Bibliography and throughout the report.
(2) An extensive survey of the ferrous scrap industry to identify
the industry, its capabilities, and its problems was conducted.
The actual survey was subcontracted by Battelle to Chilton
Research Services, a Division of the Chilton Company in
Philadelphia, Pennsylvania, a qualified outside organization
experienced and equipped in survey techniques. A copy of the
survey questionnaire appears in Appendix A. Systematic
selection on a geographical basis was made of 249 firms in
the industry, representing a sample size of firms accounting
for approximately 15 percent of the industry's volume. The
geographic distribution of interviews is shown on page A-4.
Personal interviews and telephone interviews were 50:50. Raw
data from the survey appears in Appendix A. Interpretation and
analysis of the data appears throughout the report, and is
noted by "Source: Extensive Survey".
(3) In-depth interviews were then conducted in person by the
Battelle project team to add detail and insight into the
problems identified in the Extensive Survey, to identify the
ferrous solid wastes most difficult to collect or process, to
uncover the problems involved in disposing of the solid wastes
generated during the processing of iron and steel scrap, and to
determine other types of restrictive problems facing the industry.
Problems peculiar to specific regions received attention.
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In-depth interviews were held with over 80 individual firms,
organizations, and government agencies representing the sources
and markets for iron and steel scrap, members of the ferrous
scrap industry, and others associated with recycling opportunities.
(4) Technical and economic evaluation to determine the obstacles
and opportunities for increased recycling, based upon the infor-
mation developed during the preceding functions, then began.
The sources and markets for ferrous solid waste were analyzed.
The ferrous scrap industry's relationships, capabilities, and
problems with regard to both sources and markets were evaluated.
Obstacles were defined and analyzed; potential opportunities were
identified; action plans for implementation were developed.
(5) Synthesis and recommendations for further research and action
leading to increased recycling, and therefore alleviating our
solid waste problems, conserving natural resources, and adding
to the economic and social well-being of our nation, was the
final phase of the study.
NOTE: This study includes numerous statistical tables, based upon a variety of
sources, e.g., American Iron and Steel Institute, U.S. Bureau of Mines,
Institute of Scrap Iron and Steel, Inc., and others. In each case, the
source(s) selected for a particular table was made to best illustrate
that table's purpose and to provide consistency within the table. How-
ever, due to the variety of sources and methodology of statistical
collection and content, some minor inconsistencies may exist in
comparing one table to another.
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CHAPTER II
SUMMARY
Environmental Quality
The United States and her people, faced with mounting environmental
deterioration, are growing more aware than ever before that continued exploita-
tion of our environment has grave social consequences for our nation. Our
economically motivated and technology based society has given us a standard of
living and a quantity of life unsurpassed in history; yet, in the process the
quality of that life has been adversely affected.
Three basic types of interrelated environmental problems exist:
pollution, land misuse, and natural resource depletion. And pollution, the most
prominent type of environmental problem, has three sources: air, water, and
solid waste. Solid waste, the unwanted residue of our society, has only recently
become of national concern, due to its increased generation magnifying current
disposal problems and costs, and its affront to our aesthetic senses.
Generation of solid waste in 1969 was estimated at 4,340 million tons.
While agricultural and mineral wastes comprise the major portion (3,980 million
tons), the type most familiar, i.e., residential, commercial, institutional, and
industrial waste amounted to 360 million tons, or almost 2 tons per capita in
the United States. Of the latter, less than 50 percent was collected, at an
annual cost of $4.5 billion.' ' Most is simply deposited on the land in open
dumps, or left to accumulate at its sources.
Solid waste problems obviously exist. But these problems are complex,
and defy simple solution. In addition, the economic implications of an improved
environment, while difficult to measure, are great. No longer may the most
efficient manufacturing process or waste disposal method be used if by doing so
the environment is impaired. Pursuit of economic goals can no longer disregard
basic value and environmental considerations as they have too often done in the past
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Profits will be maximized, but subject to environmental constraints. However,
how far and how fast we progress in the direction of environmental quality
improvement balances delicately on achieving, within our socio-politico
framework, an economic cost/environmental benefit equilibrium.
Solid Waste Alternatives
Six basic alternatives exist for solid waste management. They are to:
(1) Continue polluting, which is obviously unacceptable due to both
environmental and economic considerations
(2) Limit use of current materials contributing to pollution, which
could have severe economic consequences
(3) Make greater use of biodegradable materials, which has some merit
but is limited in their use due to economic and technological
factors
(4) Develop new uses for solid waste in its present form, which offers
limited applications
(5) Improve disposal of waste through improved economic and sanitary
methods, which has certain merits but is a waste of potential
resources
(6) Recycle as great a portion of the solid waste as possible and/or
required, while at the same time improving the economics and
sanitation of disposal of the residue. This is the most promising
alternative, both environmentally and economically.
Recycling, the conversion and reuse of discarded products in the production of
new, offers the best potential alternative for improving both our environmental
and economic climate. While a totally "closed system", one in which all waste is
recycled for useful and productive purposes, is not feasible, greater utilization
than at present is necessary. Five basic reasons exist for the "why" of
economic recycling of solid waste. They are:
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(1) Alleviation of mounting solid waste problems and costs
(2) Conservation of natural resources
(3) Use of an economic raw material source
(4) Aesthetic and health considerations
(5) Avoidance of economic dislocations within processing
and supplying industries.
It should be noted, however, that the effect of increased recycling on existing
industries, e.g., virgin materials producers, must also be considered.
Ferrous Solid Waste
Ferrous solid waste is an integral part of our total solid waste
problem. Originating in the discards of society, it represents the loss of
potentially valuable resources for recycling and presents high visibility in such
forms as junked vehicles, steel cans, and ferrous components of abandoned buildings
Nevertheless, when collected and processed into iron and steel scrap by the
ferrous scrap processing industry, it represents a very real resource for pro-
duction of iron and steel.
Iron and steel scrap represents approximately 50 percent of the raw
material input for the production of iron and steel, with natural resource iron-
bearing materials, e.g., iron ore, comprising the remainder. Scrap originates in
three basic sources: (1) home, or mill revert scrap, generated during the pro-
duction of iron and steel; (2) prompt industrial scrap, generated during the
fabrication of mill products into consumer and industrial products by the
metalworking industries; and (3) obsolescent scrap, the product of value
obtained from society's discards, i.e., ferrous solid waste. The latter .two
types are collectively known as purchased scrap, as they are collected and pro-
cessed externally to the iron and steel producer by the ferrous scrap industry.
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Some portion of the prompt industrial scrap is properly prepared at the generating
plant for use, and therefore involves only a brokerage operation with direct
shipment to the consumer by the scrap industry; the remainder, however, requires
handling and/or processing by the industry. Obsolescent scrap is virtually all
handled and processed by the scrap industry.
In 1970, almost 86 million net tons of iron steel scrap were consumed
in the United States, and over 10 million tons were exported. Domestically,
home scrap represents about 60 percent of total consumption; prompt industrial
20-25 percent; and obsolescent scrap 15-20 percent. The respective tonnages of
each in 1970 approximated 53, 20, and 14 million net tons.
Home scrap is generally consumed within the plant in which it originated,
although some interplant shipments take place. Prompt industrial scrap also
normally flows smoothly in the recycle chain, due to its known composition and
quality. But ferrous solid waste, the raw material for obsolescent scrap,
because of its heterogeneous sources, unknown quality, and containment in
complex final products, presents the major problem for increased recycling.
Only about 60 percent of the total obsolete ferrous materials becoming available
each year is processed and used as scrap; the remainder becomes ferrous solid
waste. It is estimated that its current accumulation approximates 750 million
tons. A simplified flow chart of the scrap cycle and ferrous solid waste appears
as Figure II-l.
Markets for Ferrous Solid Waste
Iron and steel have formed the structural framework of our economy.
Annual production of raw steel and shipments of iron and steel castings currently
approximates 150 million tons. Two major sources of ferrous raw materials are
used for this production: iron ore, a natural resource which is reduced in
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NATURAL RESOURCES
RECYCLED RESOURCES
Coal
Iron Ore «
PRODUCTION OF
IRON AND STEEL
HOME
SCRAP
Mill
Products
FABRICATION OF
IRON AND STEEL PRODUCTS
PURCHASED
SCRAP
PROMPT INDUSTRIAL
SCRAP
Consumer
Products
FERROUS
SCRAP
INDUSTRY
USE —DISCARD
OF
IRON AND STEEL PRODUCTS
RECYCLED — OBSOLESCENT
SCRAP
Not
Recycled
FERROUS SOLID WASTE
THE PROBLEM
— -> THE SOLUTION-^ —
I
I
I
I
I
t
I
J
FIGURE II-l. THE SCRAP CYCLE AND FERROUS SOLID WASTE
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blast furnaces to pig iron for foundry consumption or hot metal (molten pig
iron) for steelmaking consumption, and iron and steel scrap, the end product of
the scrap processing industry, and the by-product of iron and steel production
and fabrication.
The markets for iron and steel scrap are the iron and steel industries.
The domestic steel industry consumes about 75 percent of total scrap, the ferrous
foundry industry consumes 15 percent, and the remaining 10 percent goes to
export markets and minor uses.
The steel industry in 1970 produced 131.5 million tons of raw steel
and consumed 69.3 million tons of scrap in that production, of which approximately
65 percent was home scrap and 35 percent purchased (prompt industrial and
obsolescent) scrap. The ratio between hot metal and scrap usage approximated
55:45, and has been maintained over a number of years. Steel is produced in
three basic types of furnaces, each using scrap and hot metal in different
proportions.
The basic oxygen furnace, which currently produces over half of this
nation's raw steel, typically uses a 30 percent scrap charge; the open hearth
furnace, 35 percent of the total production, typically uses a 45 percent charge;
and the electric furnace, 15 percent production, uses virtually a 100 percent scrap
charge.
Iron and steel castings shipments in 1970 were 16.5 million tons. Scrap
consumption was 16.2 million tons of which approximately 35 percent was home scrap
and 65 percent purchased. The vast majority of gray iron castings are produced
in cupola furnaces, which use an approximate 85 percent scrap charge, the remainder
being pig iron. Most steel castings are produced in electric furnaces, using
basically a 100 percent scrap charge.
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The third major market for scrap is the export market, consuming 10.6
million tons in 1970, almost 25 percent of total purchased scrap.
Other minor markets exist, such as the use of can scrap for copper
precipitation, but the future for increased recycling is tied to the above three
market outlets.
The Ferrous Scrap Industry—The Vital Link
Between Ferrous Solid Waste and Its Markets
The vital link which connects the sources of ferrous solid waste and
its markets is the ferrous scrap industry. Since its inception in the 1800's,
its major objective has been the profitable recycling of ferrous waste materials
into raw material resources useful for new products.
The ferrous scrap industry produces value, in the form of iron and steel
scrap, from potential wastes, thereby providing the means for preventing both
greater ferrous solid waste accumulation and natural resource depletion. The
basic functions of the industry are to collect ferrous scrap, process or manu-
facture it into physical forms and quality grades required by its markets, and to
manage its purchase and sale. While there are a number of major firms, the general
structure of the industry centers around small, family owned and operated enter-
prises. Three basic types of firms exist: the processor who assembles and pre-
pares the scrap for sale; the processor/broker who assembles, prepares, and sells
the scrap to the consuming markets; and the broker who buys from the processor or
other sources direct, such as prompt industrial scrap from industrial accounts,
and sells to the markets direct with little or no processing on his part. It
has been estimated that approximately 50 firms are brokers, 150 are processor/
brokers, and the remainder are processors and collectors. In total, the number
of firms approximates 1,800 operating slightly over 2,000 establishments.^
Scrap processing has become an increasingly complex and sophisticated
operation, due to the incoming variety of materials and changing requirements of
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the marketplace. The quality required by the iron and steel producing
industries has increased markedly as the requirements of their customers for
improved iron and steel products have increased. On the other hand, the com-
plexity and increasing amounts of nonferrous materials used in consumer goods,
a major source of obsolescent scrap, has made separation and preparation of
quality scrap more difficult.
To effectively deal with these trends and increasing labor costs, the
scrap industry, together with its equipment suppliers, has developed processing
equipment capable of producing quality scrap products. Three major pieces of
equipment have contributed to this upgrading. The 1940's witnessed wide-spread
installation of hydraulic balers, with their capacity to bundle the increasing
amount of light, flat-rolled material. In the late 1950's, the hydraulic
guillotine shear and conveyor systems provided properly sized and segregated
scrap. However, scrap processing made vast strides in the 1960's. The advent
of shredding or fragmentizing equipment capable of producing the most uniform
scrap yet developed from complex consumer goods was a major contribution.
Further contributions to improve scrap quality were made by wide-spread adoption
of shears, sorting conveyor systems, improved briquetting and baling equipment,
as well as other equipment and processing innovations. But this progress has
been expensive. A continuous flow of material through this equipment is required
for profitable operation, a characteristic often lacking in scrap demand.
Maintenance and improvement of the current scrap cycle is vital to
increased recycling success. The ferrous scrap industry is equipped to con-
tinue and accelerate solutions to many of our ferrous solid waste problems.
Orientation must continue to be action, not reaction. Increased cooperation
among the scrap industry, other industries, government, and private organiza-
tions and individuals is required if success in increased recycling of ferrous
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solid waste is to be achieved, as numerous problems and obstacles exist to
increased recycling.
Major Problems and Obstacles to Increased Recycling
Numerous problems and obstacles exist for increased recycling of
ferrous solid waste. They appear on the following page in charted form
(Figure II-2). Some have a direct inhibiting effect on increased recycling,
while others have only an indirect or minor effect. In addition, a number of
the problems listed within the scrap industry are applicable primarily to only
the small or medium-sized processor. The major ones are subsequently discussed,
Low Growth Rate of Consuming Industries
Increased recycling of ferrous solid waste is dependent to a great
extent on increased demand for iron and steel scrap by its major markets—the
domestic iron and steel industries. A key determinant of this demand is the
increased sale of iron and steel products and the associated growth in scrap
demand for supplying the required metallic charge for iron and steelmaking.
The domestic iron and steel industries are not keeping pace with the
growth in the American economy. Over the past decade, the economy as measured
by gross national product, industrial production, its durable manufacturing
components, or any number of other indicators, has grown at an annual rate in
excess of 5 percent versus about 3 percent for iron and steel. Continuation
of these trends is expected, with perhaps the gap even widening between iron
and steel growth and that of the economy. Growth in annual iron and steel
castings shipments is estimated at an annual 3 percent rate, with steel pro-
duction expected to increase at an annual 2.5 percent rate.
Three basic reasons exist for the slower growth in the steel industry,
the major market for iron and steel scrap. Disappearance of a historic export
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balance in steel mill products to a position where imports account for approxi-
mately 15 percent of apparent domestic steel supply has had the major effect.
In 1970 alone, a year in which exports, due to booming foreign demand, were at
their highest levels since before World War II, imports still exceeded exports
by over 6 million tons, at a cost of 9 million ingot tons, and a loss of almost
2 million tons of purchased scrap consumption. Two years earlier, in 1968, the
spread of imports over exports exceeded 15 million tons, equivalent to a decrease
in purchased scrap requirements of almost 4 million tons, a loss exceeding 10
percent of purchased scrap in that year. And these numbers are exclusive of both
the 2 million ton export balance enjoyed during the 1950's and the increase in
imports of ferrous containing consumer items such as automobiles, which if con-
sidered, would make the loss of purchased scrap even greater.
The other two factors, difficult to quantify but nevertheless signifi-
cant contributors to reduced growth, are the replacement of iron and steel by
competitive materials such as aluminum, concrete, and plastics, and the increased
utilization of lighter iron and steel products with improved properties at the
expense of heavier sections, such as high strength-low alloy steels and "thin-tin"
container stock.
The major effect of this low growth rate is to reduce requirements for
obsolescent scrap, the product of ferrous solid waste. Generation of home and
prompt industrial scrap follows closely trends in iron and steelmaking, causing
little excesses over the amount required. Ferrous solid waste, however, accumulates
continuously in our disposal-oriented economy.
Changing Iron and Steelmaking Technology
Two key elements affecting the use of iron and steel scrap are the
type of melting furnace employed by the iron and steel industries and the
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availability and cost of competitive ferrous charge materials (pig iron, hot
metal, or direct-reduced ores) relative to scrap.
The greatest effect has been felt in the steel industry. Only 10 years
ago, almost 90 percent of all steel produced was melted in open hearth furnaces,
which at that time used a 40 percent scrap charge, now at 45 percent. Today,
Less than 40 percent of total steel is produced in open hearths, and this is
expected to decrease to less than 15 percent by 1980. Open hearth steelmaking
has been displaced primarily by the basic oxygen furnace, which uses an approximate
30 percent scrap charge, consisting mostly of home scrap. This has the effect
on a ton to ton basis of reducing scrap requirements by over 30 percent based on
current charging practices. Fortunately for scrap consumption, significant
increases have occurred in electric furnace steelmaking and ferrous castings pro-
duction using virtually a 100 percent scrap charge, which has kept the total
scrap percentage at about its former levels. Thus, future scrap consumption is
tied closely to achieving the continued increase in electric furnace melting to
offset the decreases caused by the rise of the basic oxygen furnace at the expense
of traditional open hearths.
One other factor of increasing importance to ferrous scrap consumption
is the continuous casting of semifinished products directly from the steelmaking
furnace. This technique requires less total steelmaking raw material charge and
reduces the amount of home scrap generated during production because of its
increased yields over traditional steel ingot practices. The effect is to increase
the amount of purchased scrap requirements per finished ton. This would benefit
recycling of ferrous solid waste, assuming the increased availability of hot metal
is not used to replace scrap. On the other hand, the use of direct-reduced
ores, i.e., iron ore reduced by means other than the blast furnace to a
high iron content and charged directly to the steelmaking furnace, could
partially offset these gains by its substitution for scrap. However,
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it may complement scrap and promote an acceleration in installation of electric
furnace steelmaking, which in the long run would be beneficial to scrap consumption.
The technical feasibility of using increased scrap proportions in iron
and steelmaking charges has been amply demonstrated. The melter will, however,
make his decision on economic operating practices and quality considerations.
He will use the most economic ferrous raw material available. The scrap industry
can influence that decision by providing lower cost, higher quality products and
improved technical service on optimum scrap usage.
Quality of Scrap From Ferrous Solid Waste
Scrap quality is an extremely important consideration for the consumer
of iron and steel scrap. The key quality factors, from his standpoint as well
as that of the scrap processor, are size and shape, density, and metallic and
nonmetallic impurities. Size, shape, and density are related basically to operating
practices for the melting furnaces; impurities, while obviously influencing charging
and melt practices, are of major concern with regard to further mill finishing and
properties in the final mill product.
The iron and steel industries are under continuous pressure from their
markets for mill products that will meet increasingly rigid specifications. Their
operating practices and the raw materials from which iron and steel are produced
are therefore subject to increasing quality requirements.
The main competitor to scrap as a ferrous charge raw material is
iron ore, in its reduced form as pig iron, a product of known chemistry and
consistent size, shape, and density. Two forms of scrap, home and prompt industrial,
are also basically of known chemistry, within a limited range, and with modern
scrap processing equipment and techniques can be manufactured into the desirable
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physical form. As a result, they move freely into the scrap cycle, presenting
no real quality problems.
However, obsolescent scrap, the product of ferrous solid waste, is
significantly different. Occurring in many shapes and forms, from steel cans to
junked autos, it presents a number of quality problems. Great strides have been
made by the scrap industry toward processing of this material into the required
physical forms with lower residuals, through the use of shredding systems and
other modern equipment. However, the complexity and increasing amounts of non-
ferrous materials used in consumer and industrial goods, have made extremely
difficult the separation and elimination of the undesirable residual elements for
iron and steelmaking, such as copper, lead, and tin. As a result, except in
periods of peak demand or hot metal shortages, the availability and low cost of higher
quality, e.g., prompt industrial scrap, forms of ferrous charge materials diminish any
real incentive for the scrap consumer to use or the scrap processer to collect
and process obsolete scrap with its potential quality problems.
Reduced Requirements for Purchased Scrap of Total Scrap Consumption
The ratio of scrap consumption to total iron and steel produced has
remained fairly stable over the past twenty years, with a scrap to pig iron ratio
approximating 50:50. However, in 1950, purchased scrap accounted for about 50
percent of the total scrap consumed. It now amounts to under 40 percent, a
decrease of 20 percent in purchased scrap requirements.
This has primarily been caused by decreasing yields in producing
mill products, resulting in an increased generation of home scrap. In the steel
industry alone, finished steel shipments as a percent of raw steel production
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during the period 1950-54 were 74.2 percent versus 68.0 percent in 1965-69.
Caused by a number of factors such as the changing product mix toward lighter
sections, increased finishing operations, and more rigid product specifications,
the net result has been an unwanted increase in "self-supply" by the iron and steel
industries of their scrap requirements. The basic oxygen furnace, for example, can
be almost totally self-sufficient, except for short-term disequilibriums.
Therefore, while the total scrap consumed over the past 20 years has
followed closely the growth in iron and steel production, the absolute amount
purchased has shown little, if any, increase over this period.
Poor Economics of Recycling Ferrous Solid Waste
It is generally accepted that the vast majority of potential ferrous
solid waste that can be economically recycled is currently being recycled. Scrap
produced from ferrous solid waste is the most costly to collect and process, and
due to its relatively low quality, brings a low price without extensive and
costly upgrading. In addition, the "break-even" point for the scrap processor
has been steadily increasing due to higher labor and transportation costs coupled
with increased equipment expenditures and operating costs.
As a result, there is little economic incentive, except in periods of
high demand, to attempt to separate ferrous solid waste from other municipal
waste, or to scour our countryside for discarded products containing ferrous
materials of potential value.
Apparent Discriminatory Restrictions
Iron ore and scrap are the two sources of iron units available to the
iron and steel producer. They compete metallurgically, and while subject to
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certain operating considerations, are equally of value to the melter in
obtaining iron. Iron ore has a typical iron (Fe) content of 60 percent, and
is used to produce hot metal in the blast furnace which has a typical Fe content
of 94 percent. Scrap, the other source of iron for steelmaking, has a nominal
Fe content exceeding 90 percent.
Two apparent benefits exist for the iron ore producer as he competes
with the scrap processor as an iron source. The first involves rail freight
rates. Transportation is a major cost for the scrap processor. Rail is the
primary land mode of transportation for both iron ore and processed scrap.
Conceptually, transportation rates should not alter the competitiveness of
alternative inputs to any manufacturing process; iron ore and scrap are
metallurgically competitive.
A recent study at Battelle indicated that iron ore has an apparent
competitive advantage of approximately $1.50 per gross ton over ferrous scrap
because of the rate structure. The relative Fe contents, the coal energy
equivalent for reduction of the oxide ore to metallic form, and the relative
role of rail transportation in the movement of ore, scrap, and coal were con-
sidered in this analysis.
In reviewing the economic sensitivity of steelmaking cost to scrap cost,
it appears that scrap consumption is impeded by the existing freight rate dis-
crimination. In the short run, the removal of the discrimination by lowering
scrap freight rates would enable a significant reduction in the finished cost
of steel ingots; in the long run, an improved expected rate of return would be
realized in scrap-based steelmaking investment.
Therefore, the apparent discriminatory rate structure is a
contributing factor toward present scrap markets being impeded in preference to
the rate-favored use of iron ore; future markets being curtailed through the
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artificial diversion of investment to ore-intensive steelmaking that might other-
wise be applied to scrap-intensive steelmaking; natural resources being exploited
when they could be conserved; potential scrap that could be recycled does not
move; and the environment is polluted by the accumulation of ferrous solid waste.
The second benefit for iron ore producers involves federal tax laws,
which allow a 15 percent depletion deduction from gross income in computing their
net taxable income. No such advantage accrues to the scrap processor.
Another area of apparent discrimination involves local zoning, licensing,
or other legal restrictions placed upon the scrap processor due to lack of recog-
nition of his function. For example, urban renewal projects normally make
provision for relocation of industrial firms, but not for the processor or
collector who could formerly serve those accounts economically due to their
proximity. Another example occurs when fencing regulations are applied equally
to the scrap processor, a manufacturer, as well as to the junkyard or auto
wrecker, two distinct other categories of business.
Lack of Public Awareness of the Scrap Processor's Role in Economic Recycling
While environmental concern is exhibited everywhere and "recycling" is
today's popular concept, there is still little public awareness of the scrap
processor's role in achieving the concept. Still often thought of as junk
collectors who serve no useful purpose other than their own, the vital role the
scrap industry performs in cleaning up our environment and providing the means
for conservation of our natural resources is not generally known. As a result,
the scrap industry often has been bypassed in environmental decision-making.
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Major Opportunities for Increased Recycling of Ferrous
Solid Waste and Recommendations for Achievement
The key to achieving recycling success is increased profitable demand
for iron and steel scrap, the value produced from ferrous solid waste. However,
if economic demand is not present, a reordering of our traditional commercial
objectives based on profit and efficiency will be required, in order to include
the social cost of an increasingly deteriorating environment.
A number of potential opportunities exist for increased recycling of
ferrous solid waste. However, with few exceptions, significant effort and cooperation
on the part of all concerned--the ferrous scrap industry, the iron and steel
industries, and governmental bodies — is required if the numerous problems and
obstacles to increased recycling are to be overcome and turned into opportunities.
The opportunities fall into eight basic areas. In many cases they are
interrelated, mutually dependent, or could be classified in other than the selected
area. A detailed listing outlining the opportunity areas and the recommended
actions to capitalize on those opportunities appear on pages 37 - 41.
Increased Participation in Current Markets
(1) Provide Greater Technical Service to Markets (SI)* With the
exception of the major scrap firms, little, if any, technical service
regarding the optimum use of scrap in melting operations to provide
the best finished product at the lowest cost is available. The
relationship between the scrap dealer and his customer has been one
basically of trading. The scrap processor has limited knowledge of
melting problems or the use of his products, other than when complaints
* Recommended for action by: (SI) scrap industry, (M) markets for scrap, (S)
sources of scrap, (G) government, (E) equipment manufacturers.
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occur. By the same token, scrap usage by the iron and steelmaker
is often dictated by past practice. Scrap today is a much different
product than in the past; so is melting technology and scrap
requirements.
In general, the metallurgical capabilities in medium and small
firms are limited regarding optimum scrap usage. It is recognized
that development of such capabilities is also expensive. It is there-
fore recommended that this technical assistance be provided by the
Institute of Scrap Iron and Steel through addition of a Technical
Director to its staff. His main function would be to provide the
latest in metallurgical technology and optimum scrap utilization to
member firms and the consuming industries.
In addition, it is recommended that the Institute investigate the
merits of publication of a basic technical textbook/handbook on the
Metallurgy of Scrap ala "The Making, Shaping, and Treating of Steel."
Numerous textbooks, handbooks, etc., are available on the production
of iron and steel. The information provided on optimum scrap usage,
a basic raw material for ferrous products, is minimal.
(2) Expand Research, Both Technical and Economic, on Increasing the
Scrap Proportion of the Metallic Charge (SI-M-G). Iron ore and
ferrous scrap compete metallurgically for the iron input to iron and
steelmaking. Recognizing that certain technological and economic con-
straints dictate the current relative charge materials, there are still
numerous opportunities for increasing the scrap proportion within
those constraints.
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Chief among the areas worthy of investigation, and detailed in
the Technology section of the report, are: blast furnace tuyere
injection of scrap granules or powder and increased use of properly
sized scrap as part of the blast furnace burden; internal and external
scrap preheating by electrical resistance heating; large line-frequency
induction furnaces for superheating hot metal for EOF steelmaking;
continuous charging of scrap to electric arc furnaces; and the use of
higher-powered electric arc furnaces.
(3) Increase Artificial Demand Stimuli (G). Numerous suggestions have been made
to promote the use of recycled products, such as tax incentives for
using recycled materials or governmental purchasing policies favoring
products made from recycled materials. Such policies would increase
scrap demand. However, the effect and mechanisms for such proposals
require detailed analysis.
While sounding simple in concept, the control and/or certification
of "recycled content" for iron and steel products would be difficult
in practice. Recycling certification would only help the ferrous
solid waste problem if tied primarily to usage of obsolescent scrap.
Because of the variety of sources and scrap yard/mill materials
handling practices, the segregation and certification of product content
would undoubtedly contribute to additional costs for both processor
and user.
Careful analysis should be made of the mechanism for and cost/
benefit from such proposals including their effect on other areas of
the economy and nation.
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(4) Increase Price Stability (SI-M). Scrap is bought and sold in a free
market environment, resulting at times in extreme price volatility.
While characteristic of this environment, and at times an aid to the
movement of scrap, it nevertheless is a psychological and economic
deterrent to increased scrap utilization.
A major influence is the lack of a continuing and steady market
for scrap. Every attempt should be made by the scrap industry and its
markets to provide quality product at profitable levels for both. A
better understanding of complex price determinants and forecasting
would help achieve stability. The implications of long-term purchase
contracts should be analyzed in detail.
(5) Make In-Depth Analysis of Export Markets for Scrap (SI-G). A fluctuating
market for ferrous scrap is the export market. Certain scrap surplus
areas of this country are dependent on exports for scrap movement.
However, many traditional foreign markets are becoming more self-
sufficient in scrap and/or hot metal supply,
If our goal is to achieve increased recycling of American ferrous
solid waste, and if domestic markets cannot effectively absorb all that
could be made available, a detailed analysis of the export potential
for excess supply should be undertaken. Export barriers should be
identified, as should the effect of increased exports on our domestic
supply and/or costs.
(6) Promote Interdependency and Involvement with Markets, Together
With Emphasis on Marketing Versus Trading (SI-M). Too often, the
scrap industry and its consuming markets deal at "arm's length".
Yet each is mutually dependent on the other for their success. Greater
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involvement and mutual understanding of each other's problems is
required.
Obviously, "over night" changes are not possible. It is a
"two way street". Increased participation by the scrap industry in
technical associations is a move in this direction.
Increased emphasis should be placed on marketing scrap, e.g.,
promoting its value as a raw material source, providing technical
assistance on its use, etc., in today's economic environment, rather
than operating in the traditional trading atmosphere.
Development of New Markets
While the major opportunities for increased recycling of ferrous solid
waste lie in increased participation in current markets, new market opportunities
should be sought. It is therefore recommended that:
(1) Provide Preferential Financing/Tax Incentives for New Firms Based on
Usage of Recycled Raw Materials or Products Containing High Recycled
Content (G). Financial assistance for the establishment and initial
operations of firms whose manufactured products make use of ferrous
solid waste or its products, e.g., scrap-using mini mills may offer
increased recycling potential. The effect on existing firms must also
be considered.
(2) Expand Research to Find New Economic Uses for Ferrous Solid Waste (G).
One example of such research is the Bureau of Mines' work on the
reduction roasting of nonmagnetic taconites with automobile scrap.
Others include the Bureau's research on the use of shredded automotive
scrap for copper precipitation, and the use of light-gauge auto body
scrap as a reinforcing core in concrete building blocks.
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Detailed in this report's Technology section are two other areas
worthy of consideration: development and execution of a preliminary
experimental program on the use of relatively small scrap particles as
reinforcement in concrete; and evaluation of the technical possibilities
for the use of electrolytic processes for the conversion of scrap to
usable form.
Improved Economics
Critical to increased recycling of ferrous solid waste is the develop-
ment of lower-cost, higher-quality scrap products.
The following recommendations, if implemented, should assist in improving
the economics of scrap products:
(1) Study Methods to Improve the Continuity of Ferrous Scrap Processing
and Movement (SI-M). Continuous movement and processing of scrap for
traditional cyclical markets is difficult to attain. Yet it is
required for economic and efficient processing and increased removal of
ferrous solid waste from our landscape.
Capital equipment investment is becoming of increasing importance
to recycling of ferrous scrap. Continuous throughput of material is
required to profitably utilize equipment. The average processing
facility operates less than 48 hours/week--80 percent of all firms fall
in this category. Even those with multi-million dollar capital
investments seldom operate over 80 hours/week. While downtime for
maintenance is obviously required for certain equipment, such as shred-
ding systems, it is clearly indicated that the industry's capacity to
produce is underutilized. Nonproductive time is costly.
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A number of suggestions have been made to improve the continuity
of operations, such as government stockpiling of processed material
or collection subsidies in periods of low demand. Improved continuity
should be studied in detail, to provide optimum processing efficiencies
resulting in lower cost scrap and continual removal of ferrous solid
waste from our landscape.
(2) Improve Logistics of Ferrous Solid Waste Collection, Assembling and
Transportation (S-SI-G). More favorable logistic factors would
obviously enhance the economic recycling of ferrous solid waste.
Specific recommendations are included in a subsequent opportunity area--
"Improved Logistics".
(3) Expand Research on Economic Separation and Marketing of Nonferrous
Byproducts of Current Value (SI-E-G), Ferrous solid waste, as previously
noted, contains large amounts of entrapped nonferrous materials, some
of significant potential value if economically separated from the
ferrous materials. For example, a recent Bureau of Mines study indicated
that an average shredder discards approximately $400,000 worth of nonferrois
/•o\
values annually/ '
Air classification systems are one approach to recovery; heavy
media separation is another. Commercial development of an economic
method should provide operating and financial benefits for the scrap
processor, increasing the total value obtainable from ferrous solid
waste, therefore increasing its utilization.
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(4) Develop Appropriate Processing/Transportation Equipment (SI-E).
Two areas of equipment development deserve continuing attention. One
involves the development of portable equipment to assist in the logistics
of ferrous solid waste. Examples developed to date are the auto flatteners,
and mobile balers; other portable processing equipment may also offer some
opportunities.
Another area is the development of processing equipment tailored
for the medium and small processor. Scaled-down shredders and incinerators
are two examples that have been already helpful.
(5) Study In-Depth the Effect of Depletion Allowances for Iron Ore on Scrap
Recycling Rate (G) . An apparent advantage of iron ore, the chief
competitor to ferrous scrap, is the 15 percent depletion deduction
from gross income in computing net taxable income for iron ore producers.
No such advantage accrues to the scrap processor, and is, in effect,
an incentive to use natural resources at the expense of ferrous scrap.
The effect of this advantage on recycling should be studied in
detail. Remedial action to provide equity economics for scrap should
be taken if warranted.
(6) Expand Research on Economic Disposal/Recycling of Residual Solid Waste
Products (G) . An increasing cost factor for the scrap processor and
auto wrecker is the disposal of residual solid wastes, such as tires,
glass, plastics, fibers and wood, and miscellaneous trash.
At least two approaches are possible: development of commercial
disposal equipment, such as low-cost, pollution-free incinerators or
development oc new uses/recycling opportunities for the residue. Either
would improve the recycling economics of ferrous solid waste.
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Improved Scrap Quality
Due to the increasing complexity of consumer and industrial goods,
major sources of ferrous solid waste, the separation of the ferrous content from
residual impurities is becoming increasingly difficult. Substantial processing
and upgrading is required. The following recommendations are aimed at alleviating
the inherent problems:
(1) Develop Realistic Product Specifications (SI-M). In order to facilitate
both processing and use of ferrous solid waste, the development of
realistic product specifications is required. Quality scrap is required
for today's sophisticated iron and steel products, but how good is good?
The scrap industry in cooperation with its markets should attempt to
further quantify chemical specifications for its products. Necessary
to accomplish this goal are improved identification methods, improved
measurement of scrap quality, and improved segregation methods at all
levels of the scrap cycle—and price levels to support these improvements.
(2) Design End Products With Recycling in Mind (S-M). Today's emphasis on
recycling is somewhat "after the fact". Products are designed for optimum
service at lowest cost. This recommendation suggests a new dimension
be included in product design—ease of recycling after being taken
out of service. It further suggests some economic trade-off. To quote
a recent study, "the materials and manufacturing techniques that have
steadily reduced appliance prices have also steadily made it more
C4\
difficult to separate the materials". v The effects on recycling and
economic cost of alternate materials or placement for easy removal
should be studied to see if improvements in scrap quality are possible
at an appropriate cost/benefit level.
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(3) Develop Improved Processing Equipment and Methods (SI-E-G). While
shredding equipment has made tremendous strides toward the lowering of
residual content of obsolete scrap, further decreases are required. One
approach, discussed in detail in the Technology section of this report,
is cryogenic processing; other possibilities involve thermal or chemical
removal of impurities. Continuous effort is required to provide improved
product quality at competitive prices. Development of improved quality
control methods, including identification and segregation, would help.
Improved Logistics
In order to achieve increased recycling of ferrous solid waste, its
collection and movement must be greatly improved. Toward those ends, the following
recommendations are made:
(1) Make an In-Depth Analysis of Transportation and its Recycling Role (G).
Transportation is a major cost element affecting recycling of ferrous
solid waste. Increased in-depth analysis should be conducted on the
effect of its current economics and apparent inequity with iron ore on
the recycling rate. Improved transportation methods and equipment
should also be included, as should be the effect of establishing
preferential freight rates for problem scrap, such as abandoned motor
vehicles and steel containers.
(2) Make an In-Depth Analysis of Collection Methods and Economics (G).
A major problem, tied closely to transportation, is the collection and
assembling of ferrous solid waste on an economical basis. Particular
emphasis should be given to that waste occurring in rural areas or in
«
Note from the publisher, the U.S. Environmental Protection Agency:
The development of this kind of equipment is clearly the task of private industry
because of the potential for profit benefits from such development.
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other areas where scrap assembly for processing and use is different.
Municipal solid waste separation is another facet of this problem. Pro-
vision of collection subsidies should be analyzed for their cost/benefit
on increased recycling.
(3) Increase Funding for Demonstration Grants Aimed at Large Scale
*
Recovery From Municipal Solid Waste (G). Further detailed study
is required on current operations and development of an optimum system
for major metropolitan areas—and subsequent markets for the recovery
products.
(4) Investigate the Feasibility of "Optimum Disposal and Recycling Facility"
(SI-G). While there is merit in current specialized disposal and recycling
activity, increased attention is being given to the effect and implications
of central waste disposal, recycling centers, or environmental facilities
parks. This approach envisions an optimum facility which accepts, processes,
and uses waste materials at central locations.
Such facilities would undoubtedly be best managed and operated
by the present ferrous scrap industry and other current recyclers, perhaps
as subsidiary operations, and not by governmental units competing
with current viable enterprises. This evaluation should be closely
coordinated with the ferrous scrap industry, and should include such
considerations as impact on the current recycling industry, increased
market demand for recovered and processed materials, cost-benefit analysis,
and alleviation of solid waste problems.
Minimized Legal Constraints
A number of apparent legal obstacles exist to more efficient movement
of ferrous solid waste and operations of a scrap processing business. Two quasi-legal
Note from the publisher, the U.S. Environmental Protection Agency:
EPA has recently funded (in 1972) four projects to demonstrate various technological
approaches to resource recovery. These projects, plus perhaps a few others, should
be sufficient to demonstrate existing resource recovery technology.
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obstacles have previously been discussed, i.e. , depletion allowances for competition,
and transportation rate inequities. Recommendations for minimizing other legal
constraints are as follows:
(1) Promote Recognition by State and Local Government Units of the Distinct
Function and Role of the Scrap Processor in the Economy and in Recycling
(SI-G). Recognition should provide an adequate base for elimination of
discriminatory licensing, zoning, and other restrictions. Adoption of
realistic pollution controls should also be more easily gained.
This recognition will have to be promoted and earned by the scrap
industry itself. Increased involvement with legislative authorities
to promote this understanding is required, as is representation whenever
possible on regulatory bodies affecting legislative matters and
restrictions.
(2) Pursue Adoption of Uniform Titling Legislation for Motor Vehicles (G).
A deterrent to efficient movement of motor vehicles to scrap processors
involves various de-titling obstacles. Adoption of the model legislation,
or some modification thereof, as proposed by the Council of State
Governments and the Institute of Scrap Iron and Steel in 1967 would
lessen this problem. A number of other policy alternatives for state
and local governments on the abandoned vehicle problem are included
in the Obsolete Motor Vehicle section of this report.
Improved Definition and Analysis of Scrap Situation
In order to adequately analyze problems and seek their solutions, the
best possible definition and quantification of those problems is required.
Basic data are provided by the Bureau of Mines' monthly Mineral Industry Surveys
and annual Minerals Yearbook section on Iron and Steel Scrap, as well as
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publications by the Department of Commerce and others. In addition, a substantial
data base was developed during the course of this study.
However, there still exists a need for more detailed, periodic statistical
data on iron and steel scrap. For example, the second largest category of scrap
by type listed in the Bureau of Mines' publication is "All Other Carbon Steel
Scrap"; stainless and alloy scrap are shown only by grade totals; and scrap
statistics by state have been eliminated beginning in 1971. The scrap market is
quite cyclical, and better current data are required for good analysis.
It is therefore recommended in view of the above that:
(1) The Feasibility and Usefulness of Further Detailed Monthly Statistical
Consumption Information Should Be Analyzed, and Provided If Warranted (G).
In addition, it is recommended that:
(2) Continue Periodic Regional and NationalFerrous Scrap Demand/Supply
Analysis on a Regular Basis (G). Dramatic changes affecting ferrous
scrap consumption are occurring with increasing momentum in today's
environmental, economic, and technological society. Continuous study
and analysis of the situation are required if achievement of increased
recycling and alleviation of solid waste problems is to be accomplished.
In addition, the regional characteristics of these changes and their
implications vary. The Bureau of Mines has provided an excellent base
for analyzing these changes through a series of regional scrap surveys
on generation, utilization, and consumption of iron and steel scrap.
However, many of these are now dated.
Periodic (3-5 years) regional and national ferrous scrap analyses
should be conducted on a continuing basis in order to improve the
definition and understanding, identify new problems, and measure progress
toward solutions.
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(3) Undertake a Comprehensive Analysis/Census of the Available Supply of
Ferrous Solid Waste Accumulation on a Regional and National Basis (G).
If ferrous solid waste is to be considered a potentially valuable raw
material resource, a better definition of its location, volume, and
availability is required. The brief, cursory examination of the national
availability in this report indicated a calculated amount approaching
750 million tons. What is a more accurate number? Where is this untapped
reserve? What is its availability? In what forms does it exist?
Answers to these and other questions should provide useful information
for long-range programs aimed at maximizing this nation's supply of
resources.
Increased Public Awareness of the Importance of Recycling
and the Scrap Processor's Role
The scrap industry suffers from considerable public misunderstanding of
its role in our society. Not always blameless, its public image, while improving,
is still less than desirable. Recommendations to improve this situation are as
follows:
(1) Expand the Current Commendable Public Relations Efforts of the
Institute of Scrap Iron and Steel, Inc. (SI)
(2) Expand Community and School Education Efforts on Recycling and
the Scrap Industry's Role (SI)
(3) promote Mass Media Promotional Programs on Recycling by Individual
Scrap Processing Firms, Regional Chapters, and Institute of Scrap
Iron and Steel, and/or in Cooperation With Suppliers or Markets. (SI)
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All of these recommendations are aimed at enabling the scrap industry
to capitalize on this nation's ever increasing awareness of environmental
problems and potential solutions, such as recycling. As the American Metal
Market of April 20, 1971, proclaimed in an editorial, it is truly a "Golden
Hour for Scrap." But it will not be achieved without the increasing positive
action on the part of the ferrous scrap industry.
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TABLE II-l. OPPORTUNITIES FOR INCREASED RECYCLING OF FERROUS
SOLID WASTE AND RECOMMENDATIONS FOR ACHIEVEMENT
Opportunity For
Recommendat ions
Relative
Priority Rating**
• Increased Partic-
ipation in
Current Markets
(1) Provide greater technical
service to markets
SI
(2) Expand research, both SI-M-G
technical and economic, on in-
creasing the scrap proportion
.of the metallic charge
(3) Increase artificial demandstim- G
uli, e.g., recycling incentives
17
17
(4) Increase price stability
(5) Make in-depth analysis of
export markets
SI-M
SI-G
(6) Increase involvement with mar- SI-M
kets and interdependency concept,
including increased emphasis on
marketing versus trading
16
14
13
11
Development
of New Markets
(1) Provide preferential financing/
tax incentives for new firms
based on usage of recycled raw
materials or products containing
high recycled content
(2) Expand research to find
new economic uses for ferrous
scrap, with particular emphasis
on low quality scrap
14
12
* SI - Ferrous scrap industry
M - Markets for scrap
S - Sources of scrap
G - Government
E - Equipment manufacturers
** The priority rating system is described in detail in Appendix C of this report.
The priority number shown is to indicate the relative importance of recommendations
within categories as a framework for action plans. 20 is the maximum achievable
rating. The factors considered in assigning the rating were: (1) the extent thr>£
achievement of the recommendation's objective would have on increased recycling;
(2) the feasibility of achieving the objective; and (3). the cost/benefit relation-
ship of achievement. Scoring then was based on the effect, significant, moderate,
or limited, that the recommendation would have on each category. The increased
recycling category was given a maximum weight of 10, feasibility a maximum weight
of 6, and cost/benefit a maximum weight of 4.
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TABLE II-l. (Continued)
Opportunity For
Recommendat ions
By
Priority
• Improved
Economics
(1) Study methods to improve the SI-M
continuity of ferrous scrap
processing and movement
(2) Improve logistics of ferrous S-SI-G
solid waste collection,
assembling, and transportation
(3) Expand research on economic SI-E-G
separation and marketing of non-
ferrous by-products of current
value
(4) Develop appropriate processing/
transportation equipment
(5) Study in-depth the effect of
depletion allowances for iron
ore on scrap recycling rate
(6) Expand research on economic
disposal/recycling of residual
solid waste products
SI-E
G
16
15
14
13
13
11
Improved Scrap
Quality
(1) Develop realistic pro- SI-M
duct specifications
(2) Design end products with s-M
recycling in mind
(3) Develop improved processing SI-E-G:
equipment and techniques
14
13
12
• Improved Logistics (1)
Make an in-depth analysis of G
transportation and its recycling
role,including effect of preferential
freight rates for problem scrap
(2) Make an in-depth analysis of col- G
lection methods and economics, includ-
ing effect of collection subsidies
(3) Demonstrate feasibility of large
scale recovery
, **
(4) Investigate feasibility of op- SI-G
timum disposal/recycling facilities
16
16
13
12
'See footnote, page 33
'<&
See footnote, page 34
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TABLE II-l. (Continued)
Opportunity For
Recommendations
BY
Priority
• Minimized Legal
Constraints
(1) Promote recognition by state and
local government units of the
distinct function and role of the
scrap processor in the economy
and in recycling
(2) Pursue adoption of uniform titling
legislation for motor vehicles
SI-G
14
11
• Improved Definition
and Analysis of
Scrap Situation
(1) Evaluate feasibility and merit G
of more comprehensive monthly
consumption statistical data
(2) Initiate periodic regional and G
national scrap demand/supply
analyses
(3) Undertake a comprehensive analysis/ G
census of ferrous solid waste
accumulation
(4) Prepare a current census of prompt G
industrial scrap generation
13
13
11
10
Increased Public
Awareness of the
Importance of
Recycling and the
Scrap Processor's
Role
(1) Expand the current com- SI
mendable public relations
efforts of the Institute of
Scrap Iron and Steel, Inc.
(2) Expand community and SI
school educational efforts on
recycling and the scrap in-
dustry's role
SI
(3) Promote mass media pro-
motional programs on recycling
by individual scrap processing
firms, regional chapters, and
Institute of Scrap Iron and Steel,
and/or in cooperation with sup-
pliers or markets
(4) Increase involvement of firms SI
and its individual members in
community affairs
13
12
11
10
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REFERENCES —Chaoter II
1. Environmental quality: the first annual report of the Council on
Environmental Quality together with .the President's message to
Congress. Washington, U.S. Government Printing Office, Aug. 1970.
p.107.
2. Black, R. J. , A. J. Muhich, A. J. Klee, H. L. Hicktnan, Jr., and
R. D. Vaughan. The national solid wastes survey; an interim
report. [Cincinnati], U.S. Department of Health, Education, and
Welfare, [1968]. p.50.
3. Chindgren, C, J., K. C. Dean, and L. Peterson. Recovery of the
nonferrous metals from auto shredder rejects by air classification.
U.S. Bureau of Mines Technical Progress Report 31. [Washington],
U.S. Department of the Interior, Apr. 1971. p.3.
4. National Industrial Pollution Control Council. The disposal of
major appliances; Sub-Council report. Washington, U.S. Government
Printing Office, June 1971. p.17.
ye 748a
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