-------
THE COVER
The crowned dragon that eats its own tail, the World Snake, or
Uroboros, is an ancient alchemical symbol of self renewal and regeneration,
similar in concept to the Phoenix, the mythical bird that rises from its own
ashes. The crown signifies completeness while the act of self-consumption
symbolizes autonomy and self reliance. This ancient symbol has a modern
counterpart in the concepts of recycling and ecology which are frequently
represented by a modern circular symbol. The illustration on the cover was
adapted from an alchemical text: Abraham Eleazar (Abraham the Jew), Urlates
chymisches Werk, Leipzig, 1760, as reproduced in Jung, C. G. Psychology and
Alchemy. Translated by R.F.C. Hull. New York, Pantheon Books, 1953. p. 99.
-------
SW29C
SALVAGE mflRKETS
for materials in solid wastes
This economic study (SW-29c) was written for the
Federal solid waste management program
by ARSEN DARNAY and WILLIAM E. FRANKLIN
Midsest Research Institute, Kansas City, Missouri,
under Contract No. CPE 69-3
U.S. ENVIRONMENTAL PROTECTION AGENCY
1972
-------
NOTES TO THE FIRST EDITION
Typesetting for the present edition of this report was the
responsibility of neither the U.S. Government Printing Office nor the Midwest
Research Institute. Rather, a new typesetting method was tried, unsuccessfully.
We are publishing the book despite the many typographical errors, since the data
is accurate and we want to make it widely available now. The typographical
errors and lack of type uniformity Will be corrected in the second edition.
The report does not necessarily reflect the views and policies of the
U.S. Environmental Protection Agency, nor does mention of commercial
products constitute endorsement by the U.S. Government.
This is an environmental protection publication
in the solid waste management series (SW-29c)
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $2.75
-------
FOREWORD
The Resource Recovery,. Act, adopted in 1970,
amended the Solid Waste Disposal Act to add emph'asis
to recovery, recycling, and reuse of materials and
energy. A year and a half earlier the Federal solid waste
management program had initiated a contract study to
identify and describe the markets for materials recovered
from solid waste, recognizing that the availability of
markets is critical to increased materials recovery.
The present report by Midwest Research Institute, Inc.,
is the result of that study. It gives a realistic evaluation of
the markets for so-called secondary materials, which are
recycled fabrication or consumption wastes in contrast to
primary or virgin materials, which are derived from mine
or forest. The report provides industry-by-industry data
on raw materials consumption and the mix between
virgin and secondary materials use. It also gives the first
full insight into the structure of the secondary materials
market in metropolitan areas and identifies the par-
ticipants and their roles. In the face of our desire for
increased recovery of materials and energy, the report
explains why the national trend has been in the opposite
direction. Thus recycling has, over the years, declined in
importance.
Even while the study was underway, there was rising a
groundswell of popular interest in resource recovery.
Spontaneous school and community drives for the
collection of bottles, cans, and paper for recycling have
occurred, and in some instances citizen groups have
established recovery centers for more sustained efforts at
collecting materials which are potentially recyclable. All
of these moves serve to increase the supplies of
secondary materials but have no direct effect on the
basic demand for the materials.
Citizen interest has shown itself in another way.
Beverage containers are an all too visible component of
litter. While these containers have traditionally been
reusable, the current growth in the market, particularly
for soft drinks, has been accompanied by a general move
away from reusable bottles toward single use containers
of glass, steel and aluminum. In striking a double blow
for the environment — to promote resource recovery
and to reduce litter — concerned citizens have strongly
urged their State legislatures and city councils to ban or
tax nonreturnable containers. The pressure for legislation
has in turn caused industry to take a fresh interest in
recovery of materials. Thus recycling centers have been
established at aluminum, glass container, can man-
ufacturing, and bottling plants, among others.
Time will tell whether the new approaches to
recycling will become an accepted and significant part
of the market. Meanwhile an important start to bringing
about a sustained increase in the demand for recycled
materials has been taken through Federal, State, and
local changes in purchase specifications beginning with
paper products. The U.S. Environmental Protection
Agency is, in accordance with the amended Solid Waste
Disposal Act, itself giving greater impetus to research
and investigations leading to recommendations for
national incentives needed to bring about increased
resource recovery.
Events are moving faster than the present study on the
economics of the salvage market could encompass.
While some of the developments are touched on in the
report, it concentrates on the structure and operation of
the traditional market. An understanding of this market is
vital to significant progress in resource recovery. The
report makes an outstanding contribution to this
understanding.
-SAMUEL HALE, JR.
Deputy Assistant Administrator
for Solid Waste Management
MI
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PREFACE
This report on recycling and salvage markets for
materials in municipal solid waste was prepared by
Midwest Research Institute under Contract No. CPE 69-3
with the U.S. Environmental Protection Agency. Work
was carried out from May 1969 to November 1970. The
statements, findings, and conclusions in this report are
those of the authors and do not necessarily reflect the
views of the Environmental Protection Agency.
The principal investigators and report authors were
Arsen Darnay (project manager) and William E. Franklin.
Valuable staff support was provided and special
investigations were carried out by Howard Gadberry,
Donald Heiman, and Gary Nuss. Research assistance was
provided by Donna Ecton, Barbara Vicik, Sandy Harper,
Sally Sharp, and Linda Crosswhite. John McKelvey, Vice
President, Economics and Management Science, was
responsible for general supervision of the project.
ACKNOWLEDGMENTS
A study of this nature, which deals with many
manufacturing industries, the secondary materials in-
dustries, and the solid waste management establishment,
could not have been undertaken in the quiet of a
research library. The work depended to a great extent on
the active participation and assistance of many com-
panies, associations, government agencies, and in-
dividuals. We are pleased to acknowledge our in-
debtedness for the value of this report to all who
participated while claiming full responsibility for any
omissions or errors in the report itself.
In particular we wish to thank Leander B. Lovell, who
was the Federal project monitor for this work. His
guidance, assistance, patience, and interest were in-
valuable in making this a timely and, hopefully, useful
look at the role of recycling and reuse of materials in
municipal solid waste.
Several other persons provided the MRI team with
special information and insight most valuable in
developing a basic understanding of recycling and of the
emerging concept of "resource conservation." In par-
ticular we cite the following individuals: E. W. Arnold, St.
Regis Technical Center, West Nyack, New York; William
E. Bartlett, National Committee for Paper Stock Con-
servation, St. Louis, Missouri; Charles G. Depew, Owens-
Illinois, Toledo, Ohio; Charles Imel, Los Angeles Bureau
of Sanitation, Los Angeles, California; M. J. Mighdoll,
National Association of Secondary Material Industries,
Inc., New York, New York; Henry Munde, Southwest
Factories, Inc., Oklahoma City, Oklahoma; Carl Sexton,
Los Angeles By-Products Company, Vernon, California;
Curtis M. Snow, Monsanto Chemical Company, St. Louis,
Missouri; William S. Story, Institute of Scrap Iron and
Steel, Washington, D. C; Harry Teasley, Coca-Cola USA,
Atlanta, Georgia; Leo Weaver, American Public Works
Association Institute for Solid Wastes, Washington, D. C.;
and Lloyd E. Williams, Container Corporation of
America, Chicago, Illinois.
Many other individuals with companies, industrial
associations, and governmental units contributed useful
information and spent valuable time with our project
team. Organizations that helped with general in-
formation about governmental and industrial practices
are listed below. We gratefully acknowledge their
assistance. Finally, our case study interviews brought us
into contact with more than 100 other organizations and
several hundred individuals who provided general and
proprietary information in the case-study cities. In order
to protect the private nature of certain of that
information, we have not listed these participants
individually, but we wish gratefully to acknowledge their
participation.
Companies
Armco Steel Company, Kansas City, Missouri; B. F.
Goodrich Chemical Company, Cleveland, Ohio; Butler
Manufacturing Company, Kansas City, Missouri; Coca-
Cola, USA, Atlanta, Georgia; Container Corporation of
America, Chicago, Illinois; Cook Paint and Varnish
Company, Kansas City, Missouri; Crimsco, Inc., Kansas
City, Missouri; Dickson Paper Fibre, Inc., Philadelphia,
Pennsylvania; Garden State Paper Company, Garfield,
IV
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New Jersey; Gillerman Steel Trading Company, St. Louis,
Missouri; Hallmark Cards, Kansas City, Missouri; IMCO
Container Company, Kansas City, Missouri; Industrial
Services of America, Louisville, Kentucky; U.S. Caster
Company, Kansas City, Missouri; International Paper
Company, New York, New York; Lab-Can Company,
Kanscis City, Missouri; Los Angeles By-Products Company,
Vernon, California; Monsanto Chemical Company, St.
Louis, Missouri; Owens-Illinois, Inc., Toledo, Ohio;
Peterson Manufacturing Company, Kansas City, Missouri;
Pioneer Paper Stock Company, Chicago, Illinois; Rey-
nolds Metals Company, Richmond, Virginia; Royal Paper
Stock Company, Columbus, Ohio; Sortex Company of
North America, Inc., Lowell, Michigan; Southwest
Factories, Inc., Oklahoma City, Oklahoma; St. Regis
Paper Company, Technical Center, West Nyack, New
York; The Black Clawson Company, Middletown, Ohio;
Universal By-Products Company, Sun Valley, California;
Waste- Management, Inc., Hinsdale, Illinois;
Industry Associations
The Aluminum Association, New York, New York;
American Paper Institute, New York, New York;
American Public Works Research Foundation, Wash-
ington, D.C.; Glass Container Manufacturers Institute,
New York, New York; Institute of Scrap Iron and Steel,
Inc., Washington, D.C.; National Association of Sec-
ondary Materials Industries, Inc., New York, New York;
National Association of Wiping Cloth Manufacturers,
Chicago, Illinois; National Solid Waste Management
Association, Washington, D.C.; The Society of the Plastics
Industry, Inc., New York, New York;
Governmental Units
Bureau of Mines, U.S. Department of the Interior,
College Park, Maryland and Washington, D.C.; Bureau of
Sanitation, Department of Streets and Sanitation, City of
Chicago, Chicago, Illinois; City Sanitation Department,
Public Works Division, City of Amarillo, Amarillo, Texas;
Department of Sanitation, City of New Orleans, New
Orleans, Louisiana;
Department of Sanitation, The City of New York, New
York, New York; Division of Waste Collection, De-
partment of Public Works, City of Cincinnati, Cincinnati,
Ohio; Forest Products and Packaging Division, U.S.
Department of Commerce, Washington, D.C.; Forest
Products Laboratory, Forest Service, U.S. Department of
Agriculture, Madison, Wisconsin; Gainesville Municipal
Waste Conversion Authority, Gainesville, Florida; Los
Angeles Air Pollution Control District, Los Angeles,
California; Los Angeles Bureau of Sanitation, Los Angeles
Department of Public Works, Los Angeles, California;
Louisville Sanitary Department, City of Louisville,
Louisville, Kentucky; Public Works Department, City of
Madison, Madison, Wisconsin,- Public Works Department,
City of Mobile, Mobile, Alabama,- Public Works De-
partment, Berlin, Connecticut; Public Works Department,
Darien, Connecticut; Public Works Deportment, New
Britain, Connecticut; Public Works Department, New
Canaan, Connecticut; Public Works Department, Waste
Control Department, City of Gainesville, Gainesville,
Florida; Refuse Disposal Division, City of Houston,
Houston, Texas; Refuse Division, Department of Streets,
City of St. Louis, St. Louis, Missouri; Sanitation De-
partment, City of Atlanta, Atlanta, Georgia;
Others
Copper Data Center, Battelle Memorial Institute,
Columbus, Ohio; Goodwill Industries, Cincinnati, Ohio,
Bridgeport, Connecticut, Gainsville, Florida, Los Angeles,
California, Madison, Wisconsin, Mobile, Alabama,
Brooklyn, New York; William Russell, Consultant, St.
Louis, Missouri; The Salvation Army, Amarillo, Texas,
Cincinnati, Ohio, Bridgeport, Connecticut, Houston,
Texas, Madison, Wisconsin, Mobile, Alabama, New York,
New York; Volunteers of America, Cincinnati, Ohio, Long
Island City, New York; William A. Xanten, Consulting
Sanitary Engineer, Washington, D.C.
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CONTENTS
Page
SUMMARY xvii
CHAPTER I Introductory Considerations 1
The Study in Perspective 1
Study Approach 2
Special Studies
Case Studies
Mail Survey
Basic Definitions 2
Special Research Problems 3
Units of Measurement Used 5
Report Organization 5
CHAPTER II Participants in Salvage and Recovery 7
The Salvage Industry 7
Participants in the Industry
Materials Acquisition
Materials Characteristics
Processing
Distribution and Logistics
Trends and Developments
The Sanitation Establishment 12
General Characteristics
Public Sector Activities
Salvage Practices
Private Sector Views and Activities
Industrial and Commercial Participation in Salvage 15
Industrial Waste Generation
Commercial Waste Generation
Industrial Buyers of Salvage
Some Trends and Developments
Public Attitudes Toward Salvage 18
CHAPTER III Salvage Operations and Operating Costs 21
Salvage Operations 21
Operating Costs 22
Nature of the Data
Costs of Recovering Materials from Mixed Wastes
Costs of Acquiring Concentrated Wastes
Processing Costs
Discussion
New Technology 25
Bureau of Mines System
Black Clawson System
Other Developments
Special Economic Considerations Related to Salvage 29
vii
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CHAPTER IV Paper 31
Perspective 31
Paper Consumption
Paper Salvage
Paper in Solid Waste
The Consumption/Disposal Cycle
Paper Industry Structure and Characteristics 32
Characteristics-Of Paper
Groundwood Pulp
Sulfite Pulp (or Acid Pulp)
Sulfate Pulp (or Kraft Pulp)
Semichemical Pulp
Waste Paper
Industry Structure
Consumption and Production Patterns 34
Consumption Trends
End-Use Applications
Underlying Factors
Paper in Municipal Waste
Waste Paper Consumption Patterns 36
Types of Waste Paper
Uses of Waste Paper
Sources of Paper Stock
Quality
Contaminants
Issues in Paper Stock Use 38
General
Technical Constraints
Available Supply in Municipal Waste
Waste Paper Dealers 41
Supply, Demand, Prices 41
Supply
Demand
Prices
Historical Patterns
Wood Pulp Prices
Trends in Pulpwood
Conclusions 44
CHAPTER V Ferrous Metals 47
Perspective 47
Industry Structure 47
Process Use and Scrap Consumption Trends 48
Industry Shipments and Scrap Relationships 49
Scrap Consumption 49
Scrap Use Issues 50
Sources of Scrap 51
Scrap Quality 51
Grades; Metallic Impurities; Aluminum; Lead;
Copper; White Goods and Frit; Conclusions
Demand, Supply, Prices 55
Scrap Recovery from Municipal Wastes . . 56
Scrap Use in Copper Precipitation 56
Detinning 57
Conclusions 58
viii
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CHAPTER VI Nonferrous Metals 59
Overview Discussion 59
Aluminum Recycling 59
Industry Characteristics; Scrap Use Patterns; Recovery Economics;
Secondary Aluminum Operations; Aluminum Can Reclamation
Other Nonferrous Metals 62
Copper; Zinc; Lead
Scrap Consumption Trends 63
CHAPTER VII Glass 65
Industry Characteristics 65
Structure; Process Characteristics
Production and Consumption Patterns 66
Containers; Pressed and Blown Glass;
Flat Glass
Gullet Consumption Patterns 67
In-Plant Gullet; Purchased Gullet
Gullet Use Factors 67
Glass Plant; Gullet Dealers;
Technical Criteria; Market Factors
Gullet from Municipal Waste 69
Availability
Recent Developments in Gullet Recovery and Utilization
Conclusions 70
CHAPTER VIII Textiles 73
Overview , 73
Textile Consumption Trends 73
End Uses 74
Textiles in Waste 74
Textile Production Wastes 74
Textile Mill Wastes; Apparel Industry Wastes
Textile Recycling and Reuse 75
Waste Processing Sequence 75
The Wiping Cloth Cycle
Textile Consumption in Paper and Board
Reprocessing of Textiles
Export Markets
The Wool Controversy
Conclusions 79
CHAPTER IX Other Materials 81
Rubber 81
Rubber Reclaiming; Retreading; Tire Splitting;
Waste Rubber Trading; Conclusions
Plastics 82
Plastics Recovery; Problems of Plastics Recycling;
Value Recovery from Plastics
Organics 84
Slaughter Waste Rendering; Food Processing;
Agricultural Wastes; Wood
Inorganics 87
Building Rubble; Ashes
IX
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CHAPTER X Legislative and Policy Considerations 89
Fundamental Legislative/Policy Issues 90
Why Policy Considerations?
Resource Versus Materials Conservation
The Problem of Comprehensive Economic Accounting
Cost Allocation Issues
The Need for Demand Creation 92
Other Aspects of Legislation/Policy 94
Intermaterials Competition
Labor Force Displacement
Commercialization of Sanitation
Obsolescence
Energy Recovery
Secondary Recycling
Conclusions 95
CHAPTER XI Case Studies 97
Introduction and Overview 97
Amarillo, Texas 99
Summary
Introduction
Current Salvage Practice
Steel Can Recovery
The Secondary Materials Industry
Conclusions and observations
Atlanta, Georgia 103
Summary
Introduction
Salvage Practice
Recovery Economics
Steam Recovery
Chicago, Illinois 104
Summary
Introduction
Municipal Salvage Operations
Salvage at Private Incinerators
Other Metal Salvage
Paper Recovery
Glass Recovery
Rubber Reuse
Textile Recovery
Cincinnati, Ohio 113
Summary
Introduction
Current Salvage Practices
Paper Recovery
Metals Recovery
Glass Recovery
Textile Recovery
Plastics Salvage
Past Salvage Practices
Connecticut Area 116
Summary
Introduction
Current Municipal Salvage Practices
Other Salvage Activities
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Page
Rubber Salvage
Salvage Experience of Goodwill Industries
Textiles
Paper
Bedding Materials
Past Salvage Practice
Conclusions
Gainesville, Florida 118
Summary
Introduction
Nature of Gainesville Salvage Markets
Salvage Activities at the Compost Plant
Other Salvage Operations Considered at the Compost Plant
Secondary Materials Industry
Houston, Texas 121
Summary
Introduction
Houston as a Secondary Materials Market
Salvage at the Compost Plant
Steel Salvage at the Incinerator
Salvage Activity by Social Welfare Agencies
Organics Recovery
Concluding Comments
Los Angeles, California 124
Summary
Introduction
Salvage Operations, 1930-1964
Current Salvage Practices
Paper Recovery
Metals Recovery
Glass Recovery
Textile Recovery
Rubber Recovery
Louisville, Kentucky 132
Summary
I ntroduction
Recovery of Metals at the Incinerator
Private Salvage Operations
Madison, Wisconsin 133
Summary
Introduction
Newspaper Recovery Program
East Side Program
West Side Program
Analysis of the Total Program
Private Refuse Haulers
Private Salvage Activity
Mobile, Alabama 139
Summary
Introduction
Historical Salvage Activity in Mobile
Mobile Salvage Markets
Salvage at the Compost Plant
Paper Salvage
Metals Salvage
Textile Salvage
xi
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New Orleans, Louisiana 141
Summary
Introduction
Past Salvage Practice
Present Salvage Activity
New York, New York 143
Summary
I ntroduction
Municipal Waste Recovery in Perspective
The Fountain Avenue Salvage Operation
Mixed Waste Reclamation by Private Haulers
Concept
Technology
Economics
Prospects
Other Reclamation Proposals
Social Agency Activities
Textile Operations
Paper Recyling
Metals Recovery
Glass Recovery
Textile Recovery
Rubber Salvage
St. Louis, Missouri 150
Summary
Introduction
Residue Reclamation Program
CHAPTER XII Mail Survey Results 153
Municipalities with Recovery Programs 153
Municipalities Without Recovery Programs 154
APPENDIX A Waste Collections, Compositions, and Material
Consumption Relationships 155
APPENDIX B Bibliography 157
APPENDIX C Mail Survey Questionnaire 181
LIST OF FIGURES
Figure Page
1 Structure of the Salvage Industry
and Flow of Commodities 19-1
2 Principal Salvage Operations 30-1
3 Bureau of Mines Incinerator Residue Processing Plant
Flowsheet 30-2
4 Schematic Diagram of Glass Sorting Equipment 30-3
5 Process Losses in Paper Manufacture 45-1
6 Importance of Wood Pulp
and Paper Stock in Paper (1967) 45-2
7 Consumption of Paper
by Major Types (1929-1969) 45-3
8 Per Capita Paper Consumption
by Major Types (1929-1969) 45-4
9 Fibrous Raw Materials
Consumed in Paper (1929-1969) 45-5
10 Fibrous Materials,
Percent of Paper Fiber Consumption (1929-1970) 45-6
xii
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LIST OF FIGURES (Continued)
Figure
11 Total Paper Consumption,
Paper Recovery, and Recovery Ratio 45-7
12 Combination Paperboard and Wood Pulpboard
Production (1959-1969) 45-8
13 Pulp and Paper Materials Flow Cycle (1967) 45-9
14 Waste Paper Prices, Consumption,
and Inventories (1950-1970) 45-10
15 Steel Production by Process (1954-1968) 58-1
16 Ferrous Scrap by Type and Percent
of Metal lies (1947-1968) 58-2
17 Scrap Consumption
and Scrap Price Trends (1949-1968) 58-3
18 Tin in Ferrous Metal if All Steel Cans
Are Recycled (1967 Basis) 58-4
19 Freight Rates for Shredded Can Scrap
to Miami, Arizona, by Rail 58-5
20 Flow of Aluminum Scrap and Sweated Pig (1967) 64-1
21 Approximate Glass Industry Materials
Flow (1967) 71-1
22 Schematic of Waste Textile Dispositions 79-1
23 Situation One:
Demand 100 Units, Recycle 10 Units 95-1
24 Situation Two:
Demand 100 Units, Recycle 10 Units 95-2
25 Situation Three:
Demand 100 Units, Recycle 20 Units 95-3
LIST OF TABLES
Table Piige
1 Salvage Materials Sales
and Tonnage Sold (1963) 19-2
2 Salvage Materials Sources, Processing,
and End Uses 19-3
3 Sales Size of Salvage Companies
in 1958 and 1963 19-4
4 Quantitative Parameters of Solid Waste (1968) 19-5
5 Prices and Cost of Hand Picked Materials
from Waste 30-4
6 Sorting Costs of a Composite Ton of Salvage
from Mixed Waste ' 30-5
7 Salvage Operation Unit Costs
for Various Commodities 30-6
8 Incinerator Residue Composition
from Reclamation System 30-7
9 Incinerator Residue Reclamation
Operating Costs 30-8
10 Income and Operating Costs of a 500-TPD
Waste Reclamation 30-9
11 Fibrous Raw Materials
Consumed in the Paper Industry (1969) 45-11
12 Disposition of Paper Consumption (1967) 45-12
13 Comparison of Paper Consumption
and Waste Disposal (1956-1980) 45-13
xiii
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LIST OF TABLES (Continued)
Table Page
14 Growth of Paper Consumption, Disposal,
and Recycle (1956-1980) • 45-14
15 Fibrous Raw Materials
Used in Paper Production (1969) 45-15
16 Paper Production
and Raw Materials Consumption (1967) 45-16
17 Geographic Importance of Paper
Consumption/Production (1967) 45-17
18 Consumption of Paper
and Fibrous Raw Materials (1929-1969) 45-18
19 Combination Paperboard
and Wood Pulp Board Production (1959-1969) 45-19
20 Paper Production
and Consumption by End Uses (1969) 45-20
21 Paper Stock Consumption
by Grade and Use (1967) 45-21
22 Paper Stock Consumption
by Recycling Mode (1967) 45-22
23 Waste Paper Recovery
by Grade and Source (1967) 45-23
24 Waste Paper Recovery Potential
from Solid Waste (1967) 45-24
25 Waste Paper Recovery at Various Levels
of Recycling (1969, 1980) 45-25
26 Waste Paper Dealer Sales
by Geographic Area (1963) 45-26
27 Waste Paper Consumption, Inventories
and Price Indexes (1950-1970) 45-27
28 Blast and Steel Furnaces
in the United States (1967) 58-6
29 Scrap as a Percent of Metallics
in Steel Furnaces (1947-1968) 58-7
30 Major Steel Industry Markets (1967) 58-8
31 Iron and Steel Materials Flow Cycle (1967) 58-9
32 1967 Iron and Steel Industry Materials Balance 58-10
33 U.S. Iron and Steel Scrap Consumption, by Source 58-11
34 Relative Cost Relations Between Pig Iron
and Scrap (1967) 58-12
35 Scrap Consumption Potential
in Steel Furnaces (1967) 58-13
36 Sources of Obsolete Scrap (1959) 58-14
37 Scrap Consumption by Grade Groupings (1967) 58-15
38 Tin in Ferrous Metals if All Steel Cans
are Recycled (1967 Basis) 58-16
39 Annual Average Prices of Two Scrap Grades
(1949-1968) 58-17
40 Summary of 1967 Consumption
of Selected Nonferrous Metals 64-2
41 Flow of Aluminum Scrap
(1967) 64-3
42 Lead Consumption
and Recovery in Selected Applications (1966-1968) .... 64-4
43 Consumption and Recovery
of Nonferrous Metals (1963-1967) 64-5
44 Shipments of Glass Containers
by End Use (1967-1970) 71-2
xiv
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LIST OF TABLES (Continued)
Table Page
45 Glass Beverage Fillings
and Container Consumption (1967-1970) 71-3
46 Glass Production and External Cutlet
Consumption (1967) 71-4
47 Consumption of Textile Fibers
by Type of Fiber (1960-1968) 79-2
48 End-Uses of 1968 Textile Consumption 79-3
49 Textile Recovery and Reuse (1968) 79-4
50 Exports of Textile Wastes
by Type (1955-1969) 79-5
51 New and Reclaimed Rubber
Consumption (1969) 88-1
52 Rubber Recovery for Specific Uses
(1968 and 1969) 88-2
53 Reclaimed Rubber Production (1958-1969) 88-3
54 Tire Consumption
New and Retreads( 1958 to 1969) 88-4
55 Consumption of Plastics (1967 to 1969) 88-5
56 Recovery of Animal Organics
(1963 and 1967) 88-6
57 Utilization of Ash
in United States (1967) 88-7
58 Prompt and Obsolete Scrap Consumption
in Selected Materials (1967) 95-4
59 Overview of Case Study Coverage 151-1
60 Revenues and Expenses of Amarillo's
Salvation Army (1969) 151-2
61 Estimated Economics
of a Can Reclaiming Operation 151-3
62 Cost to Process 1 Ton of Salvage Metal
for Shipment 151-4
63 Residue Recovery
at a Chicago Incinerator (1969) 151-5
64 Steam Sales of Chicago's Southwest
Incinerator (1969) 151-6
65 Steel Can Recovery, Incinerator, Inc.
(1969 and 1970) 151-7
66 Waste Handling Profiles
of Four Connecticut Communities 151-8
67 Collection and Revenues
of Goodwill Ind., Bridgeport, Conn. (1968) 151-9
68 Prices for Salvage, Goodwill Ind.,
Bridgeport, Conn. (1968) 151-10
69 Waste Collection and Disposal
in Gainesville Area (1969) 151-11
70 Characteristics of Waste
at Gainesville Compost Plant (1969) 151-12
71 Houston Refuse Composition by Weight 151-13
72 Steel Scrap Recovered
at Houston Incinerator (Nov. 1967-Apr. 1969) 151-14
73 Collections and Sales of Houston's
Salvation Army (1969) 151-15
74 Composition and Tonnage of Houston's
Municipal Solid Wastes (1969) 151-16
xv
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LIST OF TABLES (Continued)
Table Page
75 Aluminum Received by Reynolds Center,
Los Angeles (1969-1970) 151-17
76 Salvage Operations of Goodwill Ind.
of Southern Calif. (1967-1968) 151-18
77 Economics of Madison East Side Newspaper
Program (1969-1970) 151-19
78 Madison Newspaper Recovery,
East Side Tonnage (1969-1970) 151-20
79 Madison Newspaper Recovery
West Side Tonnage (Apr.-July 1970) 151-21
80 Economics of Madison West Side Newspaper
Program (Apr.-July 1970) 151-22
81 Profit and Loss of Madison Newspaper
Recovery Program (1969-1970) 151-23
82 Madison Newspaper Recovery Program,
Tonnage Data (Apr.-July 1970) 151-24
83 Mobile Compost Plant Inputs, Outputs,
and Revenues (1969) 151-25
84 Bulk Grade Paper Recovered
and Consumed in Mobile (1969) 151-26
85 Materials Salvaged from a New York City
Landfill (1968-1969) 151-27
86 Estimated Annual Income from Landfill
Salvage, New York 151-28
87 Type of Equipment Owned by Landfill
Salvage Contractor 151-29
88 Estimated Economics of a 400-TPD
Waste Processing Plant 151-30
89 Rag Sales of Social Service Agencies
in New York 151-31
90 Purchase Value and Sales Prices
for Waste Paper 151-32
91 Glass Gullet Sold by a New Jersey Dealer
(1966-1969) 151-33
92 Processing Costs
of a Wiping Rag Manufacturer in New York 151-34
93 Responses to Questionnaire 154-1
94 Cities with Recovery Program
and Complete Response 154-2
95 Cities with Recovery Programs
and Incomplete Response 154-3
96 Cities with No Recovery Program 154-4
97 Solid Waste Collection Rates,
per Capita and Total (1968) 156-1
98 Composition of Municipal Wastes 156-2
99 Analysis of Waste Collection
and Composition Data ,156-3
XVI
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SUMMARY
This document presents the findings of a study to
evaluate salvage markets for commodities entering the
solid waste stream. Emphasis was placed on paper,
ferrous metals, nonferrous metals, glass, textiles, rubber,
and plastics, but other materials are also discussed in the
report.
Recycling Today
In the 1967-1968 period, 190 million tons of the major
manufactured materials — paper, metals, glass, textiles,
and rubber — were consumed yearly. In the same
period, 48 million tons of these same materials were
recycled through the market annually. Recycled materials
were either fabrication wastes or obsolete, discarded
products returned to industry for reprocessing. The rate
of recycling in the period was 25.1 percent of
consumption. Recycling rates varied by commodities, as
follows:
Total
Consumption
Material (million tons)
Paper 53.110
Iron and steel 105.900
Aluminum 4.009
Copper 2.913
Lead 1.261
Zinc 1.592
Glass 12.820
Textiles 5.672
Rubber 3.943
Total 191.220
Total
Recycled
(million tons)
10.124
33.100
.733
1.447
.625
.201
.600
.246
1.032
48.108
Recycling as
Percent of
Consumption
19.0
31.2
18.3
49.7
49.6
12.6
4.2
4.3
26.2
25.2
Factors Affecting Recycling
It is reasonable to assume that a secondary material,
one that has already been processed, should be a more
attractive raw material to industry than a virgin material
that must be extracted or harvested and processed. Why,
then, the relatively low recycling rate found in the United
States today? The low rate is the result of the action of a
number of forces, among them the following:
(I) The cost of virgin raw materials to the manufacturer
is almost as low as the cost of secondary materials, and
virgin materials are usually qualitatively superior to
salvage. Consequently, demand for secondary materials
is limited.
(2) Natural resources are abundant and man-
ufacturing industries have deployed their operations and
perfected their technologies to exploit these. No
corresponding deployments and technology to exploit
wastes have developed.
(3) Natural resources occur in concentrations while
wastes occur in a dispersed manner. Consequently,
acquisition of wastes for recycling is costly.
(4) Virgin materials, even in unprocessed form, tend to
be more homogeneous in composition than waste
materials. Sorting of wastes is costly and, in an age of
affluence and convenience, repugnant to those who
would have to engage in it — the urban householders.
(5) The advent of synthetic materials made from
hydrocarbons, and their combination with natural
materials, cause contamination of the latter, limiting their
recovery. The synthetics themselves are virtually im-
possible to sort and recover economically.
Participants in Salvage Activities
Secondary Materials Industry. In 1967, some
8,000 companies, employing 79,000 people, and ringing
up sales of $4.6 billion comprised the secondary
materials industry.
These companies collect and sometimes process waste
materials. The bulk of the materials they handle come
from industrial or commercial operations. The exceptions
are newspapers, purchased from schools or other civic
organizations, and textiles, purchased from social
welfare agencies such as the Salvation Army or Goodwill
Industries.
As a rough average, secondary materials companies
spend between $10 and $20 per ton on the physical
acquisition and processing of wastes. They also incur
XVII
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SALVAGE MARKETS
other costs, among them payment for the waste and
delivery of the waste to users.
Secondary materials companies can do little to
influence the demand for the commodities they sell.
Instead, they bend their efforts to the control of supplies,
encouraging or discouraging collection of wastes
depending on demand. Because of wide price fluc-
tuations, they tend to hold down inventories.
Secondary Materials C6nsumers. Consumers-
are either companies that depend almost exclusively on
waste materials inputs and often produce relatively low
quality products (like roofing papers) or companies that
buy small quantities of wastes to supplement their virgin
materials inputs; these latter generally produce higher
quality products (like printing paper).
In several industries — paper, textiles, rubber— the
sectors based on secondary materials are losing markets
to sectors based on virgin materials. In these areas, the
quantitites of secondary materials available are growing
while the demand for these materials is decreasing.
Some industries, like glass container manufacturers
and steel producers, are capable of using much more
waste than they use in fact. Their recycling rate is held
low because sufficient quantities of qualitatively ac-
ceptable secondary materials are not available at costs
competitive with virgin raw materials. Steel producers
are also limited by the fact that some of their furnaces
cannot accept scrap steel at high rates.
Industries that consume nonferrous metals accept
virtually all wastes produced provided these can be
delivered to them at an acceptable cost.
Solid Waste Management Organizations
(SWMO). SWMO's are only peripherally involved in
salvage. The retrieval of resaleable or recoverable items
at dumps and landfills by independent scavengers or by
contractors and the recovery of steel cans from
incinerator residues are two forms of recovery practice
enountered most frequently.
In 1969 and early 1970, most SWMO's viewed salvage
as a nuisance. It was said to interfere with the
organizations' principal mission — collection and
sanitary disposal of waste. It yielded little or no net
revenue, and quantities recovered were small. More
recently, late 1970 and 1971, SWMO's appear to be
showing new interest in salvage, prompted by the
promise of Federal assistance to overcome technical and
market problems — the promise being implicit in the
1970 Resource Recovery Act.
Municipal Salvage Techniques
Recovery of wastes for recycling requires that they be
separated into basic materials classes — paper, ferrous
metals, clear glass, dark glass, etc. The traditional
technique of separation has been manual. This technique
costs more than $16 per ton; revenues range between $4
and $9 per ton; consequently hand sorting of mixed
municipal waste for recovery is uneconomical.
Technology to overcome this problem is under
development. Most advanced are two systems. One, a
system developed by the Black Clawson Company,
accepts mixed municipal wastes and separates these
automatically into reclaimable fiber, metals, and glass.
The system, now in demonstration stage, is an adaptation
of paper pulping technology to waste sorting. The other
system, developed by the Bureau of Mines, separates
metals and glass from incinerator residues using various
materials handling techniques developed in the mining
industry. Both systems appear to be sound in an
engineering sense and have economical possibilities.
Other technology is also being developed — optical
and magnetic sorting of broken glass; sorting of mixed,
shredded waste by air classification; sorting of com-
mercial wastes by mechanical conveyor systems; and the
conversion of waste commodities into useable products
like glass into road aggregate, organic wastes into
animal feeds, combustible materials into oils, etc. These
techniques are not yet sufficiently well developed to
permit a judgment of their potential.
The availability of some new technology and the
emergence of others, however, does not solve the
fundamental problem of salvage — the absence of
markets for these commodities.
Paper
Paper is the largest component — 40 to 50 percent by
weight — of municipal waste collected. Fairly large
quantities of paper are recycled. In 1969, 53 million tons
of fibrous materials were consumed in paper making; of
this, 10.1 million tons, or 19 percent, was waste paper. But
paper's recycling rate has been declining steadily since
1945. Generation of paper waste is growing more rapidly
than waste paper consumption. Mills using virgin pulp
have been built in preference to those consuming waste
paper to tap abundant sources of low cost virgin raw
materials — trees.
The demand for products made of virgin fiber has
increased about three times as rapidly as the demand for
products made of secondary fiber in the past 15 years.
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FOR MATERIALS IN SOLID WASTES
Virgin fibers are also used to upgrade the appearance of
products that have traditionally been made exclusively
of waste.
Higher recycling rates in paper are limited by
economics (virgin fiber is cheap in relation to waste
paper), logistics (manufacturing plants are far from cities
where waste paper occurs), and the fundamental virgin
materials orientation of the paper industry and its
customers.
Ferrous Metals
Approximately 7 percent of collected municipal waste
is ferrous metal.
The iron and steel industry uses large quantities of
scrap metal in its operations33 million tons of purchased
scrap supplied 31 percent of the industry's total metallics
demand of nearly 106 million tons in 1967. In addition to
this demand, 7.6 million tons of scrap were exported.
Of the 33 million tons of domestic scrap demand,
obsolete scrap, such as automobile hulks and other
discarded iron and steel objects and structures, ac-
counted for 21.4 million tons, equivalent to 20 percent of
total domestic metallics demand. The rest was supplied
by fabrication wastes.
In addition to some 33 million tons of scrap acquired
by the industry from external sources, it also used 52
million tons of internally generated scrap in 1967, called
"home" scrap. Over the past decade, home scrap use has
increased at the expense of obsolete scrap.
Ferrous metals occurring in municipal waste consist
largely of tin-coated steel cans. These materials are not
suitable for recycling in steel furnaces because the tin
cannot be removed from the cans and contaminates the
furnace products. Small quantities of obsolete steel cans
are consumed in copper mining operations in the refining
of low-grade copper. The demand for cans in this
application is not sufficiently large to consume more than
a small fraction of cans occurring.
Total demand for iron and steel scrap by industry here
and abroad falls short of the tonnage actually available.
In 1967, between 52 and 68 million tons of obsolete scrap
were available by our estimate. Total domestic and
export demand for obsolete scrap was 29 million tons.
Closing the gap between available scrap supply and
demand requires lower rates of iron ore consumption. At
this time, ore-based operations are more economical
than scrap-based operations for most of the industry.
Collection of scrap occurring in dispersed locations and
removal of impurities (such as tin) are more costly than
mining and processing ores.
Nonferrous Metals
The major nonferrous metals — aluminum, copper,
zinc, and lead — constitute less than I percent of
collected municipal waste. All of these materials are
valuable as scrap and are recycled within economic
limits. In 1967, nearly 9.8 million tons of these materials
were consumed; 30.8 percent of this consumption, 3
million tons, was provided by recycled materials.
Aluminum is the only nonferrous metal encountered in
municipal waste in significant quantities. Approximately
680,000 tons of aluminum cans, food trays, and
packaging foils were part of such waste in 1968. As a
consequence of various legislative pressures on the
packaging industry, three aluminum companies have
entered the field of aluminum packaging reclamation by
starting can reclamation centers.
These programs depend on delivery of the cans by the
public to a central collection point where they are
processed for shipment to a smelter. Success of the
programs turns on these points: (I) collection must be by
the public; (2) sufficiently high quantities must be brought
in to operate the collection centers economically; (3) the
aluminum is valuable, worth about $200 per ton, thus
permitting processing. Reynolds Metals has the oldest
successful program in operation. A "successful" program
is unlikely to recover more than 10 to 15 percent of
available aluminum packaging in an area.
Glass
Glass, largely discarded containers, makes up about 6
percent of collected municipal waste.
All segments of the glass industry use waste glass
known as "cullet." But most of the cullet is derived from
internal plant operations. Very little comes from outside
sources. Cullet is an accepted component in glass making
provided that it is clean, free of contaminants, and color
sorted.
Glass containers constitute by far the largest share of
total glass production tonnage (about 70 percent) and
represent about 90 percent of the glass found in
municipal waste.
In 1967, 12.8 million tons of glass were consumed. Of
this total, 600,000 tons were purchased cullet from
external sources equivalent to 4.2 percent of con-
sumption.
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SALVAGE MARKETS
The use of purchased cullet has declined because
predictable supplies at prices competitive with basic raw
materials (sand, limestone, and soda ash) have all but
disappeared. The few surviving cullet dealers face rising
costs and dwindling supplies.
It is not economically or technically feasible to
recover glass from mixed wastes at present. However,
technology for separation is being tested. The glass
industry could absorb large quantities of cullet if the
various technical and economic problems of cullet supply
could be overcome, and indeed glass collection centers
have been organized recently at glass container plants
around the country under the leadership of the Glass
Container Manufacturers Institute to induce the return of
waste glass by consumers. Incentives for increased glass
cullet use by industry are not present — virgin raw
materials are cheap and abundant.
Textiles
The occurrence of textiles in waste is relatively low —
about 0.6 percent of collected municipal wastes. Textile
wastes are not normally returned to the industries that
produce them with the exception of a small amount of
wool that is rewoven. The chief uses of textile wastes are
in paper and board products; furniture stuffings, fillings,
and backings; export for resale; production of wiping
cloths; and resale in second hand stores. In 1968, nearly
5.7 million tons of textiles were consumed and 246,000
tons of textiles were recycled, a recycling rate of 4.3
percent of consumption.
Rubber
Rubber is around I percent by weight of collected
municipal wastes.
Tires are the principal source of waste rubber. About I
million tons of rubber were recovered in 1969, 26.2
percent of a total consumption of 3.9 million tons.
Retreading is the principal form of rubber recycling (75
percent); rubber reclaiming accounts for a substantial
share (24 percent); tire splitters — who cut tires into
various products like gaskets — take less than I percent
of the recovered tonnage.
There are definite technical limitations to recycled
rubber since it cannot be successfully mixed with virgin
rubber in large percentages or substituted for virgin
rubber. Retread tires are losing markets to new tires, and
this decline is expected to continue; rubber reclaiming is
also in decline.
Since rubber recycling is experiencing decline as
markets dwindle, the rubber content of solid waste can
be expected to rise. Use of waste rubber to produce new
materials (e.g. oils) or energy appears to offer the best
hope for recovery of this waste category.
Plastics
Plastics are increasing rapidly in waste because these
materials are growing in a number of consumer product
markets. Obsolete plastics are not recycled. The immense
number of different formulations of plastics and the near
impossibility of sorting these materials after discard
prevents their reuse. A small market exists for fc brication
wastes. These are purchased by waste plastics processors
who regrind, color blend, and remelt plastics for low
grade applications. The demand for secondary plastics
made from fabrication wastes falls short of the total
supply of such wastes so that many fabricators haul their
wastes to dumps and landfills.
Legislative and Policy Considerations
The situation in recycling today is one whereby
normal free market forces are causing a decreasing use
of secondary materials — which have difficulty
competing against virgin resources. In instance after
instance, the relatively low cost of virgin materials —
and the consequent absence of demand for secondary
materials — explains why waste mateiiols are not
recovered. On the surface, it appears that legislation to
cause increased use of wastes would merely cause the
consumer higher costs.
Jn actuality, the reason why virgin matet ials costs are
relatively low and secondary materials costs are
relatively high appears to be that the market mechanism
does not reflect the true socioeconomic ro'its ,of virgin
materials use nor does it credit recycled materials with
creating social benefits.
Virgin materials producers enjoy depletion al-
lowances, do not pay the full costs of environmental
degradation created by their mining, harvesting, trans-
portation, and processing activities; and are not charged
for generating solid wastes. By contrast, secondary
materials are not credited with conservation of natural
resources, favorable contributions to foreign trade
balance, low pollution generation in reprocessing, and
removal of materials from the solid wast«i stream. This
situation results in a distorted picture of the relative total
costs of these two types of materials.
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FOR MATERIALS IN SOLID WASTES
Legislation to increase the quantities of waste of our materials use practices. Such information,
materials recycled thus appears justified if the total however, can be developed and could serve to justify
socioeconomic costs of using virgin raw materials are legislative intervention to create materials use practices
higher than the costs of the alternative use of secondary that conserve our total national resources in the best
materials. way.
Legislative decision making is hampered by the
absence of information on the total or "systems" impact
XXI
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SALVAGE mflRKETS
for materials in solid wastes
CHAPTER I Introductory Considerations
The Study in Perspective
The salvage of commodities in solid wastes is aft
attractive approach to solid waste management: it
reduces the quantity of waste that must be handled for
disposal. But salvage has not traditionally been viewed
as a solution to waste management problems. It has
always been a necessity, pursued for its own sake. Man
has recovered waste materials throughout history and
still does. Wastes were always subjected to scrutiny, and
whatever materials of value could be extracted from the
waste stream were extracted, for the simple reason that
scarcity of valuable processed materials was a fact of
life, and the human energy required for salvage of
processed materials was lower than the energy needed
for obtaining and processing virgin raw materials.
In the latter half of the 20th century, in a few highly
developed countries of the world, modern technology
and the use of fossil fuels have created a situation
wherein the relative cost of producing materials from
virgin sources is frequently lower than the cost of
producing materials from wastes. One consequence of
this development has been an increasing discard of
commodities that, in earlier times, would have been
recovered. The observable decline in salvage since the
I940's is a result of complex technoeconomic factors, but
the basic issues are the relative value of virgin resources
and secondary materials and the absence of demand for
waste commodities.
This study concerns itself with the economics of
salvage. Its underlying purpose is to elucidate the value
relations between virgin materials and secondary
materials so that intelligent planning and action can take
place to salvage recoverable materials, thereby reducing
the quantities of waste going to ultimate disposal.
Needless to say, the current situation in salvage is not
purely an economic or technoeconomic matter. Historical
forces, public attitudes, purchase specifications, leg-
islative constraints, and a variety of considerations that
cannot be expressed in dollars and cents play a part in
making salvage activity what it is. These factors are also
described and analyzed.
As a whole, salvage has been declining for many
years. It has never been a major activity of mankind (like
transportation, agriculture, construction) but it could
always be found on the margins of major activities. For
this reason, it is a somewhat mysterious activity, poorly
lighted by statistical facts and reporting systems. It is a
world of small entrepreneurial enterprise — sometimes
the part-time business of one man — poor records,
prices that shift like quicksand, and a demand-supply
picture dependent on innumerable unique conditions at
the local level. Salvage is also an activity in transition,
characterized by the disappearance of traditional
structures and the emergence of new ones.
The study does not deal with all aspects of salvage or
with all aspects in the same detail. Subjects eliminated
from consideration by our contract are automotive scrap
recovery and production and sale of compost. The
central focus, however, is on the recovery of commodities
encountered in municipal wastes, and the most detailed
treatment is devoted to those manufactured nonfood
materials that occur in the largest quantities in waste -
paper, metals, and glass — those commodities that are
salvaged from commercial and residential sources, but
which also contribute most of the municipal waste.1
1 Detailed studies of industrial waste generation and salvage have been conducted, or are under way, under
sponsorship of the Office of Solid Waste Management Programs (OSWMP), U.S. Environmental Protection Agency.
1
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SALVAGE MARKETS
Study Approach
The study was conducted in three parts: (I) special
studies of each major material class; (2) a survey of 13
communities and one multicommunity area (these surveys
are referred to as "case studies" in this report); and (3) a
mail survey of 2,005 communities with populations over
10,000.
Special Studies. Special studies were accomplished
by statistical data acquisition and analysis, literature
review, and interviews with corporations and gov-
ernmental agencies directly concerned with the recovery
of a material class. In addition to providing information
about the recovery of a material, these studies served to
orient the research staff for case study work in the field.
Case Studies. Visits were made to 13 cities and one
group of communities to study at first hand salvage
practices in these areas. Our original intent was to study
the total picture of the supply of and demand for
secondary materials in each of 10 cities and four market
areas. This original objective proved both undesirable
and impossible. The amount of time available for the
surveys was not sufficient to establish an overview of the
total salvage activity in each material class, partly
because of the fragmented nature of salvage activity,
partly because of the size of the communities visited, and
partly because information was denied the investigators.
As a whole, however, the case studies illuminate salvage
activities in the cities visited.
Preliminary survey efforts were conducted to develop
an effective approach to the case studies; using this
experience we developed an approach involving
interviews with municipal sanitation officials, with
private refuse haulers, secondary materials dealers,
social service agencies such as the Salvation Army, and
with companies that consume secondary materials.
Between two and three man-weeks were spent in each of
10 areas; three additional cities were visited to investigate
specific salvage projects.
Mail Survey. Following completion of the case
studies, a questionnaire was developed to be used in a
mail survey of salvage activities in all cities with a
population of 10,000 and above. In all, 2,005 ques-
tionnaires were mailed out; a second mailing was
conducted to reach again cities that had not responded
to the initial effort. The intent of this effort was to fulfill
the contractual obligation to create a "catalog of
municipal salvage projects." The results of the survey are
presented in Chapter XII.
Basic Definitions
Some definitions are set forth below to clarify the
meaning of terms used in the secondary materials
industry:
Conversion is the process of chemical change in
secondary materials so that the identity of the original
material is lost. Examples are the recovery of energy
from organics by combustion and biological conversion
of cellulose to sugars (see also "processing").
Junk is used interchangeably with "secondary ma-
terials" and means the same thing. Junk dealers,
however, prefer to be called "secondary materials
dealers," and this excellent Middle English word is
consequently losing its currency.
Municipal waste is a general term used in the report to
designate all types of waste likely to be collected and
delivered to a public or private disposal site such as a
dump, landfill, or incinerator. A similar term sometimes
used is "urban waste." Municipal waste includes mixed
household wastes, commercial and institutional waste,
industrial plant wastes, street refuse, bulky wastes,
demolition materials, dead animals, and other special
wastes.
Primary recycling is the return of a secondary material
to the same industry from which it came and processing
of the secondary material so that it will yield the same or
similar product which it was as a secondary material.
Examples are the return of broken glass containers to
glass container manufacturing plants for making new
containers and the recycling of sheet steel scrap to steel
furnaces for the manufacture of new steel.
Recovery is the same as salvage. It also means the
acquisition of an energy value from incineration or other
chemical conversion.
Reprocessing is the activity of changing the condition
of secondary materials whether the change is minor such
as crushing or shredding or major such as biochemical
conversion of cellulose into yeast.
Recycling is an activity whereby a secondary material
is introduced as a raw material into an industrial process
in which it is transformed into a new product in such a
manner that its original identity as a product is lost.
Reuse is the return of a commodity or product into the
economic stream for use in exactly the same kind of
application as before, without any change in its identity.
The classic example is the returnable beverage container
which is washed, refilled, and once more carries product
to market.
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FOR MATERIALS IN SOLID WASTES
Salvage as an activity is the act of saving or obtaining
a secondary material, be it by pickup, sorting, dis-
assembly, or some other activity. This term is also used
more broadly to mean the entire activity of recovery and
use and the process necessary for both, as in the phrase
"salvage of materials has declined," which means that
the removal of materials has declined and secondary
materials are not used in the same quantities as
heretofore. "Salvage" is sometimes used synonymously
with recovery, reclamation, and extraction.
Salvage as a material is a technical term meaning a
quantity of materials, sometimes of mixed composition,
no longer useful in its present condition or at its present
location, but capable of being recycled, reused, or used
in other applications. Salvage also refers to materials
recovered after a calamity, such as materials obtained
from a ship wrecked at sea or a building destroyed by
fire.
Scrap as a noun is a technical term for manufacturing
wastes or rejected products of manufacturing processes.
In the secondary materials trade the term is often
restricted to iron and steel wastes, including those
derived from obsolete products as well as those
occurring in the manufacturing process.
Scrap as an adjective is a term used in cases where a
specialized term for the waste material is not applied or
does not exist such as scrap plastics or scrap rubber.
Secondary materials are materials generally handled
by dealers and brokers that (I) have fulfilled their useful
function and cannot be used further in their present form
or composition and (2) materials that occur as waste from
the manufacturing or conversion of products. The term
"secondary materials" usually implies more than one
type of material.
Secondary recycling is the use of a secondary
material in an industrial application for recycling other
than that in which the material originated. An example is
the reprocessing of newspapers and old corrugated
boxes into combination board for packaging or into
construction paper. Another example is the pulping of
cotton lintersto make printing paper.
Secondary use is the use of a material in an
application other than that in which it originated;
however, the material is not .changed significantly by
processing and retains its identity. Examples are cotton
clothing articles that are converted into wiping rags by
being washed and cut to size; the use of steel cans in
copper precipitation; and the use of rubber tires as dock
bumpers. Materials used in this mode end up as waste
after their secondary use is complete.
Usables is a secondary materials trade term meaning
those items recovered from discards that are salable in
their existing form as second-hand goods. Examples are
steel piping, sinks, door handles, appliances, and
clothing.
Virgin materials is a term denoting a material derived
wholly or predominatly from substances mined from the
earth, grown on the soil, or extracted from water bodies
or the atmosphere. In the trade, virgin materials are
luxtaposed to secondary materials.
Waste as an adjective in the secondary materials
industry is used to differentiate between virgin materials
and secondary materials, as in the phrase waste paper.
The word is used in this sense as a substitute for words
like secondary, scrap, or junk. Some people apply the
term waste to materials in the process of being made
acceptable for industrial consumption. Thus paper may
be waste paper as recovered but becomes paper stock
when it has been graded and baled for shipment to a
paper mill.
Special Research Problems
In the course of this research, we encountered a
number of problems, some of which could not be solved
entirely to our satisfaction.
In order to form a quantitatively accurate picture of
the extent to which salvage is practiced in the United
States today, three elements of information are needed:
(I) an accurate measure of the quantitites of waste
generated, those collected and disposed by the gen-
erators, those collected and disposed by others, and
those retained by the generators; (2) the composition of
wastes; and (3) the quantity of secondary materials
obtained by the salvage industry from industrial
manufacturing and conversion activities and from
obsolete sources.
The only information available on a national basis on
quantities of waste generated is the 1968 National Survey
of Community Solid Waste Practices, hereafter referred
to as the "National Survey." According to this survey,
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SALVAGE MARKETS
5.32 pounds of waste were collected per capita each day
by municipal and private collection forces. Using a
population figure of 199.5 million in 1968, a total of 194
million tons were collected.2 The National Survey,
although the best source available and an indispensable
tool in solid waste management research, is not an
entirely reliable source for national figures because the
average above is based entirely on the small sample of
communities that actually weighed their waste.
The composition of municipal wastes has been
measured numerous times, and a selected list of such
studies and their results is given in Appendix A.
It would be most pleasing if waste composition data,
when applied to data from total waste generation or
collection quantities, yielded a believable picture.
Unfortunately, this is not so. The key problem occurs
when the percentages of specific materials in solid waste
are applied to waste collection figures. This problem is
described in detail in Appendix A.
Another problem we encountered is the relative
absence of precise data to show what quantities of
secondary materials are obtained from obsolete ma-
terials as compared with conversion wastes. Secondary
materials dealers typically handle materials derived both
from industrial conversion activities and from obsolete
sources, and industry statistics seldom make a distinction
as to source. Government statistics on salvage are no
better.
In order to obtain our own estimates of the magnitude
of recycling from obsolete sources, we had to reconstruct
the flow of materials in each of the key industries and to
estimate, on the basis of inputs and outputs, the
quantities of industrial waste that resulted and were
recycled; .this quantity was then deducted from total
secondary materials consumption by the industry to yield
an estimated tonnage of materials obtained from
obsolete sources.
Linked to this difficulty is the broader problem of the
absence of reliable, extrapolatable information about
salvage in general, which results from the following six
factors.
(I) Whether or not to use secondary materials is a
question that industrial concerns decide on the basis of
many considerations, which vary from place to place.
With few exceptions, secondary materials are a "lowest
cost" substitute for virgin materials. There is no force that
impels a company to buy waste products; it has many
alternatives to their use; consequently, no general rule of
thumb can be used such as X percent of the input
materials of a glass company must be purchased cullet.
(2) Secondary materials act as a balance wheel for
virgin materials. In times of good demand, secondary
materials are "turned on" to supply a missing proportion
of total industrial inputs. In times of declining demand,
secondary materials can be "turned off." This com-
pensatory role of secondary materials prevents hard
estimates of the secondary materials consumption
necessary to maintain a certain level of economic
activity.
(3) The secondary materials industry is oriented to the
short range. Long-range planning is foreign to most
dealers and brokers, and analytical work to determine
future demand by the study of past trends is almost
nonexistent in the industry.
(4) Secondary materials processors tend to have a
local orientation and are adapted to local conditions.
With some exceptions, their generalizations about
secondary materials movements nationwide are not
usually accurate.
(5) For the reasons cited, price information available
on most bulk commodities in the secondary materials
trade press is unreliable as precision data. Prices vary
from location to location, day to day, and dealer to
dealer, and it is not possible to say with certainty what
the value of a particular commodity is in the United
States.
(6) The economics of salvage are deceptive because
the industry rests in part on economically marginal
operations and various hidden subsidies. For instance,
much waste is collected by scavengers who earn less than
the minimum wage but who work in this area because
they want to do so or cannot get other work. Collection
systems that involve gathering of materials by students or
Scouts could not be duplicated economically using paid
labor and trucks. Social welfare agencies that do not pay
the minimum wage are very active in textile, paper, and
metal recovery.
For these reasons, all generalizations made in this
report, and they are unavoidable, must be viewed as
approximations. Anyone familiar with the salvage
2 The figures cited are in contrast to other estimates of the quantities of waste generated in the United States by major
source categories, i.e., 360 million tons of urban and industrial waste, 550 million tons of agricultural waste, 1,500
million tons of animal wastes, and 3,500 million tons of mineral wastes.
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FOR MATERIALS IN SOLID WASTES
industry can find a dozen examples where conditions,
prices, and practices described do not pertain.
Units of Measurement Used
Throughout this report, all material weights and
corresponding costs and prices are given in net tons of
2,000 pounds. This is desirable because it enables us to
present a uniform picture of salvage activities in units of
measurement that can be compared with solid waste
management data. Uniformity is achieved by violating
some industry customs. Steel scrap prices, for instance,
are always given in gross tons (2,240 pounds) in trade
sources. To convert our data on steel scrap back to gross
ton data, the reader must multiply the price or weight
data by 1.12. Nonferrous metal prices are quoted in cents
per pound and textile prices are usually quoted in cents
per pound or dollars per hundredweight; we have used
dollars per ton throughout.
Report Organization
Presentation of the materials moves from the general
to the particular. The next chapter, Chapter II, presents a
picture of the salvage industry, the sanitation es-
tablishment which supplies secondary materials at times,
industrial buyers and sellers of secondary commodities,
and public attitudes toward salvage. Various facts and
trends that are general to salvage activity as a whole are
presented.
Chapter III discusses salvage operations and op-
erating costs, including emerging patterns in salvage. The
objective is to present cost data in one place and to
identify the emergence of new technology (in the
hardware sense) and new developments (in the so-
cioecomonic sense) which together promise to introduce
changes into salvage.
Chapters IV through IX contain detailed discussions of
commodity classes: paper, ferrous metals, nonferrous
metals, glass, textiles, rubber and plastics, and other
materials.
Chapter X presents a discussion of legislative and
policy considerations related to salvage and recovery
and summarizes and interprets various findings de-
veloped earlier in the report from the legislative point of
view.
Chapter XI is the report of case studies conducted in 13
communities and one multicommunity region. The
concluding chapter, Chapter XII, presents the findings of
the mail survey.
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CHAPTER II
PARTICIPANTS IN SALVAGE AND RECOVERY
In this chapter, we discuss the salvage industry itself
(dealers and processors), the public and private san-
itation establishments, and commercial and industrial
generators and buyers of secondary materials. The
chapter concludes with a brief look at public attitudes
toward materials recovery.
The Salvage Industry
The salvage industry in the United States in 1967
consisted of just under 8,000 establishments, employing
79,000 people, with sales of $4.6 billion.3 Around 80
million tons of secondary materials were handled by this
sector of our economy.4
This is the "formal" structure of the salvage industry
— the dealers, processors, and brokers who accept
secondary materials from generating sources, sometimes
process the materials in some way, and then sell them to
secondary materials consumers. Around 1,400 of the
companies are fairly large (over $500,000 in sales); the
remainder are small operators.
The commercial organizations that comprise the
formal secondary materials industry are supported by a
vast army of individual scavengers, collectors, and
junkmen who are independent operators and acquire
waste products from many sources. Social service
organizations such as the Salvation Army, some private
refuse haulers, a few municipalities, automotive dis-
assemblers, and demolition firms all contribute waste
products to the industry.
Metals are the lifeblood of the industry; 74 percent of
dollar sales and 73 percent of the tonnage of the industry
were in ferrous and nonferrous metals in 1963, with iron
and steel being the dominant materials class among
metals. But virtually every other material is also sold:
paper and board, textiles, glass, rubber and plastics, and
feathers and hair. Paper accounted for 15 percent of
tonnage, textiles for 3 percent, and all other materials for
9 percent in 1963 (Tables I and 2).
Not all of the waste materials recovered or sold pass
through the hands of the traditional salvage industry.
Most of the glass and much of the metal recycled in the
United States is recycled without salvage industry
participation because it is derived directly from the basic
manufacturing process and returned directly for re-
cycling without leaving its point of origin. The rendering
industry, which accepts organic wastes for reprocessing,
is usually excluded from this group. Numerous waste
products sold, such as metallurgical slag, fly ash, and
rubber tires, do not involve junk dealers or brokers.
Participants in the Industry. The salvage industry
has three layers (Figure I). At the bottom are the junkmen
or scavengers — individuals who support themselves in
part or entirely by picking up waste materials from a
variety of sources and selling these to secondary
materials dealers. Sources tapped by these individuals
can be small machine shops or printing shops where they
pick up presegregated metal turnings or printing wastes.
Junkmen may work at municipal or private dumps,
retrieving commodities disgorged from waste collection
trucks. They sometimes forage for cardboard in com-
mercial wastes before it is picked up by refuse haulers.
They may own one or two wrecked automobiles which
they disassemble. The two most important characteristics
of the scavenger are that he is an independent operator,
3 U.S. Bureau of the Census. 1967 Census of business. Wholesale trade, area statistics; United States summary. Series
BC67-WA-1. Washington, U.S. Government Printing Office, [May 1970].
4 This should not be understood as 80 million tons recovered. Census data on which this tonnage is based counts dealer-
to-dealer transactions as well as transactions to the final purchaser.
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SALVAGE MARKETS
not affiliated with any company, and that his par-
ticipation in the salvage business is usually a part-time
activity, and only marginally economical.
A special form of the junkman is the small (one man)
private refuse hauling entrepreneur who segregates
salable materials from wastes as these are dumped into
compactor trucks. The wastes are usually accumulated in
the cab of the truck or hung on the side of the truck and
are sold to salvage dealers from time to time.
The next layer is represented by small salvage
dealers. These dealers usually handle metals, paper, and
textiles and obtain a part of their input materials from
junkmen; a part from industrial sources using dealer
labor and vehicles for pickup; and a part from refuse
haulers, social service organizations, and civic groups.
These smaller dealers seldom handle quantities of
materials large enough to make it worth their while to
develop farflung contacts with industrial buyers of
salvage. They accumulate quantities of materials and
then sell these through a broker to an industrial buyer or
they sell their accumulation directly to a larger dealer.
Small dealers perform some sorting of the waste products
acquired to upgrade these. For instance, they may
separate cast iron from rolled steel products. But they
seldom have the capacity for such large scale processing
as metal shredding or high density paper baling. These
dealers are found in smaller population centers that will
not support specialized materials businesses and in large
industrial centers dominated by large commodity
specialist dealers.
Above the small dealers are the secondary materials
processors, essentially large dealers who have extensive
mill connections and combine brokerage work with
actual physical handling of commodities. At this level,
some degree of specialization is the rule. Usually, the
processor will be in only one of three businesses —
metals, paper, or textiles. Many processors have grown
to their present stature from humbler beginnings, and,
consequently, they may still handle small quantities of
metal and textiles if they are paper dealers or paper and
textiles if they are in metals. The processor usually
acquires materials from industrial and commercial
sources, charitable and social welfare organizations (if
he is in paper and textiles), smaller dealers, as well as
junkmen. He does more processing and upgrading and
delivers products directly to consumers. If he can obtain
materials in sufficient quantities from smaller dealers and
if the materials are sufficiently processed, he will perform
a brokerage function only, never actually handling the
commodities. He may also resell products to another
dealer.
On the same plane with the dealer-processor is the
specialist dealer. This dealer is one who, for instance,
handles only nonferrous metals, wools, synthetic textiles,
or cotton rags. In the paper industry some specialists
handle only pulp-substitute grade papers. The con-
tribution of the specialist to the business is his intimate
knowledge of a specific commodity and the market for
that commodity. The large dealer-processor whose
principal commodity, for instance, is steel scrap, may not
find it profitable to develop the contacts and to hire the
labor necessary to process a small quantity of nonferrous
scrap. He is better off selling nonferrous accumulations to
a specialist. The specialist sorts, grades, and prepares
materials for sale to end users.
Secondary materials brokers are distinguished from
dealers, processors, and specialists in that they do not
physically handle the commodities they buy and sell.
They are agents whose services are sought because they
know the market place. In practice, brokerage is
performed by most processors and specialists; however,
the 8,000 companies that comprised the salvage industry
in 1967 included 114 companies that did only brokerage
work.
Glass dealers and some rubber dealers do not
conform entirely to the picture described above,
probably because both of these commodities occur only
in small quantities on the open market. Dealers for these
commodities are, in essence, specialized refuse removal
firms that sell the wastes they pick up. Glass cullet comes
from bottling operations or flat glass plants; the cullet
dealer acquires the glass, processes it, and sells it to a
buyer. Glass cullet dealers can usually sell all of the cullet
they acquire because of their limited sources of supply.
All of the Nation's cullet dealers are of roughly the same
size. Rubber dealers are usually the only link between
filling stations and garages, where tires are accumulated,
and rubber reclaimers who buy the tires. Rubber dealers
are sometimes forced to dispose of tire accumulations at
landfills.
In an intermediate position between the junkman and
the small dealer are three types of organizations —
private refuse haulers, social service agencies, and civic
organizations — that collect salvage commodities from
industrial, commercial, and residential sources and sell
materials to the salvage industry. These organizations are
not normally considered part of the secondary materials
industry.
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FOR MATERIALS IN SOLID WASTES
Private refuse haulers usually service retail stores,
warehouses, and industrial organizations that discard
large quantities of corrugated board. In some of the
nation's large waste paper consuming areas, refuse
haulers sometimes deliver concentrated loads of old
corrugated containers and occasionally other waste
paper to paper dealers or sort such paper from their
loads for sale. In a few cases, refuse haulers salvage
metals in addition to paperboard. Operations of this
type are corporate in nature and should not be confused
with scavenging by truck drivers.
Probably the most extensive secondary materials
collection activity taking place outside the formal
salvage industry is conducted by social service agencies.
Best known of these organizations are the Salvation
Army, Goodwill Industries, Volunteers of America, and
Society of St. Vincent de Paul. Most waste textiles
collected in the United States, together with some of the
waste paper and small quantities of metals, are collected
by such organizations.
Social service organizations typically make residential
calls to pick up usable, resalable commodities whose sale
in second-hand shops in part supports the charitable and
rehabilitative work of the agencies. Some commodities
are picked up from bins placed by the agencies in
parking lots of shopping centers. A portion of the goods
obtained is usually beyond repair and is sold as junk or
simply discarded as waste. In addition, some agencies
also acquire paper from industrial and commercial
sources. The usual procedure is to "pay" for the paper by
executing a certificate that the contributing organization
may use to claim the fair market value of the paper as a
charitable deduction on business tax returns (under
guidelines established by the Internal Revenue Service).
No cash passes hands. Some social service agencies are
in competition with salvage dealers in that they perform
sorting and processing of wastes and bypass dealers to
sell commodities to the end user. As a rule such
organizations pay labor at rates below minimum wage,
either because they are sheltered workshops exempted
from the minimum wage law requirements or because the
labor performed is quasi-voluntary.
Finally, various civic organizations, including
churches and schools, participate in waste collections.
Newspapers are the chief commodity collected, although
recently civic groups in Los Angeles and elsewhere have
also been collecting aluminum cans and glass containers.
Civic organizations collect commodities on an irregular
basis, perhaps once or twice a year, in "drives."
Members of the organizations are notified that a drive
will take place on such and such a date. Members
acquire the commodities from their families, neighbors,
and friends and deliver them free of charge to a central
collection point. Materials are sold to a dealer — at
whose initiative drives may have taken place — and the
proceeds are used by the organization for projects.
Materials Acquisition. It is an axiom in the salvage
industry that "scrap is not sold, it is bought." The skilled
secondary materials dealer is a skilled buyer. His selling
price is beyond his control because he sells a raw
material substitute and demand determines price.
Demand in turn is influenced by the general economic
conditions and the relative availability and cost of virgin
resources. Knowing in advance what his selling price is
likely to be, the dealer must endeavor to buy materials at
a cost low enough to allow for the costs of acquisition
and processing plus a profit.
Because demand and prices fluctuate, the dealer is
sometimes forced to tap every conceivable source for
salvage to satisfy demand; at other times he must "turn
off" many of his sources. Sources are hierarchically
ranked in the dealer's mind. "Best" sources provide large
quantities of the highest grades of scrap on a continuous
basis; high grades, which most resemble virgin materials,
can almost always be sold. In times of low demand,
dealers buy only from their best sources to protect these
from the effects of a down-turn. In exchange, these
sources usually resist competitive offers by other dealers
in high-demand periods. Best sources are almost
invariably industrial materials converters.
The worst sources provide small quantities of low
grade scrap: office buildings that generate mixed paper,
for example, or junkmen selling dump metals. Mixed
municipal waste is viewed as an undesirable source of
scrap by both dealers and industry.
In an intermediate position between "best" and
"worst" sources are organizations that provide large
quantities of low-grade salvage, small quantities of high-
grade scrap, and gradations between. Two sources with
identical quantities and grades may not be equally
desirable. One source may be nearer to the dealer or
more accessible to the street; he may bale his material
while the other does not.
The successful dealer maintains contacts with all types
of sources, knows how to cultivate the best and the
intermediate types, and how to turn on or turn off the
worst. This is done by buying at the appropriate price,
avoiding any long-range purchase commitments, es-
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10
SALVAGE MARKETS
pecially with poor sources, and avoiding long-range
supply contracts unless the sales price is negotiated at a
high level or is pegged just above a published market
price.
Faced with a variable demand, the dealer must
maintain a flexible supply structure; consequently, those
participants in the industry tagged "worst" sources here
cannot rely on income from salvage as a fixed
contributor to their budget. Marginally involved in-
dividuals must have supplementary occupations, and
organizations must be prepared to dispose of their waste
products at their own expense rather than by selling
them.
Salvage dealers are often accused of buying
materials cheaply at times of low demand and selling
them dearly when demand picks up. This is the exception.
What sometimes happens is that dealers buy materials
(reluctantly) when there is no demand for these to protect
their supply sources and then sell these later at going
prices. We find that the majority of dealers "ride the
market" — they buy only what they know they can sell
and sell what they buy, maintaining themselves in
business by keeping a safe margin between acquisition
cost and sales price. Inventories are kept to a minimum.
Unless the materials are ready to be sold by brokered
transaction (i.e., baled and in truck or carload quantity)
they are delivered to the dealer's yard where they are
weighed and deposited to await processing. Scrap may
be brought in passenger cars, pickup trucks, trailer trucks,
or railcar; delivery may be by scavengers, by the
originator's crew and vehicles, or by the dealer's own
trucks or trailers. Quantities of a few pounds, weighed on
manually operated scales, up to several tons weighed on
truck scales may be received, and the material may be
loose or baled.
Materials Characteristics. The three char-
acteristics of interest to the dealer are concentration or
purity, grade, and quantity. He shies away from "dirty"
scrap, be it high in contaminants or moisture; he prefers
high grades to low because high grades are more
salable; he prefers buying in quantities large enough to
resell to buying quantities that must be accumulated
before shipment.
These factors are relative. The worst combination, of
course, is a "dirty" low-grade material acquired in small
quantities; the best is a pure high grade substance in
carload lots. High grades can absorb much more
processing cost than can low grades; for example, IBM
cards and nonferrous metals permit manual sorting and
grading; the dealer cannot afford to sort mixed office
wastes or to disassemble appliances. The relationship
between grade and quantity is even fixed in the
industry's terminology. Thus, "bulk grade" papers are
low grade papers, indicating that they must be acquired
in quantity to be economically desirable. High grade
materials can be acquired a few pounds at a time.
The ultimate value of the product determines the
tradeoff between factors. The typical margin between
prices paid by a dealer and price received by the dealer
is $10 per ton for heavy melting steel; but the margin
applicable to No. I copper wire may be $230 per ton. The
margin for IBM cards may be $25 per ton; for
newspapers $10 to $14 per ton.
Mixed municipal wastes are clearly an undesirable
input material for the industry. They are virtually devoid
of attractive concentrations of high grade commodities
which, because they are high grade, are seldom
discarded. Bulk grades are "dirty" and cannot be
cleaned up within economic constraints. In addition,
putrescible materials and other unrecoverable wastes
must be handled at additional cost.
Salvage dealers seldom buy materials in which the
solvable portion is below 80 percent of the material
weight. Most salvage industry inputs are 90 to 95 percent
concentrations of one material or a combination of two
or more materials, each of which can be sold. Some
materials are not accepted at all because they appear in
combination with an unacceptable contaminant; there
are exceptions to this: some specialists have equipment to
remove the impurities. Typical of unacceptable materials
are tin coated steel cans and papers coated with plastics.
Magazines are undesirable in paper salvage because
water resistant glues are used to bind them and because
magazine papers include a high proportion of clay which
is washed away in repulping, leading to a large weight
loss.
Processing. In the salvage industry, processing
usually begins with a material that has already been
presorted and concentrated. If its value is high, the
material may be sorted for upgrading. If it is in a bulk
commodity, a minimum amount of processing is ac-
complished to remove contaminants (e.g., removing
magazines from newspapers) and then the material is
prepared for shipment by bundling or baling. Size
reduction by cutting or shredding is sometimes required.
Upgrading consists of separating two or more types
of materials into grades one or more of which has a
higher value than the others. Example: a dealer may
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FOR MATERIALS IN SOLID WASTES
11
have bought scrap aluminum from a scavenger for $200
a ton consisting 75 percent of old aluminum sheeting and
25 percent of new clippings. The clippings will bring
$345, the old sheeting $254 per ton. By segregating the
material, the dealer can get an average of $285 for a ton
of this material, thus improving his selling priceby$20a
ton compared to selling the lot as old aluminum.
Virtually all other processing is accomplished to
obtain a product that is acceptable to a buyer in terms of
quality, density, and size and to obtain a product that
can be shipped at least cost. Specific processing
operations are discussed in Chapter III.
Ship and railroad salvage and the demolition of
structures such as refineries, chemical plants, and steel
buildings are specialized recovery activities where
processing consists primarily of disassembly and sorting.
Automobile dismantlers, whose business it is to sell auto
parts, do not properly belong to the secondary materials
industry; their wastes, however, enter the salvage
industry as automotive hulks.
Distribution and Logistics. Salvage commodities
are purchased like other raw materials with the
exception that long-term, fixed-price purchase contracts
are seldom executed. Secondary materials are bought
and sold on a weekly or monthly basis, and the price can
and usually does change from week to week and from
month to month. The sales transaction is usually a verbal
arrangement, made by telephone, between a dealer or
broker and a purchasing agent. In times of heavy
demand, a purchasing agent may speak to a dealer
several times a day and negotiate several shipments of
product at varying prices. Verbal arrangements are then
formalized by sales contracts and purchase orders.
Materials are usually bought in carload or truckload
lots and are shipped by rail, truck, and barge. The
ultimate value of the material determines the relative
distance a commodity can be transported. The vast
quantity of all secondary materials is consumed at plants
no more than 500 miles from the originating point. High-
value commodities, such as nonferrous metals and wiping
rags, travel long distances, sometimes 1,000 or more
miles. Nearly all low-value materials, newspapers,
corrugated board, No. 2 steel bundles, and glass cullet,
are sold to points within 75 miles of the originating site.
In the paper industry, the buyer usually pays the
freight and commodities are sold f.o.b. truck or rail car.
In other material categories, freight is paid by the seller.
Freight rates vary from $2 to $40 per ton depending on
distance and type of scrap. The average freight charge
per ton of salvage sold is probably between $2 and $5
per ton; the average railroad revenue per ton of steel
scrap moved was $2.94 in 1967, and this single material is
a large part of total secondary materials tonnage
moved; wiping rag producers, on the other hand, paid
nearly $36 per ton to ship their products to consumers.
Trends and Developments. The salvage industry
is changing, and some of the key trends and de-
velopments will be identified here and developed in
greater detail in later chapters.
Perhaps the most important change is a centralization
of the industry. In 1958, 9,491 salvage companies were in
operation; by 1963, the number had declined to 8,288;
and in 1967, there were 7,927. Although Bureau of the
Census data for subsequent years are not available, the
number of establishments in 1970 was probably around
7,600. In the !958-to-l967 period, sales of the in ' istry
increased from $3.13 billion to $4.63 billion; and
employment increased from just under 74,000 to nearly
80,000. Salvage companies have become bigger.
In the 1958 to 1963 period (for which detailed census
data are available), the number of companies with sales
under $100,000 a year decreased by 1,698; the total
decrease of companies in the industry was 1,203. The
number of companies with sales in the $500,000 to $1.9
million range increased by 179, and the number affirms
with sales exceeding $2 million grew by 110 (Table 3).
The trend toward bigger companies in the salvage
industry is in part a result of economic and technological
pressures. Economic pressure has been brought on the
industry by the disappearance of cheap labor with the
coming of minimum wage legislation, which has made all
labor-intensive operations like sorting and waste ac-
quisition expensive. To remain competitive, salvage
companies must use technology to increase labor
productivity. Producers of virgin materials have in-
troduced new technology into materials extraction, and
to maintain a competitive position vis-a-vis virgin
resources, salvage companies have had to follow suit.
In the ferrous scrap business, the pressure has resulted
in the invention of large metal shredders that can reduce
automobile hulks into fist-sized bits of metal that can be
separated into ferrous and nonferrous portions by
magnetic separation equipment. When these units first
appeared, they cost several million dollars to install;
more recently, units costing $400,000 and capable of
shredding 25,000 cars per year have appeared.
Shredders are working a revolution in the scrap
business. They permit upgrading of a plentiful scrap
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12
SALVAGE MARKETS
source, auto hulks, which are usually bundled and sold
for $18 per ton as No.2 bundles, into a high grade scrap
selling for $34 per ton. At an acquisition cost for the hulks
of $14 per ton and a processing cost of $9 per ton
(including freight), a dealer can realize a profit of $8 per
ton selling shredded metal; the same dealer, without a
shredder, has a total margin of $4 per ton and still must
burn the hulk, hydraulically compress it, and ship it to the
end user.
To use a shredder efficiently, however, a dealer must
have sales of around $500,000 per year, and preferably
well above this minimum. In 1963, nearly 76 percent of the
1,921 ferrous scrap dealers with processing equipment
had sales below this level; in 1958, 84 percent of 2,781
dealers were in that category.
The auto shredder is only one example of tech-
nologically fueled change in the scrap business. In 1963,
2,167 dealers had no processing equipment at all; most of
them were small (with less than $50,000 in sales) and all
of them were reliant on scrap that could be handled
without processing. To be able to compete in the most
lucrative markets, these companies are increasingly
forced to begin some sort of processing, and to achieve
the appropriate size to justify investment in equipment,
they merge or acquire other companies thereby ac-
quiring new scrap sources and outlets.
In the paper business the single most important
innovation has been the high density baler, costing
around $120,000 and capable of handling 30,000 tons of
paper per year. These machines reduce freight costs by
up to $5 per ton on trips of 500 miles, generally facilitate
materials handling, and provide a better product to the
mills (because of handling/weight relations). Only a few
of these installations, however, were in operation in mid-
1970. To use such machinery efficiently, companies must
have sales of around $600,000 a year. In 1963, 88 percent
of 1,120 companies in the business had sales of under
$500,000. To take advantage of the new technology
available, centralization has also been taking place in
this business.
Economic pressures in the textile salvage industry
have taken four basic forms — decline of overseas sales
of waste textiles, rising labor costs, decline in the
percentage of pure cottons in waste textiles, and
competition from paper and new nonwoven fabrics in
the wiping field. Many companies in this field have
disappeared. Between 1958 and 1963, the number of
textile dealers dropped by 103 from 983 to 880, an II
percent decline. In textiles, companies tend to go out of
business rather than combine with stronger dealers.
The recovery of other waste materials has been
declining for various technical and economic reasons.
Nearly half the companies dealing in glass, rubber,
feathers, hair, bones, and other wastes have disappeared
in the 1958-1963 period; their numbers shrank from 1,387
to 710 in the period, and the decline was only beginning
in the early I960's.
Centralization is also brought about by the dis-
appearance of family-owned businesses. The sons of
dealers go to college and are reluctant to take over small
businesses where day-to-day operations include haggling
with junkmen, taking or placing dozens of telephone calls
a day, and dealing with a continually changing, unskilled
labor force. Instead, they choose laboratories, man-
agement suites, or government offices, and the family
business is sold for lack of heirs.
In salvage as elsewhere modern management tech-
niques based on computers and careful cost accounting
have made inroads to the competitive advantage of
those dealers large enough to be able to afford
corporate staffs. These larger, well managed cor-
porations find it easier to borrow money, to attract new
talent, and to protect lucrative scrap generators in times
of demand downturn.
The ratio of scrap materials consumed to total new
products made has been declining in nearly all basic
manufacturing industries. As a result of this decline,
relatively more scrap is available than is needed. The
industries consuming scrap materials can be far more
selective in their purchasing; they can and do insist on
higher quality secondary materials. At the same time, the
obsolete products that are a part of salvage industry
resources, as well as industrial conversion wastes, are
generally more contaminated because base materials
like steel, paper fiber, wool, cotton, rubber, and glass are
combined with materials in manufacturing that are
incompatible to the raw material processing steps. To
provide the raw materials processing industry with pure
scrap, the salvage dealer must choose his sources more
carefully; or he must do more processing, which favors
larger dealers with the capability to invest in technology.
The Sanitation Establishment
In this report, which is concerned with the recovery of
commodities in municipal wastes, discussion of the
sanitation establishment is in place so that subsequent
information can be presented against the background of
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FOR MATERIALS IN SOLID WASTES
13
trends, developments, and attitudes in waste man-
agement circles. The term "establishment" is used to
solve a linguistic problem presented by the discussion of
an activity that is in part a public and in part a private
industry.
General Characteristics. The sanitation es-
tablishment exists for one purpose only: to collect and to
dispose of solid waste materials in a manner consistent
with good health and environmental practice. Im-
passioned discussions of resource recovery sometimes
miss this basic point, namely that waste managers must
collect and dispose of wastes and that their mission does
not include resource recovery as a goal.
The establishment handles in excess of 194 million tons
of waste yearly, which occurs with great regularity and
must be managed on a day-to-day basis. Approximately
half the tonnage is collected by public forces, half by
private companies. Annual expenditures on this service
are around $3.5 billion, about $1 billion less than salvage
industry sales. More than 330,000 laborers are involved
in collection and disposal; almost 100,000 compactor
trucks and 180,000 other vehicles are used to move this
tonnage (Table 4).
Wastes are deposited in some 12,000 disposal sites, of
which roughly 600 are operated properly as sanitary
landfills. Some of the wastes are processed through 300
municipally operated incinerators (when they are
operating); the number of private waste burners (those
owned by private waste collectors, or industrial and
commercial establishments) is unknown, but is probably
in the thousands. A few compost plants exist, but it is
difficult to establish whether any or how many operate at
any one point in time.
Wastes handled by the establishment include: (I)
mixed household refuse containing garbage, yard
wastes, paper, glass, small metallic products, plastics,
rubber, leather, textiles, ashes, and dirt in a compacted
mixture; (2) combination of household refuse with
commercial refuse, which usually means more paper
content; (3) commercial wastes that generally resemble
household refuse but may have much more paper (from
offices) and cardboard (from stores and warehouses); (4)
industrial refuse, usually high in paper but typically
consisting of loads of nearly homogeneo'us materials
(plastics, broken glass, wood, Fiberglas, etc.); (5) street
sweepings; (6) building demolition wastes, consisting of
concrete, metal, wood, bricks, and the like; (7) dead
animals; and (8) bulky items, such as old furniture,
refrigerators, tires, washers and driers, rugs, and the like.
Public bodies handle more residential and combined
residential/commercial loads; private haulers handle
more commercial and most of the industrial wastes that
are not self-hauled by industry.
Public Sector Activities. If you ask a public
sanitation official if his organization recovers com-
modities, the usual answer is "No." If you ask why, you
will hear a variant of this statement:
"The department used to sell some metals before my
time. The stuff was sold to ABC Scrap Company and
they sold it to a steel mill in X. The price fell so
low we stopped the practice. It wasn't worth the
effort it took to handle the metal. Lately we've
had one or two offers from various people, but when
they had studied the idea a little, they backed out."
Exploring the situation further might reveal that one
or more of the following conditions were present: (I) the
department did minimal processing of the wastes, usually
involving manual Igbor; (2) the product was of the lowest
quality — contaminated with dirt, poorly segregated,
unprocessed (no shredding or baling); (3) the facilities
where recovery had been practiced had either been
closed down because of obsolescence or were ill suited
to reclaiming; (4) segregated waste collection had been
terminated; (5) exploiting this waste resource had been
the marginal activity of a local dealer who had chosen to
drop it; (6) private concerns had failed to bid on salvage
contracts or had turned in very low bids; (7) all the
initiatives for recovery came from outsiders, with the
department taking no positive steps to locate markets or
to explore techniques to upgrade the waste materials; (8)
recovery had been viewed as a nuisance before being
discontinued and discontinuation was seen as a step
forward; (9) salvage buyers had changed their spec-
ifications to shut out highly contaminated materials; (10)
the city is located a prohibitive distance from markets
that accept low quality secondary materials; (II) the
department was not in any position financially to
undertake market development, experimentation, or
construction to make reclamation possible.
It is usual to encounter a negative attitude toward
reclaiming on the part of waste handling agencies,
reinforced by the disappearance of markets for low
quality salvage and the absence of technology or
initiatives to create new markets.
The same forces that have driven manufacturing
industries to concentrate on virgin raw materials as
inputs to their plants act to drive waste management
agencies to eliminate waste recovery from their op-
-------
14
SALVAGE MARKETS
erations. It is simpler to pick up, transport, and process a
single mass of waste than to split the waste into two or
more streams, each requiring specialized treatment
techniques, technology, management and labor skills,
collection and distribution networks, markets, and
ultimate disposal arrangements. Streamlining of the
waste management process is taking place, and there is
thus a tendency to eliminate marginal operations that
interfere with the rational organization of the system.
Today's situation is not solely a result of the decline of
salvage markets. A number of other developments have
pushed or enticed waste disposal agencies in the
direction of simplified and mere efficient waste disposal
practices, among them the following.
(I) Per capita waste generation has risen, in part
because consumption has increased and in part because
on-site disposal by burning has been outlawed in many
cities to ease air pollution problems. Waste processing
agencies have had to handle ever larger loads, often
without correspondingly expanded budgets.
(2) The introduction of the compactor truck in the
I950's and I960's — which makes waste segregation
during collection impossible but permits much larger
loads to be carried — prohibits salvage because wastes
are commingled and contaminated.
(3) The rise of combined waste collection has had the
same effect; segregated collection has been forced out
by popular demand and by other factors, among them
the decline in the value of salvage.
(4) Hog feeding has declined and garbage grinders
have been widely accepted. Hog feeding disappeared in
many places; the requirement to cook garbage before
feeding it to animals introduced a new cost that closed
down virtually all feeding lots based on garbage.
Garbage grinding diverts organic solid wastes into the
waste water stream.
(5) Sanitary landfilling, which requires better control
and scheduling of activities and calls for heavy
equipment at the erstwhile dump, came into use after
World War II. Scavenging activities at landfills interfere
with efficient operations and are more hazardous.
Today salvage must show an overwhelming ad-
vantage before it is considered by the more efficient and
well-organized public waste management agencies.
Financial incentive is not sufficient. Income from a small
percentage of the waste is readily sacrificed if it
interferes with the disposal of the bulk of the waste —
even if the recovery operation is a stable and profit-
making venture. The financial returns from salvage or
recovery, therefore, must be very substantial to coun-
teract the tendency toward ..rationalization of waste
management practices.
Municipal waste management practice, characterized
as it is by bureaucratic regularity, presents a poor fit to
the usually roller-coaster operations of the salvage
business, where supplies must be "turned off" quickly one
day and "brought out" a month later. City officials have
learned by past experience that salvage dealers are not
"reliable" buyers of scrap. This view is exacerbated by
the fact that cities seldom deal with large dealers, whose
interest in municipal waste salvage is nil; their contracts
tend to be with operators on the margins of the salvage
industry who are gambling on good returns from a
project and, if they lose, are apt to exit from the scene by
way of bankruptcy.
While the attitudes described above are almost
universal, one can also detect the emergence of a
counter trend that seems to be the result of ecological
publicity.
We found a marked difference in the attitudes of
public officials as these were expressed before and after
the publicity barrage that led up to and accompanied
Earth Day, April 22, 1970. After Earth Day, officials were
either more cautious in condemning salvage (e.g., "Not
now, but maybe someday" instead of "Over my dead
body") or they were hopeful that new ways of recovering
wastes might be developed in the near future. Hopeful
attitudes were based on the future availability of Federal
funding to build new types of facilities; information
about new efforts by industry to find ways of reclaiming
materials was also making some respondents optimistic.
In many instances the intense pressure of disappearing
landfill space and the unavailability of replacement sites
are driving officials to consider anew salvage proposals
simply to conserve scarce space at the landfill.
Salvage Practices. Virtually the only large-scale
salvage practiced by municipalities we observed is the
recovery of steel cans from incinerator residues. Such
programs exist in Louisville, Chicago, and Atlanta. One
impressive paper recovery program is under way in
Madison, Wisconsin, based on collection of separated
newspapers by city crews. The most usual and wide-
spread form of salvage is at dumps and landfills; the
largest such operation is in New York. Dump salvage
may be controlled: one scavenging company or in-
dividual has salvage rights. Usually it is uncontrolled:
scavengers are permitted to enter the facility and to
remove whatever they find of value.
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FOR MATERIALS IN SOLID WASTES
15
Private Sector Views and Activities. The at-
titudes expressed by public sanitation officials are
generally shared by private refuse haulers. Private
company officials look at salvage from a profitability
point of view. There are a few well publicized exceptions
such as in the San Francisco area, but private haulers
generally find that reclamation of wastes is seldom
profitable. Private haulers try salvage from time to time,
especially when waste paper prices are high, but they
give up such efforts because they are not profitable.
Private haulers handle more commercial wastes than
public agencies, including sources rich in corrugated
board Private haulers' salvage activities, if any, are
usually based on these sources of corrugated.
A few companies have sought to recover household
newspapers by requesting that customers place them
separately with their mixed waste. A financial incentive
may be offered to the householder by excluding
newspapers from disposal costs especially where charges
are based on volume or weight. In general, these
activities realize much better public participation than
the refuse hauling firm is prepared for, and unless the
hauler has exceptionally low handling costs and volume
outlets he may end up disposing of the newspapers at the
disposal site. This is but one example of private haulers
taking a serious look at new techniques and op-
portunities for salvage from waste.
Private haulers appear to be quicker to react to
economic incentive in salvage than are municipal
officials. Private haulers will adopt new operating
procedures to achieve lower costs, to reduce disposal
volumes, or to realize a profit on sale. However, the
economic benefits must clearly outweigh the costs or the
private haulers also pursue only the primary solid waste
mission when it is most convenient to their operation to
do so.
We were told by a number of refuse haulers that
rising labor costs, especially the requirement to pay a
minumum wage, virtually eliminated salvage activity.
Before the I950's, haulers frequently paid workers at rates
below minimum wage levels; the payment was by route
or by day. Workers had to supplement their income by
salvage. Since then, court rulings have brought private
refuse haulers under the Fair Labor Standards Act, with
the interpretation that any refuse hauler who serves a
corporation or industry that is engaged in interstate
trade is itself engaged in interstate trade and must pay
the minimum wage. In the private sector, this de-
velopment led to efforts to improve labor productivity by
use of compactor trucks and the conversion to hourly
rates versus payment by route. These steps have acted to
eliminate salvage.
Requirements imposed on larger refuse-hauling
enterprises by Interstate Commerce Commission actions
have not touched individual refuse-hauling en-
trepreneurs or companies where only family members
are working. Such companies continue to engage in
salvage on a small scale, with recovery largely limited to
cardboard and metals.
In the private refuse removal industry, as in the
salvage industry, there is a trend toward larger
companies and a decline of small (one-truck) en-
trepreneurs. The usual method for growth is by
acquisition of small companies and their customers and
by timely acquisition of disposal sites so that wastes
collected can be deposited in wholly owned facilities.
Salvage at private dumps, landfills, and incinerators
resembles such activities on the public sector side. In
Chicago, where steel cans are recovered from municipal
incinerators, private incinerator operators also recover
cans. Dump salvage by scavengers is as usual at private
facilities as at public.
Industrial and Commercial Participation in
Salvage
Industrial Waste Generation. All industrial
operations generate waste materials, and industrial plant
managers usually try to reuse or sell as much of the waste
as possible, to produce income rather than to pay the
expense of having wastes removed. For this reason,
homogeneous process or manufacturing wastes are kept
free of contaminating materials, are processed if
necessary, and are accumulated for delivery to salvage
dealers (as in the case of paper products) or for internal
recycling (as in the case of broken glass). Virtually any
solid substance occurring in sufficient quantity can be
sold, although the quantity of waste generated may
exceed market requirements.
Industrial wastes are favored in salvage markets by
purity, consistency, large quantity occurrence, known
materials composition, and regularity of generation.
These wastes represent the bulk of all secondary
materials traded, and virtually all high grade salvage
commodities come from industrial sources.
Sale of salvage commodities is usually the re-
sponsibility of purchasing agents who are in an ideal
position to regulate salvage. They also buy the raw
materials used in their operations and have some control
-------
16
SALVAGE MARKETS
over the nature of packaging used to deliver these.
Furthermore, purchasing agents can and do require that
suppliers accept back production wastes at fixed prices
as part of the purchase contract. In smaller operations,
sale of wastes is handled by the plant manager.
Commercial Waste Generation. Commercial
establishments, including wholesale and retail outlets,
warehouses, offices, hotels, apartment houses, res-
taurants, and the like, generate wastes similar to those
occurring in homes, with the exception that pro-
portionately more paper and board occurs in the waste
and organics are a lower percentage. Corrugated board
and mixed office paper are the only two materials sold in
any quantity, and mixed papers only sporadically when
demand for waste paper is high.
Industrial Buyers of Salvage. A distinction can be
made between two types of industrial salvage buyers:
those that depend on secondary raw materials as their
principal or only input and those that use relatively small
quantities in order to keep production costs low or to
obtain optimal technical results.
Examples of the first group are combination board
manufacturers, deinking mills, roofing paper mills, wool
reweavers, electric steel furnace operators, secondary
metals smelters, certain glass producers who use only
glass cullet (ash tray manufacturers, for example),
rendering plants, and rubber reclaimers. These op-
erations depend on secondary materials and must obtain
them on the open market. They are the backbone of the
salvage industry, and their production rates largely
determine how much waste is recycled.
The second group includes fine-paper manufacturers,
operators of basic oxygen steel furnaces, glass container
or window glass manufacturers, plastics producers, tire
manufacturers, and others. These operations either do
not require any salvage materials or only small amounts;
they satisfy most of their own salvage materials
requirements by internal waste generation and purchase
scrap materials only when internal sources are in-
sufficient. Although these industries consume much scrap,
especially steel mills and glass plants, a low percentage
of their consumption is purchased on the open market.
The distinction between these groups is extremely
important, primarily because it explains much about the
nature of salvage and recovery in the United States.
Steel scrap, nonferrous metals, glass, and small
quantities of newspapers and corrugated are the only
secondary materials that are reprocessed into essentially
the same products that they were originally. All other
materials, including most of the newspapers, leave the
industries from which they came and enter other
industries. Old corrugated boxes and newspapers
become bending board or construction paper. Old tires
are converted to material used in tire retreading. Old
cottons become wipers. The demand patterns that govern
the receiving industries are not necessarily synchronized
with the supply patterns of the industries that generated
the materials in the first place. Thus, an increase in tire
production may in fact mean a decline in purchases of
retread tires. Newspaper circulation, advertising linage,
and newsprint consumption may grow while construction
activity slows and demand for news in construction
pa per falls.
The quantity of salvage materials consumed by an
industry that depends almost exclusively on raw
materials is determined by the total production of the
industry. Consumption of secondary materials by in-
dustries based on virgin materials may be high when
production is high and may completely disappear when
production is low. When production is low, the industry
avoids use of secondary materials and must use its virgin
production facilities to the maximum extent possible to
maintain economic production levels. In high production
periods, virgin materials production facilities are work-
ing at peak capacity, and secondary materials can be
used to supplement virgin materials.
Predominantly virgin materials producers buy salvage
products because: (I) technical factors favor use of
secondary materials in some quantities; (2) internal
generation of such scrap is too low to permit optimum
operation; (3) secondary materials are relatively cheaper
than virgin raw materials (inclusive of processing costs).
It is difficult to generalize about the relative value of
virgin materials and secondary materials in operations
where both are used. Scrap materials are not simple
substitutes: they may be required by the process, they
may yield special benefits such as prolonged furnace
lining life, they may have to be used because they are a
process waste material, they may reduce air pollution or
water pollution, etc. We shall grapple with these issues
elsewhere but wish to point out that, for example, a
comparison of published prices, such as those of pig iron
selling for $59.99 per ton and heavy melting steel scrap
selling for $23.08 per ton, does not tell the whole story
about the relative value of each in an integrated steel
plant. Complex processing considerations and economics
must be taken into account.
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FOR MATERIALS IN SOLID WASTES
17
Price comparisons, however, are an appropriate tool
for understanding the economics of those operations that
rely exclusively on secondary materials. To an un-
integrated electric furnace operator, a $23 per ton scrap
is clearly a more economical raw material than cold pig
iron at nearly $60 per ton. Similarly, a combination
board mill has little difficulty choosing between old
corrugated board at $23 per ton and unbleached kraft
pulp selling at $130 per ton, in spite of the fact that the
virgin pulp may be a superior material.
This type of scrap consumer buys secondary materials,
first because they are cheaper than equivalent quality
virgin materials and, second, because the products
manufactured do not demand virgin raw materials
inputs. The latter condition exists either because the
quality of the products need not equal that of products
made of virgin materials (as in combination board) or
because a product equivalent in quality to those made
from virgin materials can be produced (as in electric
furnace steel).
Whatever the type of industry, its purchasing agents
attempt to buy the best grade of secondary materials
available consistent with cost constraints. Low quality
scrap materials can be sold only when production rates
are high and the normally accessible quantities of high
grade scrap are insufficient to meet demand. When
virgin materials industries begin to buy larger than usual
quantities of secondary materials, secondary materials
consumers may begin to buy lower grades of scrap.
Some Trends and Developments. Traditional
patterns of secondary materials consumption by industry
are being disturbed by the growing awareness of solid
waste problems on the part of government ad-
ministrators and legislators and the resulting publicity
and threat of legislation. Recycling of waste materials,
which before 1968 or 1969 was viewed by industry as a
way of keeping costs down, is beginning to be viewed as
one way for industry to avert adverse legislation against
the products of an industry.
The threat of legislation is most keenly felt by those
industries that consume little or no waste materials
obtained from sources external to the industry. Because
legislation may seriously affect the very existence of
some industries, company officials view the relatively
minor cost increases and technical inconveniences
associated with increased acceptance of secondary
materials as the lesser of two evils. Industry spokesmen
who do not wish to challenge the governmental
contention that "recycling is the only answer to solid
waste problems in the long run" are actively exploring
and, in some cases experimenting with, new means of
collecting, sorting, and processing wastes for recycling.
While such efforts are to be commended, it remains
that new recycling schemes are being brought about by
the threat of legislation and are not necessarily based on
the companies' best judgments about economics and
technical production requirements. Corporate efforts to
move against the natural current of technoeconomic
tides seem to be based on the assumption that active
participation in solid waste management via waste
recycling is simply a new operating restriction imposed
on industry by government, akin to minimum wage
requirements, equal employment opportunity, social
security, taxes, and other similar factors that add to costs.
It is too early to say whether or not new programs will
entrench themselves well enough to cause significant
transformations in salvage buying and waste generation
patterns. In the last analysis, materials will be kept out of
the waste stream only if consumption of virgin materials
is replaced by consumption of wastes. Industry recycling
schemes appear to be aimed, at least currently, at curing
symptoms. It will be no gain, for instance, if steel cans are
recovered from municipal wastes (which would yield
much good publicity for the steel industry) only to replace
turnings and borings that would be discarded for lack of
markets. A step forward would be made only if total
scrap consumption would increase.
While recycling is being given another look by virgin
materials users, two other trends augur ill for the future
of recycling. One is the persistent effort by industry to
upgrade or change its products in efforts to stay
competitive in essentially affluent times. The other is
materials contamination brought on by improved
techniques of materials combination, the ability to
upgrade product performance and appearance by such
methods, and the ability to lower costs or to improve
products at the same cost via material composites.
The trend toward upgraded products is visible in
many areas, but the significant point is that products
based on secondary materials are replaced by products
of virgin materials. Examples are the replacement of
combination board by bleached sulphate board in
packaging, matchbooks, and other similar products;
replacement of pulp egg cartons by plastic foam egg
cartons; the intrusion of nonwoven paper products and
new textiles into the wiping rag field; the use of synthetic
fabric modifiers in cotton dresses and shirts, which
eliminates ironing for the housewife but also destroys the
-------
18
SALVAGE MARKETS
value of the cotton as a wiping material; displacement of
cheap metal fixtures and toys by plastics; elimination of
rewoven wool products by virgin wool; and others.
Most of these developments are old and well
established and appear to be the result of a combination
of factors, including the rise of plastics technology and
the low cost of plastics, public demand for convenience
products, and a high level of affluence.
The trend toward combining materials is simply a sign
of the maturation of a high-level materials technology in
which new synthetic materials have come to be used in
combination with traditional natural materials and
dissimilar metals are combined with each other and with
other substances to yield technically and esthetically
superior products. Two examples are the steel can with
an aluminum top and magazines bound at the back with
water resistant adhesives; neither product can be
recycled without processing at a cost that is dis-
proportional to the value of the materials.
Contamination of ferrous metals by nonferrous metals
is a growing problem in the steel industry, which has a
high production waste that must be recycled; con-
taminants tend to become concentrated in the metallic
stream by building up over several recyclings. Synthetic
adhesives and coatings plague paper and textile waste
consumers. Metallic impurities in glass waste (especially
aluminum) and in rubber (tungsten studs) are causing
difficulties.
Public Attitudes Toward Salvage
Although affluence and the "throw-away" cultures
are everywhere evident, the people of the United States
still largely subscribe to the "waste not, want not" adage
of the good old days. It is not possible to determine
whether this is nostalgic lip service or concrete belief; the
evidence points both ways at once, and the picture is
muddied by the recent emergence of "ecology" as a
household word.
Americans participate in salvage on an almost day-to-
day basis. They collect, bundle, and transport nearly 2
million tons of newspapers for recycling in some 80,000
paper drives yearly, without receiving a penny for their
efforts.5 They give away between I million and 1.5 million
tons of used textiles to social service agencies annually.
Many small appliances, furniture, and other usable
commodities are also given away to charitable or-
ganizations. In millions of garage sales across the Nation,
the American sense of thrift and love of a bargain come
to full expression: as a result, the life of obsolete or
unwanted materials is increased by months and some-
times by years. They still buy half their yearly beverage
consumption in returnable containers — and return
them.
This picture of frugality, however, must be contrasted
with other facts, such as the phenomenal rise in the
consumption of one-way beverage containers; the
popularity of the paper towel in the kitchen; the rising
consumption of disposable cutlery, cups, and plates; the
indiscriminate discard of many returnable containers as
litter; and hundreds of other similar developments.
The behavior of the public is clearly contradictory.
The time and effort involved in segregating and
preparing papers and textiles for reclamation, together
with whatever transportation costs may be incurred, are
gladly expended. On the other hand, some people seem
reluctant to spend a few minutes of extra time daily to
wash glass cups when disposable paper or plastic cups
can be used, or a few minutes a month to return deposit-
type beverage containers to the grocery store.
It is difficult to form a conclusion about public
attitudes on the basis of the research we conducted
(which did not include an attitude survey). However, we
will hazard a few observations that appear borne out by
the facts.
The American people view salvage under the rubric
of "charity," and wherever salvage programs are
connected with charitable activities, cooperation can be
expected. The appeal is to their better side, and the
activity is voluntary. Within this attitudinal framework,
the usual and natural desire for convenience disappears.
As soon as the salvage activity becomes official and
compulsory, resistance sets in. Perhaps the best example
of this in recent times was the segregated steel can
collection program in Los Angeles, described in Chapter
XI, which failed as a result of fierce public opposition and
refusal to cooperate by a segment of the public. A recent
example of a successful publicly sponsored voluntary
program is the paper recovery venture in Madison,
Wisconsin.
Americans, by and large, are too affluent to seek
salvage income. If a salvage program offers an incentive,
however, they will respond to the appeal with motives in
which personal gain, charity, and concern for the
environment seem mixed.
5 Proceeds of paper sales usually go to civic and charitable organizations.
-------
FOR MATERIALS IN SOLID WASTES 19
Once accustomed to salvaging or participating in a example, delivery of commodities to a collection point) is
salvage program, people appear to continue in the involved — except where the appeal is personal (made
activity without the need to be continuously motivated. by a child, a church member) as in the case of paper sales
However, program appeals reach only a small per- or Girl Scout collection of aluminum cans.
centage of the people if active participation (for
-------
SCRAP CONSUMING INDUSTRIES
DEALER-
PROCESSOR
SOCIAL SERVICE
ORGANIZATIONS'
SPECIALIST
DEALER
t i j
SMALL
DEALER
SCAVENGER,
JUNKMAN
SOURCES
CHARITABLE
ORGANIZATIONS
AND SCHOOLS
Figure 1. Structure of the salvage industry and flow of commodities,
19-1
-------
TABLE 1
SALVAGE MATERIALS SALES AND TONNAGE SOLD, 1963*
Commodi ty
Sales in
mil 1 ion
dol lars
% of
dol lar
sales
Sales in
1,000
tons4"
% of
tons
sold
Iron and steel scrap,
including alloy steel 1,754 51.19 49,727 69.15
Aluminum scrap 146 4.26 522 0.73
Scrap copper and alloys 365 10.65 648 0.90
Scrap lead 66 1.93 750 1.04
Zinc scrap 30 0.88 273 0.38
Other nonferrous scrap 176 5.11* 880* 1.22
Waste paper 318 9.28 10,474 14.56
Waste textiles, including
wiping rags 408 11.91 2,122 2.95
All other wastes, including
glass and rubber 163 4.76 6,520§ 9.07
Total 3,426 100.00 71,916 100.00
of the Census. 1963 Census of business, v. 4.
—summary statistics and public warehousing, pt. 2.
sales and miscellaneous subjects. Washington, 1966.
reported by commodity line which excludes sales by
that did not report in this detail. Table 7, p. 8-636.
liable; estimated by Midwest Research Institute (MRl)
a sales price of $200 per ton for commodity.
liable; estimated by MRl on the basis of a sales price of
the category.
*U.S. Bureau
Wholesale trade
Commod i ty 1i ne
+Tonnage as
establishments
$No data ava
on the basis of
§No data ava
$25 per ton for
19-2
-------
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19-3
-------
TABLE 3
SALES SIZE OF SALVAGE COMPANIES (1958 AND 1963)*
1358
Number of Total
Sales size range establishments ($ Of)
Over $2 million
$500,000 to $1.9 million
$200,000 to $499,000
$100,000 to $199,000
Under $100,000
Not operated entire year
227
905
1,319
1,448
5,418
174
2.39
9.53
13.90
15.25
57.08
1.83
1963
Number of Total
establishments (% of )
334
1,084
1,453
1,457
3,720
237
4.07
13.07
17.53
17.59
44.88
2.86
Increase
or decrease
in period
110
179
134
9
(1,698)
63
Total
9,491
100.00
8,288
100.00 (1,203)
*U.S. Bureau of the Census. 1958 Census of business, v. 3.
Wholesale trade-summary statistics and public warehousing, chap. 2.
Sales size and employment size; table 2A. Washington, U.S. Government
Printing Office, 1961; 1963 Census of Business, v. 't. Wholesale
trade—summary statistics, public warehousing, pt. 1. Washington,
U.S. Government Printing Office, 1963.
19-4
-------
TABLE 4
QUANTITATIVE PARAMETERS OF THE SANITATION ESTABLISHMENT - 1968*
Parameter
Wastes handled - in million tons
Household+
Commercial^
Industrial!
Total
Expenditures - in million dollars
Employment
Compactor trucks used
Public sector
73.5
14.3
5.3
93.1
1,700
178,610
43,710
Private
43
34
22
100
1,800
158,390
49,290
sector Total
.1 116.6
.9 49.2
.7 28.0
.7 193.8
3,500
337,000
93,000
*Vaughan, R. D. National solid wastes survey; report summary and
interpretation. In the national solid wastes survey; an interim
report. [Cincinnati], ILS. Department of Health, Education, and
Welfare, [1968], p. 4?-53.
+1 deludes street and alley sweepings.
tIncludes miscellaneous wastes.
§ Includes demolition wastes.
19-5
-------
21
CHAPTER I
SALVAGE OPERATIONS AND OPERATING COSTS
The intent of this chapter is to discuss what must be
done to waste materials in order to recover them, to
describe the basic technology used in salvage or
emerging at this time, to summarize and present in one
place whatever data or estimates are available on costs
of various operations, and finally to discuss the question
of cost allocation practices in municipal waste salvage
and related issues.
Salvage Operations
To recover waste commodities, a maximum of five
types of operations — acquisition, concentration,
purification or separation, shape or size reduction, and
preparation for shipment — are required.
Acquisition operations consist of the pickup of a
quantity of material and its movement to a processing,
storage, or end-use point. If the material is scattered, as
at a dump or landfill, retrieval of the commodities is also
a necessary part of acquisition.
Concentration operations mean the removal from a
quantity of waste those portions or fractions that are not
desired, as paper and metal from glass wastes. This is
accomplished by some type of sorting, manual or
mechanical, or by burning if the unwanted portion is
combustible. Concentration may not be necessary if the
material to be recovered occurs in a concentrated form.
Purification or separation is another form of con-
centration, but is usually applied to activities performed
on concentrated wastes, such as the sorting of clear glass
from brown glass. This operation may consist of sorting,
disassembly, breaking, and demolition of joined ma-
terials, the removal of one metal from another by melting
the fraction with the lower boiling point (sweating), the
burning off of contaminants, chemical recovery of a
fraction, or simple washing or laundering.
Shape or size reduction is accomplished to make
concentration, purification, separation, or shipment
easier or to produce a material shaped and sized for a
specific end use. Cutting, shredding, breaking, and
crushing, either manually or mechanically, are the
standard operations used in reduction.
Preparation for shipment consists of processing
materials into units that can be easily handled in
transportation. This operation usually consists of baling
or bundling. Powdered materials may be briquetted.
The relationships among these operations are shown
in Figure 2. The operations described are not all
necessary, and the sequence in which they are ac-
complished or whether they are accomplished depends
on the material itself and on its source, condition, and
end use.
The technology used in the salvage industry is similar
to that used in the virgin materials processing industries,
with the difference that sorting is usually by hand, unless
it consists of the separation of ferrous metals from other
wastes by magnetic techniques; even this process is not
possible where two metals or a ferrous metal and some
other material are mechanically or chemically coupled.
The key operation in salvage is sorting. Sorting is
generally manual. It is highest in cost because sorting
technology is unavailable and labor costs are high.
Sorting is also essential because waste materials are
seldom entirely pure. Salvage dealers try to get all of
their materials in a presorted form. They have difficulty
keeping sorting costs down even on presorted materials,
and they cannot afford the costs of sorting municipal
wastes.
New technology is under development in the salvage
industry, some under government sponsorship. Most
innovative efforts are bent toward solving the sorting
problem.
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22
SALVAGE MARKETS
Operating Costs
Nature of the Data. Good cost data on salvage
operations are scarce. The reason for this is not entirely
the poor cost accounting techniques used in the salvage
industry, although these do not help. Another reason is
that salvage dealers do not like to discuss their operating
costs because they fear that their competitors may find
out. Yet another reason is that the salvage business is not
a continuous processing business; laborers in a scrap
yard move from task to task depending on need, and
there is neither the time nor inclination in most companies
to determine exactly how long each employee spends on
each task. Thus, even dealers willing to discuss costs were
often unsure and guesstimated their costs rather than
looking them up in company records. Considering that
most salvage dealers handle a range of products, some
requiring extensive processing and some very little, the
"ballpark" estimates we were sometimes able to get lack
precision.
What applies to costs as a whole also applies to
specific operations such as sorting or shredding. We
were frequently given "total" processing costs, and
attempts to break these down further sometimes failed.
Data comparability was poor in that some respondents
could give only estimates of labor expended while others
included all or most costs. In preparing the data for
presentation here, we sometimes combined elements
from several interviews, estimated cost elements un-
known to our respondents, used wage rates more
representative of the industry as a whoJe to increase costs
based on abnormally low wages, and performed other
necessary adjustments so that the data would be as useful
as possible in general planning.
Costs of Recovering Materials from Mixed
Wastes. We would like to cover two instances of
recovery: (I) sorting and recovery of mixed refuse as
delivered to a salvage plant, (2) retrieval and recovery of
wastes from a dump or landfill.
According to a study conducted by the Los Angeles
Bureau of Sanitation,6 the investment cost of a 400 tons
per day salvage plant is $577,000; 14 percent of the waste
(56 tons) is marketable salvage. From this we infer —
using a 252-day work year, a 15-year plant life, and a
financing charge of 8 percent yearly — that plant
amortization will cost nearly $4.80 per ton of salvage
sold.
One man can pick anywhere from I to 3.5 tons of
materials from a moving belt carrying mixed waste
materials (Table 5), depending on the type of material
and his efficiency. Assuming an hourly pay of $2.50 plus
a 30 percent overhead charge, the cost of sorting can
range from $7.43 to $26.00 per ton. Addition of
equipment amortization results in an operating cost
ranging between $12 and $31 per ton.
These costs exclude some operating costs, fuels,
utilities, baling or bundling labor, taxes, supervision, and
disposal of unsalvable wastes; no credits are included for
landfill space saved. Even without taking such costs into
consideration, however, it is clear from estimates that
salvage expenses far exceed potential income. Labor
costs alone exceed income in four of six cases estimated
in Table 5.
If we assume that paper, textiles, metals, and glass
occur in the solvable portion of such a hypothetical
salvage plant in the same proportion as they appear in
waste (Appendix A); and if we further assume that
newspapers, corrugated, and mixed papers appear in
the same proportions as in consumer products and in
commmercial, business, and institutional markets (Figure
13), we can calculate costs and income for a composite
ton of salvage (Table 6). Labor costs will be $11.27 per ton
for sorting and total cost, including amortization, will be
$16.05. Dealers will pay a high of $9.12 per ton for this
salvage and a low of $3.37. In order to have an
economical operation at the high price, the plant would
have to recover 100 percent of inputs (thereby bringing
amortization down to 67
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FOR MATERIALS IN SOLID WASTES
23
than those developed above because salvage does not
have to bear all labor and equipment costs.
For costs of dump salvage operations we have only
one source — the New York City landfill reclamation
program described in Chapter XI. On the basis of data
obtained from the salvor and our estimates, it appears
that total costs per ton — all the way from retrieval of
metals, rubber, and textiles from the landfill to actual
sale of processed scrap — are nearly $28 for all
materials.7 Income per ton is just over $30.
Costs of Acquiring Concentrated Wastes. The
salvage industry as a whole acquires only secondary
materials that are already concentrated, such as
newspapers or broken glass. The acquisition cost consists
of picking up the material by truck and delivering it to
the processing plant. Costs exclude payment for the
material to sources.
Acquisition costs range from $3 to $4 per ton for all
grades of paper, $3 to $4 for metals, $5 to $6 per ton for
glass, $30 to $40 per ton for textiles, and $10 to $15 per
ton for rubber. The high costs for textiles are explained
by the fact that textiles are collected from residential
sources in small quantities. Rubber comes from filling
stations and garages, also in small quantities. News-
papers, although derived from residential sources, are
first concentrated by the public in a central place (for
example, a school) at no cost to the dealer.
Textile collections are part and parcel of social
welfare agency collections, which are undertaken
principally to obtain resalable products and com-
modities. Roughly 80 pounds of materials are obtained
per call and collection costs are around $3.45 per call or
$86 per ton. By weight, usable commodities may be
anywhere from 50 to 70 percent of total collections; costs
attributable to salvage materials, therefore, can range
from $43 to $26 per ton. Textiles are the only material
collected in quantity from residential sources by such
agencies.
Another way of viewing these costs, however, is to
view social service agency collections as taking place
exclusively for purposes of usable collection; salvage
materials, in that case, ride free. They piggyback on an
existing collection system which would proceed even if
no salvage were available. • This, in essence, is the
principle used in Madison, Wisconsin, where paper is
collected separately from residences but in the course of
waste collections. The city only counts extra expenses
connected in the paper recovery, not the costs of
operating the trucks. The Madison "extra" is $4.35 per
ton of paper collected.
We only spoke to two rubber dealers in the course of
our study and neither would detail his costs. We learned,
however, thai rubber dealers are paid anywhere from
IOP to 150 per tire to remove these from garages and
filling stations; this translates to roughly $10 to $15 per ton
for rubber acquisition, assuming that dealers make no
profit on tire pickup.
Glass is invariably removed from bottling operations
by the dealer. The dealer sometimes pays for this glass,
especially if the source is a large generator of a desirable
grade, like clear glass; more usually, glass is given away.
The dealer gets it free for removing it. Sometimes he must
provide containers for the glass wastes and maintain
these. The acquisition cost used here is one where the
glass is free but containers are provided by the dealer.
Paper and metal dealers obtain considerable quan-
tities of materials at the processing plant — they need
not physically acquire these in that they are transported
by sources or junkmen. The acquisition costs cited are
those pertinent to materials the dealer must pick up and
transport. Both industries operate on rule-of-thumb type
gross profit margins, the margin being the differential
between price paid to a source and price received from a
consumer. In bulk grades of paper, the margin is usually
$10 to $14 per ton; in ferrous metal it is between $14 and
$16 per ton, for materials that must be picked up. If the
materials are delivered, the margin required by the
dealer is lower ($8 to $10 in paper, $11 to $12 in metal),
scrap metal dealers operate on a greater margin than
paper dealers because metals are sold f.o.b. consuming
plant whereas paper is sold f.o.b. dealer's plant.
Processing Costs. Representative processing costs
in salvage operations range from a high of $267 per ton
for fairly extensive handling required to convert mixed
rags into cotton wiping cloth to a low of $6 per ton for
processing paper (Table 7).
The costs shown are those required to handle
materials received in concentrated form by the dealer.
The one exception is steel can recovery from incinerator
residue by incinerator operators, where costs include
separation of steel cans from incinerator ashes and
residues.
7 This excludes payment to the city, insurance, maintenance, administrative burden, fuels and supplies, general office
overhead, and processing plant lease costs.
-------
24
SALVAGE MARKETS
With the exception of materials shipped directly from
source to consumer through a brokered transaction, some
form of processing is required on all secondary materials
if processing is used broadly to include all handling. This
is the sense in which we use the term "processing."
Processing costs as used here include all costs incurred
at the plant — receipt, weighing, in-plant movement,
storage and warehousing, as well as processing in the
narrow sense, including equipment amortization, energy
and utilities, supervision, general overhead, and the
loading of materials for shipment. Transportation costs to
the consumer, insofar as they are borne by the dealer,
are excluded; and profits obtained by the dealer are not
reflected in costs shown. The costs pertain to all grades
and are calculated across the board; thus, a particular
scrap yard may spend $8 per ton on processing all inputs;
operations on some grades may cost more or less.
Processing costs are roughly cojnparable for materials
handled in large quantities like paper and ferrous metals.
Glass, anqjjier bulk commodity, shows higher overall
processing costs than paper and metal because all glass
cullet must be processed in an intensive manner, whereas
the costs for paper and ferrous metals are composite
figures for less intensive processing commonly done.
High scrap preparation costs in nonferrous metals are
attributable to small quantities handled, considerable
manual sorting, and some fairly sophisticated processing
of some fractions. Textile processing costs are high
because of much manual sorting and piece-by-piece
preparation of rag stock to make wiping materials.
(t
Steel can recovery is practiced in the United States to
satisfy demand for precipitation iron in copper, mines.
This calls for a clean (free of ash), burned, shredded
metal. The- largest dealer in this business, Proler, Inc., of
Houston, obtains steel cans from incinerator operators,
from detinners, and from can manufacturing facilities.
The dealer claims to process all steel cans through his
operation regardless of source, experiencing a proc-
essing cost of $19 to $20 per ton. Some of his input
materials come from cities where more or less processing
is done — ranging from shredding in Atlanta to simple
extraction of metal from residues in Chicago. The best
cost data on unit operations come from Atlanta ($10 per
ton); the high figure of $14 per ton to recover steel from
incinerator residues is taken (and rounded up) from a
study conducted on behalf of the Government of the
District of Columbia.8 Steel cans that have been
processed through the Atlanta incinerators do not
require further processing and are of acceptable quality
for copper precipitation. In Louisville, Kentucky, where
processing costs must be about the same as in Atlanta
(same type of equipment and procedures are used),
shredded steel is produced at the incinerator and sold to
a steel plant through a dealer.
The cost data on initial sorting of textiles are based on
social service organization experience. This is the sorting
of textiles collected from residential sources into a
resalable portion and a rag portion. In order to make the
cost representative, we used a pay rate of $2.50 per hour
(rather than the $1.10 to $1.60 usual at such agencies).
Furthermore, we included a 30 percent addition to labor
to cover overhead expenses. The sorting accomplished
includes separation of usable portions into various sales
categories — men's coats, ladies' cotton dresses, and the
like. By estimate of agency officials, just to sort out rags
would cost 10 percent of total cost of $3.90 to $4.00 per
ton.
Costs on production of wiping cloth are taken from a
1970 survey (unpublished) conducted by the National
Association of Wiping Cloth Manufacturers. These data,
together with scrap preparation costs in the nonferrous
scrap industry, also obtained by survey, are the most
reliable cost data in Table 7.
Discussion. The costs of obtaining and processing
secondary materials are high, especially when related to
the price they bring in the market place. Operating
economics are most unfavorable for those materials that
occur in large quantities in waste — mixed paper,
metals, and glass. These materials bring the lowest prices
in the markets; demand for these low-grade materials is
limited, and processing costs are as high as or higher
than those for higher grade scrap materials. If the
material must be sorted from mixed wastes, costs become
prohibitive.
To illustrate, let us take glass for an example. To sort
glass from waste manually will cost $13 to $15 per ton;
pickup and processing in the traditional fashion will run
$14 to $18; delivery costs will add $2 to $3 for a total of
$29 to $36 per ton. The glass industry estimates that the
benefits of using cullet instead of virgin raw materials are
8Day & Zimmermann, Engineers and Architects. Special studies for incinerators; for the government of the District of
Columbia, Department of Sanitary Engineering. Public Health Service Publication No. 1748. Washington, U.S.
Government Printing Office, 1968. p.78.
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FOR MATERIALS IN SOLID WASTES
25
worth $2 per ton of cullet. Thus, cullet may cost $2 more
than the furnace charge of sand, soda ash, and
limestone. Virgin materials cost between $15 and $20 per
ton; cullet, therefore, is uneconomical at costs above $17
and $22, depending on location and other circumstances.
If an average picking rate of 3 tons per man-day can
be expected in a well-designed salvage plant, the picking
rate at a dump or landfill would probably be at most I
ton per day. For this glass the scavenger would get $4 to
$6 from a dealer and would have to provide transport to
the dealer's plant. If engaged full time in this activity, the
junkman could earn between $1,000 and $1,500 a year
working 5 days a week.
If glass were separately collected by municipal forces
in the course of waste pickup, additional costs of refuse
removal would be at least $4 per ton of glass, assuming
that it would be concentrated at a dump or at an
incinerator rather than delivered to the dealer. The
dealer could not afford to pay for this glass but could
afford to pick it up and process it.
In light of the above, it is not surprising that glass
recovery programs must be subsidized if glass from
residential sources is to be recovered. This rule generally
holds for any recovery scheme, for all materials
categories, if the materials must be removed from mixed
wastes by presently used techniques that rely heavily on
manual labor.
New Technology
Recognition of the adverse economies of manual
sorting operations, the difficulties anticipated in re-
cruiting and holding labor for waste sorting, and the
widespread belief that residential householders will not
cooperate in household segregation schemes have led to
developmental work in waste sorting, classification, and
preparation.
Two programs are particularly interesting and
promising by reason of their advanced state of
development: the Bureau of Mines incinerator residue
recovery program and the fiber reclamation program of
the Black Clawson Company. Other new technology is
under development at Stanford Research Institute (air
classification of paper), at the Forest Product Lab-
oratories (paper separation), at the Franklin Institute
(paper recovery), and the Sortex Company of North
America (glass separation). This is not an exhaustive list
but is representative of work underway. In addition, the
Bureau of Mines is experimenting with processing raw
mixed wastes, and private industry has other work under
way.
Development of new technology in salvage is perhaps
better labeled "technology adaptation." Both the Bureau
of Mines and Black Clawson are working with systems
developed in industry and are attempting to adapt
existing machinery to the processing of wastes. One
radically new concept offered as an ultimate solution to
solid waste management and materials recovery comes
from the U.S. Atomic Energy Commission (AEC). Two AEC
scientists have suggested that the fusion reaction might
be utilized to reduce wastes to elemental particles in
ultra-high temperature plasmas.' This concept is prom-
ising but must await solution of a fundamental technical
problem: the continuous confinement of fusion plasmas.
All other ideas offered are conventional: the sorting of
materials fractions from wastes by some technical
process and the utilization of the resulting resources in
traditional industrial or agricultural applications.
Bureau of Mines System. The Bureau of Mines has
developed and demonstrated a system whereby in-
cinerator residues can be mechanically segregated and
recovered, but one manual picking step is necessary. The
system uses conventional minerals engineering
equipment. According to the Bureau of Mines, "the
process, which is comprised simply of a series of
shredding, screening, grinding, and magnetic separation
procedures, yields metallic iron concentrates, clean
nonferrous composites, clean fine glass fractions, and a
fine carbonaceous ash tailing."10
Technical Aspects, The experimental facility, capable
of handling 1,000 pounds per hour, is located in College
Park, Maryland, at the Bureau of Mines Metallurgy
Research Center. A flowsheet of the process in included
(Figure 3). The plant is capable of separating residues
into nine materials fractions, including three ferrous and
two nonferrous metal fractions, two glass fractions, a
sand fraction, and a slime fraction. The nonferrous
metals are in mixed form — thus, copper, lead,
aluminum, and other nonferrous metals are not sep-
9 Eastland, B.J., and W. C. Gough. The fusion torch^losing the cycle from use to reuse. Washington, Division of
Research, U.S. Atomic Energy Commission, May 15,1969. (WASH-1132.) 25 p.
10 Spendlove, M. J., P. M. Sullivan, and M. H. Stanczyk. Solid waste research. College Park, Md., U.S. Bureau of Mines,
College Park Metallurgy Research Center, 1970. p.l
-------
26
SALVAGE MARKETS
orated from each other; the nonferrous metal fractions,
however, are high in aluminum content. The glass
fraction is a fine, granular glass, and is separated into
flint glass and colored glass by high intensity magnetism,
although color separation is not complete.''
The Bureau of Mines System requires some manual
sorting. Wire and massive pieces of iron, such as an
automotive axle, must be removed manually from a
picking belt lest they interfere with subsequent shredding
and screening activities. Separation of glass from
nonferrous metals requires that the glass be finely ground
to be capable of passing through a minus 35 mesh
screen.12 Nonferrous metals, which are not frangible like
glass, usually cannot be reduced to so fine a size and are
thus separated by screening. The fine, granular glass is
not readily salable as glass cullet. For this reason, the
Bureau has been experimenting with an optical sorting
device to separate clear glass from dark glass and
nonferrous metals while the glass is still in 1/2- to 3/4-
inch pieces. Preliminary work indicates that a 90 percent
purity glass fraction can be achieved using the optical
technique; the sorter permits some brown and green
glass, some white ceramics, and about O.I percent by
weight of nonferrous metal to pass into the clear glass
fraction.
Theoretically, 82.9 percent by weight of the incoming
residue should be salable; it consists of ferrous metals,
nonferrous metals, and glass (Table 8). Because brown
and green glass cannot be readily separated from
nonferrous metals unless ground, and because ground
glass cannot be sold readily, we estimate that the salable
portion is 62.2 percent; this is the proportion we use in
our analysis of cost data developed by the Bureau of
Mines.
Process Economics. The Bureau of Mines developed
capital investment and operating cost projections for two
sizes of incinerator residue plants, a 250 tons-per-day
and a 1,000 tons-per-day plant; the first could handle
residues from an incinerator burning 1,000 tons of waste
daily, the second from an incinerator burning 4,000 tons
per day. The Bureau data assume 260 days of operation
and a 20-year plant life; depreciation of the capital
investment is included but interest on the capital is
excluded. Operating data are given in dollars per ton of
incinerator residue handled. A summary of the Bureau
data is presented in Table 9; accordingly, operating costs
are $3.52 per ton at the 250 tons-per-day level and $1.83
per ton at the 1,000 tons-per-day level.
If interest is included at 8 percent a year for the 20-
year period, operating costs per ton of residue treated
are raised to $4.77 per ton and $3.04 per ton on the small
and large plant, respectively. If costs are calculated on
the basis of tonnage sold or salable (62.2 percent of
inputs), the small plant will have costs of $7.67 per ton of
salable residue, the large plant$4.89 per ton.13
These projected cost data are promising, especially
the lower per ton costs apparently achievable with the
larger plant. At a processing cost below $10 per ton, the
operation might break even, even if not all materials
recovered can be sold. If a credit is claimed for landfill
space and landfill operation costs saved, the reclamation
program would probably be desirable. At a cost below
$5 per ton, the economics, of course, are considerably
improved — again assuming a market for the com-
modities.
Marketing Operations. Preliminary investigations
conducted by the Bureau of Mines concluded that the
nonferrous metal fraction (2.8 percent of total) could
probably be sold in spite of the fact that the metals are a
mixture of aluminum, copper, and other metals. Our
discussions with nonferrous metal dealers support this
conclusion. The large ferrous metals (16.6 percent of the
residue) contain all of the steel cans, wire, massive iron
parts, and the like. This fraction could conceivably be
sold, although the relatively high tin content of steel cans
would severely limit marketability. Smaller ferrous metals
include mill scale, magnetic slag, and small pieces of iron
(bottle caps, nails, etc.), in our opinion this fraction (13.9
percent) would be difficult, if not impossible, to sell. The
clear glass fraction (28.9 percent), though probably
1' There have been reports that the colored glass in the incinerator residue is preferentially absorbing minute traces of
iron that cause it to exhibit paramagnetic characteristics. If so, magnetic separation could not be employed for glass in
raw unburned refuse. However, the Bureau of Mines disputes this contention.
12 A particle capable of passing through a minus 35 mesh screen has a maximum diameter of 0.0196 inches,
approximately the size of the dot of an i.
13 The 250 tons per day plant will receive 65,000 tons per year, of which 40,430 tons are assumed salable; total
operating cost, including depreciation and interest, will be $310,058. Corresponding data on the 1,000 tons per day
plant are inputs of 260,000 ton, salable quantity of 161,720 tons, and costs of $790,072 a year.
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FOR MATERIALS IN SOLID WASTES
27
salable in some locations, suffers from the fact that glass
that has passed through an Incinerator is thought
undesirable by glass processors, primarily because it
contains a proportion of slag high in ferrous metal.
We believe that the Bureau of Mines system —
technically workable and apparently economical — is a
promising development, but its ultimate success will be
contingent on the creation of demand for secondary raw
materials that are not as pure as materials obtained by
conventional means.
Black Clawson System. The Black Clawson
Company has developed a reclamation system at its
Middletown, Ohio, research facilities that can accept
unsegregated waste from a compactor truck and, by
processing, produce a salable paper pulp product,
metals, and glass. The system, which has reached the
demonstration phase in a facility built at Franklin, Ohio,
makes use of paper industry equipment to pulp solid
waste and to reject inorganic products like metals and
ceramics (the Hydrasposal System), and then to reclaim
fibrous materials in a unit employing special filtering and
screening devices (the Fibreclaim System) while rejecting
unusable organics like plastics and rubber.
According to the company, approximately 30 percent
by weight of input tonnage is reclaimable, with the
reclaimed portion consisting of two-thirds paper and
one-third metal and glass; the metal and glass portion is
63 percent metal, 37 percent glass. Thus, a plant
receiving 500 tons per day of raw refuse will yield 100
tons per day of paper pulp (dry basis), 33 tons of metal,
and 19 tons of glass. The remaining 348 tons will be
composed of organics not reclaimable as fiber; mis-
cellaneous materials like stone, ceramics, and metallic
fines; ash; dirt; suspended particles; and moisture (about
20 percent of input tonnage).
Operations. Waste entering the system is introduced
into a pulping unit where, in a liquid medium, the waste
is chopped, cut, and agitated until a pulpy material
results. Heavy materials are removed at the bottom of the
pulper; this fraction is rich in metals (69 percent); the
pulped wastes are next passed through a cyclone
separator where other inorganics are removed; this
fraction is rich in glass (79 percent). The inorganic wastes
are then passed to a separation unit where glass, ferrous
metals, and nonferrous metals can be separated; the pulp
is carried to a fiber reclamation system where, in turn, (I)
coarse organic materials (rags, plastics, food wastes) are
removed by screening; (2) fine dirt (plastics, vegetation) is
screened out; (3) fine particles of heavy dirt (glass,
ceramics, sand) that passed through the cyclone are
centrifuged out and unsightly particles (coffee grounds,
leaves, grass) are removed from the pulp; (4) the pulp is
partially dewatered using a screw-type thickener; and (5)
the pulp is thickened in a high density press.
The company has successfully demonstrated all parts
of this system except that portion where inorganic
materials — the metals-rich and glass-rich portionspre
further segregated into ferrous, nonferrous, and glass
fractions.
Operating Costs and Revenues. The company has
developed detailed cost data for a plant capable of
accepting 500 tons per day of waste. The cost data are
based on a plant life of 25 years, an interest rate of 6
percent, 260 days per year operations, and an all-
inclusive labor cost of $4 to $5 an hour. For comparative
purposes the revenues for salable fractions plus the
operating costs, including depreciation and interest, for
the reclaiming operation have been allocated to the
salable commodities, which amount to 39,650 tons per
year. Costs of the Hydrasposal (waste pulping) operation
have been allocated separately.
All incoming materials, including the salable fractions,
pass through the Hydrasposal System at a cost of $4.93
per input ton, which the company uses as the basis for a
"disposal fee" for cost comparisons. The recovered fiber
accrues a cost of $17.38 through the Fibreclaim System,
and the inorganic materials accrue costs of $7.13 per ton
in the inorganics processing unit (Table 10). On a
composite basis, the costs are $12.30 per recovered ton.
The revenues are based on a sales price of $25 per ton
for paper fiber; ferrous metals at $14 to $16 per ton less
freight; glass at $18 to $20 per ton, less freight; aluminum
at $175 per ton. The composite income for the reclaiming
operation is $22 per ton of recovered material, and the
net gain is $9.70 per ton, or $2.97 per input ton.
Data on pulping and paper fiber reclamation costs
are the most reliable. Inorganic materials separation
costs are based on use of moving belts, vibratory belts,
-------
28
SALVAGE MARKETS
and magnetic separation. Equipment to separate glass
into clear and colored fractions and a metals shredder to
achieve full separation of ferrous and nonferrous metals
would be needed to produce materials that can be
sold.14
The paper fiber available is high in groundwood
content15 and is consequently equivalent to mixed paper
or newspaper in the paper market. Although the product
of the Black Clawson system is superior to newspapers or
mixed papers (it is a pulp, virtually free of contaminants),
it may not always bring $25 per ton. Paper dealers and
paper companies queried by us concerning this material
stated that $15 per ton may be a more realistic selling
price for the pulp. Black Clawson Company spokesmen,
however, are confident that the pulp could be sold for
$25 and the output of the demonstration plant has been
sold to a local paper mill at that price.
The company anticipates that the glass and metal
fraction will be salable. It appears to us that the clear
glass fraction, once segregated, will be salable at an
estimated $20 per ton; the dark glass, which will contain
opaque particles in the glass fraction, could be used to
manufacture secondary products if markets and tech-
niques are developed; otherwise this would be a waste
fraction, or could be further color separated and sold at
$10 to $15 per ton. The metals may find a market if
shredding and separation over and above that now
planned are included.
The system appears economically feasible if credit is
taken for disposal savings. If disposal credit is $5 per ton,
for instance, a facility operator could afford to sell the
recovered fractions at 44 percent below the cited figures
— pulp at $16.50 per ton for example — and still have a
breakeven operation.
Other Developments. Techniques applicable to
the sorting and handling of specific portions of the waste
are available or under development. A brief capsule of
the most significant approaches follows.
Glass Sorting. We have already mentioned optical
glass sorting equipment used by the Bureau of Mines.
Optical sorting is a well developed technique used
widely in the minerals and food processing fields to
separate materials of more or less uniform particle sizes
but of different colors.
Equipment available from Sortex Company of North
America, Inc., operates in the following manner: (I)
particles are mechanically lined up sequentially in a
narrow furrow on a belt; (2) each particle is propelled
from the belt into an optical viewing chamber where it
passes in front of an appropriately shaded background
slide; (3) while in the chamber, the particle is inspected by
a three-lens, wide-angle viewing system; (4) any particle
whose color or shade differs from a preset standard
excites the photoelectric cells of one or more of the
viewers; (5) each signal is evaluated, and if the particle
does not match the preset color, an air blast system is
activated and blows the particle into a receiving duct. If
the particle conforms to standard, it is allowed to pass
out of the chamber following a normal trajectory (Figure
4)-
The manufacturer states that ideally particle sizes
should be between 1/2 and 3/4 inch in diameter for
glass sorting. Best separation is achieved at the lowest
feed rates, between 10 and 15 tons in a 24-hour operation.
The sorting technique is not 100 percent accurate.
With homogeneous materials, fed at a slow rate,
composed 50 percent of clear and 50 percent of dark
materials, between 2 and 4 percent of the dark particles
will end up in the clear portion. In 12 tests conducted by
the Bureau of Mines on coarse glass particles, the best
results were 3 percent colored glass in the clear portion;
worst results were 14.3 percent. As more experience is
gained with this or similar equipment, it may be found
that multiple sorting may be necessary to process glass
from waste sources or that equipment modifications can
be introduced to achieve consistent results.
Glass sorting costs have been developed by the
manufacturer. Operating costs, excluding equipment
amortization, range from $0.95 to $0.18 per ton at feed
rates of 0.5 and 2.5 tons per hour, respectively.
Investment costs, excluding installation and freight, are
about $12,460.
Paper Classification. Experimental work to separate
paper from mixed wastes has been conducted by
14 The addition of a glass sorting operation was proposed for the Black Clawson demonstration plant. This installation
would encompass the Sortexoptical separator and the Stanford Researci Institute zigzag classifier. Economic estimates
indicate operating costs of $1.54 per ton and capital costs of $2.62 per ton, or $4.16 total costs, based on a throughput
of 3 tons per hour.
15 A fiber derived mechanically from trees rather than being chemically pulped; newspapers are made of ground
wood. See Chapter IV for a full discussion.
-------
FOR MATERIALS IN SOLID WASTES
29
Stanford Research Institute (SRI) and the Department of
Agriculture's Forest Products Laboratories.
The SRI system makes use of an air classification
column wherein shredded materials are separated by
being carried up a zig-zag column; heavy materials that
cannot be supported by the air stream drop out at the
bottom. The system has not been proved to work
conclusively, but further research is under way. The key
difficulty is that, to be properly separable by the air
classification system, particles must conform to char-
acteristics that are not possible to achieve by current
shredding equipment. For instance, Stanford scientists
specify that paper and corrugated board as delivered
from the shredder should have the following char-
acteristics:
"Particles to be individually separable, to have 4-inch
to 5-inch maximum dimension, and to be roughly
rectangular with a ratio of length to width of no more
than 2:1. Cleanly-cut edges are preferable to torn
edges; frayed, mechanically-worked edges are
unacceptable."16
Once technical difficulties presented by waste
preparation prior to classification are overcome, the
system is expected to produce mixed paper with little or
no Styrofoam packing and sheet plastics and only a small
quantity of magazine stock, waxed paper, butter cartons,
and the like in the end product. Projected costs are not
available on the system.
Forest Products Laboratories at Madison, Wisconsin,
has recently begun work on separation of paper
products from shredded wastes. This work has not
progressed far to date. The objective is to obtain five or
more grades of paper stock: newspapers, corrugated,
magazines, brown paper, and all other paper. Air
classification of milled refuse will be used to effect
separation.
One final paper separation technique deserves
mention. This method, described under the New York
case study in Chapter XI, has been developed to recover
corrugated board from commercial and industrial
wastes. The system employs a series of belts spaced at
distances of 5 inches from each other so that small
particles of waste drop down between belts while
cardboard bridges the gaps between belts. Heavy
particles or objects can force their way between belts
and also drop outje.g., an oil drum, an auto part). This
system, with projected operating costs (all-inclusive) of
$10 per input ton or $40 per ton of cardboard recovered,
and based on disposal fees and corrugated sales, is
nearing commercial start-up in New York City.
Special Economic Considerations Related to
Salvage
The economics of salvage are sometimes difficult to
understand unless three of its hidden aspects are kept in
view. The most significant aspect is that salvage is often
an alternative to waste disposal for the generators of the
material. Individuals or organizations engaged in
recovery of materials do not necessarily compare their
operating costs to the price they receive but, instead,
compare costs to the alternative of disposing of the
materials as waste. A salvage operation costing $15 per
ton and realizing $10 per ton in income is not, on the face
of it, economical. Yet, it may be practiced because
disposal costs may be $6 per ton. In effect, the salvage
program losing $5 per ton is cheaper than disposal at $6
per ton. A classic instance of this is described in the
Atlanta case study (Chapter XI) where the municipality
could lose $5.66 per ton on the sale of steel cans from
incinerator residue and still realize 1 < per ton profit
because the alternative disposal mode would cost $5.67
per ton.
The second aspect of salvage economics is that
salvaged materials frequently ride "piggyback" on a
system developed for another purpose. In such cases
salvage is possible only because an established collection
system exists whose costs are borne by another activity.
An example is textile collection from residential sources
by social welfare agencies. These agencies collect
materials from door to door in order to obtain resalable
commodities that may translate to income worth several
hundred dollars per ton. The high income per ton justifies
collection costs of $80 to $90 per ton. Salvage is also
picked up. But, since it seldom earns the agency more
than $50 to $60 per ton, collecting salvage alone could
not be justified. Salvage rides piggyback with more
valuable merchandise.
Collection systems that use empty merchandise trucks
to carry cardboard from grocery stores to a central
warehouse and household collections of secondary
materials by garbage truck crews (who have to be there
anyway) are other examples of the same principle.
The third aspect is that the recovery of some classes of
material is indirectly subsidized by: (I) voluntary con-
16 Boettcher, R.A. Air classification for reclamation of solid wastes. Compost Science, 11(6):22-29, Nov.-Dec. 1970.
-------
30
SALVAGE MARKETS
tribution of labor, time, and transportation by the public
(as in school-sponsored paper drives); (2) by employment
of physically or socially handicapped labor, paid at rates
below average (as in social welfare agencies); (3) by
people on the margins of economic existence who
salvage commodities as an alternative to welfare and
who neither pay themselves an average wage nor count
all of their real costs (i.e., use of a truck or car); and (4) by
some secondary materials dealers and processors who
do not account for all costs they incur, especially not for
equipment amortization. These hidden subsidies, if
eliminated, would make recovery of most textiles,
newspaper, and portions of all other recovered materials
uneconomical.
The above points should be kept in mind whenever a
salvage program is contemplated that would duplicate
an existing traditional system in a new mode. Unless the
new system enjoys the same subsidies as the traditional
system, chances are that it will not be economically
feasible.
-------
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30-2
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-------
TABLE 5
ESTIMATED QUANTITIES OF MATERIALS THAT CAN BE HAND PICKED FROM
MIXED WASTES, LABOR COSTS PER TON, PLANT AMORTIZATION COST PER TON,
AND MARKET PRICE OF MATERIALS*
Average
Material
Newspaper
Mixed paper
Corrugated
Textiles
Metals
Glass
Tons
High
3.0
2.5
3.0
2.0
3.5
3.5
per man- day
Low
1.5
1.5
2.0
1.0
2.5
2.5
Average
2.25
2.0
2.5
1.5
3.0
3.0
sorting Plant
cost/ton amortization
($2b/man-day) ($/ton)
11
13
10
17
8
8
.56
.00
.40
.33
.67
.67
4
4
4
4
4
4
.78
.78
.78
.78
.78
.78
Partial =
[ Price
paid
processing by dealer
cost ($/ton)
(*/ton)
16.
17.
15.
22.
13.
13.
34
78
18
11
45
45
High
14
4
15
60
10
7
Low
4
0+
10
10
5
5
* Recovery per man-day based on estimates of the Los Angeles Bureau of
Sanitation; sorting cost and amortization estimates by Midwest Research Institute;
dealer prices are typical prices for the commodity in low and high market periods.
+ Mixed paper cannot be sold in times of low demand.
•j- Excludes all costs except labor and plant amortization.
-------
TABLE 6
ESTIMATED SORTING COSTS OF A COMPOSITE TON OF SALVAGE TAKEN FROM MIXED
MUNICIPAL WASTE, INCLUDING PLANT AMORTIZATION AND INCOME RECEIVED*
Amortization Partial Dealer price
Labor cost applicable recovery paid/fraction
Salvage to sort fraction to fraction cost ($)
Material
Newspaper
Mixed paper
Corrugated
Textiles
Metals
Glass
Per ton
( tfton) (*) (*) («
13
42
19
1
14
11
100
1.50
5.46
1.98
0.17
1.21
0.95
11.27
0.62
2.00
0.91
0.05
0.67
0.53
4.78
2.12
7.47
2.88
0.22
1.88
1.48
16.05
High
1.82
1.68
2.85
0.60
1.40
0.77
9.12
Low
0.52
—
1.90
0.10
0.70
0.55
3.77
* From Table 5; percentages of materials calculated by Midwest
Research Institute on the basis of data in Appendix A and Figure 13.
30-5
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TABLE 8
COMPOSITION OF INCINERATOR RESIDUES PROCESSED
THROUGH AN EXPERIMENTAL RECLAMATION SYSTEM*
Item Weight
Large ferrous metals pieces, wire, steel
cans 16.6
Small ferrous metals 13.9
Nonferrous metals 2.8
Clear glass 28.9
Colored glass 20.7
Residue and slime 17.1
Total 100.0
* From Department of the Interior, Bureau of Mines, data obtained
during interview.
30-7
-------
TABLE 9
INCINERATOR RESIDUE RECLAMATION PLANT OPERATING COST PROJECTIONS*
Annual cost
Cost item
Direct costs
Raw materials
Utilities
Direct labor
Maintenance
Payroll overhead
Operating supplies
Total direct costs
Indirect cost
250-TPD
plant
1,100
16,300
37,400
40,100
15,400
8,000
118,300
15,500
1,000-TPD
plant
4,500
40,000
117,000
81,500
41,500
16,300
300,800
39,700
Cost/ton of
residue
250-TPD plant
0.02
0.25
0.58
0.62
0.24
0.12
1.83
0.24
Cost/ton of
residue
1,000-TPD plant
0.02
0.16
0.45
0.32
0.16
0.06
1.17
0.15
Fixed costs
Taxes and insurance
Depreciation
Total operating
cost
15,200 21,500
79,000 111,800
228,000 473,800
0.23
1.22
3.52
0.08
0.45
1.83
* Prom Department of the Interior, Bureau of Mines, undated cost
summary sheets obtained during interview; data are based on 1969 equipment
costs; labor is based on $2.50 per hour rate plus 2.5 percent supervisory
addition.
30-8
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TABLE 10
OPERATING COSTS OF A 500 TONS PER DAY WASTE RECLAMATION FACILITY, TOTAL ANNUAL COSTS,
COSTS PER TON OF RECLAIMED PRODUCT, AND ANTICIPATED INCOME PER TON*
Annual Operating cost
operating or income/ton Operating cost
cost or Materials processed of reclaimed or income per
income through operation material input ton
Category
Total Waste Processed
Reclaiming operation —
cost
Ferrous metal
Glass
Aluminum
Paper pulp
Total
Reclaimed material —
income
Ferrous metal
Glass
Aluminum
Paper pulp
Total income
Net gain
($)
641,000
1,000
35,000
_(+)
452,000
488,000
64,000
50,000
110,000
650,000
874,000
386,000
(tons)
130,000
8,000
5,000
650
26,000
39,650
8,000
5,000
650
26,000
39,650
(*) ($)
100.0
20.0 0.13
12.5 7.00
1.5 0.00
66.0 17.38
100.0 12.30
20.0 8.00
12.5 10.00
1.5 175.00
66.0 25.00
100.0 22.00
9.70
($)
4.93
0.008
0.269
-
3.477
3.754
0.492
0.385
0.846
5.000
6.723
2.969
* From W. Herbert, Director of Engineering, Shartle/Pandia Division, Black
Clawson Company, personal communication, 2-8-71.
+ Included with glass.
30-9
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31
CHAPTER IV
PAPER
Perspective
Paper is one of the major manufactured materials
consumed in the United States and the largest single
component of municipal waste.
Paper can be viewed (I) as a commodity of
consumption in the Nation's economy; (2) in its role as
secondary raw material utilized for recycling; and (3) as
an input to the Nation's municipal waste.
Paper Consumption. Paper and paper products
penetrate almost every segment of the Nation's
economy. Their use is intimately connected with political,
economic, social, and cultural activities. Paper is the most
important communications medium; the most widely used
packaging material; a growing part of personal use
"disposable" products; end an important input to
construction and industrial products.
In 1969, the Nation consumed 58.5 million tons of
paper — more than 12,000 kinds of paper in more than
100,000 end uses. Per capita consumption was 575 pounds
in 1969, making paper one of the two or three most
important manufactured materials in the United States.
By 1980, consumption will be about 85.0 million tons.
Paper is classified in three major categories — paper,
paperboard, and construction paper and board. In 1969
consumption of each was: paper, 30.1 million tons (51.5
percent); paperboard, 23.9 million tons (40.8 percent);
and construction, 4.5 million tons (7.7 percent). Con-
sumption of paper has increased at a rate of over 4
percent per year in the last decade and appears to be
headed at near this rate for the next decade as well.
Paper Salvage. Unlike steel products, which have
an average life of 20 years, most paper is used and
discarded in the same year it is purchased. Its value is low
in comparison to its bulk, and most obsolete paper
products enter the solid waste stream. In 1969, paper in
the form of recycled waste paper madr; up about 19.8
percent of fibrous raw materials used in the production
of new paper (Table II), and 17.9 percent of total tonnage
consumed was recovered for recycling purposes; con-
sumption exceeded production as a result of a net import
of 4.73 million tons of paper.
The paper industry does not report on the use of
internally generated and consumed scrap (called
"broke"). Census data also do not include this material.
Where scrap or waste paper is discussed here, it refers
only to conversion wastes and obsolete paper (waste
paper), that waste recovered far down the man-
ufacturing cycle from the paper mill or after discard of
finished products.17
Paper products consumed in the United States are
derived from wood pulp, waste paper, and other fibers.
These raw materials result in the new paper grades that
go into finished products. A portion of the raw material is
lost in processing; the remainder is either recovered for
recycling or is discarded as waste. Scrap created by
conversion activities and obsolete wastes from consumers
do not commonly go into primary recycling applications.
17 The paper industry does not recognize the terms "home," "prompt," and "obsolete" scrap as the steel industry does,
but has a myriad of scrap grades, each of which is more or less descriptive of the source and quality of the scrap. The
term "waste paper" is used commonly in statistical and trade sources but the term "paper stock" is preferred by most
dealers and consumers. Paper stock is a term used to describe waste paper that has been recovered from any source
and prepared for utilization as a raw material in some paper making process. Dealers are designated "waste paper
dealers" but their product is paper stock; paper mills using secondary fibrous materials usually use the term paper stock.
Both of these terms of the trade are used interchangeably by us in this Chapter.
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32
SALVAGE MARKETS
Instead, they move into different (and usually cheaper)
types of paper products than those that they represented
initially. Thus, for the major paper stock consumers,
waste paper is a "new" raw material.
The U.S. paper industry places a fairly high reliance
on conversion and obsolete scrap and recovers about 22
percent of "available" material. (This excludes that
portion of paper retained in use, such as books and
records, and that portion used in products not identified
as paper in final use, such as paper in shoes.) Nearly all
waste paper consumed is purchased — in the sense that
it passes through the hands of waste paper dealers.
Paper in Solid Waste. Paper is a high proportion
of waste, and at present the recovery of waste paper
within the solid waste management framework is
negligible. Current recycling of waste paper, however,
keeps a substantial quantity of waste out of the waste
stream.
The following summary gives an overview of the
disposal of of paper (Table 12). In 1967, we consumed 532
pounds of paper per person and discarded to waste 353
pounds per person (420 pounds per person if the diverted
category is included).
The magnitude of paper in waste can be judged from
two measures of solid waste composition. Based on our
analysis of 1967 data, we estimate that paper (in a form
that would be identifiable as paper) made up about 41
million tons of solid waste in 1969 in residential and
commercial waste; an estimated 2 to 4 million tons
probably showed up in building rubble and other
products with paper content, including shoes, au-
tomobiles, cable, and other manufactured products.
Paper is also about 42 percent by weight (or higher) of
typical residential refuse loads in paper trucks. (See
Appendix A for waste composition samples.) Ad-
ditionally, paper in waste usually has over 20 percent
moisture by weight, various use-acquired contaminants
(food, dirt), and other materials applied in the conversion
process (clay, inks, plastics, staples), which add to the
quantity usually measured as paper in refuse composition
tests.
The Consumption/Disposal Cycle. The cause
and effect relationships between paper consumption and
discards are straightforward. Virgin raw materials and
recycled materials removed from the Nation's materials
inventory are converted into manufactured products. The
use of the products in final consumption is followed by
discard to waste of that portion not subsequently
recycled.
Since 1945, total paper consumption has increased
dramatically and the recycling rate has decreased.
Consequently, discard to waste has been increasing
faster than consumption. In the last 10 years, the use of
virgin raw materials has grown at about four times the
rate of waste paper use (5.2 percent per year versus 1.2
percent per year); thus the burden on solid waste systems
has been increasing even faster than the 4.1 percent per
year increase in overall raw materials consumption
because of the deteriorating position of secondary fiber
vis-a-vis total consumption.
The decline of the relative importance of paper stock
consumption makes itself doubly felt. First, both absolute
and relative exploitation of virgin material increases.
Second, in the case of paper, which finds its way into the
solid waste stream rapidly, the flow to solid waste
disposal systems increases more rapidly than con-
sumption (Tables 13 and 14). Consumption of paper
increased from 36.5 million tons in 1956 to 53.0 million
tons in 1967, or 45 percent. In the same period, recycling
declined from 24.2 percent to 19.4 percent. Paper in solid
waste increased by 59 percent, or one-third more than
consumption.
Current trends to I960 appear to be solidly set, with an
increase in consumption of 60 percent and of paper in
solid waste of 68 percent likely; these projections are
based on a 1980 recycling ratio that is expected to be
about the same as the actual ratio for the years 1969 and
1970.
Paper Industry Structure and Characteristics
Characteristics of Paper. "Paper" is the general
term used to describe a wide variety of matted or felted
sheets of fibers (usually of vegetable fiber, such as trees)
formed on a fine screen from a water suspension.
Somewhat ambiguously, the term "paper" is also used in
a more specific sense to distinguish one of the three
broad subdivisions of paper from others and also to
designate the lighter, thinner, and more flexible types.
The second broad subdivision is paperboard, but the
distinction between paper and paperboard is somewhat
fuzzy. A third designated division is construction paper,
which includes both paper and paperboard used in
construction products, such as roofing felts.
Paper is characterized by its weight and thickness;
strength (tear, burst); fold endurance; optical properties
(gloss, color, opacity, porosity); and the type of raw
material (mechanical pulp, chemical pulp) from which it
is made.
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FOR MATERIALS IN SOLID WASTES
33
The most important fibrous materials converted to
paper and board are the following.
Groundwood Pulp. This is the lowest quality raw
material and is produced mechanically by grinding
action to separate wood fibers from resinous binders. It is
used for newsprint and printing papers.
Sulfite Pulp (or Acid Pulp). This is produced by
chemical cooking methods using sufurous acid and a
base in the form of a salt. It is used to process low resin
woods such as spruce, fir, or hemlock. Sulfite goes into
most printing grades of paper, such as business papers,
and into tissue; very little is used in paperboard.
Sulfate Pulp (or Kraft Pulp). This material is
produced by chemical methods using an alkaline solution
of caustic soda and sodium sulfide. Sulfate is the
cheapest chemical pulp and produces the strongest
fibers. A wide variety of trees can be used, especially
those with a high resin content, such as pine and Douglas
fir. Yields are low — 40 to 50 percent by weight. Kraft
pulps are used principally in paperboard and coarse
paper grades; unbleached grades are used in packaging,
and bleached grades are used in packaging boards and
a number of paper grades, including printing grades and
tissue. Sulfate pulp is by far the most important pulp
product today.
Semichemical Pulp. This pulp is produced by using
a mild chemical treatment on chipped wood followed by
mechanical separation of the wood fibers. The pulping
process has a relatively high yield, but the fibers are not
as strong or flexible as Kraft pulp. The pulp is made from
hardwoods and waste paper and is used predominately
for the corrugating medium in paperboard boxes.
Waste paper. This is used as a raw material in the
same ways as wood pulp. In the case of paper stock, the
fibers are separated from the original product by
mechanical agitation in a water slurry. Other treatment,
such as deinking and contaminant removal, may also
take place. Most waste paper goes into paperboard.
Other fibers used in paper making include rag pulp
and bagasse. These constitute a minor portion of raw
materials for such diverse products as high quality
writing papers, wrapping paper, and various types of
paperboard.
The quality of virgin pulp produced is eventually
reflected in the quality of various waste paper grades
used as raw materials. From a technical standpoint, the
secondary fiber can be no better than it was as a virgin
fiber and must be used in applications that are
compatible with the physical characteristics of the
original fiber.
The relative importance of various fibrous materials
used in paper production can be seen in Table 15.
Although raw materials are often used in mixtures and
various combinations, in general each paper mill uses a
particular type of fiber in great preponderance over the
others with which it may be combined.
In the making of chemical pulp from pulpwood trees,
high material losses are experienced (Figure 5).18 If a
"composite" pulpwood tree is considered as 100 percent
of input weight, 67 percent is lost in making chemical
pulp and an additional 4 percent in making paper and
converting it to product. Thus, it takes 3.4 tons of tree in
the woods to make I ton of finished product. Most of the
material loss takes place in the production of pulp.
However, a high percentage of annual consumption of
wood pulp is derived from such sources as sawdust,
cuttings, screening, and stumps.
Industry Structure. The paper industry's structure
follows its broad end-product markets and types of raw
materials used in each segment or subsegment of the
industry.
The paper segment, 44.0 percent of output tonnage in
1969, consumes 51.7 percent of wood pulp and 13.4
percent of waste paper used; but waste paper makes up
only 6.5 percent of the segment's raw materials
consumption.
The paperboard segment, 47.9 percent of output,
consumes 43.0 percent of wood pulp and 79.4 percent of
waste paper used; waste paper is 33.4 percent of raw
materials inputs. Combination board manufacturers
account for nearly all of the waste paper consumption in
paperboard.
The construction paper segment, 8.1 percent of output,
consumes 5.3 percent of wood pulp and 7.2 percent of
waste paper; waste paper is 22.4 percent of raw
materials used (Table 16 and Figure 6).
The sequence of operations in the industry includes
wood pulping in pulp mills as the first step of
manufacturing. This is followed by paper mill operations
where the various basic paper grades are made. The
final manufacturing activity is conversion of paper to
finished products.
18 From data developed by the Forest Products Laboratory, U.S. Forest Service, Department of Agriculture, at its
Madison, Wisconsin facility.
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34
SALVAGE MARKETS
Paper converters are manufacturers of paper prod-
ucts such as envelopes, bags, containers, gummed paper
and the like. Recycled materials enter at the paper mill
level. From conversion, the products go to many kinds of
industrial, commercial, and individual consumers. A
paper mill operation may or may not include conversion.
At the paper mill level the following operating
alignments are common.
(I) Integrated paper mill operations where pulp wood
is harvested or purchased, wood pulp is produced in pulp
mills, the basic grades of paper and paperboard are
made, and, if volume warrants, paper may also be
converted to a finished form, such as box blanks.
(2) Paper mill operators who do not have pulp mills
but produce paper or paperboard from purchased wood
pulp and may purchase small quantities of paper stock,
and may or may not have converting operations.
(3) Paper mill operators who rely on purchased waste
paper for essentially all or a significant proportion of
raw materials and who produce various paper or
paperboard grades, and may or may not perform
converting operations.
There are also a few independent pulp mills that are
not integrated forward into paper production; however,
these operations are exceptional. Most pulp sold on the
open market comes from the excess production of
integrated pulp producers.
Nearly all paper and board mills that consume wood
pulp use captive virgin raw materials. In 1968, 89.4
percent of all wood pulp consumed in domestic paper
mills was captively produced and most of this was
consumed in paper or board mills tied directly to pulp
mills at the same location.
Conversely, almost all waste paper is consumed in
independent mill operations that depend on purchased
waste paper for raw materials. This is true even for those
organizations with waste paper dealer subsidiaries. In no
sense can waste paper sources be captive or "owned" in
the way that pulp wood timber and pulp mills are owned
and physically controlled. Integrated mill operations
consume only a small portion of total waste paper and
this is quite often acquired from their own captive
converting operations.
In paper manufacturing, there are mills that depend
entirely on waste paper (newspaper deinking is an
example); some mills use mixtures of pulp and paper
stock (tissue is an example); most are based on virgin
pulp. In paperboard, the combination board sector of
the industry consumes about 90 to 95 percent of the
paper stock used in paperboard, and its raw materials
are made up of 90 to 95 percent paper stock and 5 to 10
percent wood pulp. Integrated board mills, by contrast,
use no more than 5 to 10 percent of the total paper stock
consumed in paperboard, most of this going into
semichemical board. Construction grades use a high
percentage of paper stock as well as wood pulp; the
ratios vary according to individual operations and
products, but may be virtually 100 percent for either
material.
Individual companies can be grouped somewhat
according to the integration patterns described above.
Some own only operations using virgin wood pulp (the
largest companies in the paper industry); some own only
operations based on paper stock (the smallest in the
paper industry). A number of companies operate both
types of mills, but these companies tend to be more
heavily oriented to virgin pulp operations and are
usually large operations. One major company consumes
roughly equal proportions of virgin and secondary
materials.
In 1969 there were 366 pulp mills in the United States
and 820 paper and paperboard mills, according to the
1970 issue of Lockwoods Directory, a trade publication.
Most pulp mills serve one or two paper or board mills.
Paper mills based on wood pulp are concentrated in the
South, Northeast, North Central, and the West Coast,
where commercial timber lands are located. Mills based
on paper stock are located predominately in the East,
North Central, and Middle Atlantic states — close to
population centers where paper stock is generated and
mill outputs are consumed. The relative importance of
different raw materials on a geographical basis is
detailed in Table 17.
Consumption and Production Patterns
Consumption Trends. Consumption of paper has
doubled since 1950 — from 29.0 million tons to 58.5
million tons in 1969. Per capita consumption has taken 25
years to double; consumption is growing at three times
the population rate. Domestic paper production has also
grown dramatically in the last 15 years, reaching 53.8
million tons in 1969, compared to a level of only 26.9
million tons in 1954 (Figures 7, 8, Table 18). The difference
between consumption and production is net imports,
most of which is newsprint from Canada.
Fibrous raw material consumption has paralleled
domestic production, of course, but the history of wood
pulp, paper stock, and other fibers are vastly different
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FOR MATERIALS IN SOLID WASTES
35
(Figures 9, 10). The rapid growth of virgin raw materials
consumption has held paper stock consumption growth
to a very modest level. Wood pulp consumption in paper
doubled between 1954 and 1969; in the same period,
paper stock consumption increased only 34 percent,
while consumption of other fibrous materials declined
slightly. Thus, the use of wood pulp grew at three times
the rate of paper stock.
The wood pulp output thus correlates roughly with
solid waste generation since most paper products not
recycled are discarded. Conversely, the paper stock
recovery ratio has declined almost continuously since
1945 (Figure II) leaving little doubt about the relative
importance of scrap in paper manufacturing. In 1969,
paper stock recovery was at a level of 17.8 percent of
paper consumption, and all indications are that the ratio
dropped even lower in 1970.
Why paper stock consumption has declined can be
shown by comparing the use of this material in the two
main types of paperboard. Combination board is made
almost entirely of waste paper. Solid wood pulp board is
almost entirely virgin pulp. The American Paper Institute's
Paperboard Group issues statistics on the production of
these board types (Figure 12, Table 19).
Since 1959, total paperboard production increased
from 15.97 million tons to 26.38 million tons in 1969, 65
percent in the period. In this decade, solid wood pulp
board has increased 112 percent (8.99 to 19.06 million
tons). Combination paperboard production increased
only 5 percent in a decade (6.98 to 7.32 million tons).
Combination board also lost in market share, 43.7
percent in 1959 to 27.8 percent in 1969. Had this not also
been a period when combination paperboard mills were
increasing their consumption of paper stock (by re-
placing virgin pulp used in top layers of paperboard with
"high grades" of paper stock), the relative decline of
paper stock consumption would have been even greater.
End-Use Applications. The end-use applications of
paper are also indicative of the relative importance of
paper in the economy, especially in transitory use
applications (Table 20). Packaging, which accounts for
45.0 percent of the tonnage, and communications
papers, which account for 35.7 percent of the tonnage,
together absorb 80.7 percent of the paper. The
remainder is split between tissue (consumer products), 6.2
percent, and construction grades, 7.7 percent.
Underlying Factors. Several major factors underlie
the trends that show up in historical data. Improvements
in wood pulping technology have enabled the paper
industry to tap abundant virgin raw materials at costs
low enough and in quantities large enough to meet rising
demand for paper; the technology of paper stock
utilization has only recently become more competitive
with that used for virgin fiber production. Most paper
capacity installed since 1945 has been wood pulp based
and located close to virgin raw materials, primarily in the
South and Far West, rather than close to final markets. In
the South the vast forests have been tapped. In the Far
West most of the raw fibrous materials are residues of
lumber mill operations.
The demand for products made of virgin fiber has
outpaced demand for products predominantly of
secondary fibers in three ways: (I) products made
predominantly of paper stock (construction papers,
folding cartons) tend to grow at a lower rate than other
paper products and are losing markets to competitive
materials; (2) wood pulp has taken some markets from
paper stock as consumers "up-graded" their products to
improve appearance and to achieve higher "purity"
where the functional performance requirement did not
change, as in packaging; (3) paper stock has penetrated
only one new market in recent years — newsprint.
The consumption of paper products has grown faster
in end uses where the value of paper is in its transitional
use followed by discard rather than in long life or
continuous service. Examples of rapidly growing trans-
itional use products are packaging, communications
products, and household "disposables"; all are pre-
dominantly wood pulp products.
Paper in Municipal Waste. Most paper is
discarded after use. Products found in residential waste
are newspapers, magazines, mail, various types of
packaging and bags, and "disposable" products such as
tissue, towels, and the like. Commercial waste consists
largely of business papers or products, mail, and a wide
variety of packaging, especially corrugated boxes, plus
miscellaneous products. Paper used as part of industrial
products is not readily identifiable as paper because it
shows up as waste in toys, shoes, appliances, autos,
building and construction rubble, and the like. The paper
is usually discarded in haphazard mixtures along with the
other refuse with which it becomes mixed. At this point, it
loses almost all value as a scrap material and is simply
disposed of in a conventional manner. Because of its high
contamination and low level of concentration by
commercial waste grade standards, paper is seldom
salvaged from municipal wastes.
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36
SALVAGE MARKETS
Where paper is recovered from solid waste, it is
usually one of two types, newspapers or corrugated
boxes. In the case of newspapers, the collection from
waste is practiced by unauthorized private scavengers
who move ahead of residential collection vehicles and
pull them out.
Corrugated boxes are sometimes collected in large
concentrations by private haulers from commercial
accounts (retail stores, warehouses) and delivered
directly to a paper dealer. The quantity of paper and
board recovered directly from waste is probably not
more than I to 2 percent of total demand for news and
corrugated.
Based on previous work by MRI,19 the rate of discard
of paper products and diversion of paper to un-
recoverable uses was estimated for the years 1966 and
1976. This analysis was extended to more detailed census
data for 1967 in this study. We found that in 1967, 45.3
million tons of paper were discarded into waste or
recycled and 7.9 million tons were either destroyed, lost,
or combined with other materials obscuring its identity as
paper. The 45.3 million tons disposed of as waste were
the maxiumum quantity recoverable for recycling that
year; since actual recovery was 10.2 million tons, the
recovery ratio was 22.5 percent of all that available, only
slightly better than the 19.2 percent recovery using total
consumption as a measurement base.
Waste Paper Consumption Patterns
To present an overview of waste paper consumption
patterns, we have constructed an input/output table for
1967 as a guide to materials flow from the forest to final
disposition of finished product (Figure 13).
Types of Waste Paper. The general types of paper
stock grades fall within two groups and five clas-
sifications. They are:
(I) Bulk grades — so named because these are grades
used in large quantities in paperboard and construction
products. There are three classifications:
(a) News consists of old newspapers recovered from
residential sources and newspaper publishers.
(b) Corrugated consists of old corrugated boxes
recovered from commercial establishments and new
clippings from box converting operations.
(c) Mixed covers a wide range of the lowest quality
paper stock and consists of unsorted mixed papers
obtained from office buildings, printing plants, and other
commercial sources.
(2) High grades — so named because they can
substitute directly for wood pulp and are high quality
fibers. There are two classifications:
(a) Pulp substitutes: clippings and shavings, such as
envelopes and bleached board cuttings, and other high
quality fibers derived from paper converting plants and
data processing centers (tab cards).
(b) Deinking: usually bleached papers that have gone
through a printing operation and are collected from
printing plants and other converters.
Uses of Waste Paper. While paper is the principal
type of waste recovered, it is used predominantly in
paperboard and construction grades. In 1967, the paper
industry consumed 10.12 million tons of paper stock (Table
21). Paperboard takes 79 percent of total paper stock
consumption, but the only paperboard grades of
substantial volume recovered for recycling are old
corrugated boxes and box cuttings, which make up
about 33 percent of paper stock use. The remainder is
various types of waste paper used in paperboard and
construction papers. About 6 percent of the recycled
paper is reused in the same process from which it came;
94 percent is consumed in processes other than those that
generated the original product (Table 22).
Most recycling takes place in mills substantially
dependent on paper stock for raw materials: newspaper
deinking; other deinking operations; combination board
manufacturing; and several construction grades. For
these reasons the raw materials competition between
wood pulp and paper stock is not severe and the waste
paper trade is not heavily influenced by the activities of
marginal buyers of paper stock. There are, of course,
many marginal buyers (usually of the pulp substitutes) but
they operate with limited commitments to paper stock
ratios in their products and maintain a flexibility in paper
stock consumption to "protect" themselves in rapidly
changing paper stock market conditions.
The National Committee for Paper Stock Con-
servation has established that an additional 1.0 million
tons of waste paper is consumed in various grades plus
19 Darnay, A., and W. E. Franklin. The role of packaging in solid waste management, 1966 to 1976. Public Health
Service Publication No. 1855. Washington, U.S. Government Printing Office, 1969. 205 p. Franklin, W. E., and Darnay,
A. The role of nonpackaging paper in solid waste management, 1966 to 1976. Public Health Service Publication No.
2040. Washington, U.S. Government Printing Office, 1971.
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FOR MATERIALS IN SOLID WASTES
37
construction products that are not defined as paper
products (insulation, asphalt, felts, pipe, etc.).20 This
tonnage is made up of the following grades by our
estimates: mixed, 782,000 tons; news, 164,000 tons; and
corrugated, 109,000 tons.21
Some paper producers use waste fibrous materials
other than waste paper. In 1969, these materials
accounted for 890,000 tons or 1.7 percent of total raw
materials consumed by the paper industry (Table II). Of
this, an estimated 120,000 tons went into pulp making,
210,000 tons into paper, 520,000 tons into construction
products, and 35,000 tons into paperboard. About
220,000 tons of the "other fibers" were cotton fibers or
textile wastes which are used in roofing felts, and cotton
fiber paper. In fact, in 1970, cotton content paper utilized
57,000 tons of secondary fibers in the form of cotton
cuttings and cotton (inters equivalent to 44 percent of the
raw material input (total fiber consumption for cotton
content paper was 130,000 tons).
Sources of Paper Stock. It is very difficult to
determine accurately where paper stock is generated. In
the absence of data, we have resorted to estimates based
on our input/output analysis. Even major paper stock
dealers and the Paper Stock Institute,22 the major
industry association, cannot document sources of paper
stock accurately. Dealers are most reluctant to divulge
their sources of supply. Fortunately, paper stock grades
are roughly descriptive of their original source; but even
so, our estimates must be classified as "informed
judgments."
Paper stock is acquired from residential sources, 1.68
million tons (16.6 percent); commercial sources, 4.41
million tons (43.6 percent); and paper converters, 4.03
million tons (39.8 percent) (Table 23). This means that
conversion waste is 40 percent and obsolete is 60 percent
of total. Three obvious conclusions are apparent from the
data in Table 23: (I) newspapers are collected pre-
dominantly from homes; (2) commercial establishments
such as stores, warehouses, and off ices account for more
than half the mixed and old corrugated; and (3) paper
converting operations generate most of the high grades
as well as respectable quantities of bulk grade paper
scrap.
Of all 45 waste paper grades recognized officially by
the Paper Stock Institute, and the numerous additional
unofficial grades, only old newspapers have their origin
in the home. In fact, newspapers are one of only two
materials commonly found in municipal waste still
salvaged in quantity from residential sources (the other is
textiles). But paper is the only material recycled; textile
products are either resold or diverted into secondary
uses.
Most paper converters recover their waste paper.
Little of it is discarded as waste. The paper is usually
baled on site ready for delivery to the mill. Commercial
establishments sometimes sell their waste papers and
sometimes discard them depending on grade (corrugated
can be sold more readily than mixed), on the nature of
local markets, and on quantities of paper generated
(small quantity generators are less likely to sell than large
waste producers). In strong waste paper market areas
(Los Angeles, Chicago, most of Ohio, New York City)
commercial establishments are likely to do their own
baling.
Quality. The most desirable grades of waste paper
are those that exhibit the highest quality or purity and
accumulate in large quantity. The best grades are pulp
substitutes and deinking grades, followed in descending
order by corrugated, news, mixed, and finally that
portion not recovered but disposed of as waste. In
addition, the type of pulp in the paper— groundwood,
sulfite, sulfate, or semichemical — is very important
because each is not equally useful as a waste material. A
final difference is whether the product is of bleached or
20 Frank Block Associates. Outlook for paper stock consumption--1970; prepared for the National Committee for Paper
Stock Conservation, American Paper Institute. Unpublished data. This source also carries gypsum liner board under the
construction category (780,000 tons) where it logically belongs, but MRI has conformed to the more traditional reporting
that shows gypsum liner board under combination paperboard.
21 It should also be noted that U.S. Census data usually understate actual consumption of paper vis-a-vis American
Paper Institute figures (by 824,000 tons of paperboard in 1969, for example) and that it is not possible to determine
additional amounts of paper coming into the country as finished products or packaging on non-paper imports.
Therefore, while we have not shown this additional 1.0 million tons recycling on our input/output analysis, it is more
than covered by consumption that is not recorded. Our input/output analysis was not designed to cover these
conditions but remains valid in its present coverage.
22 One of the major divisions within the National Association of Secondary Materials Industries, Inc.
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38
SALVAGE MARKETS
unbleached fiber content. When all these criteria are
taken into account, it is evident that waste paper, by
reason of natural admixture of various grades, can best
be used in applications where quality requirements are
not stringent. The type of pulp in the waste paper usually
determines its quality. Thus, paper stock composed
predominantly of bleached sulfite pulp has a higher
value than groundwood.
Contaminants. A number of materials contaminate
paper and destroy its value as a secondary material.
Contaminants are sometimes referred to by the delightful
British term "pernicious contraries." A few of these bear
brief mention.
Clay Coatings. These are found on magazines, which
have negligible value in waste paper markets. Clays
separate readily from fibers but cause a loading of waste
water systems. The principal objection to clay coated
paper as a scrap grade is that the weight loss is 30
percent or more, and this raises the cost of the paper
fiber obtained.
Asphalt. This is a wet strength agent used principally
in boxes. There are efficient systems to remove asphalt
during processing of paper stock. These are a part of
most mill operations that use old corrugated boxes.
Other materials used, such as wax or resins to increase
wet strength of the material, may also cause problems in
a mill.
Plastic Coatings. These are uneconomical to remove
unless there is a separate system to process plastic coated
stock; the stock must be accumulated in sufficient
quantity to be economical to process. Such systems do
exist but are based only on converting scrap such as
polyethylene coated milk carton stock. Plastic coated
papers in other grades are still a contaminant not
removable by conventional mill processing systems.
Adhesives. Hot-melt adhesives and other non-water-
soluble adhesives are difficult to remove and will "gum
up" paper made from scrap containing them. They are
usually avoided. There are solvent systems designed to
handle non-water-soluble adhesives, but for the most
part the economics are not attractive since these paper
grades can be readily avoided. Some efforts are
occasionally made by industrial consumers of paper
stock to get water-soluble adhesives used instead of
nonsoluble, but converters persist in their use.
Laminations. Paper laminated with foil cannot be
handled in regular paper mill processing systems for
paper stock. These must be eliminated because there is
no economical system for processing this type of paper.
Inks. Certain types of ink, especially those used in
color printing, cannot be removed readily from paper.
Only those inks applicable to existing deinking processes
can be handled by consuming paper mills.
Other. Many materials downgrade paper stock
needlesslythe presence of groundwood, dirt, foam
plastics, and the like. Removal of these contaminants by
hand is seldom economical. Almost anything added to
paper is a contaminant when that paper becomes a
paper stock grade. The problem is more one of
acquisition of trace amounts in paper rather than large
concentrations, because low concentrations of con-
taminants cannot be removed economically.
The fundamental problems are those of proper
accumulation of "pure" grades and of fighting low levels
of contamination that essentially destroy the value of
waste paper. The progressive contamination of fibrous
materials as they work through the
converting/consumption cycle has been one of the
factors that simply works to the detriment of paper
recycling and that has helped push the development of
virgin pulp processing — which by contrast is essentially
a progressive fiber upgrading process.
Mixed paper in municipal waste — which contains
coated papers, laminated papers, printed stocks, and
materials containing adhesives — is clearly an un-
desirable input material to paper and board mills unless
it can be upgraded substantially.
Issues in Paper Stock Use
General. From a waste utilization point of view, the
paper industry is made up of an integrated segment
using wood pulp and an independent segment using
paper stock. It is technically feasible to substitute paper
stock for wood pulp (within limits) and wood pulp for
paper stock. But this is not practiced extensively within
the industry except in selected grades such as tissue. The
basic technology and economics of both industry
segments work to the detriment of substitution. Pa-
perboard provides a good example.
Combination board mills are equipped to handle bulk
grades of paper stock and usually produce multilayer
products on relatively slow cylinder machines. The cost of
pulp is higher than the price such mills receive for their
finished products, in part because these mills are
dependent on pulp purchased on the open market.
Economics defeat use of pulp in this application.
Integrated board mills, located in the South and
producing kraft paperboard, are designed as continuous
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FOR MATERIALS IN SOLID WASTES
39
systems starting with pulpwood and ending with finished
paperboard. These mills are not equipped to accept
purchased paper stock, which must be cleaned and
prepared in special equipment. In addition, the remote
location of these mills near timber resources introduces a
high paper stock freight cost, which, combined with the
value of the paper stock at market prices, makes paper
stock expensive in comparison with virgin wood pulp.
Few mills of this type can justify capital investment to
utilize bulk paper stock grades, and unfavorable
economics have limited paper stock use.
There is, however, an equivalence of value between
various types of wood pulp (kraft, sulfite, etc.) and
various grades of paper stock (news, corrugated, pulp
substitutes, etc.) based on market value of finished
products. For example, pulp substitutes may range in cost
from $20 to $40 per ton below the cost of bleached pulp;
the differential allows for process losses, cleaning, and
waste preparation using specialized equipment to obtain
a material equivalent to wood pulp. There is a similar
equivalence in the value of other paper stock grades
relative to pulp as well, or substitution of one for the
other would in fact begin to take place until a new
balance was achieved.
The values of wood pulp and paper stock could
change vis-a-vis each other. In fact, this is what has taken
place since 1945 — the relatively low cost and high
quality of virgin wood pulp have hurt paper stock. When
values change vis-a-vis each other, the consumption
ratios change. But it is difficult to foresee changes in the
cost of raw materials that would lead to greater
utilization of paper stock in wood pulp mills. To induce
the paper industry to idle large increments of standing
capital investment in wood pulp production equipment
would take a very large decrease in paper stock prices, a
high tax on virgin materials, or some equivalent change
in the basic cost relationships between virgin pulp and
secondary fiber.
Some producers of virgin-based paperboard in the
South have begun to use limited quantities of paper stock
in recent years, even though a basic shift in the value
relations between pulp and paper stock have not taken
place. The basis for this relatively new departure is the
need for incremental capacity increases.
Some mills have found that incremental expansions in
capacity justified by demand increases were not
sufficient to install new pulping capacity or could not be
achieved because of a local shortage of pulp wood. The
incremental capacity, however, could be achieved by
installing waste paper pulping equipment and by
recycling the company's own generation of corrugated
box clippings — a high quality scrap material virtually
indistinguishable from virgin kraft pulp. This kind of
situation has induced many producers to consume from 5
to 15 percent secondary fiber in the manufacture of virgin
liner board.
If a board mill also installs waste cleaning equipment
and an asphalt dispersion system, it can also use old
corrugated boxes as raw materials, assuming the output
capacity of the board mill could be increased to accept
the higher throughput.
Such situations are becoming more prevalent at tree-
based mills today. But tree-based pulp and paperboard
mills have gone about the utilization of secondary fibers
with little fanfare and publicity. Apparently they do not
wish publicly to "tarnish" the image of board sold as
"clean" virgin fiber product. Today many paper industry
observers say that there is no such thing as a 100 percent
virgin'fiber paperboard and that the level of recycled
fiber is around 5 percent in virgin kraft paperboard.
Most of this recycled fiber, however, is still very high
quality conversion scrap (box cuttings), and apparently
very few tree-based mills are seeking old corrugated as
an input material. To date, therefore, the acceptance of
secondary fiber as a raw material in tree-based mills is
somewhat tentative and heavily oriented to internally
produced conversion scrap.
Technical Constraints. From a technical stand-
point the paper industry could accept a much higher
quantity of secondary fiber than it does. The technical
limits vary from grade to grade but may be estimated for
various categories. For example, combination board now
uses about 95 percent secondary fiber, with the inner
plies of a typical board being 100 percent paper stock
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40
SALVAGE MARKETS
bulk grades and the outer ply commonly being pulp
substitutes or purchased wood pulp.
Kraft paper producers are only now trying to use
secondary fiber, as discussed above, and the secondary
fiber consumption rate of these producers is 5 percent of
input weight. Technical studies have shown that inputs of
secondary fiber of between 30 and 50 percent in kraft in
the form of old corrugated boxes are possible —
without violating paperboard quality specifications.23
Semichemical medium (used for the fluted sections of
corrugated boxes) can be made entirely of waste paper;
at least one mill now operates on this basis. Many
producers probably now use 15 to 20 percent secondary
fibers, derived from box cuttings.
Newsprint can be made into newsprint again, using a
patented deinking process developed by Garden State
Paper Company, Garfield, New Jersey. The process
requires only old newspaper for its fibrous input. This
company has three mills in operation (Garfield, New
Jersey; Alsip, Illinois; Pomona, California) with capacity
to produce 320,000 tons per year of newsprint. The
newspaper deinking technology has been in commercial
application since 1961 and is the most notable new
application for waste paper to be developed in many
years. Newspaper deinking accounts for nearly 20
percent of waste newspaper consumption today. The
deinking mills operate on a continuous basis and rely on
traditional collection practices to provide a continuous
supply of waste newspapers; this constant demand for
news has done much to stabilize waste paper markets in
recent years.
Bleached grades of printing paper can be made
entirely of waste paper, but the scrap must be high
quality deinking grades and pulp substitute grades
recovered from converting and printing operations and
data processing centers. Bulk grades cannot be used in
printing papers at a high rate because the wastes are
either high in groundwood content (news) or they are
unbleached fibers (corrugated). Various types of tissue
also fall into this category. In general, only high quality
bleached paper stock grades can be used in paper;
however, many producers use paper stock for 15 to 30
percent or more of the input fiber, especially in tissue and
some printing papers.
Construction paper and board producers can and do
use high proportions of secondary fiber in their inputs.
They also commonly use defibrated or exploded pulp,
screenings, sawmill waste, and other fibers such as
textiles, straw, and bagasse. For many construction paper
products, the technical limitations are such that the
lowest quality bulk grades of waste paper can be used
— mixed paper and news. Although wood pulp
accounts for about 50 percent of the wood fiber input
into construction paper and board, the ratio could be
lowered considerably without affecting the technical
performance of the products manufactured.
These observations are based on conditions existing
today and do not allow for waste paper consumption
potential that might be possible with new approaches to
waste paper upgrading or serious research and de-
velopment expenditures to determine the secondary fiber
limits of the predominantly virgin pulp grades in use
today. Also virtually unexplored is the whole area of new
products (within or outside of the paper industry) that
might be made of secondary fibers. The development of
new applications for secondary fibers appears to be one
way in which sizeable new markets could develop for
materials in waste.
Available Supply in Municipal Waste. In
theory, municipal waste could provide all the secondary
fiber that could be absorbed at present within the
technical limitations imposed by product characteristics.
Whether or not this also represents an economically
viable source of supply is questionable at present.
The paper available in waste can be classed into three
categories — newspaper, corrugated, and mixed
papers. In 1967 the unrecovered paper discarded totaled
35.2 million tons, of which 6.3 million tons were
newspapers, 8.6 million tons were corrugated, and 20.3
million tons were all other. Of this, a total of 20.2 million
tons are estimated to have been technically recoverable
(Table 24).
The tonnage that could have been recovered is based
on our estimates and is lower than tonnage available in
waste. We consider 100 percent recovery highly unlikely.
23 The figure of 30 percent comes from our conversations with officials of two paper companies who say that this level
would be achievable with little technical difficulty, using old corrugated boxes; the figure of 50 percent is based on
findings of the Herty Foundation, Savannah, Georgia, in recently completed research for the Paper Stock Institute
Division of NASMI. See Reclaimed fibers-50/50 board compares favorably with virgin kraft. Paperboard Packaging,
54(8):23, Aug. 1969.
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FOR MATERIALS IN SOLID WASTES
41
A portion of the tonnage discarded is lost — in litter, in
isolated disposal in fireplaces and in other ways. A
portion will occur in remote locations and will never be
practically recoverable. A portion would be lost in
collection and processing, and a portion would be
rejected in processing as unusable for technical reasons.
We estimate that, at best, 57 percent of paper going into
waste is recoverable (20.2 million of 35.2 million tons)
and that the most likely recoverable tonnage would be
10.2 million tons, or 29 percent of discards.
Approximately half of the "additionally recoverable"
tonnage in 1967 was made up of newspapers and
corrugated board, two grades already recovered in
substantial quantities by time-honored methods. This
tonnage is theoretically available, and its recovery
requires demand for the products so that they will be
collected prior to discard, by the secondary materials
industry and its agents. However, it is very likely that
even in the presence of such a demand, economic and
logistical problems of recovery would preclude full
recovery taking place in traditional ways.
The other half of this tonnage was mixed paper of the
sort normally found in mixed refuse. These materials are
not now recovered. Their acquisition would require the
use of equipment to process them from mixed wastes or a
program of voluntary paper segregation by the public
followed by processing to remove contaminating inks
and coatings.
In order to reduce the quantity of paper entering the
solid waste stream, the ratio of paper recycled to total
paper consumption must increase. If the recovery ratio
experienced in 1969(17.9 percent) is maintained until 1980,
we shall be recovering 15.2 million tons in that year and
the discarded portion will be 59.2 million tons, up from
34.5 million tons in 1967 (based on data in Table 13). To
keep discards down to 34.5 million tons in 1980, we shall
have to recover 39.8 million tons of paper in that year,
equivalent to 47 percent of consumption (Table 25). It
should be clear from the foregoing discussions that
increased waste paper consumption must take place at
the expense of virgin fiber.
Waste Paper Dealers
In general, waste paper 'dealers conform to the
general description of secondary materials dealers given
in Chapter II. In 1963, the last year for which detailed
statistics are available, there were 2,711 paper dealers,
most of them concentrated in the New England, Middle
Atlantic, and East North Central states (Table 26).
Paper dealers fall into two categories: large dealers
with equipment capable of shredding and baling bulk
grade paper. These dealers, few in number, are called
"packers". The second category is small dealers with
more conventional baling equipment or no equipment at
all.
There is a trend in waste paper trading toward the
entry into this business of private waste haulers. In the far
western and southeastern parts of the United States there
is already substantial competition between traditional
waste paper dealers and private refuse haulers. Refuse
haulers are also becoming more important in the
collection of waste paper for resale in other parts of the
country.
This trend is the result of the fact that commercial
accounts are serviced by private waste haulers; the same
accounts sell paper to paper dealers. Commercial
organizations have found that conventional paper
dealers are sometimes uninterested in waste paper
because demand is down. At such times waste paper
must be hauled away. Commercial organizations are
finding it more efficient to deal exclusively with refuse
haulers — who, in turn, sell paper when demand for it
exists.
Supply, Demand, Prices24
The erratic price swings associated with waste paper
are more often experienced than understood by the
participants in this segment of the paper industry. An
aura of mystery is created by the fact that the
relationships among prices, demand, and supply are
complex and multidimensional, and consequently sim-
plistic answers and misleading explanations are offered
in place of tedious exposition of the facts. The relative
stability of virgin pulp prices is also frequently explained
simplistically. Thus it is not unusual to find paper dealers
blaming mills and mills blaming dealers for the volatility
of paper stock prices where, in fact, both groups are
passive victims or beneficiaries of economic forces.
In general, prices change in response to demand.
Demand for paper stock, in turn, is conditioned by
demand for combination paperboard, construction
activity, paper stock export levels, the supply of pulp
24 One general reference for this section is Tuchman, S.G. The economics of the waste paper industry. Ph.D. Thesis, New
York University, June 1963. 327 p. See especially chapters 6 and 7.
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42
SALVAGE MARKETS
wood, and other factors working independently or
together. A series of observations concerning factors that
affect supply of, demand for, and prices of paper stock
are presented below to explain what causes prices to
shift.
Supply. Some fundamental observations about
waste paper supply are these.
(I) Waste paper is not consciously produced or
intentionally made but is a consequence of man-
ufacturing activities and product consumption and
discard patterns. For this reason total waste paper supply
is uncontrolled and does not bear a direct relation to
demand for paper stock. While consumption of paper
stock is regulated (by paper mills) to meet demand, the
paper stock supply flows forth in an independent and
uncontrolled way — a condition that solid waste
management officials know only too well.
(2) Waste paper is generated as the consequence of
high rates of production in one segment of the industry,
but it is consumed in another segment with lower
production rates.
(3) In the short run, total supply is relatively fixed or
constant because the waste paper trade taps only those
sources necessary to meet mill purchase requirements. It
takes time to acquire new sources of supply when a
demand increase takes place. It also takes time to cut
back supplies once they are established because new
source organizations or collectors continue to ac-
cumulate scrap.
(4) Waste paper dealers must compete actively to
secure those sources of supply with the most favorable
waste characteristics. Thus dealers are reluctant to give
up sources in "lean" times and have difficulty tapping
new sources in "boom" times. Marginal sources are
relatively difficult and costly to tap. Most conversion
waste generators sell all their wastes, and the total supply
of most high grades is not expandable at conversion
points. Conversely, bulk grades are in more plentiful
supply even in periods of high demand.
Demand. Observations about waste paper demand
are as follows:
(I) Demand is determined by the output of those mills
that consume paper stock. Mill operators purchase raw
materials to meet the demand for their products and
determine the level of waste purchasing activity;
therefore the adage, "scrap is bought, not sold."
However, mills cannot dictate or drive prices down
unmercifully in the waste paper market because of their
complete dependence on the dealer for their raw
materials.
(2) Products containing high proportions of waste
paper compete in different markets than products made
of virgin fibers. Thus demand for waste paper may be out
of phase with supply, with overall supply of the obsolete
scrap exceeding demand as a rule. The unneeded portion
usually goes directly into waste without being collected
by the dealer trade.
(3) Waste paper dealers have no control over demand
except as they are able to respond to mill requirements
under the constraints of paper stock quality, price, and
quantity. There are conditions under which wood pulp
and waste paper become substitutes for each other.
These conditions are determined by price, availability,
and quality of the fiber needed; however, substitution of
paper stock takes place because of changes in wood
pulp supply and price or new technology that makes
paper stock competitive in a new market.
(4) Demand for various grades of paper stock is
determined by the level of activity in four general types
of paper mills and by their interactions: (a) deinked
newsprint (news); (b) business, printing, and tissue papers
(pulp substitutes, deinking grades, mixed); (c) com-
bination paperboard (corrugated, mixed, news); (d)
construction (mixed, news, corrugated). The dominant
waste grade(s) for each type of paper grade is denoted
by italics. Markets for combination paperboard and
construction are more cyclical than markets for most
other grades of paper and board. In some grades,
substitution, such as mixed for news, may take place in
periods of changing demand.
Prices. Waste paper prices have long been known to
fluctuate and to exhibit wide swings. The movements in
prices respond to demand changes. Concerning waste
paper prices, these general observations may be made.
(I) Waste paper prices and price indexes are a
sensitive indicator of changes in demand for waste
paper. They are inversely responsive to mill inventory
levels as well; these, in turn, are a reflection of demand
changes. Prices react to changes in demand levels first
and then to changes in marginal cost of supply.
(2) Waste paper prices fluctuate much more widely
than consumption for two reasons: (a) the relative rigidity
of short run supplies of waste paper that cannot be
increased or decreased readily and (b) the marginal costs
of acquiring new supplies in boom times and of cutting
off other supplies in periods of downswing. In periods of
stable markets, no large price swings are experienced.
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FOR MATERIALS IN SOLID WASTES
43
For example, in recent years the advent of news deinking
to produce recycled newsprint has had a stabilizing
effect on both demand and prices of news.
(3) A relatively small change in consumption levels in
one segment of the industry (for example, combination
paperboard or construction) can put the price mechanism
into operation "across the board" in several grades,
especially in the bulk grades. During price downturns,
however, mills may buy some quantities at "normal"
prices to protect their dealers and thus their regular
sources of supply.
(4) Seldom does excess supply per se set a large price
change into motion since this is the chronic condition in
the trade. In recent years, the expanding export demand
for high grades of paper stock has acted to bring prices
up in the face of relatively limited supply of these grades.
(5) New supply is "institutionalized" (assimilated into
the established operation of the industry) very slowly
because overall demand for waste paper increases only
very slowly. Conversely, temporary increases in demand
of, say, 5 to 15 percent are not unusual but do not usually
last longer than several months; new supplies are not
institutionalized within the dealer trade during these
brief periods of additional demand and price levels
begin to fall as soon as demand does. The in-
stitutionalization of new supply leads to price declines
and a new level of price and demand, although the
general price indexes may in fact stabilize above the
previous "normal" level.
Historical Patterns. To provide an illustration of
the relationships between demand, prices, and in-
ventories, monthly data (seasonally adjusted) for the
period 1950 to mid-1970 were plotted (Figure 14, Table 27).
The relatively long-lived changes in waste paper
consumption (demand) show up in prices and inventory
levels. For example, three periods of interest are 1955-56,
1958-60, and 1966-67.
During 1955-56, demand increased an average of 12.2
percent during a 16-month period beginning March 1955;
the price index increased from an average of 88.6 to
133.2, or 46.6 points over a 16-month period beginning
May 1955. Inventories declined and did not return to
"normal" until consumption did in June 1956.
During the period July 1956 through June 1958,
demand was relatively stable and prices stayed in a
"normal range" of 80 to 90 with one small rise that
appears to be related to rebuilding of an inventory
decline that occurred in late 1957. When demand surged
in July 1958, prices took off again. This time the
consumption cycle lasted until June I960, during which
period demand was up 8.6 percent on the average and
the price index up from an average of 81.3 to 125.5 (44.2
percent) until February I960, when prices started down
rapidly.
Following a short decline in consumption and price,
demand stabilized at a level of 800,000 tons a month.
Prices also stabilized (between 92 and 98) during the
period April 1964 to October 1965. The period from
October 1965 through July 1966 was another classic
example of a consumption increase accompanied by
rising prices. The next big price swing, however, seems to
have been precipitated by both falling demand and
rising inventories. It appears that mills attempted to
absorb the tonnage lost by a demand decline by buying
waste paper for inventory when prices were generally
favorable in 1966-67. Nevertheless, a demand decline
back to 800,000 tons per month in early 1967 was
accompanied by a price index decline from 113.2 to a low
of 74.6. Prices did not return to the 100 range until May
1968, after inventories were worked back down following
a demand increase in mid-1967. Average consumption
was relatively stable once again into 1970, during which
time prices stabilized between 108 and 110. This increased
price index level is attributed partly to news prices, which
took a temporary surge during a period when new
supply was being developed for a news deinking plant
near Chicago. The price index for news once again
returned to "normal" in 1969.
One cannot escape the conclusion that the law of
supply and demand has not been repealed in the case of
waste paper consumption. Operating in this market
requires some skill because of its uncertain and variable
nature, but there is no evidence that waste paper
supplies are not available to support increases in
demand. Once price levels become generally wide-
spread within the system, pi ices tend to stabilize as a
result of competitive forces within the market due to the
incontrovertible fact that products made of paper stock
would inevitably disappear if they were not cost
competitive with alternative wood pulp products. This
does not mean that waste paper purchasing activities by
consuming mills are not without difficulties; these are
readily apparent especially when a mill is located away
from adequate supply quantities.
Wood Pulp Prices. In contrast with waste paper,
wood pulp is given great credit for its price stability as
reflected in published government wholesale price
indexes. In fact, pulp price stability is more apparent
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44
SALVAGE MARKETS
than real. Most wood pulp operations are integrated and
never seek a market as wood pulp; thus, the cost of the
pulp is never disclosed. Only 10 percent of wood pulp is
market pulp. In addition, long term contracts are used for
some market pulp. Wood pulp is sold according to
posted prices. In times of excess wood pulp supply,
however, there is extensive discounting and unofficial
price cutting that never shows up in price indexes. Only
when the prices are paid at the quoted level is the index
a true measure of price. In 1969, wood pulp came into
rather tight supply, and actual prices advanced above
previous posted levels, a factor that gave paper stock
dealers hope that they might gain new markets at the
expense of wood pulp.
Trends in Pulpwood. Some industry observers now
say that the forces that led to the rapid expansion of
integrated paper mills are not going to be as strong by
the 1980 s. Low cost, readily available pulpwood lands
have all but disappeared. In fact, pulp prices have
recently begun to rise quite rapidly. This is attributed to
increasingly tight supplies of pulp. By the mid I980's, the
Nation will be consuming more pulpwood than it is
growing, and industry experts are talking of the necessity
of turning to other fibers, especially waste paper.
To meet the projected demand for wood, various
forestry interests are talking of much more intensive
forest management practices, utilization of more tree
species, and more efficient use of wood residues. Federal
lands are also being scrutinized for increasing supplies of
pulpwood. Not only does the U.S. Forest Service have a
long standing commitment to the exploitation of
commercial timber, but a recently completed study25
may add impetus to the Federal effort. This report
recommends (among 137 recommendations): (I) adopting
a "dominant use" concept on Federal lands that would
open large tracts of commercial timber to the lumber and
paper industries; (2) revising Federal cutting spec-
ifications to increase the cutting of trees of pulpwood
size; and (3) opening more timber areas to commercial
cutting by construction of access roads.
Tightening pulpwood supplies appear to indicate that
the relative decline of paper stock as a raw material may
be halted by the mid-1970's. By the I980's however,
recycling would likely not exceed the ratios of the I960's
unless a major effort is made to expand waste paper
usage. History, technology, and basic capital com-
mitments in the paper industry and government are
oriented to maintaining a strong virgin raw materials
base for the nation. At this junction, we can see only a
slow return to paper stock as the "economic accessibility"
of pulpwood gradually tightens in the years ahead.
Recycled fibers are more likely to be used to fill
incremental shortages of wood pulp than to become a
major alternative fiber source.
The paper industry, not unaware of pressure to "do
something about solid waste," is also looking more
seriously at its raw materials balance and the role of
secondary fiber in the industry. One major company, for
instance, sees two problems in the future that will make
waste paper recycling an attractive operation. One is the
projected shortage of pulpwood in the I980's, which will
probably raise raw materials costs. The other is
intensifying government pressure to clean up air and
water pollution occurring as a result of pulp mill
operations. Cleanup costs, now around $3 per ton of
pulp by the company's estimate, will likely increase to
$7.50 per ton or higher in 3 to 5 years, adding to pulp
costs. The company is investigating municipal waste
processing as a potential new venture, to be a self-
supporting service business venture — one of whose side
benefits would be the acquisition of secondary fiber.
Conclusions
Our conclusions can be summed up under four
headings.
(I) Waste paper consumption relative to total paper
consumption has been declining and continues to
decline, principally because paper and board grades
that are made of secondary fibers are are not holding
their own in the market place, and relative demand for
waste paper is therefore declining.
(2) A projected shortage of virgin pulp by the I980's
may slow down or arrest the relative decline of paper
stock consumption but is unlikely to cause it to grow
significantly in ratio of recovery. With the existing
industry capacity principally located close to forest
sources, this presents substantial logistical and economic
constraints to utilization of large quantities of secondary
fiber.
(3) Much more waste paper is available (roughly half
of it readily available without employment of new
technology) than is consumed. Much of this would have
25 U.S. Public Land Law Review Commission. One third of the nation's land. Washington, U.S. Government Printing
Office, June 1970. 342 p. See especially chapter 5.
-------
FOR MATERIALS IN SOLID WASTES
45
to be acquired via recovery within the solid waste
management establishment. However, that readily
available is not necessarily an economic source of supply
for fiber consumers. Consumption of this "additionally
recoverable" portion is unlikely in the near future
without changes in demand brought about by legislative
intervention or potential intervention that would bring
about changes in the value of paper stock relative to
virgin pulp.
(4) The recoverable paper available in solid waste can
be acquired, within economic and technical limits, by
both source sorting and by the application of new
technology to reclaim such fibers from wastes. Some
quantities of the bulk grades (mixed, news, corrugated)
would be recoverable in traditional ways by separation
in homes and businesses. That occurring in mixed form
would be partially recoverable, using new technology
for separation; mixed paper would also require up-
grading to be competitive in existing raw materials
markets.
-------
PROCESSING STEP LOSS
(Percentage of
beginning quantity)
PROCESSING STEP
(Percent remaining
of pulpwood tree)
CUMULATIVE LOSS
(Percentage of
pulpwood tree)
30.0%
7.1%
49.2%
6.0%
6.5%
PULPWOOD TREE
100%
HARVEST TREE
TO ROUND WOOD
70%
BARK AND
CHIP LOG
65%
MANUFACTURE
CHEMICAL
WOOD PULP
33%
MANUFACTURE
PAPER AND BOARD
31%
CONVERT TO
FINAL FORM
29%
30%
35%
-53-67%
69%
71%
Figure 5. Process losses in paper manufacture (in percent by weight)
45-1
-------
Wood Pulp and Paper Stock Relative to Major Grades Produced
Total Paper
93.4 6.6
92.5
Newspr nt
7.5
Communications
94.9 5.1
Packaging/Converting
95.0 5.0
87.6
Tissue
12.4
Total Paperboard
66.6 33.4
Unbleached Kraft
100.0 Neg.*
Semichemical
85.1 14.9
Bleached
100.0 Neg.
Combination Board
7.0 93.0
Total Construction
72.5 27.5
Construction Paper
55.2 ^ 44.8
Hard Board; Board
93.5 6.5
Legend
[.•.VV'I Wood Pulp
I I Paper Stock
L
Newsprint 1.9
Percentage Distribution of Paper Stock by End Uses
Paper 13.4
in
c
.2
o
u
*c
3
O
CN
'5>
o
o
D
°-
.
CO
2
*~
Paperboard 79.4
2
"o
u
i
•S
u
1/1
5
c
o
o
c
i
(J
Construct
7.2
'
tn
-o
8.
a
Q_
ion
Board
0.7-t
Note: Other fibrous materials were excluded; expressed in percent of total wood pulp and paper stock.
Based on MRI estimates.
*Small percentage of paper stock used but cannot be verified in statistics.
Figure 6. Relative importance of wood pulp and paper stock in paper, 1967.
45-2
-------
Figure 7. Consumption of paper by major types, 1929-1969.
45-3
-------
Figure 8. Per capita paper consumption by major types, 1929-1969.
-------
Figure 9. Fibrous raw materials consumed in paper manufacture, 1929-1969.
45-5
-------
O
o
r-
en
en
CM
en
H
to
ft
a
•H
O
•H
ra
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-------
Figure 11. Total paper consumption, paper stock recovery, and recovery ratio.
45-7
-------
28
25
20
I I I T
—,
15
10
X
<> O-
J I
,O'
I
,O
I I
n
Total
•—-.
^"A"
•A % Solid
r
o
•*-i Solid
* O"
>8.
% Combination
r
•*"! Combination
_-—CV
J I I I
I
90
80
70
60
50
-------
-------
INVENTORY AND CONSUMPTION 1,000 TONS SEASONALLY ADJUSTED
-------
TABLE 11
FIBROUS RAW MATERIALS CONSUMPTION IN THE PAPER INDUSTRY, 1969,
IN MILLION TONS AND PERCENT*
Category
Wood pulp
Waste paper
Other fibers
Total
Tons
41.6
10.5
0.9
53.0
Percent
78.5
19.8
1.7
100.0
^Statistics of paper; 1970 supplement. New York, American Paper Institute.
(Based on U.S0 Department of Commerce Pulp, paper and board, Current
Industrial Reports, Series M26A.)
-------
TABLE 12
DISPOSITION OF PAPER CONSUMPTION, 1967*
Category
Discarded as waste
Recovered for recycle
Diverted, obscured, and destroyed t
Delayed in use (net retention)
Total consumption t
Million tons
35.2
10.1
6.6
1.2
53.1
Percent
66.3
19.0
12.4
2.5
100.0
«From Midwest Research. Institute,
•(•Includes construction and industrial papers not readily identifiable
as paper because they are part of other products; also includes toilet
paper.
•{•Excludes nonpaper wood pulp products.
-------
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-------
TABLE 14
RELATIVE GROWTH OF PAPER CONSUMPTION, DISPOSAL AND RECYCLE, 1956-1980, IN
PERCENT AND RATE*
Increase in Increase in Increase in
consumption waste disposal recycled paper
Category Period (#) (#) (£)
Percent increase 1956-1967 45 59 15
Percent increase 1967-1980 60 68 50
Growth rate 1956-1967 3.4+ 4.3 1.3
Growth rate 1967-1980 3.7 4.1 3.2
* Prom Midwest Research Institute; Table 13. Data for 1967-
1980 based on historical trends.
-------
TABLE 15
FIBROUS RAW MATERIALS USED IN PAPER PRODUCTION, 1969, 1,000 TONS AND PERCENT*
Type of Material
Pulpwood consumption
Tonnage Percent (cords per ton)
Woodpulp
Groundwood
Sulfite
Bleached
Unbleached
Sulfate
Bleached
Semibleached
Unbleached
4,433 8.4
2,672 5.0
2,206
466
29,130 55.0
11,486
1,664
15,980
1.5
1.0
2.2
1.6
Semichemical
Defibrated, screenings, etc.
Total woodpulp
Other fibrous materials
Wastepaper
Other, including, straw,
rag, etc.
3,475
1,924
41,634
6.6
5.6
78.6
10,431 19.7
893
1.7
21.4
Total other fibrous materials 11,324
Total, all materials 52,958 100.0
1.0
1.2
*The statistics of paper; 1970 supplement.
Note: The export/import balance is relatively unimportant from a
tonnage standpoint except for newsprint, which adds, an additional 6.66
million net tons of groundwood to the nation's paper consumption.
45-15
-------
TABLE 16
DOMESTIC PAPER PRODUCTION AND FIBROUS RAW MATERIALS CONSUMPTION, 1967,
IN 1,000 TONS AND PERCENT*
Category
Paper Paperboard Construction Total
Tons %Tons %Tons % Tons
Paper produc-
tion 20,933 44.0 22,805 47.9 3,833 8.1 47,571 100.0
Fibrous raw
materials
Wood pulp 19,136 92.5 15,944 66.5 1,920 59.0 37,000 77.2
Wastepaper 1,354 6.5 8,000 33.4 728 22.4 10,082 21.0
Other fibers 198 1.0 33 0.1 605 18.6 856 1.8
Total raw
materials 20,688 100.0 23,977 100.0 3,253 100.0 47,918 100.0
*U.S. Bureau of the Census, 1967 Census of manufacturers.
Manufacturing and mineral industries. Papermi11s, except building
paper, preliminary report MC67(P)-26A-2; Paperboard mills, preliminary
report MC6?(P)-26A-3; Building paper and building board mills,
preliminary report MC6?(P)-26A-it. Washington, [19691; Current industrial
reports. Pulp, paper, and board, 1968. Series M26A(68)-14. Washington.
Several data combinations and adjustments have been made by Midwest
Research Institute.
45-16
-------
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-------
TABLE 19
COMBINATION PAPERBOAKD AND SOLID WOOD PULP BOASD PRODUCTION, 1959-1969
IN MILLION TONS AND PERCENT*
Year
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
Total paper-board
15.97
15.93
16.73
17.85
18.59
19.95
21.33
23.18
22.82
24.90
26.38
Combination
Tons
6.98
6.76
6.68
6.91
7.00
7.20
7.53
7.85
7.22
7.34
7.32
paperboard
Percent
43.7
42.4
39.9
38.7
37.6
36.1
35.3
33.9
31.6
29.5
27.7
Solid
Tons
8.99
9.17
10.05
10.94
11.59
12.75
13.80
15.33
16.60
17.56
19.06
•wood pulp board
Percent
56.3
57.6
60.1
61.3
62.4
63.9
64.7
66.1
68.4
70.5
72.3
*Paperboard industry statistics, 1969. New York, American Paper Institute,
Paperboard Group, May 1970; Paperboard industry statistics, 1966. New York,
American Paper Institute, Paperboard Group, May 1967.
Note: This is a different data source than Table 18 and reported paperboard
totals are therefore not directly comparable.
-------
TABLE 20
PAPER PRODUCTION AND CONSUMPTION BY MAJOR END USE GRADES, 1969
IN MILLION TONS AND PERCENT*
Category
Paper
Newsprint
Communications grades
Packaging/converting
grades
Tissue grades
Board
Solid wood pulp grades
Combination board grades
Construction grades
Total, all grades
Production
23.5
3.2
11.0
5.7
3.6
26.0
18.7
7.3
4.3
53.8
Net imports
6.6
6.6t
0.1
(O.l)t
0.0
(2.1)
(1-9)
(0.2)
0.2
4.7
Consumption
30.1
9.8
11.1
5.6
3.6
23. 9f
16.8
7.1
4.5
58.5
Percent
51.5
16.7
19.0
9.6
6.2
40.8
28.7
12.1
7.7
100.0
*The statistics of paper; 1970 supplement (based principally on Current
Industrial Reports; "Pulp, Paper and Board," Series M26A, U.S. Department of
Commerce).
t( ) indicates net exports„
•(•Packaging grades of board are 20.7 million tons, 35.*» percent; other board
grades are 3.2 million tons, 5.^2 percent.
-------
TABLE 21
PAPER STOCK CONSUMPTION BY GRADE AND USE, 1967 IN 1,000 TONS*
Paper stock
grade
Mixed
News
Corrugated
Pulp substitutes
De inking grades
Other grades
Total
Percent of total
Consumption in
Paperboard
1,888
1,573
3,085
714
128
612
8,000
79.0
Paper
453
254
102
191
354
__
1,354
13.4
Construction Pulp Total
439 — 2,780
178 — 2,005
111 — 3,298
42 947
482
— — 612
728 42 10,124
7.2 0.4 100.0
Percent
of total
27.4
19.8
32.6
20.2
,_ _,_ jir__
100.0
*U.S. Bureau of the Census. 19&7 Census of manufacturers. Manufacturing
and mineral industries. Papermills, except building paper, preliminary report
MC67(P)-26A-2; Paperboard mi 11s, preliminary report MC67(P)-26A-3; Building
paper and building board mills, preliminary reports MC67(P)-26A-A.
-------
TABLE 22
PAPER STOCK CONSUMPTION BY RECYCLING MODE, 1967 IN 1,000 TONS*
Category of use
Tonnage
Recycling mode
Paper: In
In
Paperboard:
newsprint
tissue, fine, printing
In combination
board
In other board
(semichemical)
Construction paper and board
Total
192 1
1,160
7,550
450
730
10, 082 f
Primary
Secondary
Secondary
Primary (as corrugated
clippings)
Secondary
6.4 $ primary;
93.6 $ secondary
.
*From MRI estimates.
tBy 1969, primary recycling of news had Increased to 370,000 tons, or
17 percent of total news recovery.
tExcludes 42,000 tons consumed fn pulp mills.
45-22
-------
TABLE 23
WASTEPAPER RECOVERY BY GRADE AND SOURCE, 1967
1,000 TONS *
Grade
Mixed
News
Corrugated
High grades
Total
Percent of total
Residential Commercial
70 1,860
1,610 50
2,300
200
1,680 4,410
16.6 43.6
Converting
850
345
998
1,841
4,034
39.8
Total
2,780
2,005
3,298
2,041
10,124
100.0
*From Midwest Research Institute estimates.
Note: Net exports add another 176,000 tons derived from converting
operations.
^5-23
-------
TABLE 24
WASTEPAPER RECOVER! POTENTIAL FROM SOLID WASTE IN 1967
IN MILLION TONS*
Category
Newspapers
Corrugated
All other
Total
Discard
to waste
6.3
8.6
20.5
35.2
Additional
recoverable
4.5
5.7
10.0
20.2
Most likely
recoverable
2.2
3.0
5.0
10.2
*From Midwest Research Institute.
-------
TABLE 25
WASTEPAPER RECOVER? AT VARIOUS LEVELS OF RECYCLING, 1969 AMD 1980
IN MILLION TONS*
Total paper consumption, including net imports
Hber consumption; in domestic production
Wood pulp
Wastepaper
Other fiber
Total fibrous materials
Recycling compared to paper consumption:
Wastepaper at 17.9 percent recovery
Wastepaper at 30 percent recovery
Wastepaper at 40 percent recovery
Wastepaper at 50 percent recovery
1969
58.5
41.6
10.5
0.9
53.0
10.5
17.6
23.4
29.2
1980 t
85.0
65.0
15.2
0.7
80.9
15.2
25.5
34.0
42.5
"From Midwest Research Institute.
tForecast.
-------
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-------
TABLE 27
WASTE PAPER CONSUMPTION AND INVENTORIES AT MILLS AND PRICE INDEXES, 1950-1970*
Year Jan.
1950 606
1951 849
1952 722
1953 715
1954 645
1955 675
1956 769
1957 741
1958 721
1959 742
1960 752
1961 714
1962 799
1963 736
1964 759
1965 808
1966 868
1967 827
1968 880
1969 903
1970 858
Seasonal adjustment
index basis: 100 97.6
1950 375
1951 369
1952 556
1953 492
1954 452
1955 429
1956 433
1957 510
1958 486
1959 438
1960 555
1961 530
1962 466
1963 451
1964 462
1965 478
Feb.
583
839
636
682
677
695
801
723
667
764
778
738
702
665
720
755
778
741
803
796
775
103.8
385
403
580
498
444
419
436
508
505
453
561
508
470
451
466
486
Mar.
A . Mill
613
847
614
726
684
768
762
674
683
764
740
720
770
721
774
854
890
803
856
902
841
103.2
B. Mill
376
421
587
482
448
402
450
523
499
454
562
521
484
515
475
499
Apr.
May
consumption, 1,
605
823
639
747
666
724
754
718
703
776
742
704
742
722
802
812
851
770
839
882
852
622
837
579
701
637
772
765
717
687
772
739
788
765
763
791
823
885
802
885
901
819
102.3 101.5
inventories
360
455
582
479
452
403
452
512
501
461
559
525
501
531
481
527
June
000 tons
631
838
596
713
685
771
776
666
711
761
778
719
740
721
772
829
868
788
845
858
829
102.9
, 1,000 tons i
362
477
585
482
460
405
466
502
504
469
554
514
4dO
507
465
512
363
476
572
479
459
414
434
503
496
495
547
543
500
515
473
524
July
seasonally
632
777
622
741
659
744
664
719
783
821
725
792
782
771
798
838
868
809
886
922
856
85.9
seasonally
360
499
558
464
456
409
489
490
485
500
548
525
515
538
493
565
Aug.
adjusted
715
740
622
692
669
790
740
687
743
733
795
797
760
744
808
814
872
878
865
888
884
102.3
adjusted
351
531
521
466
452
424
499
490
474
527
527
515
478
500
461
516
Sept.
675
624
694
739
667
756
672
697
779
787
720
762
717
716
775
817
814
816
826
859
102.8
357
576
513
452
450
425
511
486
456
526
554
513
487
506
485
532
Oct.
712
640
717
717
653
752
710
732
754
751
706
778
756
760
821
857
837
851
886
866
104.8
356
600
516
442
436
414
523
481
446
545
559
499
424
526
486
531
Nov.
729
669
689
680
703
802
732
698
730
742
735
781
726
699
775
830
802
820
845
806
101.5
380
577
514
446
417
410
519
477
440
553
548
501
526
568
485
515
Dec.
778
554
737
657
686
760
665
678
736
761
786
776
728
730
806
879
822
823
873
853
91.4
362
586
492
452
422
421
523
488
439
552
547
508
528
512
521
587
1*5-27
-------
TABLE 27 (concluded)
1966
1967
1968
1969
1970
Seasonal adjustment
index basis: 100
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
458
613
511
550
562
106.0
92.3
277.9
96.6
93.9
85.4
97.3
144.5
83.4
90.2
109.0
116.5
73.2
100.9
94.7
91.1
96.1
105.8
83.9
76.9
107.4
107.5
453
602
514
566
559
102.3
82.0
296.5
94.2
90.4
92.5
97.3
153.9
82.4
90.2
115.6
101.0
78.1
100.1
96.1
91.1
96.0
105.5
83.2
81.8
107.8
108.2
471
647
515
576
575
98.9
C.
77.6
283.3
75.5
90.4
90.7
96.5
153.9
81.4
81.3
124.8
96.4
67.0
103.2
96.6
91.9
96.2
108.7
79.7
89.0
108.1
108.5
491
S37
523
591
569
98.9
Waste paper
77.6
238.4
75.5
95.3
89.8
96.5
137.5
74.0
61.3
124.8
95.4
67.0
98.0
92.5
90.2
97.3
110.3
79.1
96.5
109.1
108.5
485
638
515
571
549
100.5
price
76.8
213.3
59.5
91.7
72.5
100.0
125.6
71.3
77.5
119.2
89.8
67.0
96.2
89.8
90.8
100.3
112.0
77.5
98.2
107.1
104.2
517
729
499
584
549
98.7
571 558
639 596
544 494
532 563
657 654
98.3 103.1
610
615
525
599
97.7
646
603
569
632
96.2
652
598
547
602
99.3
681
601
585
607
100.1
index (1957-1959 = 100)
85.2
240.4
59.5
91.7
75.6
113.0
123.3
71.3
77.5
125.1
88.8
70.1
96.4
90.8
93.5
98.0
112.7
76.7
103.1
108.8
99.0
102.3 155.8
214.8 179.4
47.8 70.9
91.7 106.3
85.5 86.3
135.9 139.3
121.3 121.0
73.4 80.6
92.9 93.9
125 .1 125 . 1
88.8 83.5
82.7 82.7
96.8 95.1
91.4 91.2
93.4 93.3
98.3 97.5
113.2 106.7
76.2 74.6
110.5 112.8
111.2 110.3
95.3 92.6
166.6
153.1
89.7
118.3
86.3
139.3
105.2
95.5
114.8
127.3
83.5
82.7
96.4
90.9
92.2
97.3
102.9
75.4
112.2
108.4
182.9
118.7
76.8
121.8
90.4
129.8
99.8
95.5
120.1
124.1
83.5
108.1
96.1
90.7
92.2
104.5
98.8
76.6
114.8
107.2
203.9
99.0
70.9
98.0
94.4
144.5
83.4
95.5
120.1
118.5
83.5
93.8
96.0
91.0
92.5
107.0
92.7
76.5
112.8
107.2
243.4
96.6
96.4
85.4
92.3
144.5
84.5
95.5
103.4
118.5
73.2
93.8
94.6
90.8
95.9
104,6
90.5
78.1
109.6
106.7
*A&B: Current Industrial reports. Pulp, paper, and board. Series M26A, 1950;
1951...1970.
Seasonal adjustment factors taken from Tuchman, A. The economics of the waste
paper industry. Ph.D. Thesis, New York University, 1963. p. 318.
Actual data for A and B for 1950-1961 taken from Tuchman reference; 1961-1970
data by Midwest Research Institute.
C: Wholesale prices and price indexes. U.S. Bureau of Labor Statistics, 1950;
1951...1970.
-------
47
CHAPTER V
FERROUS METALS
Perspective
Iron and steel products entering the U.S. economy are
derived from two sources: iron ores and obsolete scrap
materials. These two commodities supply new ferrous
metals that go into products. A portion of the metals
processed is irretrievably lost in processing. This quantity
of metal must also be replaced each year by new inputs
— ores or obsolete scrap.
In addition to new metallic inputs, a large quantity of
ferrous metal also "circulates" in the industry; that is, it is
consumed every year in the initial production steps (the
furnaces), but then it reappears in the final production
steps (rolling, fabrication, and conversion) and is once
more consumed.
This circulating material is called "home scrap" if it
appears within the steel industry itself and "prompt
scrap" if it appears in industrial operations outside the
steel industry. These types of scrap are contrasted to
"obsolete scrap," which means metal derived from
products or structures that have completed their useful
economic life and are ready for recycling.
Conceptually, home and prompt scrap are in the
system and never leave. Ores and obsolete scrap enter
the system and leave — either as product or as
irretrievable metal losses.
In 1967, the industry sent to final consumers products
weighing 95.9 million tons26 and lost an estimated 11.8
million tons of metals in processing; total metal
consumption, therefore, was 107.7 million tons. This was
supplied by iron in ores of 86.1 million tons (80 percent),
by 21.6 million tons of obsolete scrap (20 percent), and by
imported scrap of 229,000 tons. In this period, however,
63.7 million tons of additional scrap circulated in the
system and were once more available at the end of the
year.
The U.S. iron and steel industry thus has a high
reliance on obsolete scrap for new metallic input into its
operations. As will be discussed below, between 30 and
40 percent of available obsolete scrap is probably
recycled every year.
In addition to the distinctions between home, prompt,
and obsolete scrap made above, one also encounters the
distinction between "home scrap" and "purchased
scrap." "Home" is used to designate scrap for which a
consumer does not pay, and "purchased" means all
scrap that is the subject of a commercial transaction. This
traditional terminology can cause confusion in that the
purchased category includes portions of the home scrap
(in the sense of "generated internally to the steel
industry") as well as most prompt and obsolete scrap. In
1967, purchased scrap of 35.1 million tons was handled, of
which 21.4 million tons were obsolete, 11.6 million tons
were prompt, and 5.1 million tons were home.
Industry Structure
The iron and steel industry is made up of four
segments; (I) integrated steel companies that produce pig
iron in blast furnaces, convert pig iron into steel in steel
furnaces, and produce intermediate steel products in
rolling mills; (2) steel producers who do not have blast
furnaces but produce steel from purchased pig iron and
scrap, usually in electric furnaces; (3) steel foundries that
produce steel castings by melting steel scrap; and (4) iron
foundries that purchase pig iron and scrap and produce
iron castings.
The products of these industry segments are sold to
manufacturers in other industries for further fabrication
and conversion into products that are ultimately sold for
consumer, commercial, and industrial uses.
26 In addition, iron and steel products of 10 million tons were imported.
-------
48
SALVAGE MARKETS
In 1967, the Iron and Steel Works Directory listed 107
producers of basic steel products, including steel
castings, in the United States.27 Among these were 24
producers operating both blast and steel furnaces; these
producers represent the integrated steel industry and
they include the industry giants — U.S. Steel, Bethlehem,
Republic, Armco, and National Steel. The 4 largest
companies produced 50 percent, the 8 largest 69 percent,
and the 20 largest 89 percent of all steel products in the
United States in 1963.
In addition to these producers, the directory lists 8 that
operate only blast furnaces and 75 that operate only
steel furnaces. Of these 75 producers, 61 have only
electric furnaces, 4 have electric and other furnaces, and
10 have steel furnaces other than electric. These
producers are the independent steel producers who rely
for their inputs on scrap and purchased pig iron. Though
their numbers are large, they represent a small part of
total steel production tonnage.
The iron foundry industry consists of around 1,060
companies. In 1963, the 20 largest companies accounted
for 51 percent of industry output.
Process Use and Scrap Consumption Trends
The steel industry uses blast furnaces in which ores,
coke, and fluxes are converted into pig iron; a small
quantity of scrap is usually also charged with these
materials.
Blast furnaces are large capacity installations. A total
of 225 such facilities supplied 636 open hearth and basic
oxygen furnaces with the iron they needed in 1967; each
furnace produced an average of 387,000 tons of pig iron
(Table 28). It is not unusual to encounter two or three steel
furnaces in association with a blast furnace, and in some
plants 10 or more steel furnaces may be fed by one
blasting installation. In 1967, the ratio of blast furnaces to
open hearth and basic oxygen furnaces was nearly I to 3.
The construction of a new blast furnace in a steel
plant, consequently, requires a considerable expansion
of total steel sales by a company or is undertaken at a
time when one or more older furnaces need to be
replaced. Thus, in the United States the number of blast
furnaces shrank from 247 in' 1962 to 225 in 1967, while
output of pig iron increased from 65.6 million to 87.0
million tons.
The clustering of steel furnaces around a blasting
facility is also desirable for technical reasons rather than
merely because of size relationships. A steel furnace near
a blast furnace can be supplied with hot, molten pig iron
("hot metal"); in this manner, the heat value of the pig
iron is used and it is not necessary to reheat cold pig iron.
In the steel furnace, impurities in the pig iron are
oxidized or combined with fluxing materials and are
removed. Open hearth and basic oxygen furnaces are
fed by hot metal, scrap, and small quantities of fluxing
agents and ores. The open hearth furnace consumes
scrap equivalent to 41.7 percent of metallic inputs; the
basic oxygen furnace consumes 29.2 percent scrap on the
same basis. Electric furnaces are designed to operate
almost entirely on scrap; they are, in essence, scrap
melting furnaces. Electric furnaces consume scrap
equivalent to 97.9 percent of input metallics.
Basic trends in the industry have been: (I) the decline
of the open hearth furnace (down from 87.0 percent of
total steel production in I960 to 50.0 percent in 1968); (2)
the rapid rise of basic oxygen furnaces (I960, 3.3 percent;
1968, 37.1 percent); and (3) the moderate growth of
electric furnace steel production (I960, 8.4 percent; 1968,
12.7 percent) (Figure 15).
The fundamental advantage of the basic oxygen
furnace (BOF) is that it can produce a heat (a batch) of
steel in 45 minutes, while the open hearth furnace
requires 10 hours for the same production. The resulting
savings in labor costs per ton of steel produced justify the
use of oxygen as an oxidant in the BOF versus air in the
open hearth process. Electric furnaces depend on low
cost electricity and cheap scrap for their economic
viability.
Because these furnaces have different scrap con-
sumption ratios, shifts in processing equipment mix have
led to a decline of scrap in relation to pig iron. In the 1947
to 1953 period, for instance, scrap input was 47.8 percent
of total inputs to steel furnaces; in the 1964 to 1968 period,
the percentage of scrap had dropped to 43.4 percent as
a result of process changes.
It would be erroneous to assume, however, that the
ratio of scrap to pig iron will continue to decline
indefinitely in steel production. What is more likely to
happen is that processing changes will be introduced in
the basic oxygen furnace to permit these furnaces to
consume more scrap and that more electric furnaces will
27 Directory of iron and steel works of the United States and Canada. 31st ed. New York, American Iron and Steel
Institute, 1967. p.384-387.
-------
FOR MATERIALS IN SOLID WASTES
49
be installed — both moves brought about by a drop in
scrap prices as demand for scrap weakens. Scrap
consumption in BOF's can be increased by preheating the
scrap; this, of course, adds to total steel making costs and
is justified only if scrap prices are relatively low in
relation to pig iron. In fact, scrap use in BOF's shows signs
of increasing: the ratio of scrap to pig iron rose from 27.7
percent in the 1959 to 1963 period to 29.2 percent in the
1964 to 1968 period (Table 29).
Industry Shipments and Scrap Relationships
The steel industry's largest customers are the au-
tomobile industry, the construction industry, and steel
service centers (wholesale warehousing operations that
sell steel jnill products to industrial customers and
contractors). Together these three consumers account for
56.5 percent of industry shipments, excluding steel and
iron castings (Table 30). The major steel products that are
most likely to be encountered in municipal waste are
containers and appliances (which constitute 11.2 percent
of shipments) plus a host of other products from paper
clips and coat hangers to toys, hardware, and auto parts.
(Auto hulks are a special case not considered in this
study.)
All told, the industry shipped 105.9 million tons of
product to ultimate consumers in 1967 — including net
imports, all steel mill products, and iron and steel
castings. Of the total, net imports represented 10.0 million
tons and domestic production 95.9 million tons.
How much of the steel consumption tonnage is
ultimately recoverable? Estimates range from 65 to 85
percent.28 Steel has an average life of around 20 years
— somewhat longer in underdeveloped countries,
somewhat' shorter in industrialized countries.29 During
use, steel is lostit corrodes, it is lost in ship and air
disasters at sea, in military operations overseas, and
under similar circumstances. Some of the steel is
discarded as waste (steel cans, for example); some of it is
lost in the form of small objects (nails, staples, pins, paper
clips, wire, etc.); some of it becomes encased in concrete
and is unrecoverable; and some of it ends up in remote
locations from which it cannot be recovered
economically. If these losses are equivalent to somewhere
between 15 and 35 percent of steel consumption, a total
tonnage of 69 to 90 million tons of iron and steel should
be available for recovery in 1987 from 1967 consumption.
In 1947, consumption of iron and steel products was an
estimated 80 million tons. Accordingly, between 52 and
68 million tons of ferrous scrap materials should have
been available for recovery in 1967. In that year, total
consumption of obsolete scrap for domestic use was 21.6
million tons — equivalent to between 32 and 42 percent
of estimated available obsolete scrap. If exports of scrap
are included, recovery was between 43 and 56 percent.
Scrap Consumption
In order to obtain an overview of materials (including
scrap) used in the iron and steel industry, we prepared a
generalized input/output table for the industry in 1967
using data available from various sources (Table 31 ).30
Data in Table 31 are further summarized in Table 32.
According to these data, total scrap demand was 93.0
million tons in 1967. Of this total 7.6 million tons were
exported and 85.4 million tons were consumed do-
mestically (of which 0.23 million tons were imported). On
a source basis, 52.3 million tons were home scrap, 11.7
million tons were prompt scrap, and 29.0 million tons
were obsolete scrap. Domestic demand created 21.4
million tons of obsolete scrap consumption, while exports
created 7.6 million tons of obsolete scrap demand.
These data are in general conformity with findings of
a Business and Defense Services Administration study on
scrap issued in 1966.31 A summary of BDSA data for the
period 1947 to 1964 and updated by us to 1968, is
presented as Table 33.
Historical data show that: (I) scrap consumption as a
percent of metallics inputs decreased slightly (from 51.5
percent in the 1949 to 1953 period to 49.9 percent in the
1964 to 1968 period); (2) home scrap consumption
increased as a percent of total scrap (55.1 percent in the
1949 to 1953 period to 60.0 percent in the 1964 to 1968
period); (3) prompt scrap consumption remained at 16.0
percent; and (4) obsolete scrap consumption decreased
28 Pounds, N. J. G. World production and use of steel scrap. Economic Geography, 35(3):249, July 1959.
29 Pounds, World production and use of steel scrap, p.250.
30 Use of 1967 data was necessary because information on specific segments of the industry in sufficient detail was not
available for later years.
3' Business & Defense Services Administration. Iron & steel scrap consumption problems. Washington, U.S. Government
Printing Office, Mar. 1966. 52 p.
-------
50
SALVAGE MARKETS
(from 28.9 percent in the 1949 to 1953 period to 24.0
percent in the 1964 to 1968 period).
Data developed by us for 1967 show that home scrap
was 61.3 percent, prompt was 13.7 percent, and obsolete
was 25.0 percent of total scrap in that year. These data
are somewhat divergent from those shown by BDSA; the
reason is that the BDSA data understate home scrap
consumption by showing a portion of such scrap under
the "purchased" category as prompt scrap.
Scrap Use Issues
Scrap is used in both steel furnaces and iron foundries
as a relatively inexpensive source of iron. In all instances,
scrap competes with pig iron produced in blast furnaces
from ores, agglomerates, fluxes, coke, and small
quantities of scrap.
Except in electric furnaces, where only scrap is used as
an input, scrap does not compete with pig iron on a basis
of direct substitutability. For best technical operations,
open hearth and basic oxygen furnaces require both hot
molten pig iron and scrap. Much of the scrap input is
internally generated and must be used in order to avoid
severe losses of metallic inputs. Open hearth and basic
oxygen furnaces are usually located near blast furnaces
and receive molten pig iron, thereby benefiting from the
heat in the hot metal. Electric furnaces, however, are
generally operated by nonintegrated steel producers
who must purchase cold pig iron on the open market if
they wish to use it. Pig iron on the open market costs more
than scrap and is generally avoided by electric furnace
operators. The values of hot metal and scrap to an
integrated steel producer, however, are roughly
equivalent.
In 1967, for example, the value of input materials to
blast furnaces was between $11 and $12 a ton. To obtain I
ton of pig iron, 2.5 tons of inputs had to be processed.
The value of materials consumed per ton of pig iron was
between $29 and $30 (Table 34). Estimates developed by
Battelle Memorial Institute in 1966 indicate that total costs
of hot metal production ranged between $32 and $39 a
ton depending on location and size of the producing
plants.32 In 1967, heavy melting steel scrap (the best
grade) sold for an average of $24 per ton; and No. 2
bundle steel, a low grade of scrap with a high
percentage of impurities, was worth $18 a ton. The
differential between scrap and hot metal, then, appears
to be between $8 and $21 per ton. Qualitatively, hot
metal is the better input material — it is free of
impurities and comes in hot, molten form. Scrap requires
more careful handling and storage (to keep various
grades separated), it is introduced into furnaces at
ambient temperatures, and contamination of the steel is
always a possibility. If these factors are kept in mind, it is
clear that the relative value of the two types of materials
is roughly equivalent. No. I cupola cast iron, usually
consumed by iron foundries, cost $38 per ton in 1967; this
type of scrap competed against pig iron purchased on
the open market for $57 per ton.
If the values of scrap and pig iron relative to one
another change, more of the economically favored
material is consumed. There is, however, a limit to the
degree of displacement of one material by another.
In addition to the value of materials in pig iron, this
material also represents investments in ore mining
equipment, sintering and pelletizing plants, coking
plants, and blast furnaces — investments that must be
amortized. To replace pig iron, scrap would have to be
available in very large quantities and at prices low
enough to permit the industry to idle its pig iron
production plant. Total elimination of pig iron would not
be possible even under such circumstances: open hearth
furnaces are technically limited to a maximum input of 70
to 80 percent scrap, BOF's to 50 to 60 percent, and the
few remaining Bessemer furnaces to 20 percent scrap.33
In 1967, maximum technically feasible scrap consumption
in steel furnaces would have been between 101.3 and 114.5
million tons; actual consumption was 63.0 million tons, or
between 55 and 62 percent of maximum (Table 35).
Consumption at maximum technical rates in steel
furnaces would create an additional demand for
obsolete scrap of between 48.3 and 51.5 million tons (1967
basis), for a total obsolete scrap demand of between 77.3
and 80.5 million tons (29.0 million tons of actual
consumption plus additional consumption) (see Tables 32
and 35 for calculation basis).
As indicated above, total obsolete scrap available in
any one year is between 65 to 85 percent of the tonnage
shipped 20 years earlier. In 1967, the available tonnage
was between 52 and 68 million — plus unused scrap
accumulations of earlier years. Discounting ac-
cumulations (which would soon be consumed if maximum
scrap use were instituted), it appears that there is not
32 Quoted in Iron & steel scrap consumption problems, p.20.
33 Iron & steel scrap consumption problems, p.14. Electric furnaces already consume 98 percent scrap.
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FOR MATERIALS IN SOLID WASTES
51
sufficient obsolete scrap available to permit scrap use at
maximum technically permissible levels.
Scrap use is also limited by the fact that only a portion
of "available" scrap is economically "accessible."
Obsolete scrap must occur in fairly large concentrations
to be economically recoverable. How much of available
obsolete scrap is accessible is a matter of speculation.
We suspect that most of such scrap is already being
recovered, the exception being automotive hulks, many
of them occurring in remote locations in small quantities.
Increases in scrap demand tend to be accompanied by
price increases. These increases reflect, in part, higher
costs occasioned by tapping less desirable, less ac-
cessible, sources of scrap.
The necessity to operate blast furnaces to satisfy most
of the Nation's metal requirements and the relative
availability of scrap at prices comparable to pig iron raw
materials values tend to create an equilibrium between
pig iron and scrap, so that the use ratios of these
materials have not significantly changed in decades
(Figure 16).
Any attempt to change the current situation materially
would involve the artificial (legislated) increase of pig
iron production costs, control of scrap prices so that they
do not once more reach equilibrium with pig iron costs,
and subsidy of scrap recovery operations so that
sufficient supplies of scrap would be obtained and could
be sold at controlled prices. The net result would be
higher recovery of scrap and displacement of cheap
inputs (pig iron raw materials) by more expensive inputs
(scrap from "inaccessible" sources).
Sources of Scrap
Home scrap is generated in iron and steel furnace
operations and in rolling mill operations. This scrap may
be in the form of metallic spills, defective ingots, rolling
mill croppings, and the like.
Prompt scrap is generated in metal fabrication and
conversion steps and takes the form of defective
products; shavings, borings, and punchings; and the like.
Fabrication wastes in 1967 are estimated to have been
equivalent to 9.9 percent of materials processed by
fabricators; conversion wastes to 2.1 percent of materials
processed (Table 31).
The origin of obsolete scrap is difficult to determine.
The most recent study of the subject was conducted on
behalf of the Institute of Scrap Iron and Steel in 1959.34
According to this study railroads and automobile
wreckers account for the bulk of obsolete scrap (14.7 and
13.1 percent, respectively), followed by building dem-
olitions, farms, and shipbreaking. The miscellaneous
category accounts for 52.3 percent of total scrap and
includes oil field and refinery scrap; incinerator and
dump salvage; housing repair and maintenance,- and
general, unidentified scrap collections (Table 36).
The exact quantity of scrap removed from mixed
municipal waste is unknown, but we believe the quantity
is extremely small — less than I million tons a year, of
which a high proportion is diverted to copper mines
rather than entering the steel industry.
Scrap Quality
From the steel industry's point of view, the "best"
scrap has a known composition, a minimum level of
contaminants, and comes from a known source. Steel
makers like home scrap best because they know exactly
what it contains. The technical characteristics of prompt
scrap can also usually be guaranteed (if conscientious
segregation is practiced in the fabrication plant) and the
nature of the steel processed is known. Equal in
desirability is steel derived from building, ship, railcar,
refinery, and similar structure demolition. The metal
characteristics can be readily ascertained. Shredded
automobile steel — with all nonferrous metals and
nonmetallics removed — falls into this category. Least
desirable is mixed scrap of unknown origin. Bundled
automotive bodies (No. 2 bundles) fall into this category.
The origin of mixed scrap is usually hard to determine
and contaminants are often a high percentage of the
materials. Metals derived from municipal wastes belong
to this last category.
Grades. Scrap is sold by grades. The grade gives
some indication of the origin of the material. Scrap
consumption by grade groupings in 1967 is shown in
Table 37; this listing combines purchased and home
scrap. Principal grades are the following:
(I) Heavy melting steel, which includes much of the
home scrap, is scrap no larger than 5 by 2 feet; No. I
heavy melting grades are at least one-quarter inch thick;
34 Quoted in McGannon, H. E., ed. The making, shaping, and treating of steel. 8th ed. [Pittsburgh], United States Steel
Corporation, 1964. p. 224.
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52
SALVAGE MARKETS
No. 2 heavy melting grades may be as thin as one-eighth
of an inch.
(2) No. I busheling is light, loose material, usually from
prompt sources, limited to a I foot size in any dimension.
(3) No. I bundles consist of prompt scrap, usually light
materials such as sheet clippings, compressed into
bundles weighing at least 75 pounds per cubic foot.
(4) No. 2 bundles are usually automotive sheet steel
bundled into packages at least 75 pounds per cubic foot.
These bundles may not contain tin or lead-coated
materials or enamelled stock (such as may be derived
from major appliances).
(5) Turnings and borings are the light residues of
machining operations in metal fabrication; these ma-
terials are sometimes briquetted or bundled to increase
their density.
(6) Cast iron comes in a variety of grades and includes
broken or obsolete motor block; cast iron borings; cast
steel scrap such as broken rail car wheels; hard steel such
as automobile rear ends, crankshafts, front axles, springs,
and gears; and other cast iron and steel scrap.
All told, 42 grades of iron and steel scrap, 29 grades
of alloy steel scrap, and 40 grades of railroad scrap are
officially recognized by the Institute of Scrap Iron and
Steel; many more are used, being variants of the ma|or
grades. Scrap grades include one category known as
"incinerator bundles." a grade that is made up of steel
can scrap, compressed to bundles weighing 75 pounds
per cubic foot. In our survey and investigative work, we
did not encounter a single scrap dealer who recognized
this grade or had ever handled it. Prices for the most
important grades are quoted daily for 16 cities in
American Metal Market. National average prices,
however, are developed only for three grades— heavy
melting steel scrap, No. 2 bundles, and cupola cast.
Metallic Impurities. Iron and steel scrap spec-
ifications limit the quantity of nonferrous metals in scrap
to 0.6 percent maximum, excluding manganese, which
may be present at a level of 1.65 percent. The metallic
impurities (called residual alloys) expressly mentioned in
the Institute of Scrap Iron and Steel specifications are
nickel (limited to 0.45 percent), chromium (0.20 percent),
molybdenum (0.10 percent), and manganese (1.65
percent).35 The specifications do not mention tin and
copper, but Bureau of Mines investigators have es-
tablished that tin content of scrap should not exceed 0.06
percent and copper content, 0.10 percent.36
Tin Contamination. The recycling of metals occurring
in municipal wastes is limited by high tin content resulting
from the presence of tin-coated steel cans. How high is
the tin content of ferrous metals in municipal waste? In
1968, an estimated 193.7 million tons of waste were
collected; of this portion, about 8.0 percent was metal.
Bureau of Mines analyses37 indicate that the ferrous
content of the metal is around 93 percent. This results in a
ferrous metal proportion in waste of 14.41 million tons. In
1968, steel cans weighing 5.56 million tons and containing
29,190 tons of tin were part of this waste. 38 The tin
content of all ferrous metals in municipal waste would
thus appear to have been 0.2 percent in 1968. This
percentage is in line with physical tests conducted by the
Bureau of Mines which placed tin content at between 0.1
and 0.4 percent.39
The estimated average tin content of municipal waste
metals appears to be three times as great as is
acceptable to the steel industry in steel. Tin is undesirable
because it readily alloys with steel and cannot be
removed by processing. Brittleness and undesirable
surface conditions result from the presence of tin; tin
causes deterioration of furnace refractories; tin-con-
35 Institute of Scrap Iron & Steel. 1968 Yearbook. 29th ed. Washington, p.71.
36 Cammarota, V.A., Jr. Refining of ferrous metal reclaimed from municipal incinerator residues. In Proceedings; Second
Mineral Waste Utilization Symposium, Chicago, Mar. 18-19, 1970. U.S. Bureau of Mines, and Illinois Institute of
Technology Research Institute, p.348.
37 Kenahan, C. B., P. M. Sullivan, J. A. Ruppert, and E. F. Spano. Composition and characteristics of municipal
incinerator residues. U.S. Bureau of Mines Report of Investigations No. 7204. [Washington], U.S. Department of the
Interior, Dec. 1968. p.9.
38 U.S. Bureau of Mines. Minerals Yearbook 1967. v. l-ll. Metals, minerals, and fuels. Washington, U.S. Government
Printing Office, 1968. p.l 123. Tin content of tin plate is shown to be 10.5 pounds per ton of plate, or 0.525 percent in
1967. We assumed no change between 1967 and 1968.
39 Cammarota, Refining of ferrous metal, p.348.
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FOR MATERIALS IN SOLID WASTES
53
taining steels cannot be deep-drawn satisfactorily; and
the tendency of tin to form hard spots in steel results in
difficulties when the metal is processed through rolling
mills.40, 4I, 42 Presumably, if tin content is below 0.06
percent of steel, these difficulties are not encountered.
What would be the effect on iron and steel quality of
recycling all used tin-containing steel cans? We cal-
culated the impact using a few simplifying assumptions.
We assumed:
(I) Using 1967 base data, that iron and steel production
would continue unchanged at the 1967 level.
(2) That proportions of ore, home, prompt, and
obsolete scrap would remain the same as in 1967.
(3) That all steel cans (5.149 million tons in 1967) would
be recycled as part of obsolete scrap (21.650 million tons
in 1967).
(4) That iron and steel products shipped in any one
year would not become available as obsolete scrap for
20 years, except the portion entering steel cans, which
will come back the year following production.
(5) That steel can scrap would be evenly distributed to
all steel and iron consuming operations.
Using these assumptions, we find that in the first year
of complete can recycling, 27,032 tons of tin would
become part of the total metallic input stream of 171
million tons, bringing tin content of all iron and steel to
0.016 percent.
In the second year, tin is introduced as (I) a coating of
new cans recovered (27,032 tons), (2) as part of home and
prompt scrap returned to furnaces (10,045 tons), and (3) as
the residual tin content of the steel made into cans (808
tons). The total input now is 37,885 tons of tin as part of
171 million tons of metal, equivalent to 0.022 percent of
the total.43
Each subsequent year, the tin content of the total
metallic stream is higher, but once the initial buildup is
over (the first three years), the growth rate of tin in the
metals stream levels out at a rate of 0.3 percent a year. In
the 19th year, 46,022 tons of tin are introduced,
equivalent to 0.027 percent of total metals, well below
the level of undesirability (0.06 percent).
According to our assumptions, in the 20th year that
portion of obsolete scrap that does not consist of steel
cans (16.249 million tons) will consist of metal man-
ufactured in the first year, and consequently, this scrap
will contain tin at the same level as all metal did in the
first year: 0.0016 percent. The introduction of this new tin
in the 20th and all subsequent years causes tin content to
increase in the 20th, 21st, and 22nd years at a fairly rapid
rate. Then the growth levels out again, so that in the 32nd
year tin content is still only 0.03 percent of total metallics
(Table 38, Figure 17).
The very low rate of contamination buildup is
explained by the small quantities of tin involved, the
large quantity of ferrous metals processed, and the fact
that each year about 80 percent of new metallic inputs
come from uncontaminated ores.
We conclude, on the basis of the foregoing analysis,
that the tin content of steel cans alone would not deter
their recycling at high rates — provided that the
practical problem of distributing steel can scrap evenly
to all metal consuming operations is achievable.
At the current time, when tin-free steel cans are a
growing proportion of total cans, the technical feasibility
of can recycling is even better than that shown in our
analysis. One industrial analyst44 has estimated that tin
content of all steel cans produced will progressively
decrease, falling from a level of 0.51 percent in 1968 to a
level of 0.44 percent in 1970 and 0.33 percent in 1977. This
is attributed to a rise in tin free steel (TFS) and a decline in
tinplate cans.
Aluminum. While the tin content of steel cans is
decreasing, use of steel cans with aluminum tops in
beverage packaging introduces another contaminating
40 McGannon, H. E. Steel. In Kirk-Othmer Encyclopedia of Chemical Technology. 2d rev. ed. v. 18. [Shale oil to
steroids]. New York Interscience Publishers, 1969. p.750, 787.
41 Story, W. S. Problems of the salvage industry as they relate to solid waste disposal. In Proceedings; National
Conference on Solid Waste Research, Chicago, Dec. 1963. American Public Works Association, 1964. p.162.
42 The making of steel. New York, American Iron and Steel Institute, 1964. p. 21.
43 Basis: tin content of metallics is 0.016 percent; home and prompt scrap returning are 63,693 million tons, containing
tin at a level of 0.016 percent; tin cans returned (5.149 million tons) will contain tin at the level of 0.016 percent in the
metal and 27,032 tons as coatings.
44 Gotsch, L. P. Waste from metal packages. In Proceedings; First National Conference on Packaging Wastes, University
of California at Davis, Sept. 22-24,1969. Washington, U.S. Government Printing Office, 1971. p.79.
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SALVAGE MARKETS
metal. Aluminum is not a critical contaminant in steel. It
improves metal grain and, because of its affinity for
oxygen, it is a reliable deoxidizing agent.45 However,
aluminum used as a steel alloy or deoxidant must be
introduced under controlled conditions, not as a random
input in the form of a scrap contaminant.
Separation of aluminum from steel cans can be
accomplished more easily than removal of tin. Cans can
be shredded and the ferrous portion separated mag-
netically; aluminum tends to melt in Incineration and thus
becomes separated from the ferrous metal.46 However,
the presence of aluminum on a portion of steel cans
manufactured requires some form of processing to
separate the two metals.
Lead. Another metallic contaminant in municipal
waste metals is lead, introduced in the form of a tin-lead
alloy as solder in steel cans. The lead content of steel cans
is around 0.5 percent by weight, roughly equal to tin
content. The quantity of lead in steel cans is declining as
a result of the introduction of new seaming practices.47
Lead is difficult to alloy with steel, being insoluble in
molten steel.48 The substance is extremely harmful to
furnace bottoms and refractories.49 On the other hand,
the presence of lead in steel improves the machineability
characteristics of the steel, and for this reason leaded
steels are produced in very limited quantities for special
applications where much metal is removed in machining.
Leaded steels may have between 0.15 and 0.35 percent
lead content. However, the lead must be introduced in
the form of lead shot by pneumatically operated guns to
achieve even dispersion of the additive through the
finished steel.50 We were unable to ascertain whether or
not the trace quantities of lead-tin alloy that would be
introduced into the metallic stream by recycling of steel
cans would cause difficulties.
Steel cans that pass through incinerators are es-
sentially freed of lead.51 The lead melts and collects in
the ash fraction; lead has the lowest melting point (650°F)
of all metals normally encountered in municipal wastes.
Incineration thus appears to be a simple method for
removing lead from tin cans before recycling.
Copper. The presence of copper wire in municipal
wastes introduces another metallic contaminant. Copper
is a problem primarily where the metallic waste passes
through an incinerator. The copper tends to "plate"
ferrous metals in the process, making its removal
impossible by mechanical means. The maximum ac-
ceptable copper level in steel has been estimated as 0.1
percent;52 copper is undesirable because it weakens the
steel.
Copper found adhering to ferrous products in
incinerator residues ranges from 0.2 to 0.5 percent
according to the Bureau of Mines investigation results. If
we assume that all municipal wastes are incinerated and,
consequently, all 14.41 million tons of ferrous metals
estimated to be in waste would have a copper content of
0.2 percent, recycling of this metal would contaminate
the metallic stream with 28,820 tons the first year, a level
of 0.017 percent, using the same assumptions (as
applicable) as used for calculating tin accumulation
above. The rate of accumulation slows down after the
third year and reaches 45,863 tons of new copper
contamination yearly, a level of contamination of 0.03
percent by the 12th year, well below the critical level.
Not all metal passes through incinerators, of course,
and thus the total quantity of copper chemically linked to
ferrous municipal wastes must be much lower than that
found in incinerator residues. This suggests that copper
contamination is not a technical deterrent to recovery of
metals from wastes.
White Goods and Frit. The "white goods"
(refrigerators, stoves, washers, driers, water heaters, etc.)
that appear in bulky municipal wastes have an enamel
coating ("frit"), which produces sulfur in the steelmaking
process. Sulfur removal is one of the aims in steelmaking,
and its introduction in scrap is frowned upon. Thus, for
instance, screw making wastes, which have a high sulfur
content, are the least desirable grades of prompt scrap.
45 The making of steel, p.l 03.
46 Aluminum melts at a temperature of 1220F, iron at 2800F.
47 Gotsch, Waste from metal packages, p. 73.
48 Lyman, T., ed. Metals handbook. 8th ed. v. 1. Properties and selection of metals. Novelty, Ohio, American Society for
Metals, 1961 p. 308,1056.
49 McGannon, Steel, Kirk-Othmer Encyclopedia, p. 750.
50 The making of steel, p.l 05.
51 See analyses reported by Kenahan, Composition and characteristics of municipal incinerator residues, p.17.
52 Cammarota, Refining of ferrous metal, p.348.
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FOR MATERIALS IN SOLID WASTES
55
In addition to frit, white goods contain copper or
aluminum wiring, glass, plastics, paperboard, and other
contaminants. Manual labor can remove motors, wiring,
and the like, but it cannot be used (except at inordinate
cost) to remove frit. Frit-covered metals, consequently,
must be processed through automotive shredders before
the metals can be reclaimed. Shredding blasts enamel off
the sheet metal, and magnetic separation removes the
nonferrous contaminants.
Conclusions. There appear to be no serious
technical barriers to the recycling of ferrous metals from
municipal wastes — barriers erected by the presence of
unremovable impurities. The removal of impurities that
respond to processing, however, or the distribution of
municipal waste metals evenly to iron and steel
producers to insure uniform dilution of unremovable
impurities, create economic barriers that prevent the
recycling of such metals so long as other sources of scrap
can satisfy demand.
Demand, Supply, Prices
The demand for scrap is fixed by three factors: (I) total
iron and steel production, which correlates with
economic activity as a whole; (2) the ratio of virgin
metallics to scrap consumed by the industry, which is
largely but not entirely governed by process mix; and (3)
export demand for scrap.
In the 1947 to 1968 period, total iron and steel
production grew at a rate of 1.9 percent annually, from
99.9 to 148.0 million tons. Domestic scrap consumption in
the same period grew at a rate of 1.7 percent yearly (60.9
to 86.8 million tons), showing that scrap is declining as a
percent of total metallics consumed. The declining
consumption of scrap relative to total inputs has been
caused principally by process changes in steelmaking
and by improvements in pig iron production as a result of
ore upgrading which has kept the costs of pig iron
production low.
Scrap exports, in this period, have grown dra-
matically — from 170,000 tons in 1947 to 6.6 million tons
in 1968 — a rate of 19 percent annually. This growth,
however, was in large part caused by removal of
legislated constraints to scrap exporting. As a result of
exports, total scrap consumption grew at a faster rate (2
percent a year) than iron and steel production. But the
growth in scrap exports is beginning to level out. In the
last 5 years of the period (1964 to 1968), an average of 6.8
million tons were exported compared with 6.7 million
tons in the 1959 to 1963 period and 4.6 million tons in the
1954 to 1958 period.
The supply of scrap is also tied to a large extent to
iron and steel production — that of home and prompt
scrap to current production and that of obsolete scrap to
the previous years' production. Because of the relatively
slow and stable growth of iron and steel production,
consumption of scrap has tended to be the same as scrap
generation, with the exception of automotive scrap.53
Scrap generated, of course, does not include all steel
products that have become waste or obsolete. Some
products are irretrievably lost, others, such as concrete
reinforcing bars, are combined with foreign materials in
such a manner that their recovery is impractical. Others
end up in remote locations and are accumulated in small
quantities so that their collection is uneconomical, and
yet others become a part of the waste stream and are
buried. With the exception of these materials, all other
scrap tends to be collected as it is originated, the chief
exception being automotive hulks, whose storage on
land is frequently more economical for the owner than
their sale to scrap dealers.
To put it another way: the supply of scrap in an
absolute sense is greater than the demand for scrap; but
the readily available scrap is recycled, the only major
exception being a portion of obsolete automotive hulks.
The large inventory of available obsolete car hulks,
which is growing because storage is more economical
than recycling, is tapped at times when scrap demand
temporarily exceeds supplies of cheaper scrap. These
auto hulks represent a pool of metallics that can be
drawn upon quickly when economics warrant such
action.
Scrap prices appear to be sensitive to demand for
scrap rather than supply. High demand drives up scrap
prices because it necessitates the collection of scrap from
sources that are less economical to tap than those
normally used, and dealers must increase the margin
between price paid for scrap and price received to cover
additional collection and processing costs. Business and
Defense Service Administration analysts explain the
price-demand relationship as follows:
"As with any commodity traded in a free market, the price of
scrap tends to be determined by its value in its marginal uses;
that is, the uses just barely justified at that price. The major
marginal use...appears to be in open hearth furnaces of
53 Iron and steel scrap consumption problems, p.28.
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SALVAGE MARKETS
integrated steel producers. Since scrap's principal competitive
raw material is hot metal, made by these producers for their
own use, purchased scrap tends to be attractive for their open
hearths only when scrap prices are lower than the cost of
making hot metal."54
Thus, when steel industry capacity to produce hot
metal is exceeded by increased demand for steel, scrap
must be purchased to satisfy the demand for input
metallics by furnace operators who buy little or no scrap
under ordinary demand conditions. The price of scrap
consequently increases. When demand slacks off, these
operators avoid scrap, and the prices drop.
In the mid I960's, a considerable expansion in blast
furnace capacity took place, in part as an attempt by the
steel industry to free itself of dependence on scrap with
its wildly swinging prices. In the 1954 to 1958 period,
average tonnage of pig iron produced per year was
264,000 tons per blast furnace; production dropped to
254,000 tons in the 1959 to 1963 period; in the 1964 to 1968
period, however, production rose to 374,000 tons per
year.
As a consequence of much higher blast furnace
production rates possible in the 1960's, scrap prices did
not fluctuate as wildly in the 1960's as they did in the
I950's. At the same time, the ratio of home scrap to
purchased scrap used increased, further stabilizing prices
(Table 39, Figure 18). In the 1960's, also, the cost of pig iron
production appears to have dropped or stabilized as a
result of greater efficiency in operations and the growing
use of upgraded ore products, which translate to larger
yields of pig iron.
The general decline in scrap prices at a time of
expanding scrap consumption appears to be sparking an
expansion in electric furnace capacity55 and increased
scrap use by basic oxygen furnace operators. In time,
scrap prices will rise in response to improved demand,
and a new round of adjustments will begin. In fact, scrap
prices rose sharply in 1969 in response to such adjustments
and record exports, but industry observers believe the
price rise is temporary.
Scrap Recovery from Municipal Wastes
It is clear from the foregoing analysis that ferrous
metals in municipal wastes are not required to supply the
iron and steel industry with metallic inputs. Supplies of
more desirable scrap exceed demand — the surplus
being in the form of obsolete automotive hulk in-
ventories. For this reason, instances of ferrous metal
recovery from municipal wastes are exceptional.
When metals recovery is practiced, it usually takes
one of three forms: (I) steel cans are recovered from
incinerator residues and sold to copper mines; (2) massive
iron pieces and bulky ferrous objects are removed from
incinerator residues and sold as scrap; and (3) ferrous
metals are retrieved by scavengers from dumps and
landfills and sold as scrap.
The quantity of metal recovered in the above manner
is very small. Our mail survey of 2,040 cities with 10,000 or
more population plus our case studies appear to indicate
a recovery of around 50,000 tons a year taking place
with the knowledge of municipal officials. At best, total
recovery from incinerators and dumps is perhaps double
that figure — which would account for cases of illegal
salvage and salvage activities where no records are kept.
All in all, the tonnage is insignificantly small when seen in
light of total scrap consumption. Most of the metal
recovered from municipal sources, moreover, is shipped
to copper mines rather than back to the steel industry.
Most municipal officials report that there is no market
for ferrous metals from waste sources. Dealers indicate
that massive iron and steel can be sold, but only if
delivered to a dealer's yard. The quantities generated
are small, the scrap is of low quality, and therefore
dealers cannot afford the high transportation costs
involved in picking up such metal. Where automotive
shredders are operated, appliances are also accepted,
but again only if delivered to the dealer.
Scrap Use in Copper Precipitation
One application where obsolete steel cans are readily
accepted is in the copper mining industry. In the United
States, approximately 8 percent of the copper consumed
54 Iron and steel scrap consumption problems, p.28.
55 See for instance, Prugh, P. H. Thinking small. More steel users cut costs by purchasing from tiny new mills. Wall Street
Journal, 176(83):1,19, Oct. 26,1970, which reports on the recent expansion of so-called "mini" mills.
-------
FOR MATERIALS IN SOLID WASTES
57
(200,000 tons) is obtained by leaching lean ore deposits
or tailings with sulfuric acid to obtain copper sulfate.56
Production of this so-called "cement" copper grew from
a quantity of 8,200 tons in 1921 and is still growing.
Copper is precipitated out of the leach solution by
substituting iron for copper.57 This process consumes
anywhere from 1.2 to 2.5 tons of iron for each ton of
copper produced and consequently represents a spe-
cialized market for ferrous scrap.
Shredded tin cans — or any other ferrous metals with
a large surface area per unit of weight — are ideally
suited for the precipitation process58 and are extensively
used by copper mines. Bureau of Mines estimates that
300,000 tons of old steel cans and can making wastes are
consumed yearly.59
At present, this is a growth market for shredding
tinplate steel because copper extraction by leaching has
been growing rapidly. But the market for precipitation
iron will top out at I million tons a year, according to the
Bureau of Mines, three times the 1967-1968 level. This
growth will take place over a decade and longer and
may not be realized if competing extraction techniques
succeed.
Copper mines pay $50 to $60 a ton for precipitation
iron at the mine site; thus, ironically, the despised tin-
coated steel scrap brings the highest price for metal
scrap in the United States. The high price, however, is
explained by the fact that consumption points are in
Arizona, Utah, Montana, and Nevada, and the shredded
metal has a very low bulk density (20 to 25 pounds per
cubic foot versus 150 pounds for baled metal) which
results in freight penalties.
Freight charges are high (Figure 19) and account for
much of the total cost. The most desirable precipitation
iron is burned tin cans or tin plate scrap. Processing of
this scrap by a dealer with suitable facilities costs $35.60
per ton, including the price paid for the metal (see
Chapter XI, Houston). At a selling price of $50 per ton at
mine site, the dealer can afford only $14.40 for freight
and profit; at $60 per ton, the freight plus profit margin is
$24.40. These costs limit the sales of used tinplate cans or
scrap to areas within an economic freight distance of the
copper mines.
The quantity of precipitation iron derived from
municipal wastes is small in our estimation. We found
only three cities where can recovery for copper
precipitation was practiced on a continuing basis
(Chicago, Houston, and Atlanta); these three cities
together supplied between 32,000 and 37,000 tons of
precipitation iron annually, between 10 and 12 percent of
precipitation iron consumption. At the time of our visit to
Houston, steel can recovery had been terminated
because the incinerator was out of service for repairs.
Most of the precipitation iron comes from can making
wastes, either directly from can producers or by way of
detinning operations. Detinners handled 866,000 tons of
tinplate scrap in 1967, nearly three times the quantity of
metal consumed by copper mines. Most of the ferrous
metal from these operations is recycled conventionally.
Tinplate scrap occurring in cities near copper mines is
sold as precipitation iron.
The limited market for precipitation iron — I million
tons maximum 10 years from now — the availability of
large quantities of can making wastes in concentrated
form, and the unfavorable transportation situation
indicate that recycling of a large percentage of obsolete
steel cans to copper mining applications will not be
practical.
Detinning
In 1967, 91,473 tons of tin were consumed in the United
States, of which 65.5 percent was imported; nearly all the
remainder was obtained from secondary sources,
including 3,292 tons of tin obtained by detinneries from
tinplate scrap and tin can production plant wastes. Tin is
a valuable metal; in 1967, at a time of depressed tin
prices, tin sold for $1.53 a pound in New York, or $3,060
per ton.
In spite of the high value of tin, detinning of obsolete
steel cans is reportedly uneconomical, and the detinning
industry accepts only clean tinplate scrap from industrial
sources.
60
56 Dean, K. C, R. D. Groves, and S. L. May. Copper cementation using automobile scrap in a rotation drum. U.S. Bureau
of Mines Report of Investigation No. 7182. Pittsburgh, [Sept. 1968]. [16 p.]
57 The reaction Fe+ CuSO^ ^ Cu^+FeSO^
58 Sheffer, H.W., and L. G. Evans. Copper leaching practices in the western United States. U.S. Bureau of Mines
Information Circular 8341. [Washington], U.S. Department of the Interior, [1968]. 57 p.
59 Dean, Groves, and May, Copper cementation, p.l.
60 Special studies for incinerators, p.76; Story, Problems of the salvage industry, p.162.
-------
58
SALVAGE MARKETS
The detinning of obsolete cans appears to be
uneconomical only if such recovery has to conform to
current patterns of operation in the industry. Although
cost data on operations of this industry are not available,
one can get an idea of cost relationships by analysis of
published data. The industry paid an average of $21.59
per ton for tinplate scrap inputs in 1967. Recovery of tin
was at a rate of 0.408 percent of input scrap or, at a price
of $3,060 per ton of tin, equivalent to $12.48 per ton of
input steel. If we assume that the detinned steel was sold
at the price of No. 2 bundles, income from steel scrap
was $17.96, for a total value of input materials of $30.44
per ton. This leaves an operating margin of $8.85 per ton
of input scrap. This is not a great deal of money when
considering that ferrous scrap preparation costs range
from $7.00 to $9.00 per ton. Obviously, detinners cannot
afford additional handling chores to remove con-
taminating materials from obsolete cans.
However, the economics of detinning would be much
more favorable — and would permit acceptance of
obsolete cans — if scrap was made available to the
industry at a cost below that now paid for this type of
scrap.
Conclusions
Ferrous metals are recycled at a fairly high rate but
below the potential supply of ferrous scrap. New
metallics consumed by the industry are supplied from ore
sources (80 percent) and obsolete scrap (20 percent).
Higher consumption of obsolete scrap can be achieved
by changing the value of ores relative to the value of
scrap. Since the current value relationships are largely
determined by free market forces that tend to keep costs
minimal, higher scrap consumption rates will be paid for
by higher iron and steel prices, either directly reflected in
product prices or indirectly in subsidies to scrap
collectors and processors.
Recycling of ferrous metals in municipal wastes is not
practiced except in unusual cases. The reasons for this
are: (I) the absence of sufficient demand to make such
metals desirable; (2) the relatively high level of
contaminants in municipal waste metals. Our analysis
shows that contamination can be circumvented by
processing and judicious dilution of municipal scrap with
other metallics, but this would take place at a cost and
would not solve the problem of absence of demand.
-------
200
100
90
80
70
60
50
40
30
20
10
9
8
7
6
2 -
1 1 T
Total Steel Production
T T
T T
Steel Production by Open Hearth
Furnace (42% Scrap Consumption)
Total Scrap Consumption
Steel Production by
Electric Furnace (98% Scrap Consumption)
Steel Production by
Basic Oxygen Furnace
(29% Scrap Consumption)
Steel Production
by Bessemer
Furnace (10% Scrap
Consumption)
IN. I
I
54 55
56
57 58 59
60
61 62
63
64
65
66 67
68
Source: 1968 Annual Statistical Report, American Iron and Steel Institute
Figure 15. Steel production by process, 1954-1968,
in millions of net tons.
-------
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-------
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-------
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i i r
IO
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10
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-------
58-5
-------
TABLE 28
BLAST FURNACES AND STEEL
FURNACES IN USE IN THE UNITED STATES, 1967*
Number
Annual
production
Average
annual
production
per furnace
Type of furnace
Blast furnace
Open hearth
Basic oxygen
Electric
of installations
225
591
45
266
in 1,000 tonst
86, 984
70,690
41,434
15,089
in 1,000 tonst
387
120
921
57
"Annual statistical report, 1967. New York, American Iron and Steel
Institute, 1968. Directory of iron and steel works, 1967.
tRefers to production of pig iron for blast furnaces and to raw steel
production for the three types of steel furnaces.
58-6
-------
TABLE 29
SCRAP AS A PERCENT OF METALLICS
INPUTS TO STEEL FURNACES, 1947
TO 1968, BY TYPE OF FURNACE*
Type of furnace
Open hearth
Basic oxygen
Electric
Bessemer
1947-1953
45.8
—
98.2
5.2
Average, all furnaces 47.8
Average $
1954-1958
43.6
—
97.4
10.8
46.9
for period
1959-1963
41.5
27.7
97.3
10.5
46.0
1964-1968
41.7
29.2
97.9
__
43.4
^Business & Defense Services Administration. Iron £ steel scrap
consumption problems. Washington, U.S. Government Printing Office,
Mar. 1966. 52 p. Annual statistical report; 1968. New York, American
Iron and Steel Institute, 1969.
58-7
-------
TABLE 30
MAJOR STEEL INDUSTRY MARKETS, 1967*
Market area
Transportation
Automobiles
Rails
Ship and marine
Aircraft
Construction and contractors
Steel service centers
Industrial applications
Oil and gas
Mining and lumbering
Machinery
Appliances and utensils
Containers and packaging
Conversion and processing
Ordnance
Bolts, nuts, rivets, etc.
All other
Total
Shipments in
1,000 tons
16,488
3,225
943
102
15,957
14,863
315
345
7,802
2,092
7,255
2,837
1,622
L,128
5,456
83,897
% of
total
19.65
3.84
1.12
0.12
19.02
17.72
0.37
0.43
9.30
2.49
8.65
3.38
1.93
1.34
6.50
100.00
"Annual statistical report, 1967. New York, American Iron and Steel
Institute, 1968; refers only to products fabricated from domestic steel
mill shapes; excludes steel castings and iron castings.
58-8
-------
O.QI 0 O
JUT
SS33S3W *'
1 =
- ™ I
§ P I
ill
5 o g
"II
3) O
•< Z
Z W OT
Cfl g
-------
TABLE 32
1967 IRON AND -STEEL INDUSTRY MATERIALS
BALANCE, IK 1,000 TONS*
Material
category
Inputs or
consumption
Outputs or
production
Ores and scrap -
domestic only
Metal in ore 86,035
Scrap 85,361
Total 171,396
Scrap only -
domestic and foreign
Blast furnaces 4,218
Steel furnaces 62,962
Rolling mills
Steel castings 3,469
Foundries 14,712
Fabrication
Conversion
Imports
Exports 7,635
Obsolete scrap
(derived)t —
Total 92,996
Product 95,884
Home and prompt scrap 63,734
Process loss (derived)
11,778
171,396
809
12,569
30,664
1,770
6,500
9,187
2,235
229
29,055
92,996
*From Table 31.
tObsolete scrap was derived indirectly by working through industry
statistics to determine the home and prompt scrap; the residual is the
net scrap input to the system or scrap derived from sources external to
the industry. The obsolete scrap was estimated from this latter total.
58-10
-------
TABLE 33
U.S. IRON AND STEEL SCRAP CONSUMPTION, BY SOURCE, IN THOUSANDS OF SHORT TONS*
Total scrap
consumption
Total
191,
1948
1949
1950
1"51
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
196-1
1965
1966
1967
1968
Annual avera
1949-53
1954-56
1959-65
1964-68
Quantity
00,664
b-1,964
54,338
68, i)01
76,728
09.023
7 7 , 130
61,354
81,375
80,315
73,549
56,360
66,062
66,469
64,327
56,160
74,621
84,626
90,359
91,583
85,361
86,766
ges:
69,224
70,590
67,528
87,739
Scrap as
i
of total
me tallies
51.1
52.0
50.4
51.5
51.8
52.9
50.8
51.1
51.3
51.7
49.1
49.6
51.7
49.9
49.4
49.8
50.7
49.5
50.4
50.0
49.4
50.3
51.5
51.0
50.3
49.9
Home sc
Quantity T
33,536
34,430
30.974
37,728
41,266
36,997
43,733
35,585
45,651
43,611
43,100
33,309
37,272
40,074
38,943
40,796
44,939
52,553
55,125
55,162
50, 234
49,949
36,140
40,251
40,406
52,605
rap T
*
of total
scrap
55.1
53.0
57.0
54.6
53.8
53.6
56.7
58.0
56.1
54.3
58.6
59.1
56.4
60.3
60.5
61.7
60.2
62.1
61.0
60.2
58.8
57.6
55.1
57.0
59.6
60.0
Total purchased
scrap
Quantity T
27,328
30,534
23,364
31,173
35,462
32,026
33,397
25,769
35,724
36, 704
30,449
23,051
28,785
26,395
25,384
25,364
29,662
32,073
35,234
36,421
35,127
36,617
31,084
30,339
27,122
35,134
*
of total
scrap
44.9
47.0
43.0
45.2
46.2
46.4
43.3
42.0
43.9
45.7
41.4
40.9
43.6
39.7
39.5
38.3
39.8
37.9
39.0
39. B
41.2
42.4
44.9
43.0
40.2
40.0
Purchased s
Prompt indus
scrap
Quant 1 tv§
9,048
9,741
8,666
11,267
12,319
10,574
12,609
9,702
13,537
12,167
11,382
8,728
10,839
10,662
9,695
10, 903
11,912
13,540
14,457
14,653
13,658
13,818
11,087
11, 103
10,802
14 , 038
crap
trial
%
of total
scrap
14.9
15.0
15.9
16.4
16.1
15.3
16.3
15.6
16.6
15.1
15.5
15.5
16.4
16.0
15.1
16.5
16.0
16.0
16.0
16.0
16.0
16.0
16.0
•15.7
16.0
16.0
Obsolete
truant ity§
18,260
20,793
14,696
19,906
23,143
21,452
20,786
16,067
22,187
24,537
19,067
14,323
17,946
15,733
15,689
14,461
17,770
18,533
20,777
21,766
21,469
22,9'i9
19,997
19,236
16,520
21,109
sera]
f,
',1 total
scran
30.0
32.0
27.1
28.8
30.1
31.1
27.0
26.2
27.3
30.6
25.9
25.4
27.2
23.7
24.4
21.8
23.8
21.9
23.0
23.8
25.2
26.4
26.9
27.5
2i.2
21.0
*From sources shown in footnotes for 19^7-196^; updated by Midwest Research
Institute using comparable data from Institute of Scrap Iron and Steel and Bureau
of Mines.
tHome scrap from the sources is defined as recirculating scrap not subject to
a commercial transaction; some home scrap has been classified in the prompt
category under this definition,,
^Institute of Scrap Iron and Steel and BDSA for 1959-61*, BDSA estimates for
earlier years, based on Bureau of Mines data, and adjusted by BDSA for comparability.
iBased on estimating techniques developed by Battelle Memorial Institute and
revised by BDSA.
58-11
-------
TABLE 34
RELATIVE COST RELATIONSHIPS BETWEEN PIG IRON AND SCRAP AS STEEL FURNACE
INPUTS, IN 1967, IN 1,000 TONS, PERCENT, AND DOLLARS
Materials
Iron ore
Agglomerates
Fluxes
Coke
Home scrap
Other scrap
Blast furnace
inputs con-
-------
TABLE 35
MAXIMUM SCRAP CONSUMPTION POSSIBLE
IN STEEL FURNACES IN 1967, IN 1,000 TONS*
Type of
furnace
Open hearth
Bessemer
BOF
Electric
Total
Metallic
inputs
82,413
242
49,578
19,150
151,483
Maximum tech-
nically feasible Maximum Actual
scrap consumption scrap scrap
in % of metallic consumption consumption
inputs
70 - 80
20
50 - 60
98
67 - 76
in year in year
57,689 -
48 -
24,789 -
18,767 -
101,293 -
65,930
48
29,747
18,767
114,492 62,962
*From Table 31 and Iron and steel scrap consumption problems, p.
58-13
-------
TABLE 36
SOURCES OF OBSOLETE SCRAP,
1959*
Scrap source
Railroads
Auto wreckers
Demolition projects
Farms
Shipwrecking
% of total obsolete scrap
14.7
13.1
6.8
5.2
4.2
Public utilities 2.1
Government agencies 1.6
Miscellaneous—oil fields,
refineries, mines, incinerators,
dumps, housing repair and main-
tenance, general collection 52.5
Total 100.0
*McGannon, The making, shaping, and treating of steel, p. 224.
58-1A
-------
TABLE 37
SCRAP CONSUMPTION IN 1967 BY
GRADE GROUPINGS*
Grade
Low phosphorous plate and
punchings
Cut structural plate
Steel car wheels
No. 1 heavy melting
No. 1 and electric furnace
"bundles
No. 2 and all other bundles
Turnings and "borings
Slag scrap (ferrous content)
All other carbon steel scrap
Alloy steel, excluding stainless
Stainless steel
Cast iron "borings
All other cast iron scrap
Total
Consumption
in 1,000 tons
4,051
1,212
179
28,049
7,213
5,354
2,914
2,940
14,659
3,004
863
1,595
13,320
85,361
%
of total
4.75
1.44
0.21
32.86
8.45
6.27
3.41
3.44
17.17
3.52
1.01
1.87
15.60
100.00
*Minerals yearbook 1967, p. 631.
58-15
-------
TABLE 38
QUANTITY OF TIN IN FERROUS METALS IF ALL STEEL CANS ARE
RECYCLED, IN TONS AND PERCENT OVERTIME, 1967 BASIS*
Year
Start
Year 1
2
3
4
5
6
7
8
9
10
11
12
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Tons of tin in
ferrous metals
27,032
37,885
42,248
43,998
44,705
44, 988
45,099
45,145
45,152
45,164
45,174
45,178
46,022
48,086
49,939
51,084
51, 725
52,049
52,195
52,271
52,299
52,309
52,338
52,339
52,349
52,353
Tin as $ of total
ferrous metals
0.0158
0.0221
0.0246
0.0257
0.0261
0.0262
0.0263
0.0263
0.0263
0.0264
0.0264
0.0264
0.0269
0.0281
0.0291
0.0298
0.0302
0.0304
0.0305
0.0305
0.0305
0.0305
0.0305
0.0305
0.0305
0.0305
* From Midwest Research Institute calculations.
58-16
-------
TABLE 39
PRICES OF WO GRADES OF SCRAP, ANNUAL AVERAGES,
1949 to 1968, IN DOLLARS PER NET TON*
No. 1 heavy
Year No. 2 "bundles ffielting steel
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
20.99
26.18
37.83
38.25
30.73
19.89
27.99
38.27
33.60
25.57
24.91
19.78
22.07
18.25
17.73
20.26
20.39
19.47
18.24
17.96
25.55
31.56
38.52
37.41
35.63
25.66
35.50
47.73
42.06
33.76
33.66
29.42
32.40
25.21
24.21
30.07
30.67
27.57
24.66
23.08
* Institute of Scrap Iron and Steel. 1969 Yearbook. 30th ed. Washington,
1969<> Based on composite price at Chicago, Pittsburgh, and Philadelphia, as
compiled by American Metal Market. Conversion to dollars per net ton by
Midwest Research Institute.
58-17
-------
59
CHAPTER VI
NONFERROUS METALS
Overview Discussion
A convenient classification of nonferrous metals is
into: (I) common nonferrous metals, aluminum, copper,
zinc, and lead; (2) exotic metals, nickel, cobalt, chromium,
titanium, zirconium, molybdenum, tungsten, columbium,
tantalum, and beryllium; and (3) precious metals, gold,
silver, platinum, palladium, rhodium, and iridium.
Magnesium and tin might be considered as common
nonferrous metals; however, these substances were
consumed in very small quantities, around 90,000 tons
yearly versus a million or more for the others.
Our discussion will be restricted to the four major
common nonferrous metals, with special emphasis on
aluminum, which is consumed in greatest quantity overall
and is also the dominant nonferrous metal in waste.
Common nonferrous metals consumed in 1967
weighed 9.8 million tons. In contrast to steel selling for
$130 per ton and pig iron selling for $56 per ton, these
metals are expensive. Their values range from $277 per
ton for zinc to $764 for copper; the composite value of
these metals in 1967 was $517 per ton. Scrap consumption
rates, measured as a percent of total consumption, range
from a high of 49.7 percent for copper to a low of 12.6
percent for zinc; the composite rate for all four metals in
1967 was 30.8 percent; the rates shown above exclude
home scrap (Table 40). The comparable recycling rate for
iron and steel was only slightly higher — 31.2 percent.61
Although the value of these metals is high, they
appear in small quantities, often in combination with
other metals, and require considerable processing. Thus,
the basic observations that apply to other materials also
apply to nonferrous metals; namely, that scrap, to be
recoverable, must appear in fairly clean form and in
fairly large quantities before it can be recycled. The basic
difference between nonferrous metals and other re-
coverable commodities is that their high value permits
relatively more processing and the acquisition of
relatively small quantities.
Nonferrous metals are about 0.6 percent of municipal
wastes, or approximately 1.2 million tons of the 194
million tons total collected in 1968.
Aluminum Recycling
The only nonferrous metal that occurs in significant
quantities in municipal waste is aluminum, principally
because this metal has become an important container
and packaging material, used in cans, foils, trays, and the
like. Aluminum appears to be about 0.35 percent of
municipal waste, or an estimated 678,000 tons in 1968; all
other nonferrous metals are about O.I percent, or about
194,000 tons in 1968. This would indicate that roughly 14
percent of aluminum consumed but only 4 percent of all
other major nonferrous metals consumed enter municipal
wastes.
Industry Characteristics. The aluminum industry is
made up of (I) integrated primary aluminum producers
and fabricators who convert bauxite into fabricated
aluminum products/ (2) nonintegrated aluminum prod-
ucers who rely on scrap and primary and secondary
aluminum ingot purchased on the open market, and (3)
secondary smelters who convert scrap aluminum into
secondary ingot.
The chief consumers of scrap in 1969 were secondary
smelters (67 percent), followed by integrated producers
(19 percent) and nonintegrated producers (14 percent).
Integrated producers generally obtain the scrap they
consume from internal source and customer scrap;
smelters and nonintegrated producers buy scrap. Nearly
61 In 1967 , steel consumption was 105.9 million tons; obsolete and prompt scrap consumption excluding exports was
33.1 million tons.
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60
SALVAGE MARKETS
90 percent of secondary ingot produced by secondary
smelters is consumed by nonintegrated foundries. Thus,
there is considerable circular activity in scrap recycling.
The aluminum industry resembles iron and steel in
structure. Secondary smelters are analogous to electric
furnace operators; integrated producers to steel prod-
ucers with blast furnace capacity; and nonintegrated
producers to the iron and steel foundries.
Scrap Use Patterns. Aluminum scrap is obtained (1)
from internal primary aluminum production processes, (2)
from fabrication and conversion and (3) from obsolete
products. In 1967, an estimated 882,795 tons of purchased
aluminum scrap were consumed by the industry; about 60
percent of this tonnage passed through dealer hands on
its way back to furnaces. New scrap accounted for
711,399 tons, or 80.6 percent of the total; sweated pig was
63,604 tons, or 7.2 percent of the total (Table 41, Figure
20).62 In 1967, independent foundries consumed 617,145
tons, or 70 percent; primary aluminum producers
consumed 122,987 tons, or 14 percent; and fabricators,
foundries, and chemical plants consumed 142,663 tons,
or 16 percent.63
"New" scrap comes in three forms: borings and
turnings that occur in machining operations; clippings,
forgings, and other solids; and residues such as dross,
skimmings, and slag produced in various melting
operations.
"Old" scrap is obtained from junked airplanes, scrap
aluminum foil, dismantled automobiles, scrapped power
cables, aluminum cans, and discarded household
products.
Sweated pig is a special category, usually included
with old scrap. This is aluminum removed from iron and
steel by heating mixed scrap in sweating ovens until the
aluminum melts and runs out.
In the 1950 to 1969 period, consumption of secondary
aluminum grew at an annual rate of 8.2 percent, and
production of primary aluminum at 9.2 percent. In the
last decade, secondary aluminum has begun to grow
faster than primary, at 10.0 percent a year in the I960 to
1969 period versus 7.3 percent for primary aluminum.
Since most secondary aluminum goes into castings,
the rapid growth of secondary aluminum is explained by
the growth of aluminum castings in the I960 to 1969
period at a rate of 9.2 percent yearly.
Recovery Economics. Unlike the situation in the
steel industry, where scrap and pig iron do not compete
on an equal basis for various reasons, scrap aluminum in
the form of secondary ingot competes directly with
primary ingot in the nonintegrated segment of the
industry. Secondary ingot is generally cheaper than
primary. For example, a common alloy, No. 380,
produced from scrap has sold for an average of $63 per
ton lower than the same alloy produced from primary
aluminum in the I960 to 1968 period. The price of the
secondary alloy was an average of $470; that of the
primary alloy, $533 per ton in the period. Primary
aluminum, however, is preferred in all cases where a
high level of purity is required.64
Economics favor secondary aluminum because the
production of primary aluminum requires high in-
vestments — $700 to $800 per ton of annual capacity —
and the process requires electric power of 15,000 to
16,000 kilowatt hours per ton of aluminum.65 For this
reason, primary producers tend to locate near sources of
low-cost electricity. Power costs are usually low in areas
remote from industrial centers, and therefore primary
aluminum producers have high freight costs, ranging
from $5 to $30 per ton. Primary aluminum production
costs, including freight to fabricators, range from $306 to
$470 per ton.
Secondary smelters can install capacity for $100 to
$120 per ton and can locate near scrap sources that are
also end-use consumption points. This saves freight costs.
Operating costs are also lower because the principal
operation is scrap melting instead of electrolytic
reduction of alumina to aluminum. Expanding aluminum
castings markets, favorable secondary aluminum smelt-
ing economics, and ever more abundant scrap resources
have contributed to a steady expansion of secondary
smelting — from 25 plants in 1941 to more than 90 at
present. Secondary smelter total production costs range
from $375 to $450 per ton.
Secondary Aluminum Operations. Scrap
aluminum is obtained and processed by nonferrous metal
dealers and constitutes around 22 percent of such
62 The 1967 data are based on coverage of about 84 percent of the industry; total scrap consumption for the industry is
estimated by the Bureau of Mines at 1,050,000 tons in 1967 and 1,229,000 tons in 1969.
63 See Table 41 for data sources.
64 Farin, P., and G.G. Reibsamen. Aluminum, profile of an industry. New York, McGraw-Hill, Inc., 1969. p.35,41.
65 Farin, and Reibsamen, Aluminum profile, p.52.
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FOR MATERIALS IN SOLID WASTES
61
dealers' throughput tonnage. The average scrap prep-
aration cost is $44.40 per ton.66 Dealers pay anywhere
between $155 per ton (for aluminum borings) to $290 per
ton (clippings) for the metal to generators and collectors,
and they sell the metal to smelters on a delivered basis
for $280 per ton (borings) to $355 per ton (single alloy
clippings).67
Processing of the aluminum scrap depends on the type
of scrap. New clippings need only be sorted to remove
nonaluminum materials. Borings and turnings must be
shredded and dried — the presence of moisture can
cause explosion hazards in melting. Residues are milled
and nonmetallics and oxides are screened out. Old
castings and aluminum sheet are crushed and shredded,
passed through magnetic separators to remove iron, and
screened to remove pulverized nonmetallics. Aluminum
occurring in combination with iron is separated by
sweating. Obsolete aluminum cans must be handled like
borings and turnings and must pass through magnetic
separation units following shredding.
Aluminum Can Reclamation. The largest non-
ferrous metal component in solid waste is made up of
aluminum cans, foils, trays, and the like. Shipments of
aluminum containers and packaging in 1969 were
596,500 tons, with metal and composite cans accounting
for 333,000 tons.68
Aluminum container and packaging shipments grew
at a rate of 15.7 percent a year in the I960 to 1969 period
(16.3 percent in 1969 alone); waste generation is growing
at a rate of around 4 to 6 percent a year.6' Thus, the
proportion of aluminum in waste is on the increase. This
fact, plus the high value of aluminum and the "visibility"
of aluminum cans in litter, has led to efforts on the part of
aluminum producers and can users to explore the
possibility of obsolete aluminum can and sheet recycling.
The most prominent company in obsolete aluminum
can recycling has been Reynolds Aluminum; more
recently, Coors Brewing Company, Kaiser Aluminum, and
Alcoa have become involved.
Reynolds had collected aluminum oil cans from filling
stations as far back as 1958, a program that was
discontinued as fiber-based oil cans captured this
market. Since the early I960's, the company has agreed to
buy back farm roofing and siding materials from buyers
for $200 per ton when these materials become obsolete.
In 1967, the company launched an experimental can
reclamation program in Miami, Florida, in which a chain
of gasoline stations acted as collection centers. The
stations gave coupons worth one-half cent for each
aluminum can brought in; the coupon was redeemable
for oil or gas purchases. Next the company expanded the
program to include collection points at a chain of
grocery stores in unattended Dempster Dumpsters; the
proceeds went to a local children's hospital.
A third collection system was tried later that involved
Goodwill Industries. The public was asked to deposit cans
in Goodwill collection boxes in various shopping centers.
Goodwill was paid a fee for collecting and shredding the
cans. Total collections ran about I ton per month, an
insignificant portion of the aluminum cans occurring in
Miami. At such a low volume, the costs of collecting
relatively small quantities of aluminum were high relative
to the proceeds.70
A second experiment was begun in Los Angeles in
1969. This time, a single reclamation center was set up,
and individuals and organizations were invited to bring
in aluminum cans and other aluminum scrap for a cash
payment of $200 per ton (10 cents per pound). The
operation was calculated to break even if 32 tons were
received monthly; this point was reached in October 1969
and has been maintained since (see Chapter XI, Los
Angeles case study, for details).
The success of the Los Angeles program has led to a
decision by Reynolds to continue the program per-
manently and to expand it to other cities and states. By
mid-1970, the company had operations modeled on the
Los Angeles center in Miami, Tampa, and Houston.
Centers in New York, San Francisco, and an unspecified
66 Industrial profile and cost factors in nonferrous scrap processing. New York, National Association of Secondary
Material Industries, Inc., [1969]. p.3,14.
67 Prices based on July 1969 quotations.
68 Aluminum statistical review, 1969.'New York, The Aluminum Association, 1970. 64 p.
69 Vaughan, R.D. National solid wastes survey; report summary and interpretation. In The national solid wastes survey;
an interim report. [Cincinnati], U.S. Department of Health, Education, and Welfare, [1968]. p.47-53.
70 Testin, R. F. Recycling of used aluminum products. In Proceedings; Third Annual North Eastern Regional Antipollution
Conference, Reuse and Recycle of Wastes, University of Rhode Island, July 21-23, 1970. Stamford, Conn., Technomic
Publishing Co., Inc. 1971. p.7-9.
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62
SALVAGE MARKETS
location in the Pacific Northwest were planned. In
addition, Coors beer distributors in 10 western states were
being organized to serve as collection points (as opposed
to processing points). Cans collected at these points are
sent to Golden, Colorado, to be processed on equipment
supplied by Reynolds except in the Los Angeles area
where the Coors distributors are satellites of the Reynolds
processing center there. Reynolds officials expected that
can reclamation centers would be established in 16 states
by the end of 1970 — either directly operated by
Reynolds or by other companies in cooperation with
Reynolds.7' Aluminum collected by Reynolds is shipped to
a Reynolds plant in Sheffield, Alabama, or Richmond,
Virginia.
Reclamation economics depend on the delivery of
aluminum to the Reynolds centers by individuals and
organizations and on a sufficiently high quantity to use
the processing equipment at the reclamation plant
economically. Data released by Reynolds indicate that
aluminum scrap delivered to their smelters costs $480 per
ton at current collection quantities (excluding general
administrative expense and advertising) while the scrap is
valued at $530 per ton.
Reynolds' experience shows that recycling of obsolete
aluminum cans is feasible and profitable provided that
the material is delivered to a central processing plant for
no more than $200 per ton and further that at least 32
tons per month, or 384 tons per year, of aluminum can be
obtained.
Because these programs are voluntary, the quantity of
aluminum cans ultimately recovered will be between 5
and 30 percent of that reaching the market, according to
Reynolds estimates. Recovery trends in the Los Angeles
center seem to indicate that in 1971 up to 10 percent of
total cans reaching the market place will be recovered,
compared to the early 1970 rate of 2 percent.
The Kaiser Aluminum and Chemical Corporation
announced the formation of a can reclamation program
in San Francisco in early 1970.72 Cans are accepted at 11
collection sites in the San Francisco area. Only all
aluminum cans are accepted. Payment is $200 per ton (10
cents a pound). Coors distributors in the area and the
Falstaff Brewing Company are participating in the
program.
Alcoa's program was announced in September
1970.73 The initial program is based in San Diego,
California. Cans may be delivered to three Coors beer
distributors, six major shopping centers, and a nonferrous
metal dealer who also does processing. The llth Naval
District and Coca-Cola of San Diego are also co-
operating. Alcoa also pays 10 cents per pound. The metal
collected is shipped to Indiana, where the scrap is
converted into new aluminum can stock. The San Diego
program will be followed by similar efforts in Dallas and
Fort Worth, Texas.
Programs started or operated by aluminum prod-
ucers, brewers, and soft drink producers represent the
foundation for a nationwide, voluntary, aluminum
packaging recycling system that may well recover 30
percent of aluminum packaging ultimately. There are no
technical limitations to recycling aluminum; rather the
problem areas of recovery are separation and collection.
All of these programs rely on voluntary citizen collection
and delivery to a special site; in other words, they involve
presegregation and special handling. As yet no company
has attempted to tie aluminum packaging and rec-
lamation directly to a municipal waste system, and we
found no processing system that sought the aluminum
content of mixed refuse in materials.
Other Nonferrous Metals
All other nonferrous metals occur in municipal waste
in very small quantities and, consequently, at very low
concentrations. Copper makes its appearance in small
electrical household appliances in mixed refuse and in
major appliances in bulky wastes as copper wire; brass
and bronze fixtures also introduce copper into wastes.
Zinc appears as an alloy in bronze, brass, and aluminum,-
as a coating on steel; in some automotive grilles; in toys
and small fixtures; in lithograph plates; in addressograph
plates,- and the like. Lead is introduced as solder in cans,
by batteries, as type metals, as ballast in lamps, as an
alloy in bronze and brass fixtures, in plumbing fixtures,
and in collapsible tubes.
With the exception of lead, virtually none of the
nonferrous metals now recovered have ever been in the
form of products in consumer markets. They are
recovered from industrial wastes, obsolete industrial
71 Testin, Recyling of used aluminum products, p.7-9. Personal communication. R.F. Testin, Reynolds Metals Company, to
A. J. Darnay, Midwest Research Institute, Dec. 22,1969.
72 Kaiser's can-do recycling program. Secondary Raw Materials, 8(6):130-132, June 1970.
73 Aluminum Company of America. Press release, Sept. 23,1970.
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FOR MATERIALS IN SOLID WASTES
63
structures, or governmental wastes (such as cartridge
cases) and demolitions.
Copper. Most obsolete copper scrap is wiring and
other electrical fixtures obtained from electric utility
demolitions (34 percent of obsolete copper scrap). Spent
cartridges (4 percent), railroad car dismantling (4
percent), and automotive radiators (9 percent) are other
copper grades that reveal their origin. A small quantity
of copper wiring and copper-base alloys is obtained
from dumps by scavengers and by scrap yards that still
accept appliances. Nearly 65 percent of copper
consumed is made into electrical wire, and this product,
in turn, is used principally in industrial applications,
utilities, and motors, where the copper is recovered. Brass
mills, which account for nearly 34 percent of con-
sumption, produce industrial products such as boiler
condensers, ship propellers, industrial cocks and faucets,
artillery cartridge cases, and similar products that are
normally salvaged.
Small and large household appliances are the only
significant source of copper in municipal wastes. This
source is no longer economical unless some of the
stripping and collection is subsidized in some way. Thus
much of it finds its way into municipal waste systems
today despite the high value of copper as scrap.
Zinc. Nearly 80 percent of all zinc recycled is "new"
scrap, the major grades being zinc skimmings and ashes
derived from zinc galvanizing operations, galvanizers'
dross, and chemical residues. "Old" zinc scrap consists of
roofing zinc, organ pipes, jar lids, and boiler plates;
engravers' plates are a special grade; and diecastings,
which include automotive grilles, aircraft forming dies,
and other castings, are a third obsolete zinc scrap grade.
The relatively low recovery rate for zinc is explained by
the manner in which this metal is used — as an alloying
agent and coating and as small objects and fixtures. All
of these applications make recycling difficult.
Lead. In 1967, lead recovery from new and old scrap
was equivalent to 57.6 percent of lead consumption. In
actuality, consumption of lead of 1.261 million tons
included 247,000 tons of lead used in gasoline additives.
If we regard this tonnage as lost for all practical
purposes, "solid" lead consumption was I million tons, of
which 726,000 tons was supplied by scrap, or 71.6 percent
of solid lead consumption.
Most recovered lead (86.1 percent) in 1967 was
obtained from obsolete materials, 625,000 of 726,000
tons. Most of the obsolete lead (72.6 percent, 454,000
tons) comes from lead battery plates. Recovery of
batteries is usually accomplished by specialists. This
operation requires facilities for breaking batteries, the
collection and neutralization of battery acid prior to
discharge into sewers, and equipment to crush battery
cases before hauling them to the dump. Specialists have
grown in importance as one-piece battery covers
replaced multipiece covers. Batteries in one-piece covers
cannot be broken by being dropped, and special
breaking equipment is necessary.74 In addition to
batteries (which come from auto dismantlers, filling
stations, garages, and industrial, farm, railroad, and
military demolition), lead is also recovered from obsolete
lead-coated cable, a variety of other sources in industrial
plants and military installations, and from type metal.
Recovery of lead from obsolete batteries is at a very
high rate. In the years 1966 to 1968, lead scrap from
batteries was equivalent to 91.4 percent of lead
consumption for batteries. Recovery of lead from type
metals consistently exceeded consumption of lead in type
in the period, reflecting the fact that type lead
consumption has stayed relatively stable for more than a
decade while scrapping of type metals has increased as
lithography has displaced letterpress printing. Lead scrap
recovered from cable cover lead has been equivalent to
54.8 percent of consumption for this application in the
1966-1968 period. Unlike batteries and type, however,
cable lead has a longer life in use (Table 42).
Scrap Consumption Trends
Nonferrous scrap consumption as a percent of total
metals consumption remained relatively unchanging in
the 1963-1967 period (Table 43). Scrap as a percent of
consumption was 34.8 percent in 1963 and 34.7 percent
in 1967; in 1965 it was 31.0 percent.
Consumption of the four major metals grew at a rate
of 4.7 percent annually; the scrap consumption growth
rate was 4.8 percent. Aluminum and lead scrap
consumption grew at faster rates than total consumption
of these metals, 8.1 percent for aluminum scrap versus 7.2
percent for all aluminum and 7.3 percent for lead scrap
versus 2.1 percent for all lead.
74 A study of the secondary lead industry in the United States. New York, National Association of Secondary Material
Industries, Inc., [1969]. p.3-4.
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64
SALVAGE MARKETS
Scrap consumption trends in aluminum are already
high and are expected to stay high as more aluminum
becomes available as scrap. The economics of scrap
remelting are favorable over primary production.
Aluminum consumption in 1942 was 726,000 tons; in 1967
it was 4.0 million tons, better than a fivefold increase,
which means that each year a larger tonnage of
aluminum becomes available. The industry is still far from
reclaiming all obsolete aluminum scrap that occurs. The
metal has an estimated life-in-use of 22 years. In 1945,
943,000 tons were shipped, equal to the tonnage of
obsolete aluminum that should have been available in
1967. In 1967, however, only 172,000 tons of obsolete
aluminum scrap was recovered, or 18 percent of the
tonnage theoretically available. The availability of scrap
aluminum and the fact that bauxite is an abundant
natural resource indicate that an aluminum shortage is
not likely to occur in the foreseeable future.
Copper, zinc, and lead are all materials in short
supply worldwide. An estimate published in 1965,75 put
known free-world reserves of these metals at 43 years for
copper, 27 years for zinc, and 15 years for lead. The high
rate of copper and lead recovery are in part a reflection
of this shortage, and we expect recovery of these metals
to increase.
75 Fangel, H. An expert forecasts future metal needs. Engineering and Mining Journal, 166(3):100,Mar. 1965.
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TABLE 42
CONSUMPTION OF LEAD IN SELECTED APPLICATIONS
AND RECOVERY OF OBSOLETE LEAD FROM THOSE
APPLICATIONS, 1966-1968, IN 1,000 TONS AND PERCENT*
Average
Year for
Product 1966 1967 1968 period
Batteries
Consumption 472 467 512 484
Recovery of obsolete "batteries 442 454 430 442
Recovery as percent of
consumption 93.6 97.2 83.9 91.4
Type metals
Consumption 30 29 28 29
Recovery from obsolete sources 37 35 33 35
Recovery as percent of
consumption 123.3 120.7 117.9 120.7
Cable covering
Consumption 66 63 54 61
Recovery from obsolete sources 33 34 33 34
Recovery as percent of
consumption 50.0 54.0 61.1 55.7
^Minerals yearbook 1967; Annual revtew. The U«S. lead industry—1968.
New York, Lead Industries Association, Inc. 19 p.
64*4
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TABLE 43
CONSUMPTION AND RECOVERY OF SELECTED NONFERROUS
METALS IN THE 1963-1967 PERIOD, IN 1,000 TONS*
Material 1963 1964 1965 1966 1967
Aluminum
Scrap consumption 648 t 712 t 817 t 8961 8831
Aluminum consumption 3,040 3,216 3,73** 4,002 4,009
Scrap as percent of
total 21.3 22.1 21.9 22.4 22.0
Copper
Scrap consumption 1,360 1,513 1,735 1,868 1,541
Copper consumption 2,573 2,779 2,921 3,200 2,913
Scrap as percent of
total 52.9 5^. J* 59.4 58.4 52.9
Zinc
Scrap consumption 202 226 264 263 244
Zinc consumption 1,414 1,536 1,742 1,807 1,592
Scrap as percent of
total 14.3 14.7 15.2 14.6 15.3
Lead
Scrap consumption 641 705 748 741 726
Lead consumption 1,163 1,202 1,241 1,324 1,261
Scrap as percent of
total 55.1 58.7 60.3 56.0 57.6
Composite of above
Scrap consumption 2,851 3,156 3,564 3,768 3,394
Metals consumption 8,190 8,733 9,638 la,333 9,775
Scrap as percent of
total 34.8 30.1 31.0 30.5 34.7
^Minerals yearbooks 1963; 196A; 1965; 1966; 1967.. Includes borne scrap.
tOnly purchased aluminum scrap is included. Total consumption of
aluminum scrap is understated by the tonnage of new home aluminum scrap that
is recycled within the plant or company and not sold.
64-5
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65
CHAPTER VII
GLASS
The glass industry has its roots in antiquity. The basic
composition of glass has remained essentially the same
throughout its history. Glass scrap, called cullet, is a
desirable input material; it is usually at least 10 percent of
input tonnage and may make up a much higher
percentage of certain types of glass products. Since cullet
consumption is usually a routine part of in-plant
processing, few data on actual cullet consumption have
been reported recently in industry statistics.
All forms of glass represent 6 to 8 percent on the
average of the materials found in municipal waste.
Recovery of glass from waste is very low. Glass is among
the lowest in recycling ratios when in-plant scrap is
excluded; it is comparable with rubber, plastics, and
textiles. In 1967, total glass production was 12.8 million
tons and purchased cullet consumption was 0.58 million
tons, or 4.7 percent of output. Purchased cullet use varied
from I.I percent for glass containers to 14.9 percent for
pressed and blown glass. The analysis in this chapter
focuses on cullet recovery external to the glass man-
ufacturing process and on recent activity of *his industry
in solid waste recovery.
Industry Characteristics
Structure. The glass industry consists of three
segments, containers (bottles and jars), flat glass, and
pressed and blown glass. In terms of relative importance,
glass containers far outrank the other two on a tonnage
basis. Comparing basic raw materials consumption (sand
and soda ash) for 1967, containers accounted for 73
percent, pressed and blown for 12 percent, and flat glass
for 15 percent of total.
The glass container segment of the industry consists of
about 40 companies with 112 plants in 27 states.76 By
contrast, the pressed and blown segment consists of 185
plants and flat glass of 64 plants according to the 1967
Census of Manufacturers data. Glass plants tend to be
located close to their customer or consuming markets
(food packers); however, the source of basic raw
materials (sand) is also a factor in plant location. Glass
container plants are concentrated in 10 states: California,
Oklahoma, Texas, Illinois, Indiana, Ohio, West Virginia,
Pennsylvania, New York, and New Jersey.
Process Characteristics. Glass manufacture is a
fully integrated "one step" process in the sense that
manufacturers start with the basic raw materials and end
with the finished product at the same location. The
exception is specialized products accounting for a small
part of the total tonnage output of the industry —
mirrors, etched and ornamental glassware, and bent and
laminated glass.
The principal raw materials of glass are sand, soda
ash, and limestone (or dolomite) plus feldspar and other
materials used in small quantities. In addition, nearly
every type of glass consumes scrap in the form of
internally generated cullet (rejected product, trim waste,
and intentionally produced cullet).
In the glassmaking process, cullet is a technically and
economically functional input material. It aids the
melting process and liquefies at a lower temperature
than the other raw materials. These properties increase
the productivity of batch preparation by reducing fuel
requirements, reducing air pollution emissions, extending
the life of furnace linings, and producing a "melt" faster
than if only virgin raw materials are used. Depending on
the ratios used, cullet increases the "stiffness" or viscosity
of the molten glass.77 Cullet utilization varies widely,
from 8 percent by weight to 100 percent; the average is
76 Glass containers 1970. New York, Glass Container Manufacturers Institute, Inc., May 1970. p.ll.
77 Scholes, S. R. Modern glass practice. Chicago, Industrial Publications, Inc., 1941. p.289.
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66
SALVAGE MARKETS
estimated to be 14 to 16 percent for glass containers.
Manufacturers strongly favor internally generated cullet
because they have no question about the chemical
composition and quality of the cullet.
Production and Consumption Patterns
Containers. The packaging sector of the glass
industry accounts for the greatest tonnage of glass
production and represents glass products intended for
transitory one-time use followed by discard to waste. The
exception is the returnable bottle used in beer and soft
drink packaging.
In the last decade, consumption of glass containers
has increased at 5.2 percent per year on a unit basis,
from 21.67 billion units in 1959 to 36.15 billion units in 1969.
End-use data show important changes taking place in this
sector of the industry (Table 44).78 Beverage containers
have now become the dominant type of container,
reaching 51 percent of total industry output on a unit
basis in 1969 compared to 26 percent in 1959, when the
big switch to nonreturnable beer and soft drink
containers got under way. The other important end use,
food packaging containers, is growing modestly, while
drug, cosmetic, and chemical container markets have
stagnated or are declining. Other materials (plastics,
aluminum, and steel) have been intensive competition for
glass in recent years. The glass container industry's future
growth appears to be tied directly to its success in
nonreturnable beer and soft drink containers. The
tremendous growth in beer and soft drink nonreturnable
containers is documented in Table 45. Since 1967
returnable glass has declined from 72.8 percent of fillings
in soft drinks to 56.1 percent in 1970; in beer the decline
has been from 36.5 percent to 28.7 percent. However,
glass has had to share this tremendous growth in
nonreturnable containers with metal cans.
For all intents and purposes, the entire output of the
glass container industry is discarded to municipal waste
systems. Even the returnable container output represents
replacement of unusable or lost returnable containers.
Only a minute portion of glass containers is recovered
for cullet use, most of which comes from bottling
operations involving liquids (beer, soft drink, water). We
estimate that no more than I percent, or 100,000 tons, of
the waste glass containers are recovered as purchased
cullet annually. As will be discussed later, the nature of
discard makes most glass unrecoverable for economic
and technical reasons.
Pressed and Blown Glass. This sector of the
industry accounts for the output of various types of
products that are classified in three categories: (I) table,
kitchen, art, and novelty, which include tumblers,
stemware, tableware, and cookware plus ornamental
and decorative products, novelty products, and ashtrays;
(2) lighting and electronic glassware of all types such as
light bulbs and tubes, television tubes, and the like; and
(3) glass fiber for insulation and manufactured products.
Based on materials consumption for 1967, we estimate
that output is about 1.7 million tons of products that have
highly varying use cycles and lifetimes — from glass
tumblers and light bulbs to television tubes, insulation,
and sporting goods.
Most of the pressed and blown glass products make
their appearance eventually in municipal waste; the
principal exception is fiberglas waste. For the most part,
pressed and blown glass is indistinguishable from
container glass in appearance.
In addition to consuming internally generated cullet,
this segment of the glass industry consumed 256,000 tons
of purchased cullet in 1967, or an estimated 12 percent of
its raw materials input.
Flat Glass. This section of the industry accounts for
three general types of product: (I) sheet glass or window
glass; (2) plate or float glass used in automobiles,
construction (doors), appliances, and other applications;
and (3) laminated glass. In 1967 production is estimated to
have been 2.1 million tons, and shipments, 1.9 million tons
based on raw materials consumption. Plate and float
glass is about 72.0 percent; laminated glass, 27.7 percent;
and sheet glass, 0.3 percent, based on square feet of
glass shipments in 1967. The production of flat glass
results in a high generation of cullet, some of which gets
into commercial trade and is handled by cullet dealers.
Flat glass is associated predominantly with trans-
portation vehicles (cars, trucks) and construction (offices,
factories, homes). When it makes its appearance as
waste, it is not normally associated with municipal waste;
even when it is, the glass may be a part of another
product such as an appliance. Thus, its appearance in
waste is generally not recognized in the municipal waste
78 More detailed coverage of glass containers is provided in Darnay, A., and W. E. Franklin. The role of packaging in
solid waste management, 1966 to 1976. Public Health Service Publication No. 1855. Washington, U.S. Government
Printing Office, 1969. p.32-43,130-131. Table 44 updates historical data.
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FOR MATERIALS IN SOLID WASTES
67
category. The significant exceptions are industrial
conversion waste and windows broken by householders.
In addirion to consuming internally generated cullet,
this segment of the industry consumed 244,000 tons of
purchased cullet in 1967, which is about 10 percent of its
raw materials input.
Cullet Consumption Patterns
In-Plant Cullet. There is a scarcity of published data
about cullet consumption in the glass industry. The
internal consumption of cullet takes place routinely and
in widely varying percentages depending on a number
of factors. In general, glassmakers consume what they
produce internally through rejection of "off spec"
products and trim scrap. Often, excess production
capacity at a plant is devoted to the deliberate
production of cullet for recycling back into the glass
furnaces. Some companies make interplant transfers of
cullet to balance their needs from plant to plant. The
consumption of internally generated cullet is strongly
motivated by economic and technical considerations. In
general it can be said that the glass industry, especially in
glass containers, consumes all its internally generated
cullet.
Purchased Cullet. Purchased cullet consumption is
another matter. Its relative status in the industry can be
understood by the terminology applied to purchased
cullet — it is referred to as "foreign" or "tramp" cullet.
Trends in the use of foreign cullet by the glass industry
have been steadily downward over the years. The glass
container segment, which accounts for over 70 percent of
the tonnage output, purchases perhaps I percent of its
raw materials as foreign cullet; this is about 100,000 tons.
Most of the purchased cullet is old glass containers
obtained from beer and soft drink bottling operations via
a cullet dealer. The ratio of overall cullet consumption in
glass making, however, has not necessarily declined over
the years; rather, glass container plants have simply
turned to the use of more and more cullet that is
internally generated.
A small amount of purchased cullet still goes into a
number of secondary products, for example, the
manufacture of glass beads for highway signs, for
luminescent paints, and for other end uses.
The flat glass and pressed and blown glass sectors of
the industry generate large amounts of cullet in their
operations — especially electric lights and electrical
products such as tubes and plate glass. Much of this goes
back into the production cycle directly or as purchased
cullet, which averages about 10 percent of input materials
for these two sectors of the glass industry.
An approximate flow of the materials in glass
manufacture is shown in Figure 21. Internally generated
cullet has been omitted. Glass container manufacturers
consume the least amount of purchased cullet on both a
percentage and actual tonnage basis. Glass container
producers also account for nearly 90 percent of all glass
discarded as waste. Purchased cullet consumption
compared to production is shown in Table 46, and
indicates that consumption is I.I percent in containers, 11.3
percent in flat glass, and 14.9 percent in pressed and
blown glass.
Cullet Use Factors
The use of purchased cullet in glass container
manufacture has declined for many technical, economic,
and intangible reasons. Both the cullet consumer —the
glass plant — and the cullet broker/dealer face some
rather rigid realities.
Glass Plant. As viewed by the glass plant manager
or company management, the following factors are
relevant to purchased cullet.
(I) The basic raw materials (sand, soda ash, and
limestone) are low in cost and readily available. Raw
materials costs average $16 to $20 per ton for a glass
container batch, with sand costing in the range of $5.20
per ton delivered.79 Some industry experts say that cullet
use saves the plant $2 to $3 per ton of input because it
produces a faster melt and reduces fuel consumption and
furnace deterioration. If so, cullet can sell for $18 to $23
per ton and be competitive with virgin materials. A
purchased cullet price that violates this basic economic
parameter raises the costs of glass production in a highly
competitive business. In Chicago and New York, the
current prices per ton for cullet are $22.50 and $18.00 for
flint, $17.75 and $17.00 for amber, and $16.10 for green (in
New York). These prices are high by virgin raw material
standards yet the dealers lose money on the transaction if
all their costs are considered.
(2) Purchased cullet is an "unknown quality" in glass
batch formulation and must be compatible with the
technical parameters of the glass. This is usually not a
"problem" as much as a variable to be dealt with
because the manufacturer has no control over the
79 Values from 1967 Census of Manufacturers data and MRI interviews.
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68
SALVAGE MARKETS
purchased cullet. Specifically, the cullet must be: (a)
chemically acceptable, (b) color sorted into flint (clear),
amber, or green, with container glass separate from
plate glass, (c) clean — free of dirt and organic
contaminants — and crushed into 1-inch or smaller
pieces, (d) free of metallic contaminants, especially iron
and aluminum (which are often present as closures on old
containers).80 It is particularly important that flint glass
cullet not have significant quantities of colored glass in it
or it is not usable for flint glass. These "unknowns" do not
crop up in the use of internally generated cullet.
(3) A steady, trusted, and reliable source of cullet is
needed to give continuity to the production process and
batch mixtures. Physical facilities to handle cullet are not
difficult to install nor do they require extensive capital
investment.
(4) Purchased cullet is not a necessary raw material
substitute and intangible factors sometimes govern its
use: risk of batch losses because of contaminants; its low
status as a raw material; reliance on single independent
suppliers, (cullet dealers whose own sources may be
unreliaable or variable). These latter factors have led
some companies by policy to avoid foreign cullet
altogether. Many companies purchase cullet only to
supplement internal cullet when their production rates'
and "pack to melt"81 ratio is highly efficient and does
not yield sufficient internal cullet. A few companies
depend heavily on purchased cullet. For example, MRI
documented cases where water bottle manufacturers and
ashtray manufacturers use 100 percent cullet.
Cullet Dealers. There are probably fewer than 20
cullet dealers82 left in the United States. In fact, only 17
can be accounted for by the Glass Container Man-
ufacturer Institute and MRI.83 Their sad states and
gradual demise can be attributed to changes in the
economics and conditions of recovery and factors that
have been set out above. They face the following rather
formidable problems.
(I) The best sources of container cullet have gradually
dried up. These are bottling operations for soft drink,
beer, water, and milk. There is a relatively large supply
of amber and green glass but less flint, the most desirable
type. This is because beverage containers are pre-
dominantly green or amber while milk bottles have all
but disappeared. The best type of glass is the returnable
container rejected from a bottle washing operation;
however, this source is declining as nonreturnables take
over. Containers rejected at the end of a filling cycle may
be full of the product and have the closure attached
firmly. Plants find it difficult and uneconomical to
segregate reject bottles from other waste for dealers.
Refuse is not a good source for cullet dealers because
most of it is picked up in mixed form and the practice of
home separation has declined substantially.
(2) Dealer collection and delivery costs have risen and
so have processing costs, principally because these
operations are highly labor intensive. Dealers remove
cullet and pay the generator, however, if the source is a
good one. For other generators, they remove the cullet
free of charge which in essence is a free refuse removal
service for the bottling plant.
(3) Dealers operate obsolete cullet plants that have
not been maintained; the sorting, crushing, washing, and
contaminant removal systems are old and inefficient.
Sorting by hand is the rule. The plants operate far under
capacity and their throughput volume does not justify
new capital investment. By contrast, few glass plant
managers have been willing to install in-plant washing
and crushing systems for processing purchased cullet.
(4) Dealers cannot open up new sources of cullet
because of inadequate capital and lack of technology to
substitute for labor in processing and because economic
supply sources do not exist.
In effect, rising costs and declining sources of good
quality cullet supply have worked against the cullet
dealer. Most dealers who physically handle cullet have a
profitable operation only if they operate with essentially
no capital costs, minimum maintenance, and by pro-
viding a large increment of the labor themselves. Many
years ago when individual scavengers were willing to
80 Aluminum creates streaks in the bottles and small black spots that are not acceptable. Ferrous additives are used to
make amber glass so ferrous content is unacceptable in flint glass. Flint glass is about 50 percent of the industry's output
and many glass container plants produce only flint glass.
81 An industry term expressed as a ratio of the output of acceptable containers to the molten glass input; at 90 percent
"pack," the plant is making 9 good containers for every 10 possible.
82 See Chapter XI, "Case Studies," for detailed discussion of cullet dealer operations in Chicago, Cincinnati, Los
Angeles, New Orleans, and New York.
83 Private communications with MRI and MRI interviews.
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FOR MATERIALS IN SOLID WASTES
69
work for "a dollar a day and a bottle of wine," some
cullet was reclaimed from municipal disposal sites by
hand picking. This practice has virtually disappeared.
Dealers who have a brokerage business may be
faring somewhat better. If they can work as the
middleman between a glass plant generating and
another buying cullet, without handling the cullet, they
are able to recover a brokerage fee without incurring the
high handling and processing costs.
Technical Criteria. Cullet use in glass of various
types can vary from 8 percent to 80 percent, excluding
the cases where 100 percent cullet is used. Foreign cullet
is considered a raw materials substitute, not a raw
material. The actual technical limits are well above
current industry practices. For example, container
manufacturers use from 8 percent to 20 percent cullet
with the industry-wide average probably 15 percent of
input tonnage. Industry experts have indicated that the
technical limits are far above current practice. In fact, 30
percent cullet use is now a commonly accepted "goal" of
the Glass Container Manufacturers Institute. If the glass
container industry were using an additional 15 percent
purchased cullet, this would mean it would be using
about 1.8 million tons annually compared to only 100,000
tons estimated in 1967.
Purchased cullet has no particular attraction perse. If
additional cullet were necessary, glass companies might
well build a plant just to produce cullet because this
would represent a predictable cost and quality material.
Market Factors. The real limits of tapping foreign
cullet sources lie in the economic and supply factors.
Plant managers are reluctant to seek foreign cullet
because of its relatively high cost, low quality, and
unavailability in steady volumes. In addition, they have
drifted away from reliance on single-source cullet dealer
operations that are marginal at best. Single-source
arrangements for cullet are not viewed with favor, yet
the market will not support a viable competitive dealer
system.
Cullet from Municipal Waste
Availability. Glass, especially in the form of
containers, is present in quantity in mixed municipal
waste. Waste composition tests show that glass appears
to range from 3.5 percent to 12.7 percent of municipal
refuse by weight. The composite average is about 6
percent. If this percentage is applied to waste collection
of 193.7 million tons in 1968, glass in waste was 11.6
million tons that year; applied only to 165.8 million tons
of residential and commercial waste, it would have been
9.95 million tons. These lower figures confirm our
estimates based on industry output and discard for 1967
of 10.0 million tons (Figure 21). Glass containers occur in
wastes in reasonably "pure" form in that they are not
physically combined with other materials, as for example
are auto glass, construction glass, and light bulbs.
However, they often contain contaminating residues of
the product they carried to the final consumer.
At present, glass containers are neither economically
nor technically accessible because of the nature of their
occurrence in waste. They appear mixed in with a good
deal of other waste. There is effectively no market for
cullet through the traditional dealer system. Experimental
technology has been used to sort mixed, crushed glass in
municipal refuse by color, but there is no operating
system in existence.84 The interesting prospect is that
large quantities of glass could be used in a primary
recycling application if such systems were available.
Recent Developments in Cullet Recovery and
Utilization. The glass container industry through its
association, the Glass Container Manufacturers Institute
(GCMI), has been a leader in exploring the solid waste
management problems associated with glass. GCMI
launched a rather broadly based environmental pro-
gram aimed at solid wastes in 1967.85 GCMI's work
encompasses research on uses of cullet both inside and
outside the glass industry.86 Most recently, various
companies, individually and through GCMI, have
adopted a glass collection center concept similar to that
initiated by Reynolds Metals for the recycling of
aluminum containers.
The glass container industry's sudden flurry of activity
in solid waste management and recycling stems from two
strong forces. First, the glass industry has faced intensive
materials and package configuration competition in its
traditional markets. This is particularly evident in
84 See the discussions on the Bureau of Mines incinerator residue work and on the Sortex system in Chapter 3.
85 See Glass makers launch solid waste program. Environmental Science & Technology, 3(1):17-18, Jan. 1969.
86 Abrahams, J.H. Utilization of waste glass. In Proceedings; Second Mineral Waste Utilization Symposum, Chicago,
Mar. 18-19, 1970; U.S. Bureau of Mines, and Illinois Institute of Technology Research Institute, p.363-368; Malisch, W.R.
Use of waste glass for urban paving. In Proceedings; Second Mineral Waste Utilization Symposium, p.369-373.
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70
SALVAGE MARKETS
medicinal and health and household and industrial
chemicals where plastics have made substantial inroads.
"Conquering of a last great frontier"the nonreturnable
beverage container markethas kept the industry from
going into decline. This latter market is where the action
is. Both steel and aluminum cans have made inroads here
so that the glass manufacturers have had to compete
strongly to develop the market.
The second factor is that it is the very markets that are
"up for grabs"beveragesupon which the public has
focused intensive environmental attention. The glass
industry has long received attention and has been active
in antilitter activities, and now interest in these containers
has spilled over into the solid waste area. Attacks by
environmentalists seem to have focused dis-
proportionately on beverage containers as the con-
sumption of "no return" bottles expands by leaps and
bounds. Legislative threats at the state and local level
abound. It is not surprising, therefore, that glass
container manufacturers have responded with positive
action steps in the environmental field to protect what
has become their major market.
Individual companies have begun to seek sources of
foreign cullet from traditional sources87 as well as
focusing attention on citizen action programs in the form
of special public collection centers usually located on the
property of individual glass plants. Glass plant managers
are preparing their plants to handle color-sorted foreign
cullet in significant volumes. Time-honored negative
views of foreign cullet have been set aside, and the glass
container industry has set a goal of using 30 percent
cullet in its input materials. More could probably be used;
in fact, the upper limit is well above the limits usually
cited in public releases.88
The collection centers have several features: the
public is asked to deliver clean, color-sorted containers
free of metallic closures to collection sites. Individuals are
paid 1 cent per pound ($20 per ton). In Ann Arbor,
Michigan, a remote collection center, (far from a glass
plant) pays one-half cent per pound or $10 per ton for
glass containers.89 This center was established by Owens-
Illinois in connection with an environmental action group
called ENACT.
The collection center concept has several positive and
negative features. A center is easy to establish and start
up; it seeks voluntary citizen participation; it depends on
a "subsidized" and inefficient presegregation, collection,
and processing system (delivery of clean, color-sorted
containers to a central point); and it is of very limited
value as an effective recovery system. Because of a low
level of citizen interest, it cannot tap a large percentage
of the used containers generated. Even so, at $20 per ton,
the industry participants are absorbing costs that could
not be |ustified in a narrow economic sense. One industry
spokesman indicated their costs are nearly $50 per ton
and must be treated as a "social tax" at present.
However, many companies expect to have vastly
improved economics of collection, crushing, transporting,
and in-plant handling as the collection center concept
develops. As yet, no collection center involves par-
ticipation of a cullet dealer, although a GCMI spokesman
reports they are "working with them and keeping them
informed." We believe the collection center concept is at
best an interim measure not likely to make a significant
impact on recovery of glass from waste.
Conclusions
Our analysis of glass as a recyclable material has led
to several conclusions.
(1) As opposed to other materials studied, there exists
today unfilled demand for cullet because technical and
economic problems of cullet supply have not been
overcome. Purchased cullet consumption in containers
has died away because the use of virgin raw materials
and internal cullet has been a much more satifactory
source of raw materials supply.
(2) A large quantity of cullet is present in municipal
waste. The technical requirements of glass manufacture
indicate that 20 to 40 percent of glass now occurring in
87 See Chapter XI, "Case studies," New York.
88 An internal company memo of a glass container manufacturer dated Mar. 20, 1970, given to MRI contains the
following statements: "A review of the glass container industry's past production in use of cullet shows that both glass
quality and high production can be maintained while using cullet levels from a low of 10 percent per batch to a high of
50 percent." The latter cullet level being used to augment the melting capacity of the furnace. "Based on the above
item, glass quality can be maintained regardless of the cullet level so long as the level is held relatively constant so that
batch patterns, melting rates, and the thermal history of the glass produced are uniform."
89 Owens-Illinois. Press release, Aug. 1970. Toledo, Ohio.
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FOR MATERIALS IN SOLID WASTES 71
municipal waste could be used for recycling in glass (3) It is practical to tap this resource only via new
containers. The problems of recovery of glass from waste technology that produces technically and economically
lie in cost, collection, and preparation in competition usable cullet in conjunction with a comprehensive waste
with readily available low-cost virgin materials, for processing system.
which no shortage is forseen now.
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-------
TABLE 44
SHIPMENTS OF GLASS CONTAINERS BY END USE, 1967-1970, IN MILLION UNITS AND PERCENT*
Units Percent
Category 1967 19681 1969 197Qt 1967 1968 1969 197(1
Food 11,872 11,183 11,901 11,814 36.0 35.0 32.9 31.5
Beverages 14,709 15,411 18,431 20,333 44.7 48.2 51.0 54.1
Liquor 1,980 1,731 2,003 1,784 6.0 5.4 5.6 4.8
Wine 822 829 975 988 2.5 2.6 2.7 2.6
Beer 6,408 6,460 7,356 7,598 19.5 20.2 20.3 20.2
Returnable 624 475 480 350 1.9 1.5 1.3 0.9
Nonreturnatile 5,784 5,985 6,876 7,248 17.6 18.7 19.0 19.3
Soft drinks 5,499 6,391 8,097 9,963 16.7 20.0 22.4 26.5
Returna-ble 1,913 1,747 1,640 1,603 5.8 5.5 4.5 4.3
Nonreturna-ble 3,586 4,644 6,457 8,360 10.9 14.5 17.9 22.2
Medical and
health 3,255 2,887 3,355 3,176 9.9 9.0 9.3 8.5
Toiletries and
cosmetics 2,290 1,842 1,817 1,694 6.9 5.8 5.0 4.5
Chemicals 816 624 647 540 2.5 2.0 1.8 1.4
Total 32,942 31,947 36,151 37,557 100.0 100.0 100.0 100.0
*Current Industrial reports. Glass containers. Series M32G. 1967;
1968; 1969; 1970.
tShipments were affected by a 51-day strike.
^Estimated by MRI on the basis of 8 months data.
71-2
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TABLE 45
BEER AND SOFT DRINK FILLINGS AND CONTAINER CONSUMPTION,
1967-1970 IN MILLION UNITS*
1967
1968
1969
1970 +
Soft drink:
Glass closures 32,715 31,046 36,133 35,349
Metal cans 7,290 10,028 11,764 12,856
Glass container shipments:
Returnable 1,915 1,747 1,640 1,603
Nonreturnable 5,586 4,644 6,457 8,560
Total fillings^ 40,005 41,074 47,897 48,205
Market share $:
Metal cans 18.2 24.4 24.5 26.6
Returnable bottles § 72.8 64.5 62.0 56.1
Nonreturnable bottles 9.0 11.3 13.5 17.5
Avg. no. trips, returnable
bottlesll 16 15 14 n.a.
Beer:
Glass closures
Metal cans
Glass container shipments:
Returnable bottles
Nonreturnable
Total fillings^
Market share $:
Metal cans
Returnable bottles? §
Nonreturnable bottles
Avg. no. trips, returnable
bottlesll
17,005
15,769
624
5,784
16,092
15,342
475
5,985
17,834
16,708
480
6,876
17,747
18,864
350
7,248
30,772
44.7
36.5
18.8
19
31,434
48.8
32.2
19.0
20
34,542
48.4
31.7
19.9
20
36,611
51.5
28.7
19.8
n.a.
*Current Industrial reports. Glass containers. Series
M32G; Metal cans. Series M3^D; Closures for containers.
Series M34H. 1967; 1968; 1969; 1970. Annual report-
metal can shipments-"1968. Washington, Can Manufacturers
Institute.
tEstimated by MRI on the basis of 8 months data.
fTotal fillings is total crowns and other closures for
glass bottles plus total metal cans for the beverage
category.
§Calculated as a percent of total fillings, not putput
of returnable containers.
HEstimates by Glass Container Manufacturers Institute
in Glass Containers, 1970.
71-3
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TABLE 46
GLASS PRODUCTION AND PURCHASED GULLET CONSUMPTION, 1967*
Purchased
collet
Production consumption Purchased
Industry segment
Containers
Flat glass
Pressed and. "blown
Total
in 1,000 tons
8,950
2,150
1,720
12,820
in 1,000 tons
100
244
256
600
cullet, percen
1.1
11.3
14.9
4.7
*U.S. Bureau of the Census. 1967 Census of manufacturers. Preliminary
reports: glass containers, SIC 3221; flat glass, SIC 3211; pressed and
blown glass, SIC 3229. Washington, 19&9. Production estimate for flat
glass and pressed and blown glass is by MRI; external cullet consumption
in containers, MRI estimates.
71-4
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73
CHAPTER VIII
TEXTILES
Overview
In 1968, 5.7 million tons of textile fibers were
consumed in the United States. Synthetic fibers rep-
resented the bulk (46 percent), followed by cotton (35
percent), wool (4 percent), and all other (15 percent).
These materials went into clothing (40 percent), home
furnishings (30 percent), other consumer products (11
percent), and industrial uses (19 percent).
In making textiles, fiber wastes occur; these are
analogous to "home" scrap in the steel industry. When
finished textiles are converted to clothing and other
products, cuttings and clippings are generated; these are
analogous to "prompt" scrap. Used clothing articles
represent the chief source of obsolete textiles.
Waste products recovered in the textile industry and
from obsolete clothing collections are: (1) consumed in
the making of paper and board products; (2) recovered
into new textile products; (3) used as stuffings, fillings,
backings, and paddings; (4) exported; (5) converted into
wiping materials; and (6) resold in secondhand stores to
reenter the waste stream at a later date.
In this section, we shall be concerned mainly with the
recycling and reuse of finished textiles as opposed to
textile wastes generated in the making of textiles. We are
thus concerned with fabrication wastes, especially those
of the apparel industry, and with the collection and
disposition of obsolete clothing articles.
Reliable quantitative information on textile waste
generation and consumption is scarce and must be
derived by various computations from isolated bits and
pieces of data. Very little textile scrap is recycled (put
back to use in a new manufactured product). Most textile
wastes are either exported (and they may then be
recycled), converted to wiping material, or resold for
further grading as wools, cottons for paper making, or
rags for roofing mills. Used clothing marketing activity is
in the hands of social welfare agencies and small
commercial shops, and these agencies do not have the
detailed record keeping practices that would permit
insight into their activities.
Textile Consumption Trends
The best data on textile consumption are published by
the Textile Economics Bureau, Inc. (New York) in its
Textile Organon magazine. This source regularly reports
consumption data by weight, although the tonnages
given do not necessarily represent weight of finished
products delivered to consumers, because the data
include conversion losses and exclude weight of such
things as buttons and zippers. The Organon surveys
measure consumption as close to the conversion point as
possible and are therefore the best single measure of
actual consumption available.
Domestic consumption of textiles rose from a level of
3.9 to 5.7 million tons in the 1960 to 1968 period, a
growth rate of 4.2 percent yearly (Table 47). Per capita
consumption in this period rose from 43.6 to 57.4 pounds
a year. These figures include textiles imported for
consumption and exclude textiles exported. However,
they do not include imports of clothing nor do they
exclude finished clothing exports.
The single most significant change in the 1960 to 1968
period has been the phenomenal growth of synthetic,
man-made fibers at the expense of cotton and wool. In
1960, cotton was still King,- by 1968, cotton had declined.
The share of various fibers in the past 2 years was as
follows:
In actual tonnage consumed, cotton barely main-
tained itself at a no-growth rate; wool consumption
declined; man-made fiber consumption nearly tripled;
and consumption of other textiles like silk, linen, jute,
sisal, and others grew very modestly.
The decline in the share of the market held by wool
and cotton has had a significant impact on textile waste
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74
SALVAGE MARKETS
recovery, as will be discussed. The advent of synthetic
fibers, however, has been significant not only because
they captured markets that were in cotton and wool but
also because synthetics have reached the market in
combination with other fibers, thus contaminating these
latter from a recovery viewpoint and making the job of
textile sorting more and more difficult.
End Uses
Most textiles, by weight, are consumed in clothing
articles, and though men will find this surprising, more
textiles are consumed in men's and boys' wear ap-
plications than in women's, misses', children's, and
infants' wear. The apparel categories together accounted
for 39.5 percent of textile consumption in 1968. Home
furnishings accounted for 30.3 percent, including such
things as bedding, blanketing, towelling, curtains,
draperies, upholstery, carpets, and rugs. Textiles in other
consumer products accounted for 11.4 percent of textile
consumption. This category includes fabrics and yarns
that are used to make clothing at home; linings in
manufactured clothing,90 textiles used in shoes, slippers,
luggage, handbags, and toys, and medical, surgical, and
sanitary textiles. Industrial uses accounted for 18.8
percent of consumption, The single largest industrial
category is tire cord textiles, which accounted for 6
percent of total textile consumption,- other applications
are in reinforced plastics, rope and cordage, bags and
bagging, sewing thread, tents, transportation upholstery,
belting, and the like (Table 48).
The relative consumption share of end-use markets
remained about the same in the 1960 to 1968 period, the
only change worth noting being a small increase of
textiles co'nsumed in home furnishings.
Textiles in Waste
In 1968, textiles in municipal wastes collected are
estimated to have weighed 1.2 million tons, or 0.6
percent of 193.7 million tons. The low rate of apparent
textile occurrence in waste relative to total consumption
(average for the 1960 to 1968 period being 4.7 million
tons a year) cannot be completely explained, but a
partial explanation includes the following:
(1) A portion of textiles is lost in laundering.
(2) Waste composition samples are frequently taken
from compactor trucks at incinerator pits where carpets
and rugs, tires, furniture, draperies, and other bulky
materials that contain textiles normally are not present.
(3) A portion of textiles is combined with plastics,
leather, and rubber and is probably not recognized as
textile in waste analyses or cannot be practically
separated from adhering materials.
(4) A portion of textiles (clothing) is diverted from
residential sources to social welfare agencies and then
into industrial applications such as wiping rags, and may
then be disposed of in industrial incinerators.
(5) A portion of old textiles is exported.
These facts suggest that the textile proportion in
collected wastes is probably understated or that textiles
are retained by owners for long periods following useful
life of these products, and such materials appear in waste
from time to time in "shock" loads rather than being
discarded as they reach obsolescence in a day-to-day
manner, as does paper.91 It appears that both of these
explanations are true and account for the relatively low
textile content of municipal wastes as measured in
composition analyses.
Textile Production Wastes
Textile Mill Wastes. Wastes generated in textile
mills, the portion of such wastes utilized, and the portion
of that utilized sold have been estimated by survey and
projection for 1965.92 The waste utilized for that year
was 462,000 tons; if this tonnage grew at the same rate as
textile consumption in the 1965 to 1968 period (3.7 percent
a year), the 1968 tonnage was 515,000.
These wastes include a variety of fibrous materials,
such as cotton linters, vegetable fibers, jute, man-made
fibers, and wool wastes. These materials are used in three
waysi (I) they are exported (1968 exports amounted to
90 Included here by Textile Organon because use of linings cut across all clothing consumption categories.
91 If a nonscientific opinion is admissible, it appears that there are few households that lack large accumulations of
obsolete textiles, retained either for sentimental reasons (Dad's uniform), as a hedge against hard times, or because
disposal is difficult to accomplish (carpets). These accumulations are, of course, eventually disposed of, but disposal
may be collected during a spring clean-up drive. Sampling is unlikely to capture such waste loads, and the analyst may
even reject the load as unrepresentative.
92 Combustion Engineering, Inc. Technical economic study of solid waste disposal needs and practices. Public Health
Service Publication No. 1886. Washington, U.S. Government Printing Office, 1969 p.98,99,116.
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FOR MATERIALS IN SOLID WASTES
75
104,000 tons); (2) they are consumed in paper, board, and
pulp mills (estimated 1968 consumption, 167,000 tons); and
(3) they are used in the textile industry itself as felted
products, stuffing materials, backings, and the like.
Tonnages consumed are not available but are assumed
to be equivalent to fiber wastes sold less exports and
paper industry consumption, i.e., 244,000 tons in 1968.
Apparel Industry Wastes. One estimate of
process wastes sold in 1965 by the apparel industry is
143,000 tons. In 1968, such wastes amounted to an
estimated 160,000 tons.93 These are principally cuttings
and clippings but also include some defective products
that cannot be salvaged, such as soiled items, ripped
clothing, cutting errors, and the like. The apparel industry
as here defined includes clothing and other fabricated
textiles but excludes industrial textile users. It should be
noted that the tonnage shown here is that sold, not
necessarily generated wastes.
Apparel industry conversion wastes normally enter
the paper industry as rags, are converted to wiping cloth,
or are exported. Data on consumption of finished textile
wastes, however, do not permit differentiation between
conversion wastes and obsolete wastes, and these are
therefore treated as a whole later in this chapter.
Textile mill and apparel conversion wastes do not, of
course, represent the total "new" scrap produced in
textile consumption. These two activities, however, are
the only ones where some indication of waste generation
and sales is available.
We shall not further concern ourselves with textile mill
wastes — essentially the industry's home scrap — but
want to note here that these fibrous materials, much like
textile wastes, pass through the hands of secondary
dealers and represent roughly half the tonnage of
materials they handle.
Textile Recycling and Reuse
Textile wastes obtained from industrial sources and
from the collection of used clothing by social welfare
agencies are channeled through secondary materials
dealers with portions going to the paper and board
industry, to export, and into wiping rags. The tonnage
entering the paper industry is recycled in the usual
meaning of the word; that is, it is made into new
products. Wiping rag applications are a form of reuse:
The textiles are merely delayed on their way to the dump
and pick up oils, chemicals, and dirt in the process.
However, use of old textiles in wiping applications keeps
other, virgin materials out of the waste that would have
to be used in their stead. Exported textiles, of course,
leave the country; some of these are recycled, the rest are
sold as clothing.
In 1968, an estimated 574,000 tons of textiles were
sold; the secondary materials industry acquired between
642,000 and I.I million tons of textiles in order to satisfy
the demand (Table 49) for reasons to be developed
below. Obsolete clothing collections by social welfare
agencies were between 759,000 and 1.8 million tons to
support the secondary textile industry at an output level
of 574,000 tons.
Waste Processing Sequence
Textile wastes resulting from conversion operations
are collected by secondary materials dealers. Textile
wastes from private households are collected by social
welfare agencies, which collect textiles in order to obtain
resalable clothing articles. The proportion of clothing
collected that is actually sold varies from agency to
agency. Our best estimate, based on the experience of
such agencies in Cincinnati, Houston, and New York, is
that 45 percent of collections is sold in secondhand stores
and the remainder is sold as mixed rags to secondary
textile dealers. Thus, an initial separation of obsolete
textiles into "resalable" and "rag" portions takes place
within the social service agency.
Mixed rag bundles normally include all clothing
articles judged unsalable by social welfare agency
sorters. Torn and excessively soiled items, unrepairable
items, clothing that is out of style, and items that could
not be sold in secondhand stores are all "ragged."
Depending on the size and resources of an agency, more
or less repair of clothing may. be undertaken. Smaller
agencies tend to send more of their clothing to rags than
larger ones. Rag bundles appear to have roughly the
same proportions of the major fibers as new textiles.
Rag bundles may next go to rag sorting organizations
where the textiles are manually graded into four basic
grades: clothing for export, textiles for wiper stock (pure
cottons), pulp substitute rags (small cotton pieces), and
roofing rags (low quality rag wastes). Some sorting for
woolens may also be accomplished. The rag sorting
organization may also be a wiping cloth manufacturer.
The wiping grade cottons are sold to wiping cloth
manufacturers who may: (I) further sort into different
93 Technical-economic study, p.100,101,116.
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76
SALVAGE MARKETS
wiping grades (white sheeting, colored cotton slacks,
etc.); (2) launder the cottons; (3) remove all buttons,
zippers, and other trim and cut open trouser legs, shirt
sleeves, and so forth; and (4) bale and package the
wipers for shipment to consumers. All other grades
obtained from mixed rag bundles may be sold directly to
final consumers by the rag sorting organization or may
be sold to another dealer, such as an export specialist.
New textile clippings, obtained directly by the dealer,
usually come in presegregated form. Cotton clippings are
sold to the paper industry. Synthetic fiber clippings are
sold to respinners provided these are pure basis materials
— dacron, orlon, nylon, etc. If they are blends, they are
sold to be used as stuffing and backing materials. Old
synthetic textiles are not recycled because the nature of
the fiber in such items cannot be adequately identified. A
very small quantity of "respinning wool" is also handled
for recycling. Respinning wool may be from obsolete
clothing articles.
The disposition of waste textiles handled by the
secondary materials industry is shown in Figure 22.
The Wiping Cloth Cycle. On the basis of
interviews with various participants in the industry, we
infer that to obtain I ton of wiping materials between 6
and 12 tons of used clothing must be collected from
households. The numbers are derived, and the basis for
them is as follows.
The source of wiping materials is almost entirely
mixed rag bundles obtained by dealers from social
welfare agencies. Cottons suitable for conversion into
wiping cloths (not all of the cotton in bundles) are
believed to be between 15 and 30 percent by weight of
mixed rag bundles. Assuming a 30 percent level, 3.3 tons
of mixed rags are needed to yield I ton of wiping grade
cotton. Mixed rags represent 55 percent of social welfare
agency collections. Thus, 6 tons of clothing collections
will yield the requisite quantity of mixed rags, cottons,
and wipers. If the cotton content of mixed rag bundles is
15 percent, the quantitites are twice as great.
Wiping rag consumption in 1969 was estimated to
have been 150,000 tons by the National Association of
Wiping Cloth Manufacturers (this estimate was obtained
in a personal interview). The growth rate of wiping rag
consumption is estimated to be 3 percent annually. This
would indicate that in 1968, 146,000 tons of textile wipers
were used and that this tonnage necessitated the
consumption of 482,000 to 978,000 tons of mixed rag
bundles and social welfare agency collections of 891,000
to 1.8 million tons. The actual collection rates cannot be
established but are believed to be somewhere between
the extreme ranges.
These estimates indicate (Table 49) that the secondary
textile industry has an excess of intake over output of at
least 68,000 tons and possibly as much as 564,000 tons a
year — for which it must pay and which it must store or
dispose of but which it cannot sell. This raises its costs for
the commodities that can be sold.
The partly unsalable materials are man-made fabrics
and wool. The three markets for these materials (paper
and board, exports, and reprocessors) have no re-
quirements for more than they already consume of these
fibers, which is far under the available supply of rags. On
the other hand, the textile dealers are forced to accept
these additional textiles in order to obtain the cotton
materials that they can sell.
This situation has led to the progressive decline in the
price paid by dealers for mixed rag bundles, from
around $120 to $140 per ton in the mid-1960's to $55 to $65
per ton in 1969 and 1970. In addition to inability to sell all
the man-made and wool textiles, two other forces have
contributed to depressing prices: (I) the decline in pure
cotton content of mixed rag bundles and (2) the steadily
rising costs of manufacturing wipers from mixed rags.
The costs of preparing wiping cloth were an average
of $267 per ton in 1969, according to an unpublished
survey made by the National Association of Wiping
Cloth Manufacturers.94 This cost was up from $242 in
1968. Additionally, raw materials costs were up 14
percent, and freight costs rose by 13 percent between
1968 and 1969. The industry raised prices by 8 percent to
compensate for these increases.
The economics of wiper manufacturing can best be
illustrated by an example. The dealer buys a mixed rag
bundle for $60 a ton.95 If cotton is 30 percent and
assuming that none of the other materials can be sold, his
cost per ton of cotton is $199.80. His pick-up cost will be
$3.50 per ton of mixed rags, or $11.66 per ton of cotton.
His processing cost is $267 per ton of cotton; and his
freight cost to the consumer is $35.80 per ton. His total
cost thus is $514.26 per ton of wiping rag plus disposal of
94 The survey excludes initial sorting costs which we added based on interview data obtained from processors. Sorting
costs for both years are included at a level of $60 per ton.
95 Actual price quotations are by the pound.
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FOR MATERIALS IN SOLID WASTES
77
that portion of other textiles he cannot sell. If he cannot
sell any of these materials, he incurs an additional cost
per ton of cotton sold of $19.39.96 Given this extreme
case, his total cost is $533.65 per ton of cotton. The
average selling price for wipers is $420 per ton.
In order to break even, the dealer must sell a portion
of the man-made and woolen textiles and the cotton
textiles that cannot be made into wipers. In the export
trade, textiles are valued at $240 per ton. To make up the
difference between his cotton preparation costs and his
wiping rag selling price ($113.65), the dealer must sell 916
pounds of textiles in export, worth $109.92 ($240 per ton);
to this is added a saving on disposal cost of $3.81. If he
incurs shipping costs to a port or must pay brokerage
fees, he must, of course, sell proportionately more than
916 pounds. If the textiles are sold as roofing rags for
between $15 and $20 per ton or as pulp substitute grades
for between $100 to $200 per ton, the quantities must also
be higher to justify wiping rag operations.
If usable cotton is only 15 percent of mixed rag
bundles, the dealer's cotton wiper costs will be $776 per
ton. His loss will be $356 per ton and he will have to sell
1.4 tons of textiles in export for every ton of wiper cloth
he sells to break even.
In 1968, textile dealers sold 268,000 tons of obsolete
textiles in addition to wiping rags, equivalent to 1.84 tons
per ton of wipers sold. Of this total, 123,000 tons went
into the export trade, 144,000 to the domestic consumers.
If cotton was 15 percent of mixed rag bundles in 1968,
dealers had to sell these nonwiping obsoletes for an
average of $186 per ton to break even; if cotton was 30
percent, the break-even sales price had to be $54 per ton.
The value of textiles in the export trade was $240 per ton
in 1968. Thus, ot the 15 percent cotton content level, the
average domestic sales price per ton had to be $140 per
ton; at the 30 percent cotton content level, dealers could
have lost $105 per ton on domestic consumption and still
have had a break-even year.97
Wiper manufacturers are beginning to feel strong
competition from producers of new wiping materials —
both textile wipers and paper products. One reaction
within the industry is "if you can't fight 'em, join 'em."
Wiper dealers are beginning to act as middlemen
between new wiper producers and wiping rag con-
sumers. Dealers find that new wipers, which cost more
than old rag wipers, are beginning to be competitive in
overall cost with old wipers. Old rag wipers are
sometimes reacted because nonabsorbent textiles are
inadvertently included. For new wipers, handling costs
may be cut to the bone because the dealer may have the
wipers shipped directly to the customer. In addition, the
cost of old wiper production is rising for reasons
explained above.
Textile Consumption in Paper and Board.
Textile waste, once an important input material to the
paper industry, has steadily declined in importance. In
1956, only 0.9 percent of all fibrous materials inputs to the
paper industry were rags.98 After that year, textiles are
not separately reported in fiber consumption statistics.
Assuming that the ratio of rags to "all other" fibers
consumed in the 1952-1956 period has held unchanged,
rag consumption in 1968 was 0.4 percent of total fibrous
inputs, or 225,000 tons, down from 298,000 tons in 1956.
Long-term trends appear to indicate that waste textiles
will eventually disappear as paper and board industry
inputs.
There are two basic forces at work here: (I) the decline
in the use of waste materials in paper, of which rags are
one portion; (2) the decline in the availability of textile
waste grades acceptable to the paper industry as well as
the slow change in demand for rag content paper.
Cotton, the vegetable fiber based textile used in large
quantities, is in a no-growth situation and is an ever
lower proportion of total textiles. Furthermore, more and
more of the cotton is used in blends with man-made
fibers, which cannot be processed by the paper industry.
An additional problem is the use of non-water-soluble
adhesive'tapes in the fabrication of textile products; such
tapes contaminate cotton clipping wastes and make their
reuse impossible without prohibitively costly manual
sorting.
96 Disposal cost is around $5 per 1,200 pound bundle, $8.32 per ton, and $19.39 for 2.33 tons of unsalable textiles.
97 At the 15 percent level, wiper losses would be $356 X 146,000 tons, or $51.976 million; sales of 268,000 tons of
additional textiles will save disposal costs (268,000 X $8.32) of $2.230 million, leaving a net loss of $49.746 million; to
cancel this will require a sales price per ton of (268,000 divided by $49.746 million) $185.62. If 123,000 tons are sold for
$240 per ton in export ($29.250 million), 144,000 tons need to generate only $140.46 per ton (144,000 divided by $20.226
million). The same logic is used for the 30 percent level; losses at that level are $114 per ton of wipers.
98 The statistics of paper, 1964. New York, American Paper and Pulp Association, p.21.
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78
SALVAGE MARKETS
Reprocessing of Textiles. A specialized segment
of the textile industry engages in the conversion of textile
wastes into respun fibers, paddings, backings, and
similar products. This industry appears to be declining.
The number of establishments dropped from 183 in 1958
to 141 in 1963 and to 138 in 1967. The number of employees
dropped from 4,600 in 1958 to 4,300 in 1967. Value of
shipments was $93.5 million in 1958, $87.5 million in 1963,
and $88.9 million in 1967. Total waste materials consumed
by the industry declined from 115,500 tons in 1963 to 71,800
in 1967, a 38 percent decline in the period. The use of
textile wastes dropped from 38,800 tons in 1963 to 19,800
tons in 1967, a 49 percent drop in consumption.
Three factors explain the decline in textile re-
processing: (I) the products of this industry are competing
against new chemical-based materials — principally
foam rubber; (2) wool consumption is dropping, and the
proportion of secondary wool that can be consumed
(around 4 percent of total consumption) is also declining;
(3) acceptable textile waste materials supplies are
decreasing in quantity because of "contamination" by
chemical blending of fibers. The costs of acceptable
materials have risen as a consequence, and reprocessors
thus face fading markets and new competition with
products that cost more. In 1963, for instance, re-
processors paid $280 per ton for new and used textile
wastes; in 1967, they were forced to pay $520 per ton for
these input materials.
Export Markets. Confronting declining domestic
markets for waste textiles, the secondary materials
industry has long viewed the export market as a
promising outlet for its commodities. The export picture,
however, is not particularly cheerful. Export markets must
take up all commodities that cannot be sold domestically,
and this largely means those portions of mixed rag
bundles that cannot be sold as wiping rags. While wiping
rag consumption has grown at a rate of 3 percent
annually, exports since 1955 have grown at a rate of 1.8
percent yearly, from 148,100 tons in 1955 to 190,800 tons in
1969 (Table 50).
Not all exports are obsolete textiles. The Bureau of the
Census stopped reporting obsolete and new exports
separately in 1965, and in earlier periods, only the cotton
and wool portions were reported by origin. In 1964, 53
percent of cottons exported and 95 percent of wool
exports were obsolete; the two grades combined yield an
obsolete ratio of 68 percent. In making our estimates for
1968, we assumed that this ratio was applicable to all
grades.
In 1968, 182,300 tons were exported, containing an
estimated 123,000 tons of obsolete textiles. Of the
obsolete portion, cotton was 42,000 tons; wool, 38,000;
man-made fibers, 23,000; and all other textiles, 20,000. If
we assume that all the obsolete wool came from mixed
rag bundles (which is to be expected) and that the 1968
bundles represent textiles consumed in 1963 (five years
earlier) when wool was 6.4 percent of total textile
consumption, then the exported wool required the
collection of 604,000 tons of mixed rags — roughly in
the middle between the low and high estimates presented
earlier (Table 49)."
Trends in export indicate that export demand for
man-made textiles and other textiles is increasing,
demand for cotton is stable, and demand for wool is
dropping. Textile dealers have experienced this and
report that woolen textiles cannot be sold at generation
rates.
U.S. waste textiles are consumed in more than 50
countries. The single largest buyers, in descending order
of importance, are: Italy, Spain, Canada, France,
Nigeria, Phillipines, Iraq, Belgium, England, West
Germany, Tunisia, Lebanon, Pakistan, Cameroon, and
Japan.
Consumption patterns by commodity type reveal that
the largest consumers of cottons are developed nations;
of woolens, developing nations; of man-made fibers,
industrialized countries; and of "other textiles," de-
veloping nations — always excepting Italy, which leads
in the consumption of all but one type of textile waste.
Textile dealers point out that the decline in woolen
sales (and the slow growth rate of textile exports in
general) is explainable by: (I) the development of strong
virgin textile industries in southern Europe, especially in
Italy; (2) the consequent decline in the demand for used
clothing in southern Europe; (3) affluence in Europe
leading to the generation of textile wastes there; and (4)
the consequent rise in competition for waste textile
markets in the Near East and Africa.
These developments have hurt wool exports es-
pecially, which go largely to African and Near Eastern
countries and Italy. U.S. dealers can least afford to lose
their wool markets because woolens are a dis-
99 It appears from this that mixed rag consumption must have been higher than 604,000 tons in 1968 because nearly all
dealers report that they are unable to sell all of their obsolete wool acquisitions.
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FOR MATERIALS IN SOLID WASTES
79
proportionately large part of mixed rag bundles and
because domestic markets for wool are very limited.
Consumption trends, as presently established, do not
appear to be responsive to unilateral intervention by the
U.S. Government, and dealers can do little to influence
the foreign demand.
The Wool Controversy. The textile industry
consumes around 10,000 tons of reprocessed wool yearly,
equivalent to around 4 percent of total wool con-
sumption. Since woolen articles can be separated and the
wool can be rewoven (a process known as garnetting),
there is no limit to the quantity of wool that could be
recycled. Little is recycled, and dealers blame the 1940
Wool Labelling Act, which requires that manufacturers of
woolen articles label garments and other materials to
show the percentage of reprocessed wool used.
This has destroyed the reprocessing of wool because
consumers, in part conditioned by advertising, have an
aversion to reprocessed woolens, preferring- "pure"
virgin wool.100
Textile dealers believe that elimination of the labeling
requirement would cause an increased use of re-
processed wool because economics inherently favor
reprocessed wool and the quality of products made from
waste woolen textiles would not be affected. We are not
certain that removal of the labeling requirement would
in itself succeed in boosting wool recycling. Sheep
growers, already seriously worried by the decline in wool
consumption, would undoubtedly exert as much pressure
as possible (by trimming costs and by advertising) to
maintain wool's image. Sheep growers in Australia, New
Zealand, and South Africa launched a scheme as far
back as 1956 to give virgin wool an international image.
The scheme consists of an international trademark, called
"Woolmark." which is granted to manufacturers who
make products in which the reprocessed wool fraction is
no more than 0.03 percent.101 "Woolmark" promotion
may be used effectively to negate any beneficial effects
of a repeal of the Wool Labelling Act.
Conclusions
The large quantities of textiles collected from
households by social welfare agencies do not translate
into a large recycling rate. Most social welfare textile
collections are resold; portions that are sent to dealers
are reused and exported, with only a small tonnage
being recycled.
In 1968, the recycling rate for textile wastes was 7.5
percent of consumption (428,000 tons of recycling, 5.7
million tons of consumption). This includes exports under
the "recycling" category. If exports (some of which are
sold as clothing) are excluded, the recycling rate was 4.3
percent of consumption in 1968, or 246,000 tons.
Recycling is declining, in part because textile wastes
are used at decreasing rates in paper and board and in
part because the most desirable fraction of textile wastes,
pure cotton, is decreasing.
Reuse of textiles, although not a direct utilization of
these fibers in new products, has a beneficial effect on
waste processing nevertheless by keeping wastes down.
(For instance, reused textiles doing service as wiping rags
could have been thrown away as obsolete textiles and, in
addition, the waste stream could have been loaded with
new materials in wipers.)
100 One exasperated industry observer comments: "Most consumers see a virgin product as something esthetically
clean. But have you ever seen a sheep?" J. Mighdoll, Executive Director, National Association of Secondary Materials,
Inc., quoted in: Turning junk and trash into a resource. BusinessWeek, No. 2145:67, Oct. 10,1970.
101 Stansfield, J. R. Textile reclamation in practice. Secondary Raw Materials, 7(10):96, Oct. 1969.
-------
Households
I ndustry
Used Clothing
Clippings and Rejects
1
Secondhand Cannot be
Store Sold ,
1 '
Mixed Rag Large
Bundle
\
1
\ \
Export Roofing ^ Wiper ^
i
Rags
1
Wastes Cot
1
Cotton We
1
, *
'ieces Small
Pieces
Wastes
\
' i
>ol Synthetics
k
Pure
i
i
t
Blends
i
Sold to Exported Sold to Sold to
Public Construction Industry
Paper Mi I Is and
Government
Sold to Sold to Sold to Sold as Stuffing
Paper Respinners Respinners and Backing
Mills and Exported and Exported Material to
Industry and
Exported
Figure 22. Schematic of commercial disposition of waste textiles.
79-1
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TABLE 47
CONSUMPTION OP FIBERS FOR DOMESTIC USES
IN THE U. S., 1960-1968, BY TYPE OF FIBER, IN 1,000
TONS MD PERCENT*
Man-
Total _._ Cotton Wool made
Year vt. vt. % vt. j> vt. jo vt. %
1960 3,895 1,965 50.45 283 7.27 950 24.39 697 17.89
1961 3,974 1,951 49.09 281 7.07 1,041 26.20 701 17.64
1962 4,352 2,015 46.30 282 6.48 1,200 27.57 855 19.65
1963 4,560 2,012 44.12 290 6.36 1,376 30.18 882 19.34
1964 4,738 2,092 44.16 256 5.40 1,557 21.86 833 17.58
1965 5,088 2,144 42.14 270 5.30 1,773 34.85 901 17.71
1966 5,234 2,161 41.29 260 4.97 1,951 37.27 862 16.47
1967 5,182 2,068 39.91 233 4.50 2,100 40.52 781 15.07
1968 5,672 1,994 35.16 239 4.21 2,598 45.80 841 14.83
^Textile fiber end use survey. Textile Organon, ^l(l): 1-23,
1970. Excludes fibers produced for export consumption; excludes imports
of finished garments.
tRepresents imports of silk, linen, jute, sisal, and oth?r fibers
imported for consumption.
79-2
-------
TABLE 48
END USE DISTRIBUTION OF 1968 TEXTILE
CONSUMPTION, IN 1,000 TONS*
Category
Wt.
j> of total
Men's and boys' wear
Women's, misses', children's, and infants' wear
Home furnishings
Bedspreads, quilts, blankets, sheeting, etc.
Carpets and rugs
Curtains
Drapery, upholstery, slipcovers
Miscellaneous
Other consumer-type products
Linings, piece goods, fabrics, yams
Shoes, slippers, luggage, handbags
Toys
Medical, surgical, sanitary
Miscellaneous
Industrial
Transportation upholstery and auto seat covers
Tires
All other '
Total
957
952
4,833
19.80
19.70
100.00
*Textile fiber end use survey, Textile Organon, Jan. 1970. Excludes imported
silk, linen, jute, sisal, and other fibers that are not allocated by end use in
source.
79-3
-------
TABLE 49
TEXTILE RECOVERY AND REUSE, 1968,
IN 1,000 TONS*
Item Tonnage
Materials sold
Wiping rags—largely cotton 146
Paper and board mills--vegetable fiber-
based textiles, some synthetics, and wool 225
Exports--all fibers 182
Reprocessors—wool and synthetics 21
Total 574
Materials acquired
Clippings and other new wastes 160
Mixed rags from social service agencies 482 - 978
Total 642 - 1,138
*Estlmated by Midwest Research Institute; see text for explanations of
derivations. Quantities on mixed rags from social service agencies are
based on two levels of cotton content and are derived from mixed wiping
rag sales.
79-4
-------
TABLE 50
EXPORTS OF TEXTILE WASTES, 1955-1969, BY TYPE,
IN 1,000 TONS AND PERCENT*
Year
Cotton
Tons <1a-
Wool
Man-made
fibers All otherf-
Tons
Tons
.Tons
Total
1955 58.8 39.7 78.3 52.9 11.0 7.4 148.1
1956 60.0 44.6 64.8 48.1 9.8 7.3 134.6
1957 66.5 43.0 79.2 51.2 9.0 5.8 154.7
1958 62.6 46.5 55.4 41.1 16.7 12.4 134.7
1959 68.1 41.4 72.6 44.1 23.8 14.5 164.5
1960 75.4 43.4 72.6 41.8 25.6 14.8 173.6
1961 78.7 46.3 70.3 41.3 21.1 12.4 170.1
1962 88.4 50.0 67.5 38.2 20.9 11.8 176.8
1963 106.4 51.8 74.1 36.0 25.2 12.2 205.6
1964 117.1 55.5 67.5 32.0 26.4 12.5 211.0
1965 90.6 45.7 61.9 31.2 23.5 11.9 22.3 11.2 198.3
1966 91.1 46.5 57.3 29.2 28.3 14.4 19.4 9.9 196.1
1967 83.5 46.0 48.3 26.6 28.9 15.9 21.0 11.5 181.7
1968 79.1 43.4 40.4 22.2 33.8 18.5 29.0 15.9 182.3
1969 70.7 37.0 38.9 20.4 48.4 25.4 32.8 17.2 190.8
Average for period
1955-1959 63.2 42.9 70.1 47.6 14.1 9.5 147.4
1960-1964 93.2 49.7 70.4 37.6 23.8 12.7 187.4
1965-1969 83.0 43*7 49.4 26.0 32.6 17.2 24.9 13.1 189.9
*U.S. Bureau of the Census. U.S. exports—schedule B commodity
and country. Report FT^IO. Washington, U.S. Government Printing
Office, 197*4; 1965; 1969.
tlncludes man-made fibers, 1953-1964.
79-5
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81
CHAPTER IX
OTHER MATERIALS
Rubber
In 1969, the rubber industry102 consumed 3.2 million
tons of rubber, including 279,800 tons of reclaimed
rubber. Tires accounted for 67 percent of rubber
consumed, the remainder being distributed to a large
number of other applications (Table 51). Reclaimed
rubber, overall, represented 8.8 percent of consumption.
In addition to reclaimed rubber, 752,000 tons of old tires
were consumed by retreaders and 7,000 tons by tire
splitters,103 for a total recovery in 1969 of 1.0 million tons
(Table 52). Tire splitting is a clear case of reuse,
analogous to wiping cloth production from old textiles.
Retreading is a more ambiguous case and could be
viewed either as recycling or reuse. If retread tires are
viewed as recycling, then the weight of retread tires
(0.752 million tons) must be added to recycled tonnage
and to consumption, in which case total rubber
consumption is increased from 3.19 million to 3.94 million
tons in 1969. Recycling as a percentage of consumption is
increased from 8.8 percent to 26.2 percent in that year.
Rubber Reclaiming. Rubber products are re-
claimed in 20 plants across the United States with a
capacity of 412,500 tons per year. The reclaiming
industry's input products consist of obsolete tires, tire
parts (from tire splitters among others), retread buffings
(from retreaders), inner tubes, and similar obsolete
products (43.7 percent of inputs in 1968), rubber
manufacturing scrap (7.5 percent), and other industrial
rubber scrap (48.8 percent). Rubber reclaimers used
about 71,000 tons of old tires in 1968. The prices paid by
reclaimers vary from nothing to $10 per ton for tires
delivered to them.
Obsolete and new rubber wastes are reduced to a
uniform size by shredding and cracking; metals and
fibrous materials are removed; the rubber is mixed with
reclaiming oils, softened, and mixed with compounding
agents; and after further refining and milling operations,
the reclaimed rubber is sold in slabs or bales.
Reclaimed rubber production has averaged 297,000
tons a year in the 1958 to 1968 period. Production data
(Table 53) do not show a clearly discernible trend in the
direction of growth or decline. Reclaimed rubber as a
percentage of total rubber consumption has definitely
declined in the period, from 19 percent in 1958 to 9.3
percent in 1968, 8.8 percent in 1969, and a projected 8.5
percent level in 1970.
The no-growth production pattern of reclaimed
rubber viewed against the backdrop of an expanding
economy and rubber industry suggests that reclaimed
rubber is meeting stiff competition from natural and
synthetic rubber and other materials. This, in fact, is the
case. Some new tire-rubber formulations are in-
compatible with reclaimed rubber. This has kept reclaim
consumption in tires at a plateau. Rubber in a variety of
other applications, such as floor mats, hosing, belts,
footwear, and the like, has been in competition with
plastics. The only application in which reclaimed rubber
has exhibited a strong growth pattern is in cements and
dispersions; but these materials were only 3.5 percent of
total reclaimed rubber in 1969.
Retreading. Automotive and truck tire retreaders
are responsible for keeping a significant tonnage of tires
out of the waste stream — 734,000 tons in 1968 and
752,000 tons in 1969. The retreader usually buys unsorted
102 Pettigrew, R. J., and F. Roninger. Rubber reuse and solid waste management. [Public Health Service Publication No.
2124.] Washington, U.S. Government Printing Office.
103 Tonnage based on output of these industries rather than input; thus waste produced in retreading and fire splitting is
excluded as a by-product sold to rubber reclaimers and new rubber purchased by retreaders.
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82
SALVAGE MARKETS
tires from retailers at a price that brings his cost per
usable tire to less than $1.00, probably around $0.75. At
times when tires are in short supply, he may pay a tire
carcass wholesaler or tire broker from $1.25 to $3.00 a
unit. Sorting of tires acquired usually results in the
rejection of 50 to 80 percent of the tires collected. After
sorting, retreaders remove the remaining tread by
buffing and apply a new tread to the tire carcass. The
buffings usually become waste, but a small quantity is
recycled through reclaimers. Most of the rejected tires
must be disposed of by the retreaders at costs of $7 to $10
per ton or higher.
Unlike reclaimed rubber, consumption of retreaded
tires has grown in the 1958 to 1969 period at a rate of 2.1
percent yearly. This rate, however, has been slower than
new tire consumption, which grew at an annual rate of
6.8 percent. Thus, in 1958, 136.1 million tires were
produced, including 37.2 million retreads, or 27.3 percent
of total; by 1969, tire production had increased to 251.2
million units; retreads were 46.5 million units, or 18.5
percent (Table 54).
The decreasing use of retreads, relative to total tire
consumption, is a reflection of growing affluence,
competition from synthetic rubber tires specifically
designed and priced to be competitive in the retread
market, and technical problems within the retreading
industry which have caused costs to increase.
Tire Splitting. The tire splitting industry, consisting
of three companies, engages in the production of various
industrial products die-cut from obsolete tires. Typical
products are gaskets, shims, insulators, doormats,
conveyor rollers, belt pieces, and the like. This industry
takes in around 29,000 tons of tires, of which around
7,000 tons go out as various products, 18,000 tons are sold
to rubber reclaimers, and 4,000 tons go to waste.
Waste Rubber Trading. Rubber wastes, usually in
the form of obsolete tires and inner tubes, are handled by
secondary materials dealers; some are rubber specialists,
but this is a disappearing breed because rubber waste
handling is not a very profitable business. Rubber
dealers, who once paid waste generators for tires, are
converting their operation to a new basis — whereby
the generators pay them to remove the tires. Tires bring
anywhere from $5 to $14 per ton delivered to a
reclaimer's plant. Tire splitters pay $15 per ton. Since tires
occur in relatively small concentrations at garages and
filling stations, the sales price is usually insufficient to
cover a dealer's costs of picking up tires, removal and
disposal of unacceptable tires (excessively worn tires,
studded snow tires, steel-wire reinforced tires), and
delivery or freight to the reclaimer. He must be paid for
the removal service in order to stay in business.
Reclaimers, who can best use rubber wastes that are
already free of metals and fibers, pay considerably more
for such wastes than for tires. Thus retread buffings bring
$25 to $35 per ton, natural rubber inner tubes $120 to
$160, and butyl rubber inner tubes $100 to $120 per ton.
Conclusions. Conventional recycling and reuse of
rubber products is a limited activity at present. Rubber
waste recycling and reuse is growing very slowly, and
what little growth there is comes as a result of retread
tires sales; retreads are of declining importance in the tire
industry. The bulk of rubber production reaches the
discard state in the form of tires which, though largely
rubber, are composites of several materials, including
textiles and metals. The reprocessing of this rubber by
removal of impurities is less costly than production of
virgin rubber, but the cost advantages are not sufficiently
great in light of the technical limitations of reclaim, to
cause increased use of reprocessed rubber.
Rubber in mixed municipal wastes usually also occurs
as a component of products — soles and heels on
footwear, rubber backings on textiles, wire coatings,
gaskets and insulation in small appliances, etc. Some
rubber is pure (water bottles, rubber bands, toys) but this
is an insignificant portion of the total. Removal of these
materials from mixed wastes for recovery appears
impractical.
The most practical use-for rubber, particularly old
tires, appears to be raw materials recovery by distillation
or energy recovery; such technology is unproven in the
marketplace today. In addition, a critical cost and
logistics problem is the collection of tires to central
processing locations.
Plastics
The growth of plastics production continues at
impressive rates. In the I960 to 1970 period, plastics
production increased at a rate of 11.8 percent annually,
from 3.07 million to 9.35 million tons; forecasts place 1975
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FOR MATERIALS IN SOLID WASTES
83
consumption at 13.55 million tons and 1980 consumption
at 19.0 million tons.104 The greatest uses for plastics are in
construction and packaging (Table 55).
Today plastics are still only a small percentage (I.I
percent) of solid waste — an estimated 2.1 million tons in
193.7 million tons of collected wastes in 1968. For 1970, the
total was estimated at 2.55 million tons of plastic waste
collected, of which packaging was 1.8 million tons and all
other products were 0.75 million tons.105 Assuming a
growth rate for solid waste of 4 percent yearly and for
plastics at the rates given above, by 1975 plastics will be
1.5 percent and by 1980, 1.8 percent of collected waste.
The proportion may be even higher because con-
sumption of plastics packaging and housewares is
growing more rapidly than plastics consumption as a
whole.
The term "plastics" is an umbrella term that includes a
vast variety of chemical substances. Polyethylene (PE) is
the most common plastic, accounting for around 31
percent of total tonnage; polystyrene, 18 percent, and
polyvinyl chloride (PVC), 20 percent, are other materials
used in large quantities. Most plastics begin with oil
refinery byproducts or natural gas purification plant
products from which ethylene is produced in a pe-
trochemical plant. Polymerized ethylene yields pol-
yethylene; ethylene and chlorine yield vinyl chloride
monomer which is polymerized to PVC; ethylene and
benzene are combined to make styrene monomer and, in
turn, polystyrene.
Approximately 80 percent of plastics can be remelted
again after forming and are labeled "thermoplastics."
The remaining 20 percent "set" after forming and are
labeled "thermosetting" plastics. This category includes
phenolics, polyesters, epoxy, and other materials.
Thermoplastics are at least theoretically recyclable;
thermosets cannot be recycled with known technology.
Plastics Recovery. There are no data available to
indicate the quantities of plastics recycled. Our in-
vestigations, conducted predominantly through local
interviews and correspondence, revealed that waste
production in plastics fabrication is quite high, ranging
from 5 to 15 percent for all thermoplastics and from 10 to
30 percent for all thermosets. Thermoset wastes, of
course, cannot be remelted and go to disposal.
Fabrication waste reuse related to thermoplastic prod-
uction varies from operation to operation and from
company to company. We could discern no pattern.
Once plastics leave fabrication points, they are not
recovered (there is one exception that we shall discuss),
and there is no recovery from obsolete products.
Fabrication wastes, unless they are immediately
reused in the plant where they occur or are disposed of,
are acquired by plastics scrap processors who specialize
in regrmding scrap, color blending, and remelting. These
processors frequently operate on a contract basis,
returning wastes to the organization that provided them,
reformulated into a product that can be reused. These
processors also supply manufacturers that use scrap
plastics as an input material. We were able to identify 13
such companies in the United States.
Plastic scrap, as prepared by processors, is consumed
in the toy industry, in the manufacture of cheap
housewares, in the manufacture of plastic pipe, in the
production of artificial flowers, and in similar ap-
plications where (I) plastics properties and performance
are not paramount; (2) relatively noncritical processes
are used (compression molding or heavy extrusion); and
(3) the cost of plastic resin is a high proportion of total
product cost.
We know of only one instance where a plastics
product is recycled after doing service in the home. The
project involves a San Diego dairy that uses polyethylene
milk bottles. Following Earth Day activities in the San
Diego area, the dairy worked out an arrangement, with
the help of Dow Chemical, producer of polyethylene
resins, whereby bottles returned through the milkman or
placed into special supermarket bins were ground by the
dairy and the material was sold to a manufacturer of
drainage tile. Approximately 8 percent of the bottles
were returned; consumers were not paid for the
plastic.106
Plastic fabrication wastes are worth $10 to $20 per ton
for clear polyethylene, $40 to $60 per ton for clear
polystyrene, $90 to $110 per ton for clear vinyl, and $120
to $160 for clear cellulose acetate. These are prices paid
by processors. Virgin plastics sell for around $225 to $400
per ton for polyethylene, $310 to $350 for polystyrene,
104 Forecast by Society of Plastics Industry, Inc., transmitted in private communication dated Feb. 4, 197); 1970
production estimated by SPI.
105 Plastics in waste for 1970 estimated by Society of Plastics Industry.
106 Milk bottles to tiles. Chemical & Engineering News, 48(35):! 1, Aug. 24,1970.
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84
SALVAGE MARKETS
$240 to $400 per ton for vinyl chloride resins, and $1,240
per ton for cellulose acetate.
Problems of Plastics Recycling. Among the major
factors that combine to minimize interest in plastics
salvage and to limit severely the extent of recycling are
the following.
(I) Techniques for separating plastics from mixed
wastes are not available.
(2) Identification of plastics is difficult. Segregation of
waste plastics by resin type appears impossible. There
are currently over 700 different grades of polyethylene
alone.
(3) Degradation of resin properties and performance
occurs during the initial fabrication, through aging, and
in any reclamation process.
(4) The technology for purification and upgrading of
contaminated, degraded, and colored plastics simply
does not exist.
(5) Economics of collecting and shipping plastics to
points of reuse are generally unfavorable.
(6) Effective market mechanisms for trade in reclaimed
plastic materials have not developed.
(7) Standard grades and specifications for reclaimed
or salvaged plastics are not established or not widely
accepted.
(8) Plastics users distrust the uniformity of reclaimed
plastics and are generally unwilling to risk adding
another variable to the "inexact science of molding."
A fundamental obstacle to plastics recovery and reuse
springs directly from the synthetic origin of the resins.
Because resins are created in a relatively pure form, it
has not been necessary to develop the technology for
purifying and refining plastics.
Unlike the metals production process, which begins
with an impure ore which is progressively concentrated,
smelted, refined, and freed from impurities to create the
desired alloy, plastics processing begins with high purity
virgin polymer to which various nonresinous additives,
colorants, and reinforcements are added. All plastics
processing is downhill from pure and uniform resin to
blended, colored, shaped, and partially degraded plastic
products.
The recovery of metal scrap is made possible by
decades of metallurgical technology designed to up-
grade ores and concentrates. Likewise, paper stock
recovery is supported by the traditional steps of fiber
separation, refining, washing, and bleaching cycle which
also converts cut timber into papermaking furnish
although it is accomplished in different types of
equipment than virgin pulp making. Production processes
based upon purification, refining, and upgrading of
crude materials are capable of accepting scrap as
though it were partially processed ore or charge stock.
No analogous technology for plastics processing has
yet developed. Thus plastic scrap is never purified;
rather, the regrind is colored darker and used for less
critical products. Practical means of removing unwanted
contaminants are largely nonexistent.
The general rule governing the reuse of plastic scrap
seems to be: "If plastic leaves the machine on which it
was formed, it is no longer usable scrap; it's waste!"
The dominant pattern of plastics recycling, for these
reasons, is one in which the wastes of a process using
high quality resin are either blended back into the
process in limited quantities or are resold for use in a less
exacting application, sometimes passing through a
secondary materials operation where color blending,
repelletizing, and similar scrap preparation steps are
undertaken.
Value Recovery from Plastics. The rapid growth
of plastics and the very major barriers to their recovery
suggest that plastics in waste may best be used by
recovering their latent energy by incineration followed
by heat recovery. Plastics in waste (largely the packaging
portion) have a BTU value per pound of 15,770, thus the
highest BTU of any material in waste.107 The BTU value of
solid waste as a whole is around 5,500 BTU per pound
and rising as the proportion of paper and plastics
increases. Insofar as heat recovery will become an
accepted means of obtaining value from waste, the
presence of plastics in wastes will be beneficial —
provided that polyvmyl chloride materials, whose
combustion in the presence of moisture results in
corrosive hydrochloric acid vapors, can be eliminated or
equipment can be shielded from their corrosive effects.
Organics
Organics recovery includes animal and poultry
slaughtering waste recovery, food processing waste
utilization, reuse of lumber and saw mill wastes, recycling
107 Kaiser, E. R. Incineration of packaging wastes with minimal air pollution. In Proceedings; First National Conference
on Packaging Wastes, University of California at Davis, Sept. 22-24, 1969. Washington, U.S. Government Printing
Office, 1971. p.184.
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FOR MATERIALS IN SOLID WASTES
85
of textile fiber wastes (briefly discussed in Chapter VIII),
hog feeding with garbage from commercial and
institutional sources, composting of municipal wastes to
produce a soil-building material, compost mixed with
sewage sludge or synthetic nutrients for some fertilizer
value, and manure utilization.
Slaughter Waste Rendering. Rendering is a fairly
large waste processing activity that consumed 10.5 million
tons of organic wastes in 1969 and converted these to 5.0
million tons of various products.108
Rendering industry inputs come from slaughtering
plants, breaking plants (where carcasses are cut into
retail cuts), food stores, restaurants, and from the
collection of dead animals. Industry outputs are grease
and tallow (41.5 percent), meat meal (48.6 percent), bone
meal (3.4 percent), feather meal (2.2 percent), and other
(4.3 percent).
Animal fats sold domestically (approximately two-
thirds of total) are made into soap (24.4 percent), fatty
acids (23.3 percent), animal and poultry feeds (41.2
percent), lubricants (3.6 percent), and other uses (7.2
percent).
Protein products are used almost exclusively in the
domestic animal feed industry. Only feather meal is
exported in substantial quantities, but this material is a
small percentage of total.
Industry shipments were 5.3 million tons in 1963, 6.5
million tons in 1967 (Table 56), and an estimated 5.0
million tons in 1969.
Using estimates of input materials consumed by
renderers and production of end products from inputs
provided by the National Renderers Association, it
appears that 2 tons of inputs are'required per ton of
output, the difference being moisture and product loss in
rendering. Value of products shipped was an average of
$89 per ton in 1967 and the cost of materials to the
industry was $54 per ton of shipments, or about $27 per
ton of input. Although we could not get confirmation for
this, we conclude from the above that prices paid for
organic wastes range from $15 to $35 per ton depending
on quantities obtainable from a source, distance to
rendering plant, and other similar factors.
In 1967, 588 establishments employing 13,800 people
comprised the rendering industry. Roughly half these
were independently owned, half were affiliated with the
meat and poultry industries. The majority were livestock
waste rendering operations.
Food Processing. The food processing industry,
excluding meat and poultry processors, generates a
variety of food wastes, some of which occur in solid form
(eggshells, fruit, peelings, bran, and coffee grounds), and
some of which are usually viewed as liquid wastes,
(whey). With isolated exceptions, food wastes are
disposed of since their recovery is uneconomical,
impractical, or in violation of sanitation standards.
Some food plant wastes are used in hog feeding
operations.109 Approximately one-third of the 800,000
tons of whey solids produced in dairy operations yearly
is sold to formula-feed companies and farmers for
animal feeding.110 California peach canners convert
peach stones into charcoal by pyrolysis.1'' Phar-
maceuticals are made from citrus fruit wastes,112 and
there are also recovery operations that convert cereal
grain processing wastes into animal feeds.
Although there are no data available on the total
quantities of food wastes recovered, all indie ations are
that the tonnage is quite small. The chief reasons for this
appear to be the following.
(I) Food wastes can best be processed into animal
feeds, where high protein or oil content is desired at
relatively low cost. Fruit and vegetable wastes are low in
protein; high protein animal wastes are already
recovered by the rendering industry.
108 Based on estimates and observations provided by Personal communication. O. H. M. Wilder, National Renderers
Association, Inc., to A. J. Darnay, Midwest Research Institute, Nov. 1969.
109 Systems analysis for solid waste disposal by incineration. Prepared by FMC Machinery/Systems Group, Engineering
Systems Division, FMC Corporation, for the City of San Jose and the County of Santa Clara, Nov. 1,1968. p.32.
110 Burch, J. E., E. S. Lipinsky, and J. H. Litchfield. Technical and economic factors in the utilization of waste products.
Food Technology, 17(10).-59, Oct. 1963.
1'' Mercer, W. A. Industrial solid wastes; the problems of the food industry. In Proceedings; National Conference on
Solid Waste Research, Chicago, Dec. 1963. American Public Works Association, 1964. p.56.
112 Sales from scraps. Chemical Week, 95(20):94, Nov. 14,1964.
-------
86
SALVAGE MARKETS
(2) The use of pesticides, which tend to show up in
vegetable and fruit skins (the waste products) render
these wastes undesirable in animal feeds.''3
(3) Recovery of proteins from food wastes is costly.
Ionics, Inc., estimated114 that the cost per ton of protein
produced from organic urban refuse in the form of torula
yeast would be between $276 and $356; this compares
with $164 to $252 per ton of protein in animal meal.
Production of dried press cake, a dewatered byproduct
of tomato juicing and canning, was estimated to cost
$160 per ton in 1952;115 this material contains 22.5
percent protein; thus cost per ton of protein was $516.
Waste recovery is beginning to arouse new interest in
the food industry — not because profitable new markets
for such products beckon but because costs of disposal of
both solid and liquid wastes are increasing. One food
industry research scientist has proposed conversion of
bran into a coarse plastic, recovery of lactose and
protein from whey by use of a molecular sieve,
conversion of coffee grounds into molded products, and
conversion of eggshells into thermosetting insulation
materials.1 l6Such proposals are still only bandied about.
Technical feasibility does not ensure the presence of
markets for such converted products.
Agricultural Wastes. Less than 1 percent of crop
residues produced in 1952 (200 million tons in that year
and an estimated 550 million tons in 1968) were used for
various types of building boards, in paper, as soil
conditioners, animal feeds, poultry house litter, furfural,
in alcohol production, in sugar solutions, in yeast
production, as packing material, and as sweeping
compounds.117 Since 1952, the consumption of such
residues in at least two applications (building boards and
paper) is known to have declined substantially. Most crop
residues are left on the field, however, and being
degradable they eventually return to the soil and are not
a municipal solid waste management problem. Animal
manures, produced at an estimated rate of 1.5 billion tons
in 1968, occur largely in rural settings where they continue
to have some use for fertilizer. There is also some
composting of agricultural wastes. In general, the trends
to heavily populated animal feed lots and new farm
management techniques are tending to accentuate the
solid waste disposal problems where they might have
been of minor concern in earlier times.
Wood. Wood wastes occur in logging operations
and analogous urban tree-trimming and tree-cutting
activities, in lumber mills, in lumber conversion, in
construction, and similar operations that harvest or
convert wood. Discarded wood products in municipal
waste is around 2 percent by weight.'
Wood wastes are used in essentially four areas: (I) as
agricultural mulches, cushioning agents (under fruit trees
and on ski slopes) weed control agents (weeds will not
grow in an area such as the center strip of a highway
covered with wood chips), poultry litter, and similar
agricultural and horticultural applications;118 (2) as
inputs to building board mills and paper mills; (3) as a
fuel, both by generators of the waste and others,
including conversion of wood wastes to charcol, burning
of special wood species (hickory, maple, birch, beech,
oak, gum, walnut) in meat smoking, in the baking of
special foreign pastries, tobacco curing, brooder heat-
ing, and in household uses; and (4) in chemical
applications such as distilleries, vinegar manufacturing
(to provide bacterial aeration), gas purification (sulfur
removal by use of iron oxide impregnated hardwood),
and tanning.119 A substantial portion of the paper
industry in the Pacific Northwest is based on sawmill
wastes for its raw materials.
Data on waste generation and reuse for three wood-
using industries (sawmills, wood container man-
113 Meller, F. H. Conversion of organic solid wastes into yeast. An economic evaluation. Public Health Service
Publication No. 1909. Rockville, Md., U.S. Department of Health, Education, and Welfare, 1969. p.25.
114 Meller, Conversion of organic solid wastes, p.148.
115 Burch, Lipinsky, and Litchfield, Technical and economic factors, p.59-60.
116 Salvaging profit from waste. Chemical Week, 101 (12):109, Sept. 16,1967.
117 Meller, Conversion of organic solid wastes, p.26, citing Dale, A. C. Agricultural residues. In Proceedings; Seventh
Industrial Waste Conference, Lafayette, Ind., May 7-9, 1952. Purdue University Engineering Extension Series No. 79.
p.12.
118 Utilization: wood wastes find new uses. American Forests, 72(6):38-40, June 1966.
119 U.S. Forest Products Laboratory. Uses for slabs, edgings, and trims. U.S. Forest Service Research Note No. FLP-038.
Madison, U.S. Department of Agriculture, 1964. p.9-11.
-------
FOR MATERIALS IN SOLID WASTES
87
ufacturers, and wood furniture manufacturers) were
developed by survey for 1965 by Combustion En-
gineering, Inc.120 The same research also resulted in an
estimated weight of wood of 8.1 pounds per board foot,
a board foot being the standard measure of lumber
consumption.121 Although the weight measure is not
strictly applicable to all types of wood, it does provide
an approximation of the weight of lumber consumed in
1965170.5 million tons.122 Waste production in the same
year was as follows: sawmills, 9.630 million tons; wood
container manufacturers, 2.488 million tons; wood
furniture manufacturers, 2.099 million tons, for a total
waste production of 14.2 million tons.123 These three
industries reused 66, 51, and 26 percent of their wastes,
respectively, or a total of 8.2 million tons, equivalent to
4.8 percent of consumption in 1965. These industries do
not represent all the wood-using operations that produce
wastes and reuse portions of them. Furthermore, waste
reuse here includes burning of wood as fuel, a form of
"reuse" not associated with other materials covered in
this report. Thus the reuse to consumption ratio used here
should not be compared to that of other materials.
Tree-cutting wastes generated in muncipal operations
are sometimes chipped and used as mulch in city parks.
Lumber wastes are sometimes recovered from dumps and
landfills (especially in small towns) and used as fuel or
reused in various structures (fencing, repair, etc.).
Individuals frequently cart off lumber from incinerator
sites where it is accumulated for disposal either by
hogging,-incineration or by landfill if pieces are too large
for the furnaces and no hogger is available. Demolition
companies also salvage wood for reuse as lumber or for
sale as firewood. Such recovery of "obsolete" wood,
while practiced, is an extremely minor activity.
Inorganics
The two major classes of inorganic materials that are
significant from a municipal waste management stand-
point and have not been discussed to this point are
building rubble and ashes. Mine tailings, probably the
single largest inorganic waste material category (1968
generation was an estimated I.I billion tons), do not occur
in municipal wastes.
Building Rubble. Except for portions composed of
asphalt, paper, wood, plastics, textiles, and other organic
materials, building rubble consists of concrete, bricks,
rock, masonry, plaster, clay, glass, nonferrous metals,
and steel. These materials occur when buildings and
other structures are torn down, roads are taken out,
sewer systems are changed, and other constructions are
altered.
Combustion Engineering, Inc., in its previously cited
report, estimated that in 1966, 19.1 million tons of
demolition wastes were generated and that virtually all
this material went to disposal without salvage.
Salvage is practiced, of course, but it is losing its
importance except in those instances where large
quantities of a valuable material can be recovered (steel,
from steel frame buildings and nonferrous metal fixtures
and installations). The nonmetallic inorganic fraction of
demolition wastes is becoming less and less desirable to
salvage; the solvable items include brick and stone;
concrete (much like thermosefting plastics) is useless
except perhaps as fill material. The scarcity of semiskilled
labor necessary to justify the considerable hand labor
needed for salvage and rising labor costs is probably
responsible for the demise of demolition salvage.
Inorganic building rubble is used for landfill in
preference to organic wastes. It provides a good
substructure for subsequent construction when used in
combination with other fill materials.
Ashes. If incinerator ashes are clean inert residue,
they can be used as landfill cover by municipalities. This
is the most common "use" of incinerator residue.
However, most incinerator residue from operating
incinerators needs cover because the burn-out is not
complete. In Amarillo, Texas, incinerator residues, free of
cans, were for a time sold to a railroad, which used the
material in road-bed maintenance. Other cities use a
portion of this residue for fill material in municipal public
works jobs.
120 Technical-economic study of solid waste disposal needs and practices, p.116.
121 Technical-economic study, p.27.
122 Consumption in 1965 was 42.1 billion board feet; this amount at 8.1 pounds per board foot is 170.5 million tons.
Consumption data from U.S. Bureau of the Census. Pocket data book. U. S. A. 1969. Table 304. Lumber. Washington,
U.S. Government Printing Office, 1969. p.233.
123 In addition to wood, these wastes include such things as upholstery wastes, styrofoam, sandpaper, etc., in unknown
proportions.
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88
SALVAGE MARKETS
Fly ash, produced by electrical utilities in the
combustion of coal, is reused in many types of
applications. In 1965, 20 million tons of fly ash were
produced in the United States in the combustion of 226
million tons of coal. Fly-ash utilization in the same year
was 1.3 million tons, or 6.5 percent of production. In that
same year, the utilization rate in England was 39 percent
of production, in France 50 percent, and in Germany 27
percent.124
Fly ash has four major uses in the United States: (I) in
concrete; (2) in road construction as a soil stabilizer and a
material to strengthen the road base immediately under
the paving; (3) as an asphalt paving filler; and (4) in the
production of lightweight aggregate. Its minor uses
include its use as an additive to foundry sands, an
additive to masonry mortar, use as a blasting compound,
use in acoustical blocks, a constituent in heat insulating
cement, as a soil conditioner, and as a filler in roofing
materials, fertilizers, soap, paper, rubber, asphalt tile,
and the like.125
Fly ash reuse is increasing in the United States, not
only absolutely but also in proportion to total prod-
uction. In 1963, sales were 739,000 tons;126 in 1965, 1.30
million tons; and in 1967, 1.56 million tons.127 During this
period, fly-ash production has been just at or below 20
million tons.
The technical advantages of fly ash in construction
materials are well known to specialists, but the
knowledge is not widespread in the construction industry.
Fly ash is useful in concrete because it reacts with calcium
chloride at normal temperatures to form products with
binding properties, such as calcium silicates. The
compactness of concrete is increased and its tendency to
shrinkage and breakage is decreased by use of fly ash as
a concrete component. In addition to these char-
acteristics of fly ash concrete, it is also easier to pour and
mold than ordinary concrete, has an improved resistance
to thermal shock and chemical attack, and is generally $1
per cubic yard cheaper than regular concrete.128
Acceptance of fly ash as a concrete additive appears
to be a slow process in the United States. European
countries have also found that penetration of tradition-
bound construction markets takes time. Europeans have
been more successful in selling fly ash, however, in part
because of the need to use all available resources in
rebuilding Europe following World War II and the fact
that fly ash sales and utilization research is in the hands
of large government- operated electrical generation
industries that coordinate such efforts for entire countries
(England and France).129 All indications are that U.S.
efforts to sell fly ash will succeed in keeping an
increasing proportion of this material out of waste. Since
the mid-1960's, intensive efforts have been made,
especially by the utility and the coal industries, to
establish a framework for coordinated buyer education
and promotion of fly ash.
In addition to fly ash, utilities also generate bottom
ash — heavier ash particles that collect at the bottom of
furnaces. Production of this material in 1967 was 9.2
million tons; recovery was 2.3 million tons, or 25
percent.130 Bottom ash goes into the same markets as fly
ash except for aggregates. The largest tonnage of
bottom ash is sold as a construction fill material, while fly
ash has the most tonnage as a concrete additive (Table
57).
124 Brackett, C. E. Availability, quality and present utilization of fly ash. Combustion, 38(11):41, May 1967.
125 Brackett, Availability, quality and present utilization of fly ash, p.44-45.
126 Capp, J. P. Fly ash utilization. Combustion, 37(8):36, Feb. 1966.
127 Meikle, P. G. Fly ash and bottom ash. Mining Engineering, 21(1):61, Jan. 1969.
128 Bender, R. J. More intensive utilization of flyash. Power, 109(6):94, June 1965; Roman, G. H. You can save money with
fly ash, Coal Age, 73(8):62, Aug. 1968.
129 Bender, R. J. Fly ash utilization makes slow progress. Power, 111(5):116,118,120, May 1967. This source also points
out that France experienced a serious cement shortage in the early 1960's during which fly ash was used extensively and
became "institutionalized."
130 Meikle, Fly ash and bottom ash, p.61.
-------
TABLE 51
NEW AND RECLAIMED RUBBER CONSUMPTION IN 1969, IN
1,000 TONS, PERCENT, AND BY MAJOR INDUSTRY SEGMENT*
New rubber Reclaimed rubber Total
Segment
Tires
Wire-cable
Foams
Footwear
Mechanical goods
All other
Total
Tons
1,950.3
29.1
101.9
174.6
451.2
203.8
2,910.9
% Tons
67.0 188.6
1.0
3.5
6.0 2.8
15.5 16.5
7.0 71.9
100.0 279.8
% Tons
67.4 2,138.9
29.1
101.9
1.0 177.4
5.9 467.7
25.7 275.7
100.0 3,190.7
%
67.0
0.9
3.2
5.6
14.7
8.6
100.0
*1969 review, 1970 preview. Rubber Age, 102(l):l»7-6l, Jan. 1970.
Pettigrew, R. J., and F. Roninger. Rubber reuse and solid waste manage-
ment. [Public Health Service Publication No. 2124.] Washington, U.S.
Government Printing Office, 1971. 120 p.
88-1
-------
TABLE 52
RUBBER RECOVERY FOR SPECIFIC
USES IN 1968 AND 1969, IN 1,000 TONS*
Type of user
Reclaimers
Ret readers
Tire Splitters
Total
1968
287.85
733.80
6.99
1,028.64
1969
279.80
752.05
7.00
1,038.85
*Pettigrew, and Roninger, Rubber reuse and solid waste management.
88-2
-------
TABLE 53
RECLAIMED RUBBER PRODUCTION,
1958-1969, IN 1,000 TONS*
Year
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
Tonnage
290.8
228.7
328.0
295.5
314.2
315.2
309.4
313.9
310.7
272.9
287.5
280.0
*Pettigrew, and Roninger, Rubber reuse and solid waste management.
88-3
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88-4
-------
TABLE 55
CONSUMPTION OF PLASTICS, 1967 TO 1969, TOTAL AND SELECTED
MAJOR END USE MARKETS, IN 1,000 TONS*
End Use Market
Consumption in selected markets :
Agriculture
Appliances
Transportation
Construction
Electrical
Furniture
Housewares
Packaging
Toys
Total consumption
1967
75t
198
109
1,070
396
250 t
313
1,121 t
208
6,550
1968
85
238
334
1,215
452
273
373
1,508
243
7,558
1969
95
234
536
1,327
567
328
425
1,729
269
8,535
Percent 1969
1.1
2.7
6.3
15.5
6.6
3.8
5.0
20.3
3.2
100.0
*The statistics: 1969. Modern Plastics, 47(1):69-80, Jan. 1970.
The plastic industry in 1968. Modern Plastics Pamphlet, Jan. 1969. New
York, McGraw-Hill, Inc.
tMRI estimates made to provide comparable data for year; source provided
only 1965 data.
Note: This consumption pattern does not include all plastic uses.
Construction accounts for about 25 percent of end use applications and
packaging about 20 percent. Thus construction is somewhat underreported
by these sources.
88-5
-------
TABLE 56
RECOVERY OF ANIMAL ORGANICS, 1963 AND
1967, IN 1,000 TONS AND VALUE PER TON*
1963
Organic category
Grease and tallow
Protein meals
Total
Weight of
shipments
2,353
2,973
5,326
Value
per ton
112.28
82.98
95.91
1967
Weight of
shipments
2,692
3,797
6,489
Value
per ton
112.82
72.35
89.13
*1967 Census of manufacturers, v. 2. Industry statistics, pt. 1.
Major group 20H. Food and kindred products; fats and oils—animal and
marine fats and oils. Washington, U.S. Government Printing Office, 1971.
88-6
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TABLE 57
UTILIZATION OF ASH IN UNITED STATES, 1967,
IN 1,000 TONS AND PERCENT*
Markets
Road and construc-
tion fill
Concrete additive
Lightweight aggregate
Stabilization for
road base
Cement manufacture
Asphalt filler
Miscellaneous
Total utilized
Total collected
Fly
Tons
300
600
150
120
150
120
120
1,560
18,500
ash Bottom
$ Tons
19.2 1,150
38.5 200
9.6
7.7 50
9.6 50
7.7 35
7.7 820$
100.0 2,305
8.4 9,200
ash t Total
% Tons
43.3 1,450
15.2 800
150
2.2 170
2.2 200
1.5 155
35.6 940
100.0 3,865
25.1 27,700
%
37.5
20.7
3.9
4.4
5.2
4.0
24.3
100.0
14.0
*Meikle, Fly ash and bottom ash, p. 60.
tlncludes boiler slag.
tlncludes blasting grit, ice control, agriculture, and roof filler.
88-7
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89
CHAPTER X
LEGISLATIVE AND POLICY CONSIDERATIONS
In this chapter we shall outline some of the key issues
and problems that need to be considered in the framing
of legislation or policy to bring about a proportionally
higher rate of secondary materials consumption.
In general, we favor a "global" or "systems"
approach to recycling policy in which all pertinent
aspects of recycling are given a fair hearing. Thus we do
not see recycling solely as a materials conservation
activity or only as a solution to solid waste management
problems but broadly under the rubric of "resource
conservation," with "resource" understood to include
both tangible and intangible values.
Today roughly 25 percent of paper, metals, glass,
textiles, and rubber are recycled through the market
(Table 58), around 48 million tons of materials that need
not be handled as solid waste. If other materials are also
included, such as plastics, wood, ashes, stone, brick, and
the like, the recycled proportion is much lower, of course,
but we have no reliable estimates of the quantitites of
these latter materials involved.
Why can't we recycle a larger proportion of our
wastes and thus unburden our waste management
systems? The reason is that demand for scrap materials is
limited. These commodities compete with virgin natural
resources whose use and processing have become
rationalized and institutionalized in large part because in
earlier decades wastes were not available in sufficient
quantities to satisfy demand for materials while virgin
materials were abundantly available. Scrap recovery
techniques — in the broad sense of acquisition,
upgrading, processing, and distribution — have not
changed significantly in the 20th century. In the
meantime, the mining or harvesting, purification, up-
grading, and processing of virgin materials have made
dramatic technological and economic strides forward.
Today scrap use is frequently uneconomical because
the productivity of labor associated with acquisition and
processing of virgin materials is greater than labor
productivity in scrap acquisition and processing. For
instance, a steel producer finds it cheaper (I) to mine,
beneficiate, and ship ore; (2) to mine and transport
fluxing materials; (3) to produce coke from coal (which
was also mined and moved); (4) to produce pig iron from
these materials; and (5) to produce steel from pig iron
(sometimes using oxygen extracted in air liquefaction
plants) than to acquire, remelt, and reformulate steel
scrap.
In addition to greater labor productivity consequent
upon use of advanced materials processing technology,
processors of virgin materials also enjoy depletion
allowances when extracting virgin materials. Where
these processors do not meet air, water, and solid waste
standards in manufacturing — or where these standards
are leniently set — the processors do not pay the full
environmental costs created by pollution and waste
generation associated with their virgin materials uses.
Many raw materials, also, come principally from foreign
sources (like bauxite) and their use contributes to a
foreign trade imbalance.
By contrast, secondary materials are not credited with
conserving natural resources, get no credits for con-
tributing favorably to our foreign trade balance, get no
credit for removing materials from the waste stream, nor
credits for providing materials whose processing usually
pollutes the environment less than the comparable
processing of virgin materials.
When all of the costs of virgin materials use —
including those usually disregarded — and all of the
benefits of secondary materials are considered, sec-
ondary materials would probably turn out to be less
uneconomical than they appear to be from an ex-
amination of the status quo. As yet, information is not
available to establish whether or not this judgment is
accurate and, if it is, how it can reorder our economic
-------
90
SALVAGE MARKETS
accounting structures to bring about greater use of
secondary materials. Public policy can be directed
toward gaining a more comprehensive knowledge of
total costs, both tangible and intangible, of various
materials processing systems.131
Fundamental Legislative/Policy Issues
Why Policy Considerations? Legislation to
increase the quantities of waste materials recycled
appears justified if the total socioeconomic costs of using
virgin raw materials are higher than costs of the
alternative use of secondary materials. Given our
traditional economic accounting methods, manufacturers
experience only a portion of the real or total costs of
their materials; some part of total costs occurs externally
to industry and externally to the seller-buyer relationship
wherein the market value of materials is determined. Any
costs that are not incurred directly in a formal financial
accounting sense go unrecognized in the commercial
system. In this sense, the cost of environmental pollution
may be passed along to the population in dirty water,
air, and land if the dollar cost of physical control of
effluents is not borne by the polluting industry. Thus.the
market mechanism is not a sufficient guarantor that those
materials will be used that have the lowest total cost. It is
in these instances where governmental intervention is
desirable so that the best use is made of natural
resources. l32
Resource Versus Materials Conservation. In
line with this analysis, it appears that public policy aimed
at increasing the proportion of secondary materials
recycled must be considered within a larger context than
that of materials recovery or solid waste management
alone. The appropriate context is that of resource
conservation, whereby resource is defined broadly to
include all substances, energies, manpower, and con-
ditions that we value.
Given a resource conservation context, some products
are probably "cheaper" if made from virgin materials;
others, cheaper if made from secondary materials. It
would clearly be undesirable, for instance, to recycle an
abundant material if in so doing two or three times more
energy, water, and manpower are expended and
pollution is generated than in obtaining the same
material from natural deposits. Materials conservation is
not necessarily identical with resource conservation.
The concept of resource conservation also permits
taking into consideration certain intangible values that
are not usually counted in normal cost estimates. For
instance, maximum recycling may require an extremely
high degree of governmental intervention in industrial
decisionmaking. While this may be desirable in order to
conserve fossil fuels, scarce materials, and environmental
purity, the Nation's commitment to a free-enterprise
economic system may be viewed as a value or resource
too great to be sacrificed.
The Problem of Comprehensive Economic
Accounting. When is it "cheaper" to use secondary
materials? The answer would be easy to give if the total
costs, tangible and intangible, costs of producing,
distributing, using, and disposing of materials were
known.
Today, financial accounting practices, industrial
reporting practices and census survey practices do not
permit the tracing of a material all the way from a mine
to the terminal disposal point, showing at each step in the
process, the energy consumed and the energy effluents
produced, the water consumed and the quality of the
liquid effluent, the solid waste generated, the manpower
inputs required, and the like — both in production and
transportation steps. These are measurable external cost
elements but they are not available today.
Such data are not readily available because they
were not heretofore needed. Meaningful environmenta1
analysis, however, requires data on the total en-
vironmental impact of a product or material.
To compare the solid waste generation associated
with a steel can, for instance, versus a glass bottle, it is
not enough to know what each one weighs and how
much space each occupies. One also needs to know the
quantity of mine tailings generated in mining raw
131 The Resource Recovery Act of 1970 is an example of very recent legislation that moves in this direction. Resource
Recovery Act; Public Law 91-512, 91st Congress, H.R. 11833, October 26,1970. [Washington, U.S. Government Printing
Office, 1970.] 9 p.
132 This concept is gaining some currency at present. For example, a trade press article that was concurrent with the
writing of this chapter is: Spofford, W. O. Jr., Closing the gap in waste management. Environmental Science &
Technology, 4(12):1108-1114, Dec. 1970.
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FOR MATERIALS IN SOLID WASTES
91
materials, unusable residues generated in raw materials
conversion, quantities of unsalable fabrication wastes
generated, and the like. Solid waste generation is only
one of the many dimensions of external costs.
To develop meaningful public policy to advance
recycling, the first step is to acquire such data for at least
major material groupings (including secondary materials)
and product categories within each. Some of the types of
data needed are the following.
(I) Materials compositions of major product classes,
including proportions of materials in blends (cotton-
synthetic textiles).
(2) Detailed transportation data on materials and
products, on a comparable basis for air, water, rail, and
truck modes, by type of fuel consumed in each mode, ton-
miles of movement, and similar data.
(3) Solid wastes generated in production of materials
and products, by type of material, showing portions sold,
reused internally, and disposed of.
(4) Fuel consumption, by type of fuel and conversion
system, stationary and mobile, in all major mining,
harvesting, processing, and fabrications operations.
(5) Gaseous effluents generated in various types of
transportation and production operations, related to
output tonnage.
(6) Water use in transportation and production
operations, related to output tonnage, including data on
intake, discharge, and consumption and on water
impurities in influent and effluent waters.
(7) More detailed "materials consumed" data by
industry classification, in comparable units of measure
(pounds or tons, instead of square inches of glass,
number of chickens, board feet 'of lumber, yards of
clothing, etc.) with detailed indication of types of waste
materials consumed.
(8) Detailed data on processing losses "not accounted
for" in gaseous, water, and solid waste effluents.
(9) Detailed cost breakdowns in transportation and
production, insofar as these are not available, showing
costs of manpower, materials, energy, water, etc. —
especially on captive production operations such as
primary aluminum smelting, pig iron production, wood
pulping, and the like.
Data collection should be by actual survey, should
result in national averages and ratios related or relatable
to specific materials by weight, and should be com-
parable for all production sectors, whatever their
outputs. Data collection should be continuous and should
be institutionalized in the appropriate Federal agencies
— Commerce, Interior, and Agriculture. The En-
vironmental Protection Agency and its Solid Wastes
Management Office provides a focus and has the need
for such data, while the National Materials Policy Act of
1970 provides legislative sanction.
Once such data are available and are analyzed in
combination with information on exports and imports of
materials, natural resource inventory data, population
and production forecasts, national defense materials and
energy requirement forecasts, and other measurable
factors, an important step has been taken to determine
the relative costs of using secondary versus virgin
materials.
This still leaves the problem of establishing priorities
for different types of values. For instance, what is more
desirable, to import fossil fuels at the expense of foreign
trade balance and domestic production and employment
while conserving the national resource or to maintain a
favorable trade balance and domestic production at the
expense of depleting the domestic stockpile? These are
questions that must necessarily be resolved by the
political process.
Cost Allocation Issues. Public policy to increase
recycling, framed within the context of resource
conservation, will necessarily be based on the as-
sumption or finding that on a national basis, if not on an
industry basis, recycling is less costly than use of virgin
materials.
Clearly also, new legislation will be necessary only if
the higher total costs of virgin materials are not reflected
in the market value of materials and therefore a
legislative reallocation of costs will be required. Pollution
control legislation, requiring manufacturers to clean their
gaseous and liquid effluents; changes in import/export
regulations and legislation; and a host of other
legislative changes whose objective is something other
than recycling of wastes may gradually result in a
reallocation of costs, which in turn may be reflected in
the market value of products and ultimately may increase
recycling. Changes in economic factors such as price
increases for fuels, virgin raw materials, or transportation
brought about by scarcity, technological changes, or
increased'labor costs may also result in a shift in values
favoring secondary materials. Barring such "natural"
changes, however, legislated cost reallocation will
become necessary to achieve resource conservation
desired by the Nation.
In order to bring about the recycling of secondary
materials, cost allocation must necessarily work out so
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92
SALVAGE MARKETS
that the internal as well as external costs of materials use
will be internalized by industry. This means that
manufacturers (and in turn final consumers) must pay
(directly or indirectly) costs created by their materials use
that arise from environmental quality preservation,
material and energy conservation, defense posture,
social welfare, or other considerations.
Such cost criteria are already recognized by man-
ufacturers; one example is the minimum wage. Leg-
islation requiring recognition of external costs not now
borne by industry would thus be the extension of
precedents already established. From industry's view-
point, of course, any such legislation would represent a
further constriction of the magic circle within whose
boundaries freedom of economic choice is still possible.
Always assuming that total cost of virgin materials use
is greater than secondary materials use, legislation will
necessarily have the effect of restricting virgin materials
use by rendering its use actually more expensive than use
of waste commodities. This can be accomplished, in
practice, (I) by making the acquisition, processing, and
distribution of virgin-based products more expensive in
some way while maintaining the costs of secondary raw
materials unchanged or (2) by putting on the market
secondary materials technically equivalent to virgin
materials at a cost sufficiently low so that manufacturers
can avoid waste use only at their economic peril.
Raising virgin material prices vis-a-vis secondary
material prices can be achieved directly in the form of a
tax on any material obtained from natural resources or
indirectly by forcing the manufacturers to spend more in
the form of pollution control expenditures, transportation
charges, environmental maintenance (mine-site land-
scaping, for example), higher energy cost, longer
depreciation schedules, lower depletion allowances, etc.
However achieved, higher virgin materials costs
would also require some control over secondary
materials costs as well. Otherwise, secondary materials
prices might simply rise in proportion to virgin materials
prices as a result of increased demand and stabilize at a
new and higher level without net changes in the actual
consumption ratio of secondary to virgin materials. The
net effect would then be higher prices for the consumer.
This requirement implies at least some additional
governmental control (direct or indirect) over the
secondary materials industry — at least during the
period of transition between the current situation and
one where waste materials are used in a significantly
higher proportion.
The other major approach — that of creating a
supply of technically acceptable secondary materials at
irresistibly low prices relative to virgin materials—can
be achieved by fostering the development and use of
technology to acquire and process such materials and by
achieving an economic relationship on the price of such
materials so that they are cheaper than equivalent virgin
materials. The amount of subsidy that may legitimately
be made available for this purpose should be no more
than the difference between market cost of virgin
materials and their real or total cost including external
cost.1"
It is clear from this line of reasoning that adequate
data on total costs of materials (a "materials policy") is
the best way to justify legislative intervention. Lacking
such data, the Government is certain to be accused of
arbitrary behavior and of artificially raising the cost of
materials. Thus the National Materials Policy Act of 1970
is a key piece of legislative authority for working toward
a meaningful materials policy.
The Need for Demand Creation
Demand for waste commodities is limited; the low
demand is not caused by a lack of supply but by other
factors. This is not generally understood. Rather, we
frequently encountered the opinion, in the course of this
study, that "if only waste commodities were made
available, they would be consumed." This opinion is
quite natural. People have a "gut feel" that wastes must
be cheaper and that consequently they must be
preferable to manufacturers.
We found that the supply of waste commodities is not
the critical aspect of secondary materials use. Instead, the
critical parameter is the demand for waste commodities
relative to virgin resources. Unless secondary materials
are viewed more favorably as a raw materials supply by
industry and unless the relative value relations are
133 Example: if the market cost of a virgin material is $100 per ton but its total cost including external considerations is
$150 per ton, acceptable secondary material supplies can be subsidized at the rate of $50 per ton (less any external
costs attributable to the secondary materials). Every time a ton of secondary material is sold to displace a ton of virgin
material, $50 in external costs is saved; these savings are used to create resources from waste. If the waste resources can
be made available for $40 per ton, then $10 in "resources" has been conserved.
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FOR MATERIALS IN SOLID WASTES
93
changed to help bring this about, then the demand for
waste materials will remain stationary in relation to total
consumption (at best) or it will decline.
In such a situation, programs to remove saleable
materials from municipal wastes may actually succeed
— but they will do so by taking existing markets from the
secondary materials industry. This is illustrated by the
following hypothetical situations. The situations assume
conditions of steady need or demand for 100 units of a
given product.134
Situation One (Figure 23) represents a hypothetical
condition today where total need or demand for a
product is 100 units. After the 100 units are discarded, the
manufacturing sector recovers 10 units for recycling while
90 units are added to the municipal disposal inventory.
Manufacturing withdraws 90 units from the virgin
material inventory for manufacture and distribution to
customers of 100 new units for use and discard; the cycle
repeats.
In Situation Two (Figure 24), the municipal waste
sector invests sufficient capital in technology to recover 5
units from its 90 units of waste stream in order to effect
"resource recovery" and reduce solid waste disposal
quantities. Since demand for recycled units remains at a
grand total of 10 units, the traditional secondary
materials handling system loses markets for 5 units that
can no longer be sold to industry. Thus, the 5 units no
longer economically recoverable by industry are instead
diverted into the waste stream. The waste system then
must really process a total of 95 units (instead of 90) of
which it disposes of 90 just as before and recovers 5 units,
which it sells to industry. The net result is that the waste
system must handle 5 more units of waste and must still
dispose of the same quantity as before. The secondary
materials industry loses its ability to collect and process 5
units.
The point of Situation Two is that the expenditure of
capital and the development of waste processing
technology do not necessarily lead to greater recovery of
secondary materials and may lead to greater quantities
handled by the waste system while the supply of
recovered secondary materials remains unchanged in the
whole system. Simply making a supply of material
available does not assure its consumption. Demand for
this material must increase in concert with or in advance
of the actual recovery or the system does not change the
total waste disposal quantities.
In Situation Three (Figure 25) demand for recycled
units is increased to 20 units while total product demand
remains at 100 units. A new situation now arises.
In this case, the manufacturing sector has a demand
for 20 recycled units. The effects are as profound as in
Situation Two. Assume the traditional secondary ma-
terials industry sector can recover economically an
additional 5 units bringing its recovery to 15 units. The
waste system's load is then reduced to 85 units collected
instead of 90 units. In addition, assume the waste system
invests capital in technology to recover 5 units so that it
then disposes of 80 units and can sell 5 units to industry. If
the system is to stay in balance, the virgin materials sector
of manufacturing gives up 10 units and now supplies 80
units compared to 90 previously.
Obviously, in Situation Three, the burden on solid
waste systems is reduced substantially, and both the solid
waste and traditional secondary materials sectors
recover more materials. The virgin materials producers
are penalized because they must give up 10 units of
output but the system still supplies the 100 units of
demand. The recovered materials consumed for a
complete cycle reduce the waste disposal inventory by 10
units over the original condition while 10 virgin material
units need not be taken from the virgin material
inventory. Both disposal capacity and virgin resources
are "conserved" by increasing the number of recycled
units.
At present, it appears that far too few people
recognize the importance of the demand parameter and
far too many place blind faith in technology and capital
to increase the supplies of secondary materials not
needed or demanded by the materials processing sectors
under current economic relationships and industry
structures. Recognition of demand as an unforgiving
system element in the whole recycling question is simply
not present to the degree necessary in the current rush to
"recycle resources." What looms then is a potential
imbalance of supply and a shift or dislocation of supply
of secondary materials from "traditional" systems to
waste management systems and an even greater burden
on solid waste management systems as a whole.
Simplistic assumptions about demand "taking care of
134 The same results hold true if total demand increases or grows as is the case of the American economy. Only the
number of units handled by each sector changes although basic relationships described do not change under the given
conditions.
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94
SALVAGE MARKETS
itself" or being simple to change are not realistic. This
"supply push" approach is analogous to "pushing on a
string" when, in fact, it appears that "demand pull"
would more effectively bring about the desired increase
of secondary materials consumption.
To bring about a desirable change (Situation Three)
requires that virgin material use be displaced. In a
situation of increasing consumption, this means that
waste recycling must grow faster than virgin materials
use. Today the reverse is the case. Since the proportions
of waste to primary materials are ultimately determined
by the relative cost of each as set in the market, creation
of demand necessarily dictates that the cost structure of
virgin and secondary materials be changed in relation to
each other.
The role of waste processing technology in meeting
increased demand depends on the manner in which
demand is increased. If virgin resources are made more
costly or scarce, by whatever means, manufacturers will
seek secondary raw materials and will develop the
technology, if needed, for processing and upgrading
such wastes to increase the secondary materials supply. If
demand is increased by making secondary materials
available at a cost below that of virgin materials and of
a quality equivalent to that of virgin materials, then the
waste commodity sellers and possibly the solid waste
management establishment will have to develop and use
the processing technology for materials upgrading. In
any case, waste processing technology is a vitally
important part of increased recycling.
The key point about waste processing technology
deployment is that its use will not of and in itself bring
about an increase in demand but must be accompanied
by actions that will bring about a change in the relative
consumption ratios of virgin and secondary materials —
in favor of waste commodities.
Other Aspects of Legislation/Policy
The foregoing discussion leaves out of account some
aspects of recycling policy that are implicit in the above
but that we wish to identify explicitly.
Intermaterials Competition. Legislation to bring
about recycling in one material category must take into
account the relative competitive position of that material
with respect to other materials. Perhaps the most
important single trend in materials used today is the
penetration of synthetic materials based on hy-
drocarbons into markets dominated by traditional
substances — cotton, wool, paper, wood, glass, steel.
Unilateral legislation aimed, for instance, at paper alone
may well simply intensify the competition between paper
and plastics, making the latter materials, which are not
now recycled in any significant quantity, more com-
petitive in paper markets.
The complexity of relationships between materials,
especially the substitutability of the amazing plastics for
virtually any other material, suggests that recycling
legislation must be comprehensive and must be based on
a materials policy that can be effectively enforced.
Labor Force Displacement. In a situation where a
high percentage of materials consumption is satisfied by
secondary materials, the materials "mine" would become
the city where a large number of people live in close
proximity to each other and thus make waste collection
for recycling practical. In today's situation, the labor
forces engaged in the mining and harvesting of raw
materials are predominantly in rural areas, and such
activities are the only economic magnet of many regions.
Recycling legislation may well intensify urbanization by
shifting labor requirements for mining and harvesting
from rural areas to cities.
Commercialization of Sanitation. Unless prac-
tical means can be found to induce consumers to
separate materials into many different categories at the
household level, collection and processing of wastes for
recycling will necessarily become the job of sanitation
departments and private refuse haulers that now collect
the waste in mixed form. Recycling legislation may thus
impose on city, township, and county governments a
commercial activity that they are not by tradition
equipped to handle. Our urban areas are governed by a
large number of independent jurisdictions that are only
now beginning to learn to plan jointly. Recycling
legislation must bring about changes in local government
waste management practices if recycling is to succeed.
Private sector waste collection practitioners would also
be an important factor in any move to bring about
further recycling.
Obsolescence. One way to reduce solid waste
generation is to use materials for longer periods of time.
If a refrigerator is used for 15 years, instead of 10, its
continuation in use represents reduction of waste at the
source, a form of recycling — without any materials
collection, scrap processing, materials reprocessing,
fabrication, or redistribution having taken place. Efforts
to increase the life-in-use of products would thus result in
"resource recovery." The classic example of a long-lived
and short-lived product in an identical application is the
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FOR MATERIALS IN SOLID WASTES
95
use of returnable and nonreturnable containers in soft
drink and beer packaging. New design criteria for
products (such as modular components) that make repair
rather than replacement more attractive would have the
same effects.
Energy Recovery. Combustible materials need not
be recovered as materials; their resource value may be
extracted in the form of heat energy. This is a particularly
appropriate way to use materials whose recycling in
more conventional ways is impractical, such as plastics,
wood, and paper products contaminated by laminants,
coatings, and adhesives. In this type of recovery,
combustible materials would displace fuels — coal, gas,
and oil. Because energy demand is large and growing
and low-sulfur fuels are in short supply, the impact of
energy recovery from waste would have little effect on
traditional energy industry alignments; the alternative of
recycling such materials as materials would have a far
greater impact on present industry structures.
Secondary Recycling. Materials produced by one
industry need not necessarily reenter the same industry.
Waste rubber and waste glass could be used in road
construction, for instance, displacing asphalt and
concrete. Organics like rubber can be converted to crude
oil by pyrolysis and could displace well oil. Organics can
be composted and used to displace a portion of soil
conditioners used. The key is that a product is created
from waste that competes with or displaces another
product used in other applications. To bring about
secondary recycling of materials will be equally as
difficult as effecting their primary recycling, but such
programs are nevertheless a distinct legislative option.
Conclusions
To develop an effective solid waste recycling
mechanism it is necessary to view the problem in the
broad context of resource conservation in which all costs
and benefits are expressed. We, therefore, conclude that
the following are relevant to any public policy con-
siderations in this field.
(I) Resource conservation is a concept entirely
separate from materials conservation and recycling. To
effect true resource conservation a comprehensive
systems analysis must be developed in which all the costs
and benefits — tangible and intangible — are
measured in traditional materials consumption practice.
(2) The supply of secondary materials is not now
limited by technological inaccessibility but by relative
cost constraints. The demand does not exist for large
quantities of materials that could be made readily
available on a cost competitive basis from municipal
waste streams. Institutionalized practices in exploitation
of virgin raw materials assign greater value to virgin
materials than secondary materials. The basic relations
must be changed through the demand mechanism io
achieve a significant reversal of recycling trends in force
today.
(3) More attention needs to be given to developing
demand for secondary materials within the industrial,
governmental, and private sectors. Primary recycling is
only one option. Other important options are: secondary
recycling and reuse applications for waste materials;
energy recovery; design criteria to reduce obsolescence
and obsoleting of products and to increase their life
cycle; and development of new products from waste
materials that might substitute for other materials in
commercial markets.
(4) The development of technology to recover
secondary materials from waste is moving forward under
the impetus of Federal and private efforts. The social,
political, and economic capabilities of institutional
establishments (solid waste management, secondary
material suppliers, and industrial consumers) are lagging
behind the technological competence to supply sec-
ondary materials. These factors need more attention
before any substantial new resource recovery can be
accomplished.
It is within this broad context that public policy
considerations should take place to avoid undesirable
displacements and side effects and to develop positive
workable resource conservation. This, we believe, is the
most important point at which the conclusions of this
study can be directed.
-------
100
^
Product Use
and Discard
100 Units
100
90^
10
Disposal -
Add to Waste
Inventory
90 Units
Recovered by
Secondary
Materials
Industry
10 Units
10
Natural
Resources
Inventory Adds
Virgin Material
90 Units
^90
Manufacturing
of New Product
90 Virgin
10 Recycle
100 Units
100
i
Figure 23. Situation One: Constant demand 100 units; recycle 10 units,
95-1
-------
100
«i
Product Use
and Discard
100 Units
100
95
5
Recovery From
Waste - 5 Units
Disposal - Add
to Waste Inven-
tory - 90 Units
Recovered by
Secondary
Materials
Industry
5 Units
5
5 ,
, 10
Natural Resource
Inventory Adds
Virgin Material
190 Units
^90
Manufacturing
of New Product
Oft Virnin
7V v irgin
10 Recycle
100 Units
100
1
Figure 24. Situation Two: Constant demand 100 units; recycle 10 units,
95-2
-------
100
Product Use
and Discard
100 Units
100
85
1 c
1 3
Recovery From
Waste - 5 Units
Disposal - Add
i \A/ i.
to Waste
Inventory
80 Units
Recovered by
Secondary
Materials
Industry
15 Units
5
1 C i
15 '
20
Natural
Resource
Inventory
Add* Vfrain
Material
80 Units
80
Manufacturing
of New Product
80 Virnin
20 Recycle
100 Units
1 Art
IUU
Figure 25. Situation Three: Constant demand 100 units; recycle 20 units,
95-3
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TABLE 58
DOMESTIC PROMPT AND OBSOLETE SCRAP CONSUMPTION IN SELECTED
COMMODITIES, 1967, 1968, OR 1969, IN 1,000 TONS AND PERCENT*
Material Year
Paper and board 1967
Ferrous metals 1967
Nbnferrous metals 1967
Glass 1967
Textiles 1968
Rubber 1969
Total
material
consumption
1,000 tons
53,110
105,900
9,775
12,820
5,672
3,943
Prompt and
obsolete
scrap con- Recycling as
sumption for percent of
re cycling- 1,000 tons consumption
10,124
33,100
3,006
600
246
1,032
19.0
31.2
30.8
4.2
4.3
26.2
Total
191,220
48,108
25.2
*From Midwest Research Institute; for detailed discussion and sources,
see various materials chapters. Excludes exports of scrap materials;
but in some instances includes imports of scrap for domestic consumption;
excludes scrap materials reused (such as textile wastes for wiping rags);
nonferrous metals include only aluminum, copper, zinc, and lead; rubber
recycling includes tires retreaded for resale as tires.
95-4
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97
CHAPTER XI
CASE STUDIES
Introduction and Overview
Case studies of salvage practices were carried out in
14 areas across the United States to discover by actual
discussions with public and private agencies the history
and current status of recovery and recycling operations.
The surveys consisted of interviews with local public
officials, with executives of private refuse removal and
secondary materials companies, officials of social
welfare agencies, with officers of companies that
purchase secondary materials, and with individual
scavengers and waste gatherers. Research team members
spent between I and 3 weeks in each community with the
exception of Atlanta, Louisville, New Orleans, and St.
Louis; in these last-named cities, we conducted I or 2 days
of interviewing to get first-hand information on specific
projects.
The survey communities were selected on the basis of
prior knowledge of their salvage activities, gained by
perusal of the literature and examination of the raw data
of the 1968 National Survey of Community Solid Waste
Practices. We wished to visit only those communities
where some form of salvage was known to be practiced.
Within that limitation, we attempted to select cities in
most important geographical regions of the Nation and
to select small, medium, and large communities. These
are individual case studies, however, and extrapolation
from the data presented here is not advised.
We encountered a number of serious problems in this
survey that must be identified to qualify our findings: (I)
good documentation on current and past practices was
difficult to find; (2) we were refused access to information
by some respondents for various reasons; (3) movement
of secondary materials was so complex in some instances
that we were unable to form a good picture of the total
"system"; (4) authoritative price information was with-
held in many instances to protect the competitive position
of respondents; (5) base data necessary for establishing
perspective (total waste processed, number of refuse
removal firms) were often not available, especially for
that portion of the waste handled by the private sector;
(6) individuals with knowledge of events or practices
crucial for understanding a situation could sometimes not
be located because they were one-man operations, often
without office facilities, or because they had moved.
Although the conditions encountered in each city
were unique, a number of general observations about
salvage activities in the case study communities as a
whole can be made here to give an overview of the
survey universe.
Reclamation of waste materials and obsolete products
is practiced in the following seven major modes.
(I) Retrieval of commodities from mixed refuse
deposited at dumps and landfills; this is usually an
activity carried out by very poor people, using manual
labor sometimes under some sort of contractual ar-
rangement with the city, but usually without a legal basis.
Metals and repairable, reusable products are the
commodities sought by dump scavengers.
(2) Recovery of metals from incinerator residues; this is
accomplished in one of two ways: either the incinerator
operator himself recovers metal, usually steel cans, or
incinerator residues are delivered to a private cor-
poration that processes residues to obtain metal. In the
latter case, the contractor normally pays a standard fee
to the city.
(3) Retrieval of commodities from mixed wastes before
or during waste collection; this activity is carried on by
scavengers who precede collection vehicles on waste
collection days and remove newspapers from waste cans
set out by householders or by collection crews who
separate newspapers and other valuables in the act of
collection, storing such items in bins or baskets attached
to trucks.
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SALVAGE MARKETS
(4) Recovery of commodities — usually only cor-
rugated board — from commercial or industrial wastes;
this is practiced by private refuse haulers.
(5) Separate collection of scrap from commercial and
industrial sources by secondary materials dealers or junk
men. This is the conventional mode of operation of the
secondary materials industry.
(6) Separate collection of newspapers by schools and
civic groups; this is the traditional "paper drive," which
involves delivery of newspapers by householders to a
central place or door-to-door collection by youngsters,
followed by pick-up of the paper by a dealer.
(7) Separate collection of obsolete commodities from
residential sources, followed by resale of a portion of
such commodities in second-hand stores and sale of the
remaining portion as secondary materials (as a rule only
textiles are involved); this activity is carried out by social
service agencies.
With the exception of incinerator residue rec-
lamation, these salvage modes can be found in nearly
every city or area; they are more or less developed and
more or less intensively practiced depending on local
demand for secondary materials.
As a rule of thumb, traditional, contractual recovery
activities involving municipalities have been terminated
in the last few years, or they are being phased out. Dump
salvage is discouraged, and supervision over landfill
activities is tightening. Salvage by private refuse haulers
seems to be on the increase, however; we found several
such operations, most of them fairly new; this activity
primarily involves cardboard and newspaper recovery.
Paper sales and social welfare agency collections
account for the only large-volume recovery of com-
modities from residential sources, and both of these
modes are separate collection modes. The textile
recovery business depends almost entirely on social
service agency collections and thus, ultimately, on
residential sources. A preponderant proportion of
newspapers is collected from residential sources.
With the exception of these commodities, little if any
waste materials derived from municipal wastes is
recovered in quantity. Steel can recovery from in-
cinerator residues was the only fairly widespread
example of commodity reclamation from mixed wastes;
the tonnages involved, in comparison with total steel
recovery, are minimal. The overwhelming percentage of
all secondary materials are separately collected from
commercial and industrial sources by secondary ma-
terials dealers and their agents.
We encountered a scattering of "new-fashioned"
salvage operations (aluminum and glass recovery in Los
Angeles and newspaper collection in Madison) which are
based on voluntary materials segregation by the public
and subsidized collection, in the case of aluminum and
glass, where the public contributes transportation. We
also encountered survivals of very old-fashioned salvage
practices that are rapidly disappearing: large scale,
uncontrolled dump salvage and recovery of hair and
feathers.
Observations about the economics of salvage and
salvage operations can be summed up under the
following points.
(I) Salvage is severely limited by the absence or
disappearance of cheap labor for sorting and collection
of commodities. The limit is not declining scrap prices,
which have been relatively stable over time, but the
proportional increase in wages paid to labor. Sorted
materials of homogeneous composition can be sold with
some exceptions provided that a buyer is located within
an economical transportation radius of the generation
point. Sorting is encountered only where one of the
following conditions is met: (a) the value of the waste
commodity is high (nonferrous metals and IBM cards); (b)
cheap labor is available because workers are employed
who could not otherwise find jobs (social service agency
labor); (c) sorting is accomplished by an entrepreneur
(scavenger) who need not pay himself the minimum
wage; and (d) the commodity is presorted and only
occasional foreign objects need to be removed.
(2) Successful salvage operations depend on a
favorable transportation arrangement. For best results,
salvage must ride piggyback on a transport system whose
economics are independent of salvage income. This
criterion is most applicable to salvage commodities that
occur in small quantities per stop and loses its force in
cases where large quantities of salvage are obtainable
with each stop.
(3) Low value commodities, up to $30 per ton, usually
cannot be collected and sold economically unless
transportation charges to the buyer are at or below $7 to
$10 per ton. In practice this means that a bulk commodity
will not be collected in an area unless there is a buyer
within 300 to 500 miles of the area; usually the buyer is
within 100 miles. The exception to this is a case where the
generator pays the dealer for removing the waste — a
usual instance being rubber tires. As the value of a
commodity increases, its ability to absorb transport costs
increases, so that pulp substitute grade papers (around
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99
$80 per ton) and metals like aluminum ($200 per ton) are
sold to buyers who may be 1,000 miles away.
(4) The same commodity, cardboard, for instance, will
bring a higher price when derived from commercial
sources than it will fetch if sorted from mixed refuse; in
the latter case contamination is virtually unavoidable
and this results in a penalty.
(5) Wherever technology is used with a salvage
operation, the economics of salvage usually improve.
High density baling equipment, for instance, whose
operation, including amortization, costs around $2 per
ton, can save up to $5 per ton in transport charges on a
500-mile haul of waste paper. A city that operates its own
residue reclamation system as part of its incinerator
operations can expect to sell steel cans with a modest
profit;135 where the residue is sold unprocessed, the
operation seldom survives.
The case studies that follow are presented in
alphabetical order by community. In each case study
report, a brief summary of the significant findings is
given first, followed by discussion of particulars. All
statements made refer to the time of the survey itself,
indicated in each case by footnotes. An overview of the
case studies is presented in Table 59.
Amarillo, Texas136
Summary. Amarillo is located near copper mines
and could sell all its steel can wastes to mines. An
operation to recover cans from incinerator residues had
been in existence but was discontinued. Textiles are
collected and sold by the Salvation Army. A dump-
salvage contract is in force.
Introduction. Amarillo's economy is based on cattle
ranching, small-scale agricultural product processing,
and fertilizer production. There are no glass, steel, iron,
or paper manufacturing facilities in or near Amarillo. No
rubber reclaiming is practiced in the vicinity. The city is
situated in the center of an industrial desert (the nearest
major metropolitan area, Dallas, is 360 miles away), and
salvage activity, therefore, is minimal. At the same time,
Amarillo is close to several major copper mining
operations in Arizona, New Mexico, and Utah. Amarillo
enjoys one of the most attractive freight rates for
shredded steel cans to copper mining points among the
cities in our survey, and consequently it is one of the few
communities where the recovery and sale of steel cans
could be practiced profitably. The metropolitan area has
a population of 193,000, and Amarillo proper; 138,000.
Waste collection and disposal in Amarillo is ac-
complished by the Amarillo Sanitation Department and
three private refuse haulers. The city's forces collect
56,500 tons of waste yearly — nearly all the residential
tonnage and about 90 percent of all commercial and
institutional wastes. Three private refuse haulers collect
an estimated 2,600 tons, mostly commercial wastes with a
sprinkling of residential wastes.
The total waste tonnage collected in the city only (just
under 60,000 tons) is equivalent to 2.38 pounds per
capita per day.
The city incinerates 52,000 tqns of waste in an
incinerator with a capacity of 350 tons per day.
Combustion is at a high temperature (1800° F) and the
residues we inspected contained very little unburned
organics. The city also delivers 4,500 tons of waste
directly to the municipal landfill site and hauls 11,500 tons
of incinerator residue to the fill. Private refuse haulers
deliver their wastes directly to the landfill. About 2,600
tons of waste are dumped by private haulers. In addition,
private citizens deliver wastes to the fill site, but the total
quantity is not known.
The landfill is located about 3 miles from the
incinerator and consists of a 140 acre site; 8 years of
useful life remain in the fill, which will be converted to a
golf course. Wastes are deposited into cavities dug in
advance and are covered within 20 minutes after
discharge from trucks.
Current Salvage Practice. Salvage activity in
Amarillo is very limited at present. We identified the four
following specific instances of recovery from municipal
wastes.
Municipal Salvage Contract with a Private Con-
tractor. This contract became effective December 1969;
however, a similar contract had been maintained with
another individual previously.
This operation, carried out by one person, consists of
retrieving usable or saleable items from wastes dumped
at the municipal landfill before they are covered. The
contractor has 20 minutes in which to salvage —
thereafter the waste is buried.
The contractor keeps no records but claims to remove
one load of salvage daily — a pickup truckfull —
working 5, more often 6 days a week. We estimate that
135 Provided, of course, that the city is within economic transport range of the buyer.
136 Survey concluded in January 1970.
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SALVAGE MARKETS
he removes 130 tons of salvage in a year. He concentrates
on recovering "usables" (toys, clothing, umbrellas, pots
and pans, etc.) in preference to scrap. Aged 57 and with
a heart condition, he is unable to handle heavy objects
like motor blocks or large pieces of steel. He plans to
convert his home to a secondhand store where he will sell
usable items he recovers. He stores and accumulates
metallics at his home and sells these in batches to the
leading scrap merchant in the city.
He has an exclusive right to salvage at the landfill —
a privilege he obtained by competitive bidding. He pays
the city $237 a month ($2,844 per year) for this right. He
estimated that he can gross between $525 and $630 a
month from salvage or net, after paying the city, $288 to
$393 a month. He supports a wife and four children.
His predecessor, who retired in 1969, had a contract
with the city paying $1500 a year for salvage privileges.
Sanitation officials in Amarillo have divergent views
on the probable success or failure of this venture. The
assistant superintendent holds that the operator will lose
money on the contract. The director believes that gross
returns will be $15,000 to $20,000 a year. Based on our
discussion with the contractor, inspection of his salvage
products, and interviews with second-hand product
stores in Amarillo, we believe the operator will find it
difficult to meet the city payments let atone- realize a
large profit. His first payment to the city was overdue at
the time of our survey.
Unauthorized Salvage at the Landfill. Gatemen at the
municipal landfill report that five to eight people, in
addition to the authorized contractor, salvage from the
landfill in winter; with the onset of warm weather, the
number of scavengers increases. Enforcement of the "no-
salvage" rule is lax. Apparently gatemen pity the needy
scavengers who haunt the landfill to make a living. The
salvage contractor stated that this "competition" does
not seriously affect him. He considers himself an expert
scavenger who learned his business from his father.
Others at the .landfill site do not possess his dis-
crimination and consequently do not pick up valuable
items of scrap; they hunt "usables." In the winter months,
he avers, there are few usables in the waste. In the
summer, however, usables increase and he plans to
complain to the gatemen if he notices unauthorized
scavengers leaving with useful commodities.
Salvage by Private Haulers During Collection. Two
one-truck private refuse haulers reportedly salvage
commodities from waste on their collection routes and
then sell usable items to second-hand stores and scrap
materials to secondary materials dealers. We were
unable to contact these companies for interviews about
quantitites and types of wastes recovered. They were
under way servicing their routes.
Reuse of Discarded Products and Textiles. In 1969, the
Salvation Army facility in Amarillo acquired 300 tons of
materials; of this 20 tons were discarded as waste;
commodities weighing 186 tons were sold in the Salvation
Army Retail Store (clothing, appliances, toys, furniture)
and 94 tons of mixed rags were sold to a rag dealer in
Dallas, Texas.
Total revenues of the operation (Table 60) were
$37,000 ($132.14 per ton of salvage sold); operating
expenses were $39,100 ($139.64 per ton), for a net loss of
$2,100 ($7.50 per ton). However, the operation must also
support a transient hotel. The salvage operation, taken
alone, appears to be self-supporting but would not break
even on a commercial basis. The wages paid employees
average $2,428 per year per employee.
Collection activity extends beyond the borders of
Amarillo. In addition to that city, the Salvation Army
collects in Vega and Canyon, Texas, west and south of
Amarillo, respectively, and accessible by major highway
routes. One truck and driver constitute the collection
system.
Two sorters separate the loads brought in by the
driver, prepare textiles for shipment, and carry on
restoration and repair work on other commodities under
the supervision, and with the help of, a warehouse
foreman. Textiles are not sorted; they are baled as mixed
rags and shipped. The facility receives $2.75 per
hundredweight ($55 per ton) but must absorb freight
charges of $15.95 per ton to Dallas.
Steel Can Recovery. In January 1967 an operation
began in Amarillo to recover steel cans from incinerator
residues. The operation closed in November 1968, but the
debris left behind — physical and organizational —
was not cleared up until January 1970. In this period less
than 1,000 tons of shredded steel were actually shipped.
The details of this operation illustrate the problems that
can be encountered in any enterprise to salvage
materials from municipal wastes.
History. Late in 1966, the Sanitation Department of
Amarillo signed a contract with Apco Metals Company.
According to the terms of the contract, Apco Metals
would undertake removal of all incinerator residues from
the city in exchange for (I) exclusive salvage rights
encompassing both the residue and the wastes dumped
at the landfill and (2) payment of $0.50 per ton for any
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101
material sold. The contract was for 5 years. Apco Metals
was required to post a $10,000 performance bond. No
arrangements were made for disposal of the un-
recoverable incinerator residues.
In January 1967, Apco Metals began hauling the city's
residues, using four trucks. The wastes were delivered to
a scrap yard north of the incinerator for a brief period.
Another site was selected soon thereafter. The can
processing plant, a mobile unit, was transferred there.
The city undertook to bury the wastes left behind at the
original site free of charge.
At this time Apco had a can processing plant designed
by the company's president, but it did not have an
operational hammermill for shredding the cans. A
hammermill of the company's design was on order, but
delivery was delayed for 5 months. Consequently, Apco
processed the residues through the plant, segregating
cans from other materials. The cans were not shredded,
however, and were piled up on the lot in the open air.
While awaiting the hammermill, the company
salvaged other ferrous and nonferrous metals from the
residue and had a team stationed at the landfill to
recover salvage. These materials were sold through a
scrapyard owned by Apco's president.
Negotiations were conducted for sale of the steel cans
during this period with Proler Steel Company (Houston)
and copper mines in Miami, Globe, and Winslow,
Arizona.
Shredding of steel cans started in June 1967 with the
arrival of the hammermill. Apco's former president
reports that initially the shredded tin was sold to Proler
for $20 per ton. Only a few carloads were sold, however.
Next Apco began delivery to copper mines at $55 per
ton. This continued for I month. The 1967 copper strike
began in July of that year, and copper mines refused to
take delivery.
During this brief operational period, Apco appears to
have shipped between 640 and 960 tons of shredded
steel. Apco is now defunct and the memories of various
participants are vague about details. The low figure is
derived from an audit of Apco's records conducted by
the city; according to these data, Apco's sales were
$35,000, or 636 tons at $55 per ton. The higher figure is
based on an estimate by a company official that 80,000
pounds of metal were processed daily, 6 days a week, for
about 4 weeks.
With the conclusion of the copper strike in March'
1968, Apco attempted to resume can shipments but could
not negotiate any sales. One-time Apco officials did not
wish to specify the nature of the arrangements the
company had with mines. Apparently the shredded cans
delivered by Apco were of poor quality — highly
oxidized and fragile; Apco had no firm contracts with the
mines but shipped in response to purchase orders; mines
could accept or reject shipments upon inspection;
following the strike, abundant quantities of high quality
shredded metals were available, and Apco could no
longer compete.
For another 10 months — March 1968 to January 1969
—- Apco hauled incinerator residues from the incinerator
to its site. Attempts to market the steel were carried on
without success. In February 1969, the operation was sold
to a new owner who placed a $5,000 bond with the city;
the former owner of Apco was refunded his $10,000
bond. The new owner continued to haul residue until
April 1969, when he declared bankruptcy and forfeited
his bond. The city resumed residue hauling.
The plant reverted to the former owner of Apco but
was not operated; the new owner could not meet his
payments. In January 1970, the owner was forced to
remove the accumulation of cans and dirt from the plant
site to the landfill; the city had concluded that the site
was a potential health hazard and planned to let a
contract for $30,000 tr> remove the waste. Rather than
being assessed such a charge, the owner elected to
undertake the removal job himself.
Financial Basis. The can reclamation operation was a
failure for three reasons: (I) the delay in acquisition of the
shredding equipment, (2) the onset of the copper strike,
and (3) failure to regain the market lost after the copper
strike ended. In 2 years of operation, the company lost
between $100,000 and $150,000 by our estimates.
Our objective here is not to trace the financial aspects
of this venture as it actually unfolded — the detailed
data for that are not available — rather, we would like
to establish whether or not this operation could have
been economically viable if conditions had been more
favorable.
This analysis is based in part on data from a city audit
of Apco's books, in part on the recollection of company
officials, in part on published freight date, and in part on
generally accepted industrial overhead and cost factors.
Apco s overall operations are difficult to understand. The
company, owned by a Lubbock, Texas, investor,
consisted of a scrapyard and the salvage plant. It was
managed by another individual who had no equity in the
business. This manager could not differentiate in detail
between the scrapyard and can plant operations in
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SALVAGE MARKETS
trying to recall specific numbers. The books were kept by
a part-time accountant who was employed at the bank
that financed Apco's operations; the accountant pur-
chased the scrapyard owned by Apco when the company
folded. For these reasons, what follows should be viewed
as impressionistic estimates.
In. making estimates, we are using reported cost data
on the plant but are assuming that: (I) 4,000 tons of
shredded steel could have been processed yearly; (2) the
plant could have been operating during the entire
period; (3) the product of the plant could have been of
acceptable quality if it had been processed and shipped
immediately; and (4) the company could have been
protected from the effects of a copper strike by suitable
contract provisions.
Apco's can processing plant was sized to produce
around 23 tons of shredded metal in an 8-hour day, or
just under 6,000 tons a year operating 260 days. It
appears to have had the appropriate capacity for the
metal likely to be found in the incinerator residue, with
enough additional capacity to permit maintenance and
reasonable growth.
Fixed assets of the company related to can reclaiming
only were $98,100, or about $4,500 per ton of daily (8-
hour basis) capacity. We estimate that total capital-
related charges.were $21,700 a year ($5.41 per ton of
product), operating costs were $60,000 ($15.00 per ton),
general overhead was $25,000 ($6.25 per ton), and other
expenses (freight and payments to the city) would have
been $91,600 ($22.90 per ton). This results in a total cost of
production and delivery of $198,300 a year, or $49.56 a
ton, yielding a gross, before-taxes profit of $5.43 a ton or
$21,700 a year. Cost elements are displayed in Table 61.
These estimates provide only a modest salary for the
company president, who had other interests and income;
office help consisted of one part-time bookkeeper whose
fee is included under capital-related expenses. Mis-
cellaneous expenses include disposal fees for deposition
of about 6,000 tons of residue at $1.00 per ton; transport
of residues to the dump site is included under operating
costs.
In actual practice, Apco also realized income from its
scrap operations and from the salvage of metals other
than steel cans at the plant site and at the municipal
landfill and sold an indeterminable number of carloads
of clean residue to the railroad for $200 a carload (about
$5.00 per ton). Such income is not reflected in our
tabulation because we could not get base data for
estimates. It is clear, however, that if the company had
been properly operated its profits could have exceeded
those in our estimates.
The Secondary Materials Industry. The sec-
ondary materials industry in Amarillo consists of five
metal scrap processors who collect and process copper,
brass, steel, cast iron, and aluminum in the immediate
vicinity of Amarillo and sell the metals to users or
middlemen in Lubbock, El Paso, Houston, Dallas, and Fort
Worth in Texas and in Colorado. There are also three or
four part time scrap operators who bid on military and
industrial salvage packages and deliver metals directly
from the source to users or middlemen.
There is a shortage of metal scrap in the Amarillo area
and an oversupply of operators who derive a living from
scrap — hence, keen competition between all interests
involved in the metal scrap business.
The leading company insures its supplies by posting a
standard price list. Prices paid by the company are
higher across the board than prices paid by competing
yards. The company maintains its buying price regardless
of market fluctuations and in this manner attracts
materials. The company also usually achieves a higher
selling price than its competitors by marketing directly
and because it handles a significantly higher quantity of
metals than other yards — about 800 tons of metals a
month versus 35 to 146 tons handled by others. The
company's predominance is also assured by its ability to
post large bid bonds on salvage packages, while the
financial circumstances of other processors do not permit
this.
Two of the five scrap processors derive the bulk of
their revenues from the sale of usable items and operate
retail outlets. A number of much smaller shops in
Amarillo's ghetto area also sell usables derived from
municipal wastes. A typical usable product is a kitchen
sink, purchased for $1.00 and sold for $1.25 to $2.00.
Scrap processors in Amarillo view metals derived
from municipal waste as a nuisance. Such materials are
purchased, however, because scrap available from other
sources is scarce.
Discussions with numerous individuals revealed an
interesting pattern of personnel circulation in the
Amarillo scrap business. Apparently the precarious
financial condition of smaller yards frequently forces
their owners to sell out or to take out bankruptcy. Few of
these men take up other lines of work; usually they
become brokers, scavengers or, if they have a truck, part-
time scrap dealers. As part time dealers or brokers
(unencumbered with the cost of facilities and a payroll)
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103
they are able to outbid established scrap processors for
specific salvage packages. In this manner, they ac-
cumulate capital and reemerge again as scrapyard
owners. Those who fall hardest engage in the salvage of
commodities from the municipal landfill and other dump
sites around the area.
In the Amarillo area, there are no dealers in
secondary paper, rubber, plastics, organics, and glass.
One paper dealer was listed in the telephone book;
investigation showed that the company had gone out of
business after a short period of operation; none of the
individuals concerned with the venture could be located
in Amarillo.
Conclusions and Observations. In Amarillo the
possibilities exist for the recovery of virtually all steel
cans from municipal wastes — at least from the
technical and economic point of view. The municipal
incinerator can be operated at the desirable temperature
to achieve good, clean, burned cans (1200° to 1400° F).
The incinerator could be equipped with can reclaiming
machinery for $75,000 to $100,000, according to an
independent engineering estimate obtained by the city.
Freight charges for shredded steel are low. The
incinerator is located near a rail line.
Textile salvage is a possibility if segregated collection
of textiles were undertaken. This would require a
publicity campaign and would call for installation of
small hoppers or baskets on municipal collection trucks
(see Madison case study). Reclaiming of nonferrous
metals would be possible and these could be sold readily
to the local scrap processing industry.
The city's experience with metal can salvage has been
unfortunate; recent attempts to interest local scrap
dealers in can reclaiming have been unsuccessful. Scrap
processors view this business as hazardous because of the
dominant position of Proler Steel in the market and
because the city's approach has been to write a contract
for residue removal, which would involve processors in
residue separation and can shredding.
The financial situation of the city does not, at present,
permit capital investment in can reclaiming equipment at
the incinerator site. The technical skills necessary
successfully to operate such a system are also absent, in
our opinion. Consequently, this resource is not likely to be
exploited in the near future.
Even if equipment would be purchased and qual-
itatively acceptable product could be derived from
residues, the city would be in a poor position to sell the
shredded steel directly to copper mines, lacking ex-
perienced marketing people. The product would have to
be sold through a middleman, assuring the city only
meager profits on the operation.
Atlanta, Georgia137
Summary. In Atlanta recovery of steel cans is
practiced at two municipal incinerators; on a 1968 basis,
6,282 tons of tin cans were recovered and sold for $10.27
per ton, or $64,516 total; can reclaiming operating costs,
including amortization, were $10.01 per ton, for total net
revenues of $1,633 for the reclamation facilities. Steam is
also generated at one incinerator and sold to a utility.
Introduction. Atlanta was not one of the scheduled
survey cities. City officials were interviewed to obtain
facts on Atlanta's can reclamation operation only.
Atlanta had an estimated population of 513,000 in
1969. Wastes are collected by municipal and private
forces. Disposal processing of 90 percent of the kitchen
refuse (garbage and small residential wastes) is through
two incinerators; trash (yard refuse, bulky wastes) is
hauled directly to six public and three private landfills. In
1968, 242,000 tons of kitchen refuse were burned in the
municipal incinerators.
Salvage Practice. Steel cans are separated mag-
netically from the residues of the city's two municipal
incinerators; the cans are reduced in size by hammermills
after washing. The shredded steel is loaded on railroad
cars (minimum loading of 50,000 pounds per car) and is
shipped to the El Paso facility of Proler Steel Company,
buyer of the metal. The steel is ultimately sold to copper
mines.
Approximately 2.6 percent by weight of the refuse
received at the incinerators is sold — 6,282 net tons in
1968. Given an average national per capita steel can
consumption of 52 pounds a year and a population of
513,000, the city appears to be recovering for sale half of
the steel cans occurring in the community.
Recovery Economics. The city negotiated a
contract with Proler Steel Company in 1966, whereby the
city received $15.70 per net ton138 of shredded steel; the
buyer paid transportation costs. In 1968, the buyer
137 Survey concluded in August 1969.
138 The city's records are kept on the basis of gross (long) tons; all figures here are shown in net (short) tons for the sake
of consistency.
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SALVAGE MARKETS
reduced the price to $10.27 per ton, citing product quality
deterioration (excessive dirt, rust) as the reason.
It costs the city $10.01 per ton to process salvage metals
for shipment, as broken down in Table 62. The city
consequently realizes a profit of $0.26 per ton of metal
processed or $1,633 profit in 1968. City officials indicate
that can recovery would be continued even if the cans
would have to be sold at a loss. Discontinuation of metal
salvage would necessitate removal of the metal to
landfill at a cost of $5.67 per ton, or $35,620 per year; the
removal cost includes labor costs and residue truck
amortization, but excludes fuel, maintenance, and
landf illing costs. In other words, the city could lose $5.66
per ton of metal sold (a selling price of $4.35 per ton) and
still expend less on removal of this waste than it would
spend by the alternative route of landfilling the metal.
Steam Recovery. At the city's Mayson incinerator,
steam is generated and sold to a utility company. The city
is required to produce 260,000 pounds of steam every
24 hours, failing which, the city is penalized. In 1968, the
city sold 300 million pounds of steam, receiving $0.20 per
1,000 pounds or $60,000. City officials state that this
operation loses money; the city's costs to produce the
steam are around $0.23 per 1,000 pounds.
Chicago, Illinois139
Summary. Chicago, the Nation's second most
populous city, operates a large public solid waste
collection and disposal system for residential wastes. The
private refuse collection and disposal establishment is
also sizable. Most of Chicago's waste passes through
incinerators. Steel cans and other steel products are
recovered at both municipal and "private incinerators.
Steam is also sold from municipal and private in-
cinerators. One scrap dealer in the area specializes in the
disassembly and processing of metallic products nor-
mally found in residential wastes —appliances, radios,
and the like. The city is an active waste paper market
area. A glass cullet dealer operates in Chicago. Textiles
are recovered. A waste rubber processor is also active in
the area.
Introduction. Chicago, with a population of 3.3
million people, is a major center of industrial and
commercial activity in the United States. Sanitation
services are handled by the city of Chicago for
household refuse of all types and by private refuse
haulers who serve the industrial and commercial sectors
of Chicago and many of the adjacent suburban
communities. These operations depend principally on
incineration for volume reduction although there are a
number of landfills in operation in Chicago.
The city operates three incinerators, two transfer
stations, and one (overfull) landfill. A fourth incinerator
was nearing completion at the time of the survey.
(Combustible material averages 77 percent of refuse by
weight and 90 percent by volume.) In addition, the city
has access to privately operated incinerators for
disposal. Packer truck tonnage is growing at 2 to 3
percent per year while bulky refuse is increasing at the
rate of 5 percent per year.
Refuse collection and disposal in Chicago for 1969
amounted to 1,914,000 tons. Of this amount, the city
collected 1,244,000 tons, and private forces collected an
estimated 670,000 tons. The waste collected is equivalent
to 3.15 pounds per capita per day. Of the waste collected
by fhe city, 14 percent was disposed of at private
incinerators and landfills, the remainder in its own
facilities. Of the tonnage disposed of by the city, 61
percent was incinerated. The city's sanitation budget was
$34 million in 1969, excluding capital improvements,
amortization, and equipment maintenance — $27.8
million for collection and $6.5 million for disposal. The
city collects residential wastes only; 173 licensed private
haulers service industrial and commercial accounts and
large private apartment complexes.
Municipal Salvage Operations. The city derives
income from three types of salvage activities: (I) the sale
of steel cans from incinerator residues; (2) the sale of
sheet metal from bulky wastes; and (3) the sale of steam
from one of its incinerators.
Incinerator Residue Recovery. In 1963, a scrap dealer
approached the city and proposed to build a processing
plant to recover steel cans in the city's incinerator
residues. The city asked for competitive bids covering the
steel cans in its residues. The dealer was the successful
bidder, the plant was built, and incinerator residue
processing began and continues to this day.
139 Survey concluded in June 1970.
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FOR MATERIALS IN SOLID WASTES
105
According to the contract, the city is paid $10.07 per
ton of steel cans, based on actual loaded rail-car
shipping weights.140 The city delivers residue to the
dealer's plant, which is near the Southwest Incinerator. In
addition, the city back-hauls unsalable residue (tailings)
separated during processing. The city reserves the right
to extract nonferrous metals but makes no attempt to
salvage them. In fact, various individuals recover this
material as time permits, including one independent
scavenger, who spends all his time at the can processor's
plant, and city truck drivers, who remove nonferrous
metals during their residue runs.
The dealer's intent was to receive screened or
magnetically separated residues — in other words, the
residues minus ash. This would have minimized double
handling of tailings. The city can screen residues at only
one of its incinerators, Southwest. Residue from the
Medill Incinerator is not received by the dealer because it
consists almost entirely (90 percent) of tailings and thus is
too expensive for the city to back-haul after can removal.
The Calumet Incinerator, which also lacks screening
equipment, was delivering residue to the processing
plant because the quality of the residue was somewhat
better than that of the Medill facility; magnetic
separation equipment was planned at the Calumet
facility for the fall of 1970.
Only the Southwest Incinerator has consistently
delivered residue to the plant. Residues from the Medill
facility were refused by the dealer, because of high
tailing content, in the second year of the program, and
the city readily concurred to save hauling costs. Residues
from the Calumet Incinerator were rejected in the period
1967 through 1970, initially because the copper strike
destroyed demand for the cans and later because the
residues were too "dirty" and excessive processing and
back-haul of tailing were needed to obtain an ac-
ceptable product.
At the outset of the program, the city's revenues were
as high as $160,000 per year. In 1968, 11,297 tons of cans
were sold and an income of $113,764 was realized by the
city; in 1969,9,214 tons brought $92,781.
The can processing facility is close to the Southwest
Incinerator, which makes residue and tailing haul costs
relatively low for the city. The'city removes only the reject
tailings to the landfill for ultimate disposal. No detailed
cost analysis of this operation was available, but it is
certain that the city has a profitable operation at the
Southwest Incinerator.
At the incinerator itself, one man is stationed at the
discharge conveyor to remove bulky metallic objects that
would cause problems in the screening operations. A
rotating screen is used to separate the ash from larger
pieces of residue metallics and nonmetallics. No
magnetic separation takes place. City personnel report
that only during the copper strike, when much of the
stockpiled cans oxidized and had to be hauled back as
tailings, did relations between the city and the dealer
become somewhat strained. Otherwise, the arrangement
has been satisfactory.
By our estimates steel can sales from Southwest
Incinerator for 1969 amounted to 3.3 percent of incoming
tonnage and 8.7 percent of residue; according to 5 test
made in 1968, incoming waste contained 8 percent metal
by weight. Of this, cans may be 6 percent, but this is only
an estimate. Based on waste delivery, the metals content
was 22,000 tons in 1969, giving a recovery of 41 9 percent
of the metals (Table 63). The "loss" is accounted for by
nonferrous metals, large ferrous pieces and wire rejects,
incineration "fines," oxidation, and other losses prior to
shipment.
While the amount of metal actually recovered for sale
is not large compared to total waste input or incinerator
residue, the city does realize a savings in costly and
virtually nonexistent landfill space as well as revenue
equivalent to about 14 percent of its disposal budget.
Sheet Metal Recovery. The city collected 381,530 cubic
yards (about 47,700 tons) of bulky waste in 1969, of which
perhaps 40 percent consisted of metallic items such as
appliances. Bulky waste is handled by separate col-
lections on open-body trucks. For about 5 years, portions
of the metallics have been sold to local metal dealers.
Salvage is done at two transfer stations and the landfill.
This recovery operation depends on hand labor and
mechanical loading equipment stationed at the transfer
stations and the fill. At the transfer stations this amounts
to hand sorting of metals and separate accumulation
during periods when transfer trailers are not being
loaded. Recovery of the bulk metals is dependent on
availability of the loading equipment to move, ac-
cumulate, and load.
140 This price has remained effective since the inception of the program, which is now in its second 5-year contract
period. Actual price is $11.28 per long ton, but all data in this report are presented in short tons for the sake of
consistency.
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106
SALVAGE MARKETS
Metals are hauled to the dealer's yard by truck, where
they are weighed and unloaded. The dealers shred or
grind the metal, which then becomes a part of No. 2
bundles sold to the steel industry. The price received by
the city is based on the Iron Age weekly price quote for
No. 2 dealer bundles. The city receives the difference
between the Iron Age quote and a fixed price bid by the
dealers. If, for instance, the dealer's fixed bid is $20 per
ton and the Iron Age quote is $22 per ton, the city
receives $2 per ton. If the Iron Age quote is also $20 per
ton, the city receives nothing. At the time of our survey,
the city had two contracts with dealers for fixed prices of
$17.86 and $14.28 per ton. Revenues to the city have
ranged between $2 and $17 per ton, depending on
market conditions. Location of the dealer's yard plays an
important part in determining the best dealer bid; the city
hauls to the yards as close as possible to the ac-
cumulation points. The condition of the metal collected is
of little consequence to the dealers, although high
nonmetallic content is not acceptable. Revenue from
sheet metal was $7,166 in 1968 and $16,516 in 1969. The
1969 revenue represented approximately 1,500 tons of
metal.
The city will soon start using a special grinder at its
Goose Island transfer station to reduce the volume of
bulky refuse, but handling of solvable metals will
continue to be dependent on hand labor. A magnetic
separation unit was planned, but expected revenues do
not appear to justify the capital investment of $150,000
required to put it into operation. Four men are employed
in salvaging at the Goose Island transfer station. The
operation is clearly uneconomical in light of present
costs, the' low level of mechanization, and revenue
realized. The main benefit of the operation is to preserve
landfill space. The dealer taking the metal from the
Goose Island transfer station estimated he was receiving
20 tons per week and indicated that this was a marginal
quantity for his operation.
Steam Sales. Chicago's Southwest Incinerator is
equipped to sell waste heat in the form of steam to
outside customers. The equipment includes four waste
heat boilers with auxiliary fuel burners for standby
operations to meet the contract'volumes when the
calorific value of the waste is too low to provide the
steam. At present, the city has a contract to furnish steam
to the nearby Central Produce Terminal. (Sales data are
in Table 64.)
City officials believe that this is a profitable
operation; however, no detailed cost evaluation of the
operation has been made. We did not attempt to pursue
this item further because of its marginal interest for the
salvage study. Two observations raise some questions
about the value of heat recovery: (1) the city must
frequently supplement its heat load with auxiliary fuel
and experiences mechanical problems, and (2) a private
refuse incinerator nearby found steam sales to be a
constant operating problem and a deficit operation.
Salvage of noncombustible materials is viewed with
favor by Sanitation Department officials, not only as a
source of revenue but also as a way of preserving scarce
landfill space. With the startup of its new incinerator, the
city will be nearly fully committed to volume reduction by
incineration. Officials believe that a salvage program to
recover combustible material could cause severe prob-
lems, especially if it involved paper reclamation. Paper is
more than 50 percent by weight of the tonnage collected,
and the heat value of the paper is important for the
proper operation of incinerators.141
Steel Can Processing. The steel can processing plant,
built in 1963, is located near Chicago's Southwest
Incinerator. The plant receives 75 percent of its inputs
from the city, the balance from two private incinerators,
can manufacturers, and detinners. The processed cans
are shipped to the Southwest and the West, where they
are used for copper precipitation.
The plant manager reports that cans obtained from
the Southwest Incinerator are of excellent quality,- they
are thoroughly burned, properly screened to remove ash,
and the tailings consist largely of nonferrous metals. Cans
from the Calumet Incinerator are poor in quality; they
are not burnt out properly and are accompanied by
tailings equivalent to 75 percent of input weight.
Although the plant manager refused to reveal
detailed operating information, the plant appears to be
economical: a second can processing line was installed in
1969, bringing total investment cost of the plant to $2
million; the operator is seeking out new sources of cans;
residues from the Calumet facility are now accepted
after a hiatus of several years, although poor in quality,
because the operator needs additional quantities to
operate his equipment efficiently.
141 One waste paper dealer reported that the city had once purchased reject waste paper from his company for use as
fuel during a period of very wet weather to overcome incinerator difficulties at one of the municipal incinerators.
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FOR MATERIALS IN SOLID WASTES
107
The plant manager cites the following major op-
erational problems at the can plant: (1) extreme
maintenance problems (50 percent downtime) because
iron oxides and residues cut the fittings on the
equipment; (2) air pollution arising from burning and
shredding of the cans, which has resulted in the levy of
fines by the Chicago air pollution control authorities; (3)
rail cars are frequently unavailable, especially when
operations are at full scale, and the resultant delays
cause serious oxidation of stock-piled cans; and (4) wire
in the residue hangs up in the equipment and requires
elaborate operations for removal.
Operating steps are as follows: (1) materials are
loaded by magnetic crane into feed hoppers; (2) material
passes through a magnetic separator to eliminate
nonferrous metals and ash; (3) four hand pickers pull out
deleterious materials such as wire; (4) cans are shredded
in a hammermill; (5) shredded materials are magnetically
screened a second time; (6) cans are then burned in a
rotary kiln at 1800 F to remove coatings, ash, and
contaminating residues from mixed refuse incineration;
(7) cans are loaded into rail cars or stored; (8) tailings are
loaded into city dump trucks for removal to the landfill.
In addition to these operations, considerable sca-
venging takes place. An independent scavenger collects
rejected ferrous and nonferrous metals falling out of the
magnetic separation unit and sells these to local scrap
dealers, earning between $40 and $60 per week. City
truck drivers scavenge for nonferrous metals while
loading and unloading operations take place.
Salvage at Private Incinerators. The Chicago
area has three large privately owned incinerators used
by private refuse haulers. All of them sell steel cans and
sheet metal as a part of their normal operations.
Operators state that salvage reduces space taken up in
landfill and is a profitable or at least break-even
proposition financially. These factors must be present to
make salvage feasible. Two private incinerator operators
were visited.
Incinerator, Inc. This facility is the oldest private
contractor-owned incinerator m the United States, dating
to 1958; ownership is by 30 private refuse haulers. The
incinerator has a rated capacity of 500 tons per day and
normally operates at or above this level. The company
accepts any refuse delivered and charges a disposal fee
based on weight. It receives a wide mixture of
residential, commercial, and industrial waste from
Chicago and nearby suburban cities. Everything re-
ceived, including noncombustible bulky items, is proc-
essed through the incinerator.
This operation has three salvage systemssteel can,
A
sheet metal, and heat recovery. The facility manager
reports that each recovery operation has its problems
and that the rewards are entirely dependent upon
balancing costs against contractually set or fluctuating
revenues. Steel can recovery data are presented in Table
65.
Incinerator, Inc., operates a can processing plant
located immediately behind the incinerator building; the
plant is owned by St. Louis Carbon Company, purchaser
of the cans. Incinerator, Inc., receives a fee for operating
the plant. Ultimately, the cans are shipped to Montana
copper mines. The equipment is plagued by severe
operational and maintenance problems and the operator
speculates that it is not a profitable operation for St.
Louis Carbon. There are other problems associated with
the can reclamation program, namely, obtaining suf-
ficient volume of cans; high cost associated with
numerous handling steps (running the cans through the
processing step twice to reduce the dirt content); inability
to load directly for shipment; rail car shortage; and
insufficient product quantities to avoid a freight penalty.
Also, the plant location is not advantageous for rail
shipment because several rail lines may be involved in a
single shipment. Offsetting this is the fact that the plant is
adjacent to the incinerator and there are no hauling costs
for Incinerator, Inc., to absorb; the haul of residue to
landfill is reduced. Financial data were not available
beyond those given above. It seems clear, however, that
Incinerator, Inc., finds the recovery of cans a satisfactory
operation. The company plans to continue this activity
after its current contract expires in 1971, although other
options will be evaluated at that time.
Bulky sheet metal items are set aside for sale to scrap
iron dealers after incineration. The company does not
wish to process this scrap for sale. Prices of bulky metals
vary according to the market fluctuation for No. 2 dealer
bundles, and the company's income varied from $3.57 to
$14.28 per ton in the last year. At the low end, it does not
recover delivery costs, but at the high end, the operation
is profitable. The bulky metal is "dirty" metal and
represents a wide variety of productsdrums, appliances,
engine blocks, sheet steel, etc. Sales m 1969 averaged
$0.0092 per ton of waste received and we estimate <
recovery of 1,400 to 2,000 tons or about 1 percent of
input tonnage; in 1970 the yield had jumped to $0.021
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SALVAGE MARKETS
per ton largely because of higher scrap prices in early
1970.
The incinerator residue ash is technically an excellent
roadbed base when mixed with lime. However, the
company has not been able to commercialize this
application, despite one attempt to do so, because
traditional materials (gravel and concrete) are so readily
available locally. The ash is given away for the asking.
Private fills account for what little demand exists; they
use the ash as fill cover.
Paper recovery makes no economic sense to the
operator in the highly developed Chicago waste paper
market. Three barriers existcontamination and cost of
removal; fuel value in incineration; desire of some
customers to have financial records or commercial
products (outdated encyclopedias) completely destroyed.
Incinerator, Inc., sells 1 million pounds of steam per
day to a nearby industrial plant. Until recently, this was
an ideal arrangementboth the incinerator and the steam
consuming plant operate continuously 7 days a week.
Heat recovery, however, proved to be only marginally
profitable over 9 years of operation because original
design performance and costs were never realized.
Steam generation and sale brings pressure on the
operator to orient operations toward consistent steam
output and therefore incineration practice does not
necessarily conform to actual waste flow or its heat
content. The $1.25 million steam recovery operation was
plagued with fly ash coating of heat exchange tubes that
cut efficiency substantially and also required more
supplemental fuel than that anticipated; no condensate
return line was originally installed, and thus water
requirements were large. The operation became more
efficient in recent years, but the receiving plant will have
internally produced steam available in late 1970.
Incinerator, Inc., plans to phase-out the waste heat
recovery operation and to sell the heat recovery
equipment rather than to seek a new customer.
Van Der Molen Disposal Company. This private
incineration operation has a facility with a rated
capacity of 700 tons per day and now processes 600 tons
per day in its incinerator; another 1,000 tons per day are
sent directly to landfills. All types of solid waste are
handledresidential, commercial, and industrialand refuse
A A
delivered by cities nearby is also accepted, on a disposal
fee basis.
All incoming refuse is incinerated, including bulky
metallic items; then a separation of the residue is made.
Bulky metallic items are segregated by hand for sale. The
balance of the residue is processed through a magnetic
separator supplemented by a hand picking operation
and a crusher that compacts the steel cans prior to
loading into a trailer for delivery to a dealer. A company
manager estimates that salvage of the cans reduces the
volumes of the residue by 50 percent.
Steel can sales run an average of 225 tons per month,
or 2,700 tons per year. This is about 1.2 percent of refuse
incinerated. The price paid is $11 per ton based on
railroad weight tickets reported from Butte, Montana,
apparently the ultimate destination of the cans. The bulk
of the cans go to the local dealer servicing the city
incinerators. In addition, the company has recently
begun dealing with another scrap purchaser whose
payments per ton of steel cans delivered are higher.
Sheet metal is sold in volume to a scrap dealer based
upon Iron Age listings for No. 2 dealer bundles. In
general, revenues are about $13.50 per ton under the
weekly price listing. Average recovery is 350 to 400 tons
per month, 4,200 to 4,800 tons per year, or about 2
percent of refuse incinerated. Sheet metal is separated
ahead of the can processing operation by hand. Sheet
metal is hauled to the dealer's yard in a trailer truck.
Van Der Molen has one man per shift working on the
salvage operation (cans and sheet metal); company
officials estimate that one truck driver spends half-time
on the hauling operation. We estimate that direct labor
costs of $36,000 per year are involved in salvage,
excluding equipment maintenance and amortization for
which we have no estimates but which would likely equal
direct labor costs. Income from cans and sheet metal
based on $11 per ton for cans and $12 per ton average
for sheet metal would be about $84,000. Thus, the
salvage operation is profitable as long as sheet metal
prices stay at or above $10 per ton (in fact, they fluctuate
between $3.50 and $14.50).
The company also has an arrangement to sell steam to
the nearby rail yard of the Chicago and Northwestern
Railroad from which it rents its incinerator site. A small
profit is realized on the operation.142
The company finds its metal salvage operations to be
very desirable because of landfill space saved and
income realized. In addition, the company has begun to
142 Three contractor owned and operated incinerators service metropolitan Chicago. Solid
Management/Refuse Removal Journal, 11 (5):12, May 1968.
Wastes
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FOR MATERIALS IN SOLID WASTES
109
explore ways to salvage old corrugated containers
because some of the firm's collections have very high
concentrations of old corrugated boxes.
Summary. Based on our Chicago interviews, we
estimate that salvage of cans from waste by the city and
by three privately operated incinerators probably
generated in the neighborhood of 20,000 to 25,000 tons
per year of cans, all of which are consumed in copper
mines; other sources of cans not derived directly from
refuse would come from local can manufacturing plants,
but this tonnage is probably minor. Of the total can
tonnage, well over half is acquired by one dealer.
Other Metal Salvage. Dealers handling a con-
siderable volume of sheet metal from disposal site
salvage operations were interviewed. Most of the
material derived from waste consists of old appliances,
water heaters, construction panels, and the like. The
large capacity auto body shredders are best suited for
processing this type of material because they knock off
undesirable enamel and porcelain and produce a clean
scrap. Traditional methods of size reduction, such as
shearing, followed by bundling produce acceptable
scrap despite the fact that appliance sheet steel does not
"clean up" completely. Occasionally tin-coated or lead-
coated material may be introduced in small volumes.
Apparently the steel companies (the ultimate purchasers)
do not face technical problems if small quantities of
contaminants are introduced, but their cost per ton of the
purchased scrap may be higher based on ferrous metal
content because the presence of contaminants reduces
the total usable weight.
The scrap derived from waste is usually a small part of
a dealer's operation. For example, one dealer who
acquires about 1,000 tons of scrap per day receives an
average of 3 tons per day from the city; however, many
of his other operations are based on obsolete scrap such
as auto bodies, engine blocks, mixed iron, and the like.
Sheet steel derived from "white goods" is no longer a
significant part of the business because collection and
freight costs are prohibitive at today's market prices. By
contrast, waste sources of sheet metal, especially
household discards, may be economically feasible to
salvage as a part of waste collection for these reasons-. (1)
the collection cost is a part of refuse removal service; (2)
the delivery distance may be less to a scrap dealer than
to a landfill; (3) mechanized separation may keep
segregation costs low (however, those observed by us in
Chicago were labor intensive).
Competition among dealers for sheet metal in waste
does not appear to be keen. Few dealers are equipped to
handle this scrap, and distance from scrap sources
appears to favor a few dealers.
One dealer interviewed noted that by far his largest
volume was in ferrous metals. The operation specializes
in unusual items for the scrap metal trademotor blocks,
other auto components (starters and generators), and
many items rich in nonferrous components such as radio
and T.V. chassis, aluminum motors, and "copper-bearing
scrap." The ferrous metal trade provides high volume
and low profit while the nonferrous metals, at about 1.5
percent of the tonnage, provide the attractive and highly
profitable part of the operation. This dealer had
developed his own technology for breaking up the scrap
and carefully guards the low cost processing techniques;
almost all of his equipment was adapted from existing
commercially sold machinery but featured special low-
cost modifications that allowed him to process items
other dealers considered worthless. Most of this material
was acquired from other dealers over the United States
who would sell such "undesirable" products at or barely
above their freight costs. The special processing ma-
chinery varied from machines with a capability to break
up 2,000 engine blocks per day to machines that could be
used to disassemble radio chassis.
The dealer contended that a private scrap dealer
could efficiently operate a large-scale salvage operation
based on municipal refuse. To do so, he felt the city
should finance the installation and capital equipment
and pay the dealer a fee to operate the plant; the
recovered material could be sold by open bid. This
dealer left the distinct impression that consuming
industries will knowingly or unknowingly accept and
successfully use many low grade and "contaminated"
metals; and the technical barriers are not controlling
parameters. (Another large dealer, however, contended
that municipal refuse is too low quality and expensive to
process under any conditions.)
The dealer's operations were very well managed and
efficient; the processing sites were neat and well kept.
One operation at his yard illustrates what can be done
with hand labor willing to accept poverty wages. The
"fines" or dirt from his processing belts Were hauled to
one corner of his yard and given to a self-employed
scavenger. This man spent his day recovering and
grading nonferrous pieces of metal less than 1 inch in
diameterrhainly brass, copper, and aluminum. The
scavenger is paid by the pound and manages to earn $60
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110
SALVAGE MARKETS
to $70 per week. The residue "fines" of this sorting
operation are then hauled to a disposal site. The
scavengers entire capital equipment consisted of a 3-
foot-by-3-foot house, shovels, and variously sized old
steel drums.
Industrial Metal Consumer. Many scrap consuming
companies do not hold obsolete scrap in high regard.
This is exemplified by one of the largest steel companies
in the United States interviewed in Chicago. According to
the company, where a company is fully or partly
integrated back to raw materials sources, it uses scrap
selectively and may avoid obsolete scrap entirely; it must
use captively held raw material sources to operate
equipment properlyequipment that represents high
capital investment and requires high operating rates to
keep unit costs low. In the case of the company visited, it
buys prompt scrap from three sources: (1) fabrication
scrap generated by its own customers; (2) factory
bundles, a high quality prompt scrap grade; and (3)
prompt scrap from scrap dealers. Thus, while it has a high
scrap consumption near Chicago, none comes from
obsolete scrap sources. Occasionally it sells mill revert to
its competitors to get rid of it. It also sells slag. At one
time, the company had tried steel cans derived from city
incinerator residue as an input material but found them
of unsatisfactory quality because of poor burn-out.
Individuals contacted made it clear that they would
seek obsolete scrap only if forced to do so by
government edict (or perhaps the prospect of same)
because such activity would hurt their established
investments in virgin raw materials handling capability.
Their size also prevents them from maneuvering
efficiently in the highly active and volatile scrap markets,
although they influence its volatility by their own normal
scrap activities. This policy and attitude toward obsolete
scrap varies widely among steel companies, of course,
but that described by this Chicago area firm is typical of
other companies and other industries heavily committed
to captive virgin raw materials supplies.
Paper Recovery. Chicago is one of the key waste
paper collection centers in the United States. There is
substantial local paper mill demand, but Chicago is a net
exporter of paper because of its highly developed dealer
collection system and proximity to the waste paper
consuming mills of Ohio and Indiana. In all, there are at
least 75 waste paper dealers in the city. It is estimated
that only about 15 of these have paper mill connections;
the remainder channel through the larger dealers and
are considered junk dealers. They handle small volumes
and many materials. Within a 50-mile radius of Chicago,
there are 10 paper mills and 5 board mills; all the board
mills are based on waste paper consumption. In addition,
two more board mills are located within 75 miles of
Chicago.
Illinois produces about 900,000 tons of paper per year
from 25 paper and board mills. Virgin pulp consumption
is 300,000 tons. Waste paper consumption in Illinois must
therefore be 600,000 to 700,000 tons per year. Thus, most
mill capacity in Illinois is based on secondary fiber. Of
this total, perhaps 400,000 tons are consumed within 75
miles of Chicago. Total waste paper sales in the area
exceed 1.5 million tons, based on the 1963 wholesale
trade census (sales of $38.5 million worth of waste paper
in the Standard Consolidated Area [SCA] of Chicago,
and $22 average price per ton. An unknown amount of
double counting is involved, however, because dealers
sell to each other as well as to mills.) The Chicago SCA
accounted for 56 percent of the dollar volume in waste
paper in the east North Central region in 1963.
Chicago has two major sources of waste paper: (1) the
large paper converting industryprinting and
publishingand paper product manufacturers and (2) the
A
commercial and private sector that provides the bulk
grades of news, corrugated, and mixed. Almost all the
paperstock is collected by the traditional dealer
collection system, although a few private refuse haulers
have become interested in selling loads of corrugated.
The traditional attitude of private refuse haulers is that
paper loads are unsaleable if they acquire them. Haulers
observe that commercial organizations sell their paper
when demand is good and waste quantities diminish at
such times. When demand is poor, the_paper appears as
waste and cannot be sold. They also find that waste
paper dealers must dispose of mixed paper and news as
refuse at private disposal sites when supply exceeds
demand.
Paper converting operations almost always bale and
sell their wastes. One large printing operation reported
the use of 30 balers in one location and a multitude of
grades; their output goes to 28 fine paper mills and they
sell paper for $1 to $40 per ton, depending on the grade
and volume accumulated. Some of the paper is given
away.
The bulk grades come from obsolete products; the
mixed from offices and small plants; old corrugated is
collected from stores, shopping centers, warehouses, and
the like that have sufficient volume to bale their own;
newspaper is derived principally from private residences
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FOR MATERIALS IN SOLID WASTES
111
with collection done by social service organizations, Boy
Scouts, churches, schools, individuals, and scavengers.
One large dealer reports that his newspaper volume
is 110,000 tons per year, of which no more than 15
percent is over-issue news. He operates through smaller
dealers and local paper drives for which trailers or
collection bins are furnished. The newspaper deinking
mill in Alsip, Illinois, has an output capacity of 85,000
tons per year, which means it consumes old news at the
rate of about 95,000 tons per year. In fact, the presence
of this mill has brought reasonable stability to the
Chicago waste news market despite fluctuations in>
demand by other consumers of waste news, such as the
construction product mills. To maintain supplies the
dealer responsible for this mill's waste paper supply
offers $8 per ton to private groups for unbaled news at
collection points, in spite of the fact that selling prices
had dropped substantially in recent months and the top
price for news was $20 per ton. Most dealers barely
break even at a spread of $12 ($20 selling price and $8
buying price).143
There are signs in Chicago that waste paper dealers
are edging into refuse hauling while refuse haulers are
getting interested in waste paper sales. This is a recent
development and its magnitude is difficult to judge.
Demand for corrugated in Chicago may also increase
when selected dealers install expensive ($120,000) high
density baling equipment; one such installation is near
completion. Such facilities will permit baling of loose
corrugated at densities that will make freight rates
attractive for long shippingperhaps even from Chicago
to the South. One company is making a study of office
building waste to determine if its content and acquisition
cost would make it attractive for combination board
manufacturers.
Companies contacted see little possibility that Chi-
cago will become a major center for paper salvage
based on mixed municipal waste as a source. Waste
paper consumption will continue to depend on demand
for bulk grade wastes.
Glass Recovery. Chicago has one cullet dealer, a
combination processing and brokerage operation. All
cullet acquired locally is obtained from bottling op-
erations (beer and soft drink bottlers). No glass is
obtained from residential sources or refuse disposal
operations. The dealer furnishes to its customers
containers that are filled with discarded containers, all of
the same color. The glass is picked up free of charge by
the dealer and hauled to his plant. Processing, which is
through an ancient and deteriorated plant, consists of the
following steps: (1) collection drums are dumped into
piles by color (flint, amber, green); (2) a front-end loader
transfers the glass to a conveyor that moves the glass to
the top of a tower; (3) crushing takes place by gavity fall
through a grate; (4) the glass is then moved by conveyor
belt past picking stations where debris (especially metals)
and glass of the wrong color are removed by hand; (5)
washing takes place through a spiral classifier and the
cullet is dumped on the ground. The dealers must follow
this procedure two or three times to obtain a "sound
grade." The whole operation uses 14 sorters on 3 lines (6
on flint, 3 on amber, and 5 on green); in addition, there
are 7 other employees involved in the operation. The
whole processing operation appears very inefficient.
The plant processes about 500 tons of cullet per
month. Flint glass brings $22.50 per ton and amber $17.50
per ton. The dealer claims to be just breaking even on the
glass that he must handle himself, and based on average
wage rates of $2.94 per hour, we can confirm this
assumption. Cullet buyers are container manufacturers in
the area.
About 95 percent of the dealer's business is in
brokerage, which is a profitable operation.l44 The owner
places manufacturing cullet (including plate glass cullet)
with consumers of cullet without actually handling the
material. His task is to locate buyers for cullet. He
receives a brokerage fee for this service. Several years
ago bead makers purchased cullet (to make highway
reflector markers), but they no longer do so; today his
only outlet for glass cullet is container manufacturers.
143 An interesting comment can be made here involving two cities we surveyed. A low level of concentration activity has
created an over-supply of news in Chicago. Yet newspaper obtained in the Madison recovery experiment continues to
come into Chicago: It is a "favored source" because of its unique link to solid waste problems and relatively high
quality. This tonnage, however, is displacing paper tonnage generated in Chicago. Thus, less newspaper is collected by
dealers in Chicago (or more is sent to disposal sites) because the Madison paper recovery operation exists. This means
there is solid waste displacement but no net reduction in total waste disposal because total demand for waste paper has
not increased.
144 This is the only glass brokerage operation we encountered in the entire survey.
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SALVAGE MARKETS
Since the dealer does not pay for waste glass and only
breaks even on the processing, he is in essence reducing
disposal costs for his sources and fills local demand for
cullet as a service to good brokerage customers. Such
conditions suggest that cullet derived from refuse would
be uneconomical and impractical to recover without
introduction of sophisticated recovery and processing
technology at low cost. The dealer expressed no interest
in low grade sources of "tramp cullet" because
substantial supplies are still untapped from high
concentration sources — manufacturing and bottling
operations.
We contacted two industrial glass manufacturing
plants in the Chicago area. Neither uses outside
purchased cullet in its operations. One plant manager
reported that his cullet requirements are equvalent to 8
to 12 percent of input tonnage but all this demand is filled
by interna'ly generated glass cullet; a typical batch
contains 400 pounds of cullet and 1,000 pounds of sand.
Output of the plant is 350 tons per day. One reason for
the reluctance to use purchased cullet is that it costs
$22.50 per ton and virgin materials cost less; however,
the company plans to participate actively in the Glass
Container Manufacturers Institute's redemption center
program when it comes to Chicago. The company's
distance from the collection points will restrict its intake;
nevertheless, the plant manager anticipated some
problems in maintaining product quality using foreign
cullet, even in small quantities.
The other plant was a maker of specialty glass
products for the pharmaceutical industry. It uses 15 to 50
percent cullet, all of which is generated internally. The
plant manager could not recall ever using purchased
cullet although other plants in the same company do
consume it.
Rubber Reuse. Virtually all scrap rubber con-
sumption in the Chicago area is accounted for by one
company. It derives its raw materials from old tires
collected primarily from large tire dealers, trucking
companies, scavengers, and those factory rejects ac-
cumulated by tire manufacturers. The dealer sometimes
pays up to 10
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FOR MATERIALS IN SOLID WASTES
113
purchase mixed rags for grading. Textile mill waste
accounts for no more than 10 percent of total volume,
while reclaimed household rags, which are items that
would otherwise be a part of the municipal waste stream,
account for 90 percent.
Chicago had 15 to 20 rag graders in past years; today,
perhaps two survive. Wiping cloth grades keep them in
business. Chicago is a net importer of wiping cloth
material, however, with much of it coming from New
York, Baltimore, and the South.
The association represents about 75 percent of the
trade by dollar volume but only about one-third of the
500-plus firms in the United States. Many companies are
now handling wiping cloths only as a sideline. In
Chicago, there are 63 wiping cloth dealers listed in the
telephone directory while association membership
consists of 10 companies. By contrast there are only 37
waste cotton, wool, and rag dealers listed, many of them
junk dealers handling many other materials (these are not
rag graders previously mentioned).
Wiping cloth makers have low capital investment
requirements, especially in the distribution of their
product. The principal processing consists of washing the
rags and cutting them into wiping cloths. The principal
markets are industrial manufacturers, garages, and
filling stations. Operating cost data were not available
from wiping cloth makers in Chicago, and we could get
no estimate of total consumption in the Chicago area.
Cost data are available from association surveys and
given in the special section on textiles elsewhere in this
report.
Cincinnati, Ohio145
Summary. Cincinnati is located in an excellent
market area for secondary paper, glass, and metal
products. In spite of this, salvage of commodities from
municipal waste is not practiced. Acquisition of waste
commodities before discard, however, is undertaken by a
number of private for-profit and not-for-profit or-
ganizations.
Introduction. Cincinnati is a diversified man-
ufacturing city with a population of around 1.4 million in
the metropolitan area and 503,000 in the core city.
Within 200 miles of the metropolitan area, there are 14
paperboard mills, the principal consumers of secondary
paper, especially bulk paper grades. A glass container
plant is located at Lawrenceburg, Indiana, 20 miles from
the city. Three steel production plants are in or near
Cincinnati, and the city is favorably located in relation to
other steel scrap consuming centers in Ohio.
In 1968, an estimated 455,000 tons of waste were
disposed of in the city by incineration and public and
private landfill. Of this total:
98.5 percent originated in the city
73.7 percent was incinerated by the city
26.3 percent went directly to landfill
(public and private)
56.0 percent was collected by private
forces
44.0 percent was collected by public
forces
The total excludes demolition wastes and park wastes.
Considering only wastes originating in the city and
population of the core city, the disposal rate per capita
per day was 4.96 pounds in 1968.
Four incinerators with a combined capacity to handle
1,400 tons per day are operated. The city owns one
landfill and uses two private fills.
Current Salvage Practices. Once solid wastes are
collected by public or private waste removal forces, little
if any of the waste is recovered. At the time of the survey,
the city had a contract with a scrap dealer to remove
oversized metallics separated from incinerator residues;
the dealer was negotiating with the city to cancel the
contract because his hauling costs exceeded the price he
could get for the metal. At one private dump, which
receives only industrial and commercial wastes, paper
and metal are recovered intermittently when loads are
received that contain solvable materials in high pro
portions. An estimated 500 tons of materials are
recovered annually.
Most of the salvage activity in tne city is based on
segregated collection of solvable commodities. Glass
cullet is collected from bottling operations only; scrap
metals are derived from industrial sources; paper is
collected both from residential and industrial and
commercial sources; textiles are obtained almost ex-
clusively from residential sources.
Paper Recovery. The city's location in an area with
numerous paperboard plants has as a result a high level
of paper and board collection activity. Boy Scouts and
schools are principally involved in the collection of
newspapers; the Volunteers of America and the Salvation
Army also actively seek newspapers; Goodwill Industries
145 Survey concluded in February 1970.
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SALVAGE MARKETS
accepts (but does not like to handle) news. News
collected by these organizations are sold to paper
dealers who bale them and deliver them to board mills.
Old corrugated boxes are acquired by paper dealers
directly or from collectors and are handled in the same
manner as news.
Data on total demand and supply in the area could
not be assembled as part of this survey. Not only are
there numerous sellers and buyers in the area, but paper
is both imported into the area (from as far away as
Texas) and paperstock is exported (usually to East Coast
mills).
The largest processor of paper in the city has a
capacity to shred and bale approximately 62,000 tons of
bulk grade papers a year. His actual production was not
available; however, he processes equal quantities of
news and corrugated. If the processor operates at full
capacity, he handles 31,000 tons of news. At an average
collection rate of 25 tons per school drive, 1,240 school
drives would be necessary in the Cincinnati metropolitan
area to generate such a tonnage of news.
Costs to transport paper from source points to waste
paper processing plants are reported by one respondent
to average $4 per ton for all grades. Processing (sorting,
shredding, and baling) costs $180 per ton, of which half is
labor and half is all other expenses, including equipment
amortization. Product shrinkage costs $1 per ton of
output. Collectors (schools, scouts, scavengers) are paid
$10 per ton for news and corrugated if the paper must be
picked up, $14 per ton if the paper is delivered. News Is
sold for $20, corrugated for $23 to $30 a ton in times of
good demand; the buyer pays transportation costs to the
mill; these are an average of $3 to $4 per ton.
Another respondent reports a pickup cost of $3 per
ton, shredding and baling costs of $2.40 per ton, and
sorting costs before shredding and baling of $0.60. This
organization is a social welfare agency that issues
certificates or receipts to suppliers of the paper in lieu of
cash; the company may take a tax credit for a charitable
donation based on the "fair market value" of the paper.
The social welfare agency does not pay income taxes
and, being a sheltered workshop, it pays only half the
standard wage rate applicable to the labor category on
the open market. If in spite of these advantages, the costs
of this organization are comparable to the costs of the
first respondent, it is explained by the small tonnage
handled by this agency — approximately 1,600 tons a
year.
Using national per capita discard figures, more than
252,000 tons of paper are discarded in the Cincinnati
metropolitan area yearly. Of this total, 45,000 tons are
news and 61,000 tons are corrugated. A fairly high
proportion of both these bulk grades appears to be
collected and recycled.
Metals Recovery. Metals are sorted from industrial
wastes delivered to one private dump in the area, but
only if the quantity of metal available justifies the effort.
The Salvation Army facility in the city sells between 9 and
12 tons of metals per working day, or 2,250 and 3,120 tons
a year; these metals are acquired from the public in the
form of appliances and other metal goods. Income from
the sale of metals is approximately $18 per ton. With the
exception of these two operations, scrap metals are
acquired by the secondary materials industry from
industrial sources and from automobile dismantlers.
The recent installation in the area of an automotive
shredder with a 400 ton per day capacity (8 hour shift)
has created demand for automotive hulks; furthermore,
appliances that were not acceptable to scrap dealers in
the city are now accepted at the shredder facility, if
delivered there.
Discussions with secondary materials dealers indicate
that transportation expenses are the chief barrier to the
recovery of metals from wastes. It is uneconomical to
send a truck to pick up a small quantity of metal whose
quality is marginal when the same truck can be used to
collect uniform prompt scrap from industrial sources. If
the metals are delivered to the scrap yard site, they are
accepted.
Glass Recovery. One of the Nation's few glass
cullet dealers is located in Cincinnati. He acquires 5,900
tons of broken glass a year from three breweries, two soft
drink bottlers, and two liquor bottlers. This tonnage
shrinks to 4,200 tons in processing and is sold for an
average of $19 a ton.
The dealer knows only a few of the processing costs
he incurs, these being costs of acquisition, processing,
and delivery. These estimates are only approximate and
appear to be low. Depending on circumstances, his costs
range from $12.25 to $14.70 per ton, broken down as
follows: acquisition cost per ton of product sold, $4.25 to
$5.70; processing costs, including labor, power, water,
and shrinkage, $6.00; delivery cost, $2.00 to $3.00 per
ton.
The glass is acquired free. The dealer's cost consists of
providing and maintaining suitable containers for the
waste glass and collecting and transporting their
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FOR MATERIALS IN SOLID WASTES
115
contents to his plant. The glass acquired contains at least
10 percent by weight of trash — dirty rags, boxes, lunch
sacks, and the like. Shrinkage in processing (loss of fines)
is 20 percent. Consequently, there is a loss of 30 percent
of incoming tonnage.
Glass is processed through a glass grinder and washer
followed by magnetic separation of ferrous metal wastes
and a screening to remove aluminum in the glass stream.
The operation is in an open-air plant that cannot be
operated in very cold weather or at night. Three men
operate the plant; one man drives the pickup and
delivery truck; the owner supervises the operation and
carries out the necessary administrative work.
On the face of it, this business appears profitable with
a differential between costs and sales price of $4.30 to
$6.75 per ton. If oil costs were counted, the operation
would probably be a financial failure. Equipment
depreciation is not charged; the plant is 22 years old and
in poor repair. Maintenance is restricted to fixing
breakdowns. Inert wastes are deposited on the site;
combustible wastes are burned in the open air. Water
used in washing cullet is discharged untreated; it carries
most of the lost glass in the form of suspended fines.
The owner reports that most of his input glass tonnage
is derived from bottling plants that process returnable
glass containers; wastes consist of scratched and broken
returnables that can no longer be used. With the
introduction of one- way glass bottles, waste generation
has been declining and he forsees a time when he will be
unable to acquire a sufficient tonnage of cullet to stay in
business.
The glass is sold to a container producer ap-
proximately 20 miles from the cullet plant at Law-
renceburg, Indiana. The nearest other plants are m
Zanesville, Ohio, and in Indianapolis, Indiana. Much
more glass could be sold, the owner stated, if supplies
could be secured. However, salvaging of glass at dumps
is no longer practiced. (Cullet dealers have never been
involved in acquiring glass at dumps, but they purchased
glass picked up by scavengers.)
In Cincinnati, an estimated 57,150 tons of container
glass are discarded annually by the population; total
annual cullet demand at the Lawrenceburg plant ranges
between 14,600 and 18,250 tons; of this total, half is in the
form of in-house cullet, half in the form of purchased
cullet. Consequently, total demand for obsolete glass is
between 7,300 and 9,125 tons a year. Roughly half this
demand is already satisfied by bottling plant wastes,
leaving very little demand for glass containers discarded
after use by the public.
Textile Recovery. Recovery of textiles from res-
idential sources is carried out exclusively by social
welfare agencies, such as Goodwill Industries, Salvation
Army, and Volunteers of America. These three or-
ganizations collected a total of 7,080 tons of textiles in
1969; of this total, 3,860 tons were sold as rags to textile
dealers at an average price of $62; the remainder were
sold in secondhand outlets as used clothing.
The rag bundles (1,000 pound bales) are sold to textile
dealers on the East Coast; freight of $20 per ton is paid
by the buyer. The dealer sorts the rags into "wiper."
"export," and "roofing rag" components. Wipers are
prepared by the dealer in additional sorting, cutting, and
laundering operations from cotton fabrics. Exports are
usable or repairable clothing items that are shipped out
of the country. Roofing rags are unusable textiles and
wiper trimmings sold to manufacturers of roofing papers.
The social welfare agencies collect a variety of
discarded objects from collection boxes and by op-
eration of door-to-door truck routes. The incoming
materials are unloaded at the plant docks and are sorted
into general categories (shoes, toys, textiles, etc.); these
material streams are then further sorted (into usables and
rags, usables into 30 or more categories such as men's
overcoats, ladies' cotton dresses, toweling, etc.). Given
these integrated operations, the agencies have difficulty
isolating costs associated with the collection, sorting, and
other processing of specific waste commodities.
One agency estimated that the labor component only
of textile sorting, including rag baling, is $13.29 per ton;
of this, 10 percent is attributable to rag operations. Most
of the sorting effort is expended on separating men's and
women's clothing into 34 categories. Sorting labor in this
sheltered workshop is paid an average hourly rate of
$1.10. The costs cited above do not include overhead or
supervision. Another agency, also a sheltered workshop,
pays sorters $1.29 per hour; commercial rates are $2.58
per hour.
Prices received for rags by these agencies have been
steadily declining — from $120 per ton in 1965 to $76 per
ton in mid-1969 to $55 per ton in February 1970; the $55
per ton price was the price received by the agency with
the lowest tonnage; the agency with the highest tonnage
received $65 per ton, and the agency with the
intermediate tonnage achieved a $60 per ton price. All
individuals interviewed expected further price declines in
the near future.
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SALVAGE MARKETS
Reasons for the price decline are twofold: First, the
percentage by weight of pure cottons in rag bundles is
declining; one source estimated that 15 to 20 percent of
rags are cotton now compared with 30 to 35 percent in
1965; another source said that cotton content is 25 to 30
percent today; cottons are the most desirable textiles in
rag bundles. Second, the demand for used clothing and
rags in foreign countries is declining.
Plastics Salvage. We encountered one curious
instance of plastics salvage. A private refuse removal
firm serviced a plastics producer delivering wastes to a
suburban private dump. The dump operator retrieved
semirigid and rigid plastics and sold them to the public.
The plastics producer discovered this operation because
the dump operator advertised his plastic products in
suburban newspapers. The plastics producer thereupon
required the waste hauler to deposit plastics waste in
another dump and further required a guarantee that the
wastes would not be retrieved and sold.
Past Salvage Practices. l46 The operator of the
area's largest private dump maintained a major hog
feeding operation (1,500 animals) in the early I950's. Hogs
were fed on residential wastes after inedible components
were removed by pickers. Wastes were moved past
pickers on a moving belt; paper, cardboard, wood,
textiles, and metals were removed by hand and sold. The
operation was closed aftc a few years because health
department requirements to boil the garbage before it
was fed to hogs made this hog raising operation
uneconomical.
During World War II, one company in the area
acquired steel cans from dump scavengers, residential
sources, and canning operations; the cans were detinned.
Cans that had passed through an incinerator could not
be detinned; oxides formed during combustion could not
be removed. The detinning operation was closed down
with the end of the war. The company, however,
continued to receive steel cans until 1964. The cans were
shredded and sold to a ferroalloy producer. In 1964, the
operation became uneconomical; declining scrap prices
and abundant supplies of higher quality metals appear
to have made steel can scrap unattractive.
Connecticut Area147
Summary. In four smaller communities in Con-
necticut, we encountered only dump salvage operations
— scavenging at landfills and dumps. The survey had
three points of interest, however: (I) we found one
instance of hair and feathers recovery, (2) we visited one
hog farm operator, and (3) we interviewed one of the
few remaining rubber dealers in the country.
Introduction. In the National Survey of Community
Solid Waste Practices, salvage operations at incinerators
were reported at Darien, Berlin, and New Canaan,
Connecticut, and at a hog farming facility in Marl-
borough, Connecticut. The combined annual income
from salvage at these facilities was reported to be nearly
$6,500. For this reason, we decided to conduct one of the
case studies in this area of Connecticut. As it turned out,
however, the salvage activities were not actually in
existence.
The case study was conducted in Darien, Berlin, New
Britain, and New Canaan. Interviews were also con-
ducted in Bridgeport, Canton, Glastonbury, and Stam-
ford, Connecticut, with waste collectors and processors.
The communities surveyed are small and near each other.
Collections are handled exclusively by private forces;
most private haulers are small (one- or two-truck
operations); open burning is practiced at the dumps.
Incinerators are operated by Darien, New Canaan, and
New Britain; these range in quality from one fairly sound
installation to one incinerator in a state of near collapse.
Records on operations are sparse and incomplete.
Salvage was practiced legally at two dumps and illegally
at two others. Table 66 presents the waste handling
profiles of the four communities.
Current Municipal Salvage Practices. Salvage
of commodities from municipal wastes is restricted to the
removal of metaJs and usable items from wastes
deposited at dumps. The City of Darien has a contract
with a scavenger who, for a payment of $500 a year, is
permitted to remove materials from the city dump. The
scavenger could not be reached for an interview. He
reportedly removes bulky items such as refrigerators,
stoves, and the like in a small pickup truck, stores
materials'at his home, and sells metals to a scrap dealer
in Stamford. The city is interested in salvage as a means
146 Resource recovery from incinerator residue; analysis of factors that affect economic recycling of ferrous metals and
other inorganic material contained in municipal incinerator residue, v. 1. Findings and conclusions. APWA-SR-33.
Chicago, American Public Works Association Research Foundation, Nov. 1969. p.l 1,14-15.
147 Survey concluded in April 1970.
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FOR MATERIALS IN SOLID WASTES
117
of conserving dump space; salvage is not viewed as an
income-producing activity.
In New Canaan, a city employee at the dump, with
additional duties as gateman, retrieves and sorts metal
wastes deposited at the city dump. The waste is sold to a
scrap dealer in Stamford who pays the city directly. This
program results in the recovery of 60 tons of metal yearly
and a gross salvage income to the city of $1,200. Less than
I percent of the waste deposited at the dump is
recovered; the dump receives wastes yearly.
New Britain operates disposal facilities for Berlin and
Newington as well as for its own population. At present,
no salvage is permitted at New Britain's facilities.
However, we observed five scavengers working at one of
New Britain's two dumps. They recover usables, metals
(sold to a scrapyard less than a mile from the dump),
wood (about 5 tons per week in winter months), and
rubber tires (about 1 ton per week is removed and sold to
a tire maker). The gateman at the dump reported he felt
sorry for the scavengers and allowed them to work if they
did not interfere with dumping operations. We estimate
that, at most, 150 to 200 tons are removed annually by
scavengers.
Other Salvage Activities. There are a number of
secondary materials dealers in the communities, but we
were refused interviews by these dealers. Individuals
contacted stated on the telephone that the secondary
materials business in the area was fiercely competitive
and consequently they preferred not to discuss their
operations. Interviews with salvage dealers, however,
were conducted in Bridgeport and Stamford, Con-
necticut, from which the following picture emerges.
The secondary materials dealers in the area are fairly
small. They handle metals, paper, and rags. The metals
are derived from automobile hulks and industrial
sources. Paper, in the form of corrugated board, is
acquired from commercial sources (stores, warehouses).
Newspapers are not handled or are handled by
exception only. Rags are obtained from social welfare
agencies such as the Salvation Army and Goodwill
Industries. Demand for and prices of secondary materials
are low. Although we could not obtain data on tonnages
handled or prices received, we were left with the
impression that the depressed conditions of salvors was
the result of the available and abundant cheap supplies
of secondary materials in the New York metropolitan
area (50 miles away), the distance to the nearest
concentrations of the steel industry (western New York
and Pennsylvania), and the absence of paperboard mills
(there are only two in the State, both located in the New
Haven area).
Rubber Salvage. Connecticut is unique in that it is
one of nine States in which a rubber reclaiming company
has a plant. The plant is at Naugatuck. From the area
covered by our case study, approximately 30,000 tires
are removed and reclaimed by a scrap rubber dealer
every year, equivalent to approximately 300 tons of
rubber according to the dealer's estimate.
Tires are acquired from commercial sources such as
filling stations, salvage yards, and auto dismantlers. The
dealer is paid 15
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SALVAGE MARKETS
others elsewhere, ranging from $240 per ton for white
cotton wipers to $8 per ton for mixed paper. Salvage
materials are sold to secondary materials dealers in
processed form — baled or bundled.
Textiles. Approximately 90 percent of all textiles
received are sold as rags; a portion passes through the
secondhand stores before it is "ragged." The bulk of
textiles, however, is sent to rag bundles immediately after
receipt. Unlike some social welfare organizations, the
Bridgeport Goodwill sorts textile rags into a number of
categories rather than selling all textiles as mixed rags;
this additional sorting improves income from textile
salvage somewhat. The agency achieves $70 per ton for
textile salvage, $5 to $10 above that experienced by other
organizations we have visited.
Paper. The organization sorts and sells paper only
because costs of dumping exceed the costs of sorting the
paper. Only newspapers and mixed papers are handled.
Although corrugated board sells for $24 per ton in the
area (versus news at $20 per ton), the facility does not
receive a sufficient quantity of corrugated board to
attract dealer interest.
Bedding Materials. At this Goodwill Industries facility
we encountered the only instance in our survey of hair
and feather recovery — two commodities that, like
bones and grease, seem to have disappeared as articles
of commerce in the secondary materials business. Hair
and feathers are taken from bedding materials —
mattresses and pillows. The materials are sold to a dealer
who exports them through New York. Mattresses and
pillows are split; the hair is classified by type; hair and
feathers are bundled for shipment. Cotton materials are
sold as textile salvage. These commodities sell at a low
price ($18' to $22 per ton); the organization director
believes that recovery of hair and feathers is possible at
his facility only because of the low wages paid in this
sheltered workshop.
Past Salvage Practice. In this area of Connecticut, as
elsewhere, more salvage activity has taken place in the
past than currently. Tires were recovered from the Darien
dump up to 1967; the city paid a salvor 20
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FOR MATERIALS IN SOLID WASTES
119
and surrounding communities. The city's industries fall
into the light manufacturing category.
Gainesville has a population of 68,000. The sur-
rounding built-up area of Alachua County adds another
28,600 to the population for a total of 96,600 people in
the area.
In 1969, 69,380 tons of waste were collected from
residential and commercial sources by public and private
agencies (Table 69); wastes collected were equivalent to
3.93 pounds per capita per day.
In Gainesville proper, the city collects both residential
and commercial wastes with its own forces. The
University of Florida has its own collection forces,
however, and some private concerns within the city limits
transport their own wastes directly to the municipal
landfill. In Alachua County, two private refuse haulers
remove all wastes under contract with the county. In 1969,
wastes were disposed of at the compost plant (49
percent), at the university's landfill (II percent), and at the
municipal landfill (40 percent).
In January 1970, the compost plant was shut down. The
Federal Government, which had contributed $145,000 a
year in operating funds to the compost plant in the form
of demonstration funds, withdrew its support in 1970,
thereby reducing operating funds by two-thirds. The
compost plant, which had been losing money m spite of
Federal support, had to be closed. Salvage activity in the
city thereupon came to a halt.
Nature of Gainesville Salvage Markets.
Gainesville, like Amarillo, is located in an area where
demand for secondary materials is weak. Within a 100-
mile radius of Gainesville, there are five paperboard
mills and two glass container production plants. The
nearest steel furnaces are In Tampa, Florida; Atlanta,
Georgia; Montgomery, Alabama; and Birmingham,
Alabama. The city is located some distance from areas of
industrial concentration where textiles are in demand for
making wiper rags. For these reasons, along with others,
salvage activity at the Gainesville compost plant has not
contributed substantially to the income of the operation.
Salvage Activities at the Compost Plant. In
1969, paper and textiles equivalent to 6.6 percent of
incoming waste tonnage were removed from the waste
by manual labor and were sold (Table 70). Metals were
also removed to insure a desirable compost product, but
the city could not find markets for the waste metals.
The paper removed was sold to manufacturers of
construction board and felt products in Jacksonville for
an average price of $16.50 per ton in 1969, down from
$18.28 per ton in 1968. A small quantity of rags (1.37 tons)
was also sold to one of the manufacturers of construction
products for $18.00 a ton. In all, the city realized an
income of $37,393 in 1969 from the sale of 2,255 tons of
materials.
The city was able to identify the following costs
associated with paper and rag salvage. In 1969, salvage
figure includes equipment amortization, labor, and all
other incidental expenses. In addition, the city was
required to pay the licensor of the compost process one-
third of the gross revenues from the sale of products. This
amounted to $5.50 per ton of paper sold. The city's total
cost, therefore, was $14.14 per ton. Cost of textile sorting
and preparation was $8.67 'per ton sold; licensor's fee
was $5.49 per ton, for a total cost of $14.16 per ton. Thus,
the city had costs of $31,936 and sales of $37,393, leaving
a profit of $5,457, or $2.42 per ton of salvage
commodities sold.
Paper Salvage. According to estimates of the
Gainesville Municipal Compost Authority, approximately
24 percent of the paper delivered to the plant (4,240 tons
in 1969) was salvageable; most of this paper (2,680 tons)
was corrugated board. The authority sold 2,254 tons in
1969, 53 percent of the quantity deemed salvageable by
the authority. Poor product quality and weak demand
kept sales low. The authority sold paper directly to users
without making use of the services of a paper dealer or
broker.
The quality of paper and rag products from the
compost plant was poor according to buyers. One buyer
cited these specific items.
(I) The paper is mixed with garbage and con-
taminants.
(2) Wet shipments are more common with paper
extracted from mixed refuse than with paper obtained
from commercial sources; wet loads increase the
likelihood of spontaneous combustion and, in turn, can
cause increases in insurance rates.
(3) The percentage of hot-melt glues and other water
resistant resins is high and causes pulping problems.
(4) Mixed paper from municipal waste sources
contains a high proportion of shorter fibers; this reduces
the strength of the final product.
Our examination of paper bundles stored at the
compost plant substantiated the buyer's claim that the
paper contains contaminants. We saw plastics (films and
bottles) and glass containers in the paper bundles. The
need to pull items off the conveyor belt quickly and the
desire to avoid the high costs of a second sorting were
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SALVAGE MARKETS
responsible for the presence of contaminants. A sorter at
the plant, for instance, pulled all corrugated boxes from
the waste as it passed by his station at the rate of 20 feet
per second. This was the only sorting performed. If the
box had some bottles or cans in it, these items became
part of the paper bundle.
Because paper products derived from mixed mu-
nicipal waste sources are low in quality, such com-
modities can only be used in limited quantities by
repulpers. The Gainesville paper was used to make
gypsum board liner paper and construction paper —
two paper products with low quality requirements. In
these applications, the Gainesville paper bundles
represented the lowest quality secondary materials
inputs.
Construction activity in Gainesville, as elsewhere, was
at low tide in 1969; this in turn meant cutbacks in
construction materials production. At the time of our visit
in early 1970, for example, the gypsum board man-
ufacturer was operating at 80 percent of 1969 production
and had terminated all purchases of municipal waste
paper. Low grades of secondary paper, especially mixed
office paper, were in oversupply. Paper buyers, who
depend for their secondary paper shipments on com-
mercial dealers, were reluctant to antagonize these
suppliers by buying municipal waste paper direct at a
time when higher quality paperstock was in excess
supply.
In the Gainesville market area, as elsewhere, used
paper buyers repeatedly made the point that they
depend on and must work with middlemen. Buying
directly from waste generating sources is attractive;
savings may be as high as $5 per ton. The buyers cannot
acquire more than a small proportion of their supplies by
direct purchases (unless, of course, they enter the
secondary paper business). For this reason, direct buying
is held to a minimum and is done only when demand is
high. At the same time, the quality of municipal waste
paper derived from mixed refuse is so poor that the
buyer can afford to buy it only if it is very cheap. Dealers
and brokers, always plagued with an oversupply of low
quality paper, are not interested in handling municipal
waste paper. Thus, direct buying of such commodities is
the only practical alternative.
Textile Salvage. In 1969, more than 900 tons of textiles
were processed through the Gainesville compost plant. A
manufacturer of construction materials had indicated
willingness to purchase all textiles retrieved from the
waste. In spite of this, the authority sold only 1.4 tons of
textiles. The problem was in sorting out the materials.
Textiles are only 2.7 percent by weight of Gainesville
waste (compared with 52.6 percent of paper). The textiles
are mingled with other wastes and are difficult to see.
The sorting belt moves too rapidly to allow effective
textile separation. Slowing down the belt would yield
more textile salvage but would also seriously impair the
efficiency of the total composting operation.
Other Salvage Operations Considered at the
Compost Plant. Although only paper and textiles were
sold from the compost plant, metals were also removed
from the waste and attempts to sell these materials were
made.
Ferrous Metals. In 1969, 2,300 tons of ferrous metals
were removed from the incoming waste. Bulky items were
set aside when delivered; smaller ferrous metals were
removed ballistically from waste and magnetically from
nonferrous metals.
Attempts to sell the metals were made in Jacksonville,
Tampa, and St. Petersburg, Florida, and in Birmingham
and Emco, Alabama. The metals could only be sold after
burning and crushing. Prices offered included the
following: (I) $4.00 per ton delivered at Tampa; (2) $4.50
per ton delivered into railroad cars at Gainesville; and
(3) $20.00 per ton delivered to Emco, Alabama.
At these prices, sale of the metal was considered
uneconomical for the following reasons.
(I) Total cost of removing the metals from waste,
burning them, and crushing them was estimated by the
authority to be at least $2.56 per ton; this cost excluded
air pollution control costs for the metal burning
operation.
(2) Additional handling of the metal — from plant
site to railroad — was necessary because the compost
plant had no rail spur.
(3) Transport cost to Tampa was estimated to be $5
per ton (which we consider too low); and to Emco,
Alabama, freight charges were $13.84 per ton (actually
quoted as $15.50 per long ton).
(4) One-third of gross revenues were payable to the
compost process licensor.
Given these circumstances, the authority would have
lost money on all three offers made. We learned of no
attempt to compare the magnitude of losses sustained in
salvaging with magnitude of costs for the alternative of
landfilling metals separated in the composting process.
In the Florida area, there is no market for burned tin
cans for use in copper precipitation. The bulk of ferrous
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121
metal delivered to the Gainesville compost plant was tin
cans (between 80 and 90 percent by weight). The
remainder was bulky metallics (stoves, refrigerators),
toys, auto parts, household goods, and the like.
Consequently, scrap dealers in the region showed little
interest in buying the ferrous metals which were
contaminated with tin which could only be sold if mixed
in small quantities with other scrap.
Nonferrous Metals. No special efforts were made by
the authority to market nonferrous metals. Ap-
proximately 260 tons of such metals were delivered to the
compost plant, in part as components of bulky waste
products. Area scrap dealers showed no interest in this
resource because excessive sorting and disassembly, such
as stripping of electric motors to separate cast iron,
aluminum, and copper, would have been necessary to
obtain a small quantity of nonferrous metals.
Glass Recovery. Glass container manufacturing plants
accessible from Gainesville are located at Jacksonville,
Lakeland, and Tampa, Florida; Hapeville, Georgia; and
Montgomery, Alabama. Approximately 1,900 tons of
glass and ceramics (but mostly glass) were received at the
compost plant. The glass plants in the area could absorb
such a tonnage as cullet provided the glass was color
sorted and free of metallic impurities. No attempt was
made by the authority to separate glass from incoming
waste.
Secondary Materials Industry. Gainesville is
located near two large secondary materials centers —
Jacksonville and Tampa, Florida. Scrap materials,
especially metals and textiles, are exported from these
cities. Gainesville secondary commodities must compete
againt sources closer to the export shipping points while
absorbing freight of $6 to $10 per ton. As a consequence,
collection and processing of commercial secondary
materials are limited. The city has one secondary
materials dealer who concentrates his efforts on ferrous
and nonferrous metals and reusable, repairable prod-
ucts. In addition, two or three individuals engage in
scavenging activities in the city on a part-time basis.
The city's dealer ships nonferrous metals as far as
Philadelphia in the East and Cleveland in the Midwest.
The bulk of his collections are exported from the ports of
Tampa and Jacksonville. Cast iron is shipped to
Birmingham. Approximately 13,000 tons of materials
were recovered from the Gainesville area by the dealer
in 1969. Junked automobiles and fabrication wastes make
up the company's inputs.
Social welfare agencies do not collect discarded
products in Gainesville.150 There is no paper dealer in
the city, and area schools consequently do not hold
paper drives.
Houston, Texas151
Summary. Markets exist for secondary materials in
Houston, even for such low quality products as burned,
tin-coated steel cans. Paper, rags, steel cans, and other
scrap were removed from mixed wastes processed
through a compost plant. Steel cans and other scrap
metals had been recovered from incinerator residues.
Social welfare agencies in the area are active in textile,
paper, and scrap collection from residential sources. A
rendering operation, which had accepted dead animals
from the city, was visited.
Introduction. Houston, with a population of 1.8
million, is a large industrial city on the Gulf of Mexico.
The city's largest industrial employers are chemical and
hydrocarbon processors, steel manufacturers, mining
companies, machinery producers, medical product
manufacturers, and food processors.
Approximately 1.25 million tons of waste are collected
by public and private haulers in the city, equivalent to
3.72 pounds per capita per day. Of this total, 350,000
tons are residential wastes; the remainder is commercial
and industrial waste. The city's own forces remove 33
percent of the waste; private agencies handle 67 percent.
Wastes are disposed of in two public and one private
landfill and in a compost plant. The city has five
incinerators; four are permanently closed, and the fifth
closed down for extensive repairs. The most recently built
unit (1967) had a rated capacity to burn 800 tons of waste
per day.
Salvage of steel cans from mixed municipal wastes
had been taking place at the city's new incinerator and
could presumably be undertaken again when the
incinerator is once more operational. At the time of our
visit, the facility was down for extensive repair of
damage caused by corrosion and slagging.
Paper, textiles, and metals were removed from wastes
delivered to the compost plant, owned and operated by
150 This explains the relatively high textile content of wastes at 2.7 percent by weight compared with that found in the
wastes of other cities of a round 0.6 percent.
151 Survey concluded in February 1970.
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SALVAGE MARKETS
a private company. We were denied detailed in-
formation about salvage activities at the compost plant
on the basis that data were proprietary. At the time of
our survey, the future of the compost plant was uncertain.
The operation was losing money according to plant
officials and had also encountered public opposition.
Houston had a serious solid waste problem in the
early part of 1970. Its two public landfills were exhausted;
at one, wastes were stockpiled into the vertical
dimension. Its incinerators were shut down. The city was
in process of finding new arrangements to handle its
waste tonnage.
Houston as a Secondary Materials Market.
There are, in or near Houston, industrial operations
capable of absorbing considerable quantities of sec-
ondary materials. There is a large integrated steel
operation in the city, including both open hearth and
electric furnaces. Other steel centers are located in the
State. The largest scrap user in Houston purchases
approximately 600,000 tons of scrap yearly. There is a
glass container plant in Houston and five other glass
container producers are located within a 250 mile radius
of the city. One paperboard mill is located in the city;
three others are within 150 miles of Houston. In addition,
two large manufacturers of building products in the city
are also buyers of waste paper. One of these acquires
68,000 tons of waste paper annually, the other, 6,000
tons. The city is located close enough to copper mines in
the Southwest to permit economical shipment of steel
cans to copper mines for copper precipitation. The
presence of a rendering industry in the city permits
disposal of dead animals via rendering. Finally, Houston
is an exporter of scrap materials through its ports.
The secondary materials industry in Houston consists
of 35 salvage yards, most of these being metal processing
facilities. Wastes are acquired directly from commercial
and industrial sources, from individual scavengers, and
from social welfare agencies.
Salvage at the Compost Plant. In 1969, 92,512
tons of mixed refuse were delivered for processing to the
city's compost plant, operated by Metropolitan Waste
Conversion Corporation, a private firm. The city paid the
company $4.03 per ton for the waste delivered.
According to samples taken by the Refuse Division, Public
Works Department, City of Houston, composition of the
waste by input weight was determined (see Table 71).
In the course of our survey, we were able to ascertain
only that the metals removed are sold — steel cans for
$15 per ton and other metals for $8 per ton. A portion of
the paper is removed from the waste as it enters the
plant. Experimental bundles of the paper product have
been sent out to various consumers of secondary paper in
Houston and elsewhere. In the Houston area, we were
unable to locate any company that had bought the
paper, although companies interviewed had received
trial bundles and had decided against buying the paper
because of its unacceptably high moisture content (above
6 percent) and foreign materials content (15 percent by
weight), approximately 10 percent above maximum
specification levels. According to city officials, some
paper had been sold (for $10 per ton) as well as some
textiles (for $40 per ton).
The metals removed from the waste are loaded
directly onto railroad cars and are shipped to a steel can
processor who burns, shreds, and tumbles the products
and ships the shredded steel to Arizona copper mines.
We learned that attempts to market glass cullet in the
Houston area had been unsuccessful — principally
because the operator of the local glass container plant
prefers to use only cullet generated within the plant.
Steel Salvage at the Incinerator. The city's
newest incinerator, which has a design capacity of 800
tons per day, was brought into operation in August 1967,
and operated, with one interruption (all of February 1968)
until May 1969. In the period from November 1967 to
March 1969, steel cans and other metal scrap were
removed from the residue and sold to a local scrap
processor.
According to city records, during the period of metal
salvage 144,021 tons of waste were incinerated and 8,107
tons of steel cans were recovered, equivalent to 5.6
percent of input tonnage (Table 72). Additionally, 80 tons
of other metal scrap were recovered (0.06 percent of
Input).
Terms of the contract between the city and the scrap
processor called for a payment of $13 per ton for all steel
cans received and $6 per ton for miscellaneous scrap
received.
Initially, residues coming from the incinerator fur-
naces were tumbled to separate ashes and fines from the
metal. Later, magnetic separation equipment, put in
place at the incinerator by the scrap processor and
operated at his expense, was used to separate the metal
from other residues. Because wire and other bulky
materials were causing difficulties in the operation of the
magnetic separator, the city employed, at its own
expense, two sorters who removed such items manually
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123
before the residue stream reached the magnetic
separator.
The scrap processor was required to pay a $50 per
month rental for placement of the magnetic separator
and was required to pay for energy consumed in
operating the separator. Additionally, he was required to
post a $10,000 performance bond and to maintain
property and accident insurance policies. The processor
also supplied containers for the steel products and was
responsible for all transportation.
According to the agreement between the city and the
processor, the processor was responsible for determining
the tonnage of materials received and to submit sworn
statements detailing quantities of steel cans and other
metals received. This arrangement led to o dispute
between the city and the processor, which was
unresolved at the time of our survey.
According to the processor, the wastes placed into his
containers contained a high percentage of nonmetallic
residues, up to 50 percent. Consequently, he has not paid
the city for metals removed and allegedly owes a total of
$54,670 to the city for the period of metals reclamation.
At the time of our survey, the city was contemplating
legal action against the processor to obtain payment.
The city's figures appear reasonably accurate, in our
opinion. During the period in question, steel cans
recovered from residues never exceeded 7.24 percent of
the input tonnage in any I month, were as low as 4.18
percent of input in I month, and averaged 5.63 percent of
input tonnage in the period. Analyses of Houston waste
delivered to the compost plant showed that steel cans in
Houston waste were 7.5 percent of total weight.'52
A 2-day test conducted by the city in June 1968,
indicated that incinerator residues were composed of tin
cans (58.8 percent by weight); wire and other metallics
(2.9 percent); and ashes, glass, and the like (38.3 percent).
Using these figures and assuming that residues were only
20 percent of input tonnage, 28,804 tons of residue
would have been produced, of which 16,937 tons would
have been steel cans. The city claimed less than half this
tonnage as shipments to the processor.
Unfortunately, physical examination of residues
actually placed into the processor's containers was not
possible because the operation had been terminated at
the time of our survey because of incinerator failure.
The steel cans recovered from the incinerator were
further processed by the scrap processor. Processing
steps, according to the processor, included shredding in a
hammermill, magnetic separation, burning at 1000° F in a
kiln, shaking (to remove fines), washing, a second
magnetic separation, and loading into railcars.
The processor has operations in Houston and El Paso,
Texas, and in Chicago, Illinois. He identified costs for all
of his steel can operations as follows:
Cost per ton
Acquisition cost $16.00 (delivered to plants)
Loss of metal in processing 7.70 (shipped)
Processing cost 12.00 (shipped)
Average freight costs 17.80 (shipped)
Total cost 53.50 (shipped)
We estimate the selling price to be $55 to $60 per ton
delivered to the buyer.
Salvage Activity by Social Welfare Agencies.
In Houston, we visited only the Salvation Army facility.
Goodwill Industries, Volunteers of America, and the
Society of St. Vincent de Paul have operations similar to
that of the Salvation Army in Houston.
The Salvation Army in Houston acquires products
from residential sources in door-to-door collections using
nine trucks. The Salvation Army also obtains products
from 124 dropoff boxes placed at appropriate points
across the city.
In 1969, the Salvation Army acquired 4,253 tons of
commodities. Of this, 1,289 tons were sold as secondary
materials in Dallas and Houston; the remainder were sold
in the five Salvation Army Thrift Stores around the
metropolitan area. Income obtained was $290,380, or
$68.28 per ton of material acquired. Income from
commodities sold as salvage was $26,380, or $20.46 per
ton (Table 73). Expenses were $270,000, or $63.48 per ton
of material acquired.
Approximately 56 percent of incoming textiles are
judged unsuitable for resale. These items (337 tons in
1969) are sorted out, baled, and sold to a textile dealer in
the Dallas, Texas, area for $60 per ton; freight is paid by
the dealer.
Paper received (210 tons in 1969) is baled and sold as
mixed paper to a paper dealer in Houston; waste paper
brings $8 per ton. The paper is a mixture of newspapers,
corrugated boxes, and miscellaneous paper found in the
incoming loads.
152 In 30 waste composition analyses of municipal wastes published in various sources since 1939, the lowest weight
percentage for "metals" is 5.2 percent, the highest is 14.5 percent, and most tests are at or above 8 percent.
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SALVAGE MARKETS
Metallic scrap sold by the Salvation Army (742 tons in
1969) consists of appliances judged to be beyond repair
and assorted metallic products such as toys, furniture or
furniture parts, household goods, and the like. The
materials bring $6 per ton from a Houston scrap dealer
and represent 2 percent of his purchases.
The Salvation Army employs 29 people, including II
drivers and 4 sorters. The total payroll in 1969 was
$156,800, or an average of $5,406 per employee.153
Organics Recovery. Three rendering companies in
Houston receive and process dead animals, butcher
wastes, and other meat wastes into tallow and animal
feed supplements. Until the end of 1967, one of these
companies had an arrangement with the city according
to which it picked up and disposed of dead animals at
the city's dog pound and other animals found dead
within the city limits. The arrangement had no financial
aspect: the city benefited by getting rid of dead animals;
the rendering company benefited by acquiring raw
materials.
The arrangement was terminated because the costs of
picking up dead animals and the value of these animals
as organic product achieved equilibrium in 1966 and, in
1967, costs began to exceed value according to the
company's president. Quantities of organic wastes
picked up were low — a dog or cat at any one time; at
the same time special trips were required to pick up these
small loads.
The city now disposes of dead animals (some 16,000
yearly) in a small, gas-fired, 120 pounds per hour,
pathological waste incinerator.
Concluding Comments. According to estimates
made by the city, composition of all municipal waste in
Houston is similar to that in other large cities (Table 74).
With an annual waste load of 1.25 million tons, the city
would appear to generate more than 460,000 tons of
paper, 93,000 tons of ferrous and 6,000 tons of
nonferrous metals, 18,000 tons of textiles, and 125,000 tons
of glass in waste.
Approximately 13 percent of the paper (60,000 tons)
would probably be saleable if we assumed that sorting,
as practiced in Gainesville, Florida, until recently, is
practiced. The local market could absorb this tonnage,
but the municipal waste paper would displace other
mixed paper grades that are now recycled.
The metals occurring in the waste could be sold,
including tin-coated steel cans, without disturbing local
salvage practices. In fact, recovery of these metals would
be viewed with favor by metal dealers and buyers alike
who are experiencing a shortage of scrap in the area.
The biggest scrap user in Houston imports scrap from as
far away as Mississippi to the east and Oklahoma to the
north.
The market for textile wastes is very limited in
Houston. Approximately 1,200 tons of roof ing grade rags
are consumed. Most textiles collected are shipped to
Dallas and Fort Worth. It is doubtful that these markets
could accept as much as 18,000 tons of waste textiles from
Houston.
We estimate that the maximum market for glass cullet
in the area (always assuming a clean, color-sorted
product free of metallic impurities) is around 15,000 to
20,000 tons, considerably below the available quantity.
In order to achieve even the sale of this fraction of total
glass waste, local glass producers would have to be
convinced to change their cullet use policies, which now
exclude use of purchased cullet.
Los Angeles, California154
Summary. Los Angeles is the only major met-
ropolitan area where segregated collection of wastes
from residential sources has been practiced recently (the
mid-1960's) for purposes of recovering waste materials.
The city's proximity to copper mines, which consume
shredded steel, and the presence of a number of glass
container manufacturing plants in the area, made this
massive salvage operation possible. Today segregated
collection is no longer practiced. Salvage activity is
conventional (recovered materials are derived from
commercial and industrial sources). A sizeable export
market for waste paper and metal scrap exists. A rubber
tire reclaimer is located in the city.
Introduction. The Bureau of Sanitation, City of Los
Angeles, collected 1.215 million tons of waste in the fiscal
year ending June 30, 1969, of which 6,714 tons were
commercial wastes.155 The Bureau serves a population of
2.9 million; waste collections are equivalent to 2.28
pounds per capita per day, up from 2.08 pounds in fiscal
year 1959-1960. This tonnage includes all residential waste
collected within the city limits, dead animals, and 20
153 Estimated in part by Midwest Research Institute.
154 Survey concluded in April 1970.
155 In Los Angeles, "commercial wastes" includes apartment house wastes.
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FOR MATERIALS IN SOLID WASTES
125
percent of organic commercial wastes (restaurant
garbage).
No reliable information could be obtained on wastes
collected by private organizations. The American Public
Works Association has estimated that 2.5 million tons of
wastes are collected annually in the City of Los Angeles
by private forces.156 This tonnage, combined with the
tonnage collected by the city, results in total waste
removal rate of 3.715 million tons, or 6.96 pounds per
capita per day.
Publicly collected wastes are disposed of in four
landfills. Privately collected wastes are transported to
any one of 24 privately operated landfills. Wastes are
also reduced in on-site incinerators at a few industrial
establishments, hospitals, and high-rise apartments.
Los Angeles does not engage in salvage operations.
Salvage is prohibited at landfills and the prohibition is
strictly enforced. Perhaps 10 percent of private refuse
haulers do salvage according to one estimate; this
activity usually consists of picking up and delivering
commodities already sorted by the waste generator or
recovering corrugated board from waste when demand
for such materials exists.
Salvage Operations, 1930-1964. As in many
other cities of the United States, in Los Angeles salvage
and recovery of wastes was an accepted part of waste
processing activity in the past. In the period from 1930 to
1957, rubbish (exclusive of garbage) generated by the
people was burned in backyard burners. Between 1930
and 1951, the city collected the residues and sold these to
a salvage operator; in the period from 1951 to 1957, the
company was paid 10
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SALVAGE MARKETS
was $11.01 per ton (25
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127
Annual collection of waste paper is estimated to be
590,000 tons; about 15 percent of this amount is exported.
Paper is consumed in Los Angeles and San Francisco
board and paper mills and construction paper mills, and
is used in miscellaneous applications such as wrapping
paper for movers.
The collection of corrugated boxes is well organized.
Many chain stores recover their corrugated wastes.
Safeway Stores, for instance, uses trucks employed in
delivering merchandise from the central warehouse to
bring back empty corrugated cartons which are then
baled at a central location. This technique, pioneered by
Safeway, is being watched by most larger chains in the
area, but with depressed prices for corrugated, many
chains could discontinue corrugated salvage and move
to other methods of solid waste handling. In-store baling
is also practiced.
Corrugated boxes are also salvaged directly from
commercial waste by private refuse haulers. One
organization in the area conducts such salvage on a
large scale and in a highly systematic manner. The
company makes an empirical determination of the
salvageable contents of the waste of a commercial
account, and then calculates the relative economic
attractiveness of the account from a salvage point of
view by correlating data on salvageable contents,
proximity of the pickup point to the salvage plant and
the nearest landfill, accessibility of waste containers to
the pickup crew and truck, and other information. By
using a computerized routing system, the company is
able to route more or fewer trucks to its salvage plant
depending on the demand for paper. This organization is
exceptional. Most private haulers who salvage do so
intermittently and haphazardly depending on demand
for corrugated and time available for the additional
chores of pulling out cardboard from other wastes.
Newspapers are obtained by paper sales and from
social welfare organizations that pick up paper in the
course of normal collections from the population. When
demand for paper is high, individual scavengers also
engage m recovery of newspaper. Their technique is to
follow the routes established for municipal waste
collections very early in the morning and to retrieve
newspaper bundles, usually placed on top of trashcans
set out the night before, before the city collectors arrive.
Some of the newsprint obtained is converted to new
uses rather than being repulped. Unprinted news
obtained by one processor from the Los Angeles Times is
cut to 8.5 by II inch size and is sold as school paper; this
grade is also sold to moving companies for use as
dunnage.
Metals Recovery. A small portion of metals
discarded by the population in the form of old
refrigerators, driers, washing machines, and the like,
appears to be recovered in Los Angeles. The Goodwill
Industries facility, for instance, sold 1,850 tons of mixed
metals in 1969 for an average price of $6 per ton; the bulk
of this tonnage was derived from appliances. It is not
known how many other agencies are engaged in similar
activities.
The only other recovery of metal from residential
sources is the aluminum can reclamation project
sponsored by Reynolds Aluminum Company.
Reynolds Aluminum Reclamation Program.160 The
Reynolds Los Angeles Can Reclamation Center (RCRC) is
the original and largest of nine reclamation centers
operated by this company in the United States. It is
centrally located in Commerce, an industrial suburb of
Los Angeles. The center consists of a roofed-over, open-
sided, 6,000 square-foot area and a small enclosed
office. Individuals arriving at the center unload the
aluminum into specially designed mobile bins, which
resemble over-sized supermarket carts. The bins are
maneuvered to a hopper where they are automatically
dumped onto a conveyor that has equipment to separate
magnetically any ferrous metals from the aluminum and
then to weigh and automatically record the actual
weight of aluminum received. The individual takes the
printed weight receipt to the cashier and receives 10
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SALVAGE MARKETS
greater Los Angeles area. In this sense, the Los Angeles
program follows the mode of operation of Reynolds'
other centers throughout the United States.
Based on 1970 year-end data, aluminum received by
the RCRC is derived from off-the-street collections
(individuals), which amount to about 52 percent; satellite
collection points (brewery and soft drink operations),
which amount to 45 percent; and other miscellaneous
sources, which amount to about 3 percent of the
collections. The yield of aluminum per unit weight
received averages more than 90 percent, which results in
Reynolds paying approximately 11
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129
(5) The relatively high costs of acquisition, processing,
and transport can be justified only if the value of the
product to the buyer is higher than the costs. Aluminum
scrap has a very high value when compared to other
materials occurring in waste in quantity.
Glass Recovery. Glass recovery in the Los Angeles
area is difficult to describe because the "system" is in
process of transformation. There are eight large
manufacturers of glass containers and two manufacturers
of glass specialty products in the area. One glass cullet
dealer operates in the city, the survivor of five others who
had gone out of business through the years because of
dwindling sources of cullet that could be obtained,
processed, and sold at costs competitive with those of
virgin materials. Until the spring of 1970, the glass
industry in the area had passed through a protracted
period during which sources of external (purchased)
cullet were disappearing, cullet dealers were going out
of business, and the remaining supplies of cullet could
only be obtained at increasing cost. In 1970, a glass
recovery program was initiated under the leadership of
the Glass Container Manufacturers Institute (GCMI); this
program appears to be successful. In what follows, the
situation in 1969 and in 1970 will be described separately.
Activities in 1969, In 1969, the city's cullet dealer
processed 3,600 tons of cullet, a lesser quantity than in
previous years. His plant is capable of handling 40,000
tons per year. In 1969, by the dealer's estimate, 60,000
tons of cullet could have been absorbed by the glass
industry (in addition to cullet generated in the glass
plants). By our estimates, 190,000 tons of container glass
were discarded by the Los Angeles area population in
that year. Thus the glass present in waste was more than
three times the cullet requirements of the local glass
plants.
However, the waste glass was not accessible to
industry. The dealer obtained 75 percent of his cullet
from a window glass manufacturer in Sacramento,
California. The remainder was obtained from bottling
plants in Los Angeles. A minute quantity of glass was
brought in by scavengers who picked glass from refuse at
outlying dumps in the county. Virtually all the glass
containers reaching Los Angeles residences were dis-
carded.
The shortage of cullet in the area had several
consequences. Most glass plants in the area adjusted to
the situation and limited their inputs of purchased cullet
to a minumum. Prices of cullet increased to $20 to $23 per
ton because the glass had to be obtained from remote
locations. All but three glass companies stopped buying
cullet except at infrequent intervals when technical
reasons demanded that more cullet be used than was
available in-plant. Two of the companies that continued
to purchase cullet, an ashtray manufacturer and a
container producer, used only cullet as input materials.
Infrequent buyers of cullet were sometimes forced to
import cullet from as far away as Mexico because a local
supply was not available.
Glass company officials stated that much more cullet
would have been purchased if it had been available free
of metals, in appropriate color grades, and at a cost per
ton no higher than virgin raw materials plus a $2 per ton
differential (the approximate value of fuel and refractory
savings obtained with cullet). Raw materials cost between
$15 and $17 per ton, indicating a cullet cost of $17 to $19
per ton.
In Los Angeles County, cullet use is required to satisfy
air pollution control regulations, and this requirement
overrides technical and economic considerations. The Los
Angeles County Air Pollution Control District specifies
minimum levels of cullet that must be used by each glass
manufacturer. The more cullet is used, the lower the
emission of sulfurous pollutants. For this reason, minimum
cullet use ratios are specified, with the quantity
dependent on the chemical characterics of effluent gases
produced by a company's raw materials. Some com-
panies need not use cullet at all; most are required to use
15 percent (calculated as a weight percentage of total
input charge); some must use as much as 35 percent cullet
in the furnace charge.
The situation in 1969, then, can be summed up as
follows: Approximately 900 tons of cullet, equivalent to
0.5 percent of total container glass waste occurring, was
recovered as bottling plant breakage. Other cullet,
weighing 2,700 tons from flat glass sources, was brought
in from outside areas. Approximately 60,000 tons of
cullet, equivalent to 32 percent of glass occurring, could
have been sold under the most favorable circumstances.
Activities in 1970. In April of 1970, eight glass container
manufacturers in the area initiated a glass recovery
program aimed at the general population. All eight
plants organized facilities to receive glass containers
from the public. Initially, the companies paid 0.5
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SALVAGE MARKETS
The program began with radio and newspaper
advertisements. News coverage of the program gave the
activity additional publicity. Advertising expenditures
have been cut back without affecting collections.
In the first week of the program, a record 720 tons of
glass (2.9 million containers) were collected. Quantities
subsequently dropped but have been increasing steadily
since, reaching 175 tons (700,000 containers) per week in
July 1970. In July, glass was accepted on Tuesdays,
Thursdays, and Saturdays between 9 a.m. and 2 p.m. at
eight locations.
Glass Container Manufacturers Institute officials,
seconded by glass company officials, believe that the
program will ultimately result in the recovery of 30
percent of the glass containers consumed (about 57,000
tons on a 1969 basis) in the area.
Even if the GCMI forecast is not achieved, the
program already appears to have eased the cullet
shortage situation in Los Angeles. If'a collection rate of
175 tons per week is sustained in 1971, the glass industry
will recover, as a result of this program alone, 9,100 tons
of cullet, more than 10 times the quantity recovered from
sources in Los Angeles in 1970. Actual recovery rates
should be higher as glass recovery becomes in-
stitutionalized, which appears in prospect.
Contrary to GCMI expectations, the majority of
individuals bringing bottles for redemption are not
youngsters; they are people in their early 40's who cite
concern for the environment as the motive for their
participation. A few people participate for the income
provided. Among institutions, the Girl Scouts have been
most active. One group in Orange County set 'up five
collection centers for glass, manned by volunteers, as
part of a fund raising drive. Transportation of the glass to
the receiving plants was donated. GCMI reports that
several communities in the area are contemplating
institution of separate collections of glass wastes as a
means to supplement sanitation budgets.
The glass recovery program is not economically
justified at present. Glass companies pay $20 per ton for
the cullet, which is estimated to be $1 more per ton than is
justified by process economics. In addition, handling of
this cullet is also more costly than the handling of in-
house cullet or cullet purchased from a dealer. Initially,
much dirty glass was received (half-empty mayonnaise
jars, for example) which had to be washed to prevent
public health problems. This was overcome by asking the
public to bring in clean glass only. The problem of
metallic contaminants, especially aluminum rings around
bottle necks, remains. Laborers have to be employed in
separating aluminum from cullet. This sometimes involves
manual breaking of bottles to remove the neck to which
aluminum adheres; some glass is lost to waste in this
operation.
GCMI officials express the view that recovery
economics will Improve as increased quantities of glass
are obtained and glass plant personnel learn to handle
this resource in the most economical way. Modifications
of aluminum twist-off closures that leave a ring of metal
on the bottle are also being discussed to deal with the
aluminum contamination problem.
The glass recovery program in Los Angeles was
initiated with the full support and at the express
command of glass company chief executives who direct
local plant managers to participate in spite of the
somewhat adverse economics of the program. Since all
the area's large container manufacturers are par-
ticipating, the additional raw materials costs are
experienced by all the plants and the recovery program
does not adversely affect the competitive position of any
company.
Textile Recovery. In Los Angeles as elsewhere,
textiles recovered from residential sources are collected
by social welfare agencies such as Goodwill Industries.
Our survey data on textile recovery come from
interviews with the Goodwill Industries facility serving
southern California and with the city's leading wiping
materials dealer.
Goodwill Industries of southern California operates in
four counties — Kern, Ventura, Los Angeles, and Santa
Barbara. Materials are deposited by the population in
829 collection boxes distributed over the area, some of
which are emptied daily. A total of 45 truck routes are
used for servicing the boxes and to make residential
pickups. In 1969, 98,358 residential and 177,226 box pick-
ups were made; each box pick-up yielded an average of
18 bags (Table 76).
This collection system brought in 3,542 tons of textiles
that were sold as rag bundles, or approximately 2
pounds per residential call or per bag deposited in a
box. Although data on total textile collections were not
available, on the basis of the experience of other
Goodwill agencies, it is safe to assume that rag textiles
represent half of all textile pickups.
The agency keeps good records on the number of
pickup calls made, costs of pickup, and sales of salvaged
and other materials. Unfortunately, the tonnage of
materials acquired is not recorded; consequently, it is
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FOR MATERIALS IN SOLID WASTES
131
impossible to calculate what proportion of materials
acquisition costs apply to those fractions that cannot be
sold in secondhand stores and are therefore either
discarded or sold as salvage.
In 1969, the agency's materials acquisition costs were
$3.43 per call made (residential and box pickups
combined). This cost includes all transportation expenses,
including labor, as well as the costs of operating the
communications center where residential calls are
received and processed. Income from all salvage (paper,
metal, and textiles) came to $1.08 per call. Clearly,
operation of the routes for purposes of salvage alone
would not be economical. Salvage, however, represents
only 7 percent of the agency's income; 85 percent is
derived from the sale of reusable articles, and 8 percent
comes from donations and rehabilitation service fees.
The agency's income per ton of salvage is $53.62. The
figures on tonnage of materials sold in secondhand
stores were not available, but we infer on the basis of
information available from other similar operations that
the agency collected nearly 11,000 tons of materials in
1969, realizing an income of around $675 per ton from
store sold goods.162 On the basis of these estimates, it
appears that the acquisition cost of all materials is nearly
$87 per ton, given an annual collection expenditure of
$945,253. This would mean that store sales subsidize the
salvage operation. It is impossible to reject nonusables at
collection points, which means that collection amounts to
everything deposited whether it has value or not.
Prices received by Goodwill for textile rags increased
from $70 per ton in 1967 to $75 per ton in 1968 and to $80
per ton in 1969. By mid-1970, prices were beginning to
drop steadily, the reported reason being a serious
cutback of secondary wool purchases in Italy.
Agencies like Goodwill bundle all textiles judged to
be unsaleable; these mixed rag bundles are sold to
graders who sort the textiles into cotton wiper and export
grades. The wipers are sold to wiper dealers for $160 per
ton. The wiper manufacturer inspects and launders the
cottons and then prepares them for shipment by
removing all buttons, zippers, collars, cuffs, and the like.
After processing, the wipers are sold in bundles of
varying weight for an average of $420 per ton.
Processing costs run approximately $180 per ton; in
addition, costs are incurred in shrinkage of materials (lost
in laundering and in wiper trimming), rejection of
shipments for inadvertent inclusion of perma-press and
drip dry fabrics, and in delivery of the material to the
consumer.
The city's leading wiper merchant was pessimistic
about the future of wipers derived from residential
textiles. Textile treatments used on cottons decrease the
absorbency of the wipers. In specialized wiping ap-
plications, synthetic resins made part of the cotton fabrics
react with chemicals used in manufacturing and cause
the cottons to disintegrate. To avoid reactions, such
fabrics must be removed, which adds costs at a time of
rising labor costs. Raw material costs are also rising
because woolen garments used for respinning the wool
(garneting) are no longer finding a market in Italy. The
Phillipines, which once were an outlet for wearable
clothing, are being lost as a market; Japan can deliver
new clothing to the Phillipines cheaper than the United
States can deliver secondhand clothing. Cottons are
decreasing as a percentage of total textiles collected.
Dealers who sort mixed rag bundles must, as a
consequence of these developments, place a higher
proportion of their costs on cottons, which are saleable.
For these reasons, the merchant plans to convert his
operation to the distribution of new disposable wipers.
Disposables cost more today than wipers obtained from
used textiles; the merchant believes, however, that the
differential is narrowing and that disposables will in time
be more economical than used-textile wipers. With new
wipers, the merchant stated, there are no rejections, no
labor problems, no processing, no product shrinkage —
only purchase and distribution.
This merchant, one of three large operators in Los
Angeles, distributes 2,400 tons of wipers yearly. Since
these materials are pure cottons and cottons represent 30
percent of mixed rag bundles, the merchant's annual
tonnage requires 8,000 tons of mixed rags. Since rag
textiles usually represent approximately half the textiles
collected by social welfare agencies, total textile
collections from residential sources of 16,000 tons are
required to create the supply of this merchant. Textile
162 Quantities collected are estimated on the basis of the experience of the Goodwill agency in Bridgeport, the
Salvation Army facility in Houston, and the Volunteers of America agency in New York. Average pickup load weight for
these agencies is 79 pounds per call; this weight times 275,584 calls made by the Los Angeles Goodwill in 1969 results in
10,886 tons, of which 5,552 tons are known to have been salvage materials.
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SALVAGE MARKETS
consumption in the Los Angeles area is approximately
176,000 tons a year;163 the activity of this one merchant
alone, consequently, partially supports the collection for
reuse of 9.1 percent of textiles assumed to be ready for
discard by the population. We estimate that total textile
collections are probably around 64,000 tons a year in Los
Angeles, approximately 36 percent of total new fibers
consumed.164
Rubber Recovery. Los Angeles is the site of one of
the 20 rubber reclaiming plants in the Nation. An
interview with the plant's general manager and data on
national and regional rubber waste generation yield the
following picture.
In the Los Angeles area, 176,700 tons of consumer
rubber products are discarded annually by the pop-
ulation; of this tonnage, roughly 109,500 tons are used
rubber tires, including truck, bus, and passenger tires.
This tonnage translates to 8.36 million tires when we
account for the difference in weight between passenger
and truck tires and deduct tire wear losses from new tire
weights.165
The area rubber reclaimer has a capacity to handle 90
tons of waste rubber per day (260 day year basis) but is
now operating at 50 percent capacity, receiving 11,700
tons of waste rubber yearly. Only 24.5 percent of
reclaimer inputs across the Nation are old tires;166 the
reclaimer, therefore, receives an estimated 2,870 tons of
old tires, equivalent to slightly over 220,000 units, or 2.6
percent of tire discards in the Los Angeles metropolitan
area. In addition to this tonnage, the reclaimer receives
an estimated 2,250 tons of rubber from other reclaiming
operations, such as tire retreading, tire splitting, and
salvage yards that separate innertubes. The remainder of
the input is estimated to be from industrial sources. It
appears, then, that this operation results in the rec-
lamation of 3,120 tons of rubber derived from consumer
products, or 2.8 percent of total consumer rubber
product discards.
Tires received by the reclaimer are concentrated at
filling stations; from here they move back to tire
manufacturers and in turn to the reclaimer, or the tires
are acquired by salvage companies that process them for
resale. Two companies in the area specialize in tire
collection and are paid $4 per ton by filling station
operators for this service according to city officials.167
The reclaimer declined to discuss acquisition costs,
limiting his comment to the statement that prices paid
were "nominal"; that is, probably in the $5 to $10 per ton
range.
Louisville, Kentucky168
Summary. Steel cans and other ferrous metal scrap
are recovered from Louisville's incinerator and sold. A
private refuse hauling and salvage operation in the city
recovers paper and metals from commercial wastes.
Introduction. Louisville was not one of the survey
cities. Interviews were scheduled in Louisville to de-
termine the specifics of a municipal steel can recovery
operation and to visit a private salvage operation.
Louisville has a population of about 400,000.
Residential wastes are collected by city forces. These are
processed through one rotary grate incinerator with a
daily capacity of 700 tons. Wastes collected by private
forces are also accepted at the incinerator. Nearly half
the waste incinerated is delivered by private haulers. The
city maintains a landfill for receipt of bulky wastes and
incinerator residues. One large landfill is operated by a
private corporation that concentrates on commercial and
industrial waste removal.
In 1968, the city incinerated 258,000 tons of waste,
equivalent to 3.53 pounds per capita per day. This does
not represent all waste collected and disposed of in the
163 Basis is 49.5 pounds of new textile consumption per capita (1968) and on area population of 7.1 million people.
164 Basis for estimate: each of the city's three large merchants handles an equivalent amount; all other dealers handle a
quantity equivalent to that of one of the large merchants.
165 Basis of calculation (using Pettigrew and Roninger, Rubber reuse and solid waste management): (1) rubber waste
generation in California is given at 49.7 pounds per capita; tire wastes are 62 percent of total (p.42); (2) new tire weights
are shown as 22 pounds for passenger and 75 pounds for truck tires (p. 13); (3) total number of tires in 1968, (170 million
passenger, 22 million truck) derived from figure on p.15; (4) total new tire weights in 1968, 6.25 billion pounds, came
from figure on page 16; (5) annual tread loss in 1968 of 434 million pounds was given on page 43. From these data we
derived a composite used tire weight of 26 pounds, 20 pounds for passenger and 70 pounds for truck tires.
166 Pettigrew and Roninger, Rubber reuse and solid waste management, p.51.
167 We were unable to confirm this by discussion with the companies involved.
168 Survey concluded in July 1969.
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133
city, however. Quantities of wastes disposed of by city
forces directly at the landfill and quantities disposed of in
private facilities were not available.
Recovery of Metals at the Incinerator. The
Louisville incinerator is equipped with a materials
handling system that separates, cleans, and shreds
ferrous metals in the incinerator residue.
The incinerator has two rotary kiln type furnaces that
operate at temperatures between 1400° and 1800° F.
Organic wastes are completely burned. Glass melts and
glass containers are not recognizable in the residue.
Residues are quenched and then moved on conveyors
past two pickers who remove large metal objects and
wire. Next, the residues are tumbled in rotating drums;
ashes and fines fall through perforations in the drums,
and the material stream leaving the tumblers consists
almost entirely of steel cans. These are sprayed with
water as they move up a conveyor past two additional
pickers who remove wire missed by the first pair. The
cans then pass into a hammermill via a magnetic
separator. They are shredded and fed by a gravity chute
into a rail car. In appearance, the cans are completely
burned, shiny black, and clean of ash.
Approximately 4,700 tons of steel cans are recovered
and sold yearly, equivalent to 1.8 percent of input
tonnage. The cans bring $12.50 per ton. They are sold
through a St. Louis, Missouri, broker to an electric furnace
operator in North Carolina. Freight is paid by the buyer.
Larger metal pieces separated from the residue are
sold to a local scrap dealer for $4 a ton. Around 1,900
tons are sold annually.
Although the city had not undertaken a detailed cost
analysis of the metals recovery operation, the su-
perintendent of incineration believed that the operation
breaks even. As we observed in Atlanta, however, a
break-even operation is probably beneficial to the city
when compared to the alternative of removing the metal
residues to landfill.
Private Salvage Operations. A private refuse
removal company in Louisville has an operation where
commercial wastes containing at least 25 percent
salvageable materials are sorted and processed. The
company recovers paper, primarily corrugated boxes,
ferrous metals, and nonferrous metals. The paper is
manually sorted on moving belts, is shredded or baled,
and is sold to a paper dealer in Columbus, Ohio. Metals
are sorted manually and are processed for sale through a
scrapyard owned by the company and adjacent to the
salvage operation.
The company also receives concentrated loads of
used lumber, glass, and Fiberglas. At the time of our visit,
the company was seeking markets for shredded wood
made by hogging the lumber wastes. Glass could not be
sold and was dumped at the company's leased landfill.
The organization had a contract study under way to
discover uses for Fiberglas which, being worthless, was
dumped.
Company officials said that the best sources for
salvageable waste loads are large industrial plants and
warehouses. Waste loads containing food wastes and
mixed commercial wastes such as office building wastes
were not considered sufficiently rich in recoverable
materials for salvage.
Data on quantities of materials collected and
recovered and information on sorting and processing
costs and manpower levels were considered proprietary
information and could not be obtained.
Madison, Wisconsin169
Summary. Madison has little industrialization and
the area is essentially a white collar employment region
most notably influenced by the University of Wisconsin
and the State capital. The secondary materials markets of
Madison are of little importance. The city, however, is
close enough to Chicago and Milwaukee to support a
modest metals trade. Accessibility to paper mills makes
paper recovery attractive, although it too is of little
importance. The city of Madison, in a special salvage
program, recovers and sells a high proportion of
residential newspapers discarded. These are voluntarily
separated by citizens for pickup with household refuse.
Charitable organizations in Madison engage only in
processing old clothing, some of which is sold as rags,
and usable secondhand merchandise.
Introduction. Madison, Wisconsin, is located in
Dane County, Wisconsin, about 150 miles northwest of
Chicago. The population of the city in 1969 was about
169,000 persons, making it a relatively small metropolitan
area. Dane County has about 273,000 persons, including
Madison. It is an area with low industrialization and
boasts only a small amount of manufacturing. The
University of Wisconsin with 34,670 students is easily the
single largest "commercial" activity in Madison.
169 Survey concluded in March 1970.
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SALVAGE MARKETS
Solid waste management in Madison is split between
private refuse haulers and city services. The city operates
a combined collection system (rubbish and garbage) with
weekly pickup. Collection service is offered to private
residences, apartments, and commercial buildings.
Private haulers take care of large commercial (shopping
centers, supermarkets), industrial, and apartment com-
plexes. Refuse trucks are owned and operated by the city,
which must confine its activities to the city limits. Bulky
items are picked up separately for disposal at the landfill
sites; however, no building or demolition material is
accepted at city landfills.
Within the city limits, there are four land disposal sites
all operated by the city. At present, private refuse haulers
may for no charge deposit loads there, which the city
handles along with city-collected refuse. One landfill
does not accept privately collected refuse and one site is
used for burning only brush and trees.
The city, like many other political jurisdictions, is
rapidly depleting existing disposal sites and is seeking
new locations. To date, it has been unsuccessful in
overcoming citizen opposition to various sites, especially
those outside the city limits in the township jurisdictions.
Refuse collections for 1968 and 1969 are as follows.
Category 1968 — tons 1969 — tons
City collected 44,200 52,100
Private collected 67,000 74,700
Total 111,200 126,800
This is 4.11 pounds per day per person for 1969
compared to 3.63 pounds per day in 1968.
The city, through its Director of Public Works, has
sought to try new approaches and ideas for solid waste
disposal. In this regard, Madison has two notable
programs under way, both of which have involved
private industry working with the city.
One program has been under way since June 1,1966. It
is a pilot demonstration of refuse milling prior to landfill.
Participants in the milling program are the Heil Company
of Milwaukee (equipment), the University of Wisconsin
(engineering evaluation), and the city of Madison. Partial
funding was obtained through a demonstration grant of
the Bureau of Solid Waste Management together with
financial participation of the Heil Company and the City
of Madison. The 3-year budget was $555,000. The
objective of the program included technical and
economic evaluation of waste volume reduction by
milling; sanitary parameters of milled refuse; feasibility
of depositing milled refuse without earth cover;
economic feasibility of salvage; and characterization of
physical changes of milled and unmilled wastes in the fill
site.
The salvage objective was never pursued actively
because of lack of interest of local secondary materials
dealers. The milling operation, however, was termed a
technical success, and all compactor truck refuse at one
disposal site is now being milled before deposit on the
landfill. Milling achieves'a compacted density of 1,000
pounds per cubic yard versus 800 to 850 pounds per
cubic yard for unmilled refuse, and earth cover is not
required. Some technical and economic problems of the
installation persist, but these were being worked out in
late 1970. (Because full and detailed reporting on the
project is provided in other Solid Waste Management
Office publications, this report makes no attempt to
evaluate this project in detail.)
The Forest Products Laboratory (USDA) is using
Madison's milled refuse as a starting point in ex-
perimental ballistic separation and recovery of various
paper grades for recycling.
Newspaper Recovery Program. In Madison,
Sanitation Division trucks collect newspapers from
residential sources, the paper is separately bundled on a
voluntary basis by the public for pickup with refuse, then
placed in baskets attached to compactor trucks (with two
exceptions of old trucks that cannot be outfitted with
baskets); and finally sold to the secondary materials
industry for recycling.
This is a well-known project, one usually held up to
view as an example of what can be achieved in recovery
of wastes. Our analysis indicates that the project has
several aspects that demonstrate that care should be
taken by any sanitation department contemplating a
waste recovery program.
Key points about various aspects of the Madison
program are the following:
(I) The city collections provide a steady, predictable,
and continuous supply of high-quality waste newspaper
that can be used for newspaper deinking processes.
(2) The project has the pledged support of several
paper companies, including the Nation's largest waste
paper dealer/broker, and is given preferential treatment
for its purchase. In other words, the project is partly
protected from the full impact of market competition
forces (but not from price fluctuations).
(3) In the absence of new demand for paper collected
in this type of program or collected in times of
incrementally lower demand for waste newspaper, the
paper collected preferentially in Madison displaces some
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135
waste paper normally collected in other cities. The result
is a shift in the solid waste burden, but no net reduction in
solid waste disposal if the total regional market for waste
newspaper is considered.
(4) The city has lost money on the project, although a
break-even operation appears achievable. In the period
January 1969 through July 1970, the city lost a total of
$14,585 on the recovery of 1,989 tons of paper, or $7.33
per ton. In the latest period (April through July 1970), the
operation has been profitable, bringing the city $1.12 per
ton net gain.
This program was initiated by the National Com-
mittee for Paper Stock Conservation (NCPSC), a com-
mittee of the Paperboard Division of the American Paper
Institute. The city of Madison, with advisory support from
the NCPSC, operates the program, bears its costs, and
receives all the revenue from sales of the old news-
papers.
The NCPSC objectives were: to reduce the amount of
newspapers being discarded as solid waste, to .recover
and reuse secondary fiber to conserve trees, and to help
assure a continuing supply of secondary fiber as raw
material for the paperboard industry. The NCPSC is also
interested in determining if residential refuse separation
is practical and what the technical and economic
parameters and feasibility are for the participants (the
sanitation agency, the waste paper dealers, and
consuming paper mills). The city's objectives were
threefold: to conserve space in rapidly depleting
landfills; to reduce nuisance of windblown papers at
landfills (and related clean-up costs); and to recycle a
marketable portion of the solid wastes collected by the
city.
A key question that both parties had was the
economic feasibility of such a collection program for
both the city and the paper purchasers (mills).170 This
could be answered best by actual experience in the
program.
Geographically, the city is separated into an east side
and a west side by Lake Mendota and Lake Monona. The
two sides are roughly comparable in population and
area; the east side is populated predominantly by blue
collar and medium income white collar laborers. The
west side is predominantly an affluent upper and middle
class residential area. The program began on the east
side in September 1968, and was extended to the west
side in March 1970.
East Side Program. Citizens on the east side were
asked to bundle their newspapers voluntarily and to set
them at the curb with their weekly waste accumulation.
Initially, open body trucks with crews followed the
packer trucks and collected paper separately. This
method was much too costly to ever hope to be
profitable, so all but 2 of the 12 packer trucks operating
on the east side were equipped with 1.0 cubic yard
baskets, installed at a cost of $170 to $300 each. (The two
trucks without baskets are still followed by a dump truck
because they have no space on the curb side to
accommodate the baskets.)
Baskets are emptied into the dump trucks at the
disposal site or earlier if necessary. If baskets fill up
before a truck is full, the dump truck is called by radio to
meet the packer; transfers are made at mid-day, at a
common meeting point.
The paper accumulation is delivered daily to a local
paper dealer who sorts and processes the paper; the
paper is picked up in baled form by a large Chicago
dealer/broker who delivers it to a newspaper deinking
mill located in Alsip, Illinois.
According to the original contract with the local
waste dealer (which terminated 6 months after the
project start-up but whose terms are still in force by
verbal agreement), the city receives the market price for
No. I News (Chicago market price) less $14 per ton;
however, the dealer must accept the paper even if the
price drops below $14 a ton, a condition that has not
occurred throughout the history of the project. In effect,
the city absorbs all price fluctuations.
In the period from January 1969 through July 1970, the
city was paid an average of $7.90 per ton for east side
paper collected and delivered to the dealer. In this
period, the city's additional operating costs related
directly to paper collection were $21.83 per ton of paper
sold, for a loss of $13.93 per ton. By adding $2.25 per ton
landfill disposal credit to income received, a total
average benefit of $10.15 per ton results, and the net loss
170 Wisconsin is a large paper producing state with 3.0 million tons of production in 1968; it consumed 2.2 million tons
of pulp and an apparent 0.8 million to 0.9 million tons of waste paper as raw materials. There are 36 paper mills within
a 100-mile radius of Madison both to the north and east and 83 paper mills within a 200-mile radius. Both paper and
board mills consume waste paper in Wisconsin, although only board mills and construction mills and one newspaper
deinking mill near Chicago use waste newspaper.
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SALVAGE MARKETS
in the period is $11.68 per ton (Table 77). In this period,
1,483 tons of paper were collected and sold on the east
side, an average of 78 tons per month, 936 tons per year.
The recovered paper was equivalent to 32.2 percent of
newspaper delivered to the east side and 3.8 percent of
waste collected on the east side (Table 78).
Citizen participation was obtained by a low-cost
advertising program, which consisted of doorknob
hanger distribution and essentially free newspaper,
radio, and television publicity. Citizen participation was
and is excellent, although some participants continue to
include magazines and paper sacks with newspapers and
to tie bundles with wire, rope, and nylon stockings
instead of the recommended string or twine. (Tieing is
requested to keep papers from blowing away before
pickup and to facilitate rehandling of the bundles.)
The local dealer reports a weight loss of 2.5 to 5.0
percent as a result of non-news inclusions and upgrading
to a "super-news" grade, for which a premium of $4 to
$5 per ton is paid. Newspapers collected by the city of
Madison are reported to be very "clean" by waste paper
standards and therefore a desirable material for paper
mills consuming secondary fibers of this type. In fact, the
principal consumer of the Madison newspaper has been
the newspaper deinking mill previously mentioned.
The paper tonnage varies seasonally, as does total
waste volume. In the winter, tonnage declines with bad
weather and home consumption of paper in fireplaces.
The tonnages remained remarkably consistent, however,
for comparable months a year after the program began.
Newspaper collections average 20 tons per week, or 4
tons a day. Per ton costs vary significantly on the east
side; however, since the labor and truck input costs are
essentially fixed within the tonnage limits normally
experienced, a low tonnage runs cost per ton up rapidly,
while the same leverage brings costs down rapidly on
high tonnage days.
West Side Program. On March 30,1970, Madison
extended its newspaper collection program to the west
side. By a coincidence of timing, the program was aided
by Earth Day publicity (April 22). In the 4 months for
which we have data (April through July 1970), the city
collected 506 tons of news, an average of 126.5 tons per
month and 1,518 tons a year (if collections are maintained
at this level). Collections were equivalent to 43.7 percent
of newspaper occurring on the west side and 5.4 percent
of west side waste tonnage (Table 79).
The west side program was also profitable in this
period. Revenues were $7.53 per ton plus a $2.25 per ton
disposal credit; costs were $4.37 per ton; the net benefit
was $5.41 per ton. Differences between the two programs
explain the relatively more attractive economics of this
operation (Table 80). Differences are the following:
(I) All west side packer trucks are equipped with
separate paper baskets, and operation of a dump truck
for collection is unnecessary.
(2) Paper is unloaded into trailers at the disposal site;
the trailers are provided and picked up by the buyers.
Therefore, the city has no delivery costs.
(3) For a very limited time, some paper was sold to a
building insulation mill for a price considerably above
the average received on the east side.
The city was unable to execute a contract with a local
dealer for acceptance of the paper collected on the west
side. (The two local dealers closest to the disposal site are
not currently handling the paper as originally intended.
One dealer has committed his baling capacity to higher
value materials, such as aluminum scrap; the other dealer
has only limited storage space, which results in extra
handling for the city and a delivery cost that makes the
haul unattractive.) The Chicago dealer/broker who
backed the project agreed to provide a trailer at the
disposal site and to service the trailer under a financial
arrangement identical to that on the east side. This means
that the city had lower handling costs because it did not
have to deliver the product to a dealer's yard. The dealer
upgraded (processed and baled) the west side paper in
his Chicago plant before transferring it to the deinking
mill.
In the first 4 months of the program, the city has also
been able to sell about 130 tons (I month's collection) of
paper to a manufacturer of insulation for $12 a ton. The
manufacturer also provided a trailer at the disposal site.
This organization was unable to absorb the city's total
west side paper tonnage on a continuous basis because
of the relatively low level of housing construction activity
at the time.
These factors mean that the west side operation is
profitable whereas the east side project is a loss
operation. For what period of time the dealer/broker
will continue to leave and pick up trailers of loose
newspaper for transport to Chicago is not known. If the
price is changed in favor of the dealer or if the city has to
deliver the paper to a salvage yard, the economics of this
operation will also become marginal. The city has no
formal written contract with any dealer for sale of its
paper and sells under a verbal agreement that has no
legal force.
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137
In the 4-month period from April to July 1970, the total
paper recovery program (east and west sides) was
profitable for the city. On the west side, 506 tons were
sold for an average profit of $5.41 a ton, and on the east
side, 387 tons were sold at an average loss of $4.50 per
ton; a net benefit of $1.12 per ton was realized for the
total tonnage (Table 81). In this period, 42 percent of all
newspaper occurring in Madison and 4.7 percent of all
waste was recovered as a result of this operation (Table
82).
Analysis of the Total Program. Cost data and
cost history available on the Madison paper recovery
program indicate that the total operation will probably
be profitable for the city in the long run. Costs of paper
collection on the east side have gone down and could be
forced down further by equipping the last two trucks that
still operate without baskets with baskets. The 19-month
period covered here has been one of eroding paper
stock prices. At the time when prices were high, the city
experienced excessively high operating costs, which have
been brought under control since. As waste paper prices
rise, the program will become more profitable, and, over
a longer period, the city should realize benefits
consistently.
The overall value of the program, however, cannot be
established by looking only at its relative costs and
benefits for the city of Madison. The paper recovered in
Madison has been displacing newspaper that would
have been collected elsewhere, although by the more
conventional techniques of paper sales and charitable
collections. The program was not initiated to fill new
demand for the paper stock, although at the time the
program was initiated a newspaper deinking mill built
near Chicago had recently created an 8,000 ton per
month increase in demand. Conversely, the Madison
program did prove to be a continuous source of high
quality waste newspapers that met the requirements of
the Alsip, Illinois, deinking plant better than many
conventional collections.171 Because the program has the
support of the NCPSC and specific companies, the paper
could be sold at a time when total demand for waste
newspaper was below supply from conventional sources,
with the consequence that paper sources nearer the
Alsip, Illinois, receiving mill were forced from the market
and the tonnages recovered in Madison "reappeared" in
the wastes of other cities. A key paper dealer in Chicago
171 This mill also draws waste newspaper from Detroit,
arrangements for its waste newspaper supply.
verified that considerable waste paper collected there
was being sent to waste disposal sites. However, the
decline in demand has been limited to construction
product mills and combination board mills; there has
been no comparable decline in demand at the news-
paper deinking mill at Alsip, Illinois, for which Madison
newspaper is purchased. The high quality of the Madison
newspaper helped to sustain the favored treatment of
this supply.
The program illustrates a number of positive and
negative factors related to municipally operated salvage
programs.
Generally positive factors include the following. ^
(I) Presegregation of waste materials can be made to
work; the citizens are voluntarily subsidizing the
operation by hand separation of newspapers. Citizens
respond to low-cost publicity and appeals.
(2) Low-cost solutions to collection problems can be
found. Normal refuse collection costs, however, subsidize
secondary materials collection costs. Apparently, solid
waste managers can adapt collection and disposal
systems to limited salvage without significant operating
inefficiency or loss of departmental mission. "Positive"
attitudes of public officials are very important to this type
activity.
(3) Very good secondary materials quality can be
obtained without special processing.
(4) A municipality can realize significant savings in
landfill space and nuisance reduction along with the
associated costs.
(5) Favorable arrangements with dealers or materials
consumers can (and must) be made and can result in a
continuous sale of salvaged materials in a fluctuating
market. Industry and local governments that do not
commonly link in business activity can do so successfully.
Generally negative factors include the following.
(I) Special handling and transfer costs go up very
rapidly in the absence of convenient, short distance
materials transfer. Costs vary inversely with recovery
tonnage because collection costs are not volume-de-
pendent within normal ranges.
(2) Collection equipment manufactured today is not
designed or readily adaptable to accommodate volume
collection of segregated materials and mixed refuse.
(3) A municipality needs favored treatment (a
guaranteed market or outlet) by dealers and industry to
Michigan, and Louisville, Kentucky, as a result of special
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SALVAGE MARKETS
cope with waste paper market fluctuations to keep the
system in continuing operation. Low market prices
received result in economic loss or marginally profitable
operations. Capital costs, market vagaries, and basic
mission orientation of sanitation discourage acquisition
of salvage processing equipment and "competition" in
normal secondary materials markets.
(4) Low cost, labor intensive salvage from residential
waste is limited to simple materials categories, such as
newspapers and magazines; demands subsidized pre-
segregation; and cannot be readily expanded to
numerous materials. This approach, however, can be
very attractive for application under the proper
conditions because it taps large municipal waste
components.
Private Refuse Haulers. More than 50 percent of
Madison refuse is hauled by private organizations. They
pick up refuse from commercial, industrial, and
apartment house dwellings. The only salvage we
discovered by private waste haulers was occasional
loads of data processing cards from a Federal military
complex at the University of Wisconsin. This material is
hauled away free and brings about $24 per ton from a
local dealer (data processing cards are perhaps the most
desirable waste paper grade commonly sold to paper
mills).
Few if any segregated loads of corrugated are
recovered; if they are mixed, they are of no value and
are dumped at a city landfill. One refuse hauler also
reported that supermarkets make an attempt to salvage
corrugated. This, however, is often not done and they
end up hauling it away anyway, often because a truck
driver failed to load it into an empty delivery trailer
returning to a central warehouse. A few in-store balers
exist in Madison. It appears that commercial salvage is
very minor; private refuse haulers have little incentive to
salvage as long as loads consist of mixed refuse and
disposal fees do not exist in Madison.
Private Salvage Activity. Madison is not a major
metropolitan area and has very little manufacturing
activity. As a consequence, its secondary materials
dealers are relatively small and do not specialize by
materials. (They would be termed junk dealers in more
populous areas.) All of them, however, concentrate
primarily on ferrous and nonferrous metals because these
are more profitable and available than lower valued
items such as paper and rags. All their recovery in metals
is from industrial and commercial sources, with the bulk
of it obsolete scrap rather than prompt scrap. They also
accept paper, but once again they service only a small
number of commercial accounts for corrugated. One
dealer specializes in school or Scout paper drives, which
yield perhaps 30 tons per month recovery; another
handles the city-collected newspapers from the east side.
The dealers in turn sell both to consuming mills and to
other dealers on a brokerage arrangement.'72
Social service institutions, such as the Salvation Army
and Goodwill Industries, restrict their activities to used
items, collected from residences and sold as secondhand
merchandise. All these organizations refuse large
appliances that are not in operating order and only
Goodwill has labor to repair small appliances. All avoid
newspapers and other secondary materials per se.
This means that the social service organizations
transfer much of the material collected to disposal sites.
In fact, they are caught in a squeeze now — people use
appliances and other items until they break down
completely and their own labor costs prevent economical
repair of such items which have a low resale price.
The collection of old clothing means, however, that a
significant volume of mixed rags is available. These are
baled and sold in Milwaukee through a broker. Goodwill
Industries is the only organization with a reasonably
large operation in Madison; it carries on a training and
rehabilitation program for the handicapped. Even
Goodwill does not attempt to grade rags, but it did
acquire its own baler about a year ago. Goodwill
officials estimate that 250 tons of mixed rags (1,000 pound
bales; 40,000-pound carloads) are sold a year for which
the organization receives $40 to $50 per ton or $12,500 a
year.'73 Rag prices are down from a level of $140 to $160
per ton a few years ago. Goodwill's labor costs are low
because it is a sheltered workshop and pays from $0.97
to $1.60 per hour. Since much of the agency's activity is
training and rehabilitation, officials consider rag baling
profitable, even at current market levels.
172 Because of the local dealers' orientation to metals, none are particularly well equipped to handle paper. In fact, the
dealer who takes east side paper has an inefficient handling, sorting, and baling procedure using one man full time.
173 Salvation Army sells possibly another 50 tons of rags a year.
174 Survey concluded in May 1970.
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139
Mobile, Alabama174
Summary. The city of Mobile, Alabama, operates a
composting plant intermittently; paper and metals are
salvaged from this operation. The market demand for
bulk grade waste papers in Mobile exceeds local
supplies, an unusual situation not encountered elsewhere.
Mobile is an active textile collection and processing
center.
Introduction. The city of Mobile has a population of
250,000; it is surrounded by suburban communities with
an additional 156,000 inhabitants.
Within the city itself, 174,000 tons of waste were
collected in 1969, equivalent to 3.81 pounds per capita per
day. Municipal forces collected 98,880 tons; private
forces, 75,120 tons. Wastes collected by private forces are
derived from commercial and industrial sources; private
haulers, however, also remove I percent of residential
wastes.
In 1969, 164,400 tons of waste were delivered to two
landfills for disposal, and 9,600 tons of waste (5.5 percent
of that collected) were processed through the compost
plant. Of the quantity of materials processed, 837 tons of
paper and metal were sold as salvage, 5,593 tons were
sold as compost, and 3,170 tons were landfilled as waste
at a site adjacent to the compost plant. Excluding the
compost, 0.47 percent of the city's collected municipal
wastes were recovered.
Historical Salvage Activity in Mobile. In 1965,
the city of Mobile stopped salvaging at its Hickory Road
municipal dump where, up to that time, as many as 100
people had lived and worked, supporting themselves by
salvage and by eating food found in the waste. The
unsanitary conditions at the dump and the large rat
population it supported in addition to people finally
forced closing of the facility. According to poor people
who lived at the dumpsite in tents and shacks built from
wastes, Mobile's dump was one of the best in the region
— there was no harassment from officialdom.175
Opportunities for making a living existed: the people
earned dimes and quarters for unloading wastes from
private cars, collected stale bread which they sold to
farmers for hog feeding, and salvaged paper, metals,
rags, bottles, and usable commodities. At one time, paper
recovery at the dump was a well-organized activity
operated under the auspices of a paper dealer who had
at the site 8 by 5 by 8 feet wire cages that were filled with
different grades of paper by the scavengers; filled
baskets were transported to the paper dealer's facilities
and the contents were baled for shipment to customers.
The city constructed its composting plant to provide
an alternative to the Hickory Road landfill, and, in part,
to be able to realize salvage income. Attempts were
made to rehabilitate the people who were displaced
from the dump when it was closed. Since 1965, all salvage
activity at the city's two landfills is prohibited and the
prohibition is rigidly enforced; for instance, an employee
is posted at landfill gates 24 hours a day to prevent
nighttime entry to the sites.
Mobile Salvage Markets. Mobile has one box-
board manufacturing plant and two construction papei
producers; these companies consume nearly 30,000 tons
of bulk grade waste paper yearly; demand for paper,
therefore, is good. Steel producers are located in
Jackson, Mississippi, and in Montgomery and Bir-
mingham, Alabama, within economical transportation
range of Mobile for scrap steel. One container glass
producer is located at Gulfport, Mississippi, two are at
Jackson, Mississippi, and one is at Montgomery, Al-
abama. Mobile is also a port from which secondary
materials can be shipped to domestic and foreign
consuming centers.
Salvage at the Compost Plant. The Mobile
compost plant is designed to receive 300 tons of refuse in
an 8-hour work day. Since its construction in 1964-1965,
the plant has not operated continuously for a variety of
reasons, including equipment failure and absence of
markets for the plant's compost products. In 1969, the
facility was in operation for 4 months; 9,600 tons of waste
were processed through the plant. In this period,
approximately 80 work days, an average of 120 tons
were handled daily, less than half of plant capacity.
In all, 817 tons of materials were removed from the
mixed waste for resale (160 tons of paper and 657 tons of
steel cans), or 8.5 percent of input tonnage. Sale of these
materials brought $5,182 in revenues, $7 per ton of paper
and $6 per ton of steel cans (Table 83).
The paper is sold directly to a manufacturer of
building products. At the outset of salvage, attempts
were made to sell the paper to a dealer; the dealer who
handled the product for a few months ir 1966 reports that
the paper was high in contaminants, ranging from 8 to 12
percent, and excessive resorting labor was required to
174 Survey concluded in May 1970.
175 Connell, M. They "scuffle" for life, and live, on city dump. Mobile Press Register, p.3E, Mar. 3,1953.
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SALVAGE MARKETS
prepare compost plant products for paper buyers. The
building products producer, who converts rags, waste
paper, and ground wood pulp into roofing felts, can
accept a small quantity of low quality paper as inputs.
Steel cans, separated from the waste by magnetic
means, are burned, sold to a local scrap dealer, and
delivered to a steel mill in Birmingham, Alabama, for $12
a ton. The steel mill can accept small quantities of tin-
coated product, which is blended with other scrap as a
furnace charge material.
No market was found for the glass that occurs in the
waste, although glass is separated from the waste. At the
time of our survey, an estimated 200 tons of mixed cullet
was stockpiled near the plant. This material is being
landfilled.
Estimates of the costs of salvage alone, or of any one
unit process within the compost plant, were not
available. Paper is sorted manually; cans are separated
magnetically. The operation as a whole appears to be
losing money. Total plant revenues for 4 months of
operation were $36,995. Total 1969 operating budget for
the compost plant was $207,447, or $69,143 for a 4-month
period, more than twice revenues received. The op-
erating budget excludes amortization of plant and
equipment, which is estimated to be $100,000 per year on
the basis of a 20-year depreciation cycle.
Paper Salvage. With 406,000 people in the Mobile,
Alabama, area, the yearly consumption of paper in all
forms is around 110,000 tons. Of this total, roughly 15,000
tons are newspapers, 22,300 tons are corrugated
containers, and 8,500 tons are printing and publishing
papers.176 The last three categories, amounting to an
estimated 45,800 tons in Mobile, are the sources for bulk
grade paperstock.'77
In the city, 29,060 tons of bulk grade paper stock were
consumed in 1969, equivalent to about 63 percent of the
bulk grade papers estimated to be available. In spite of
this, only 14,035 tons of bulk grade papers were collected
in Mobile, and the city's three waste paper consuming
plants brought in more than 15,000 tons of paper from
other areas to satisfy their needs (Table 84).
The current situation in paper recycling is viewed as
transitional by the area's dealers and paper buyers.
Before 1965, between 8,000 and 10,000 tons of waste
paper were recovered from mixed wastes yearly,
primarily from the Hickory Road landfill, handpicked by
its scavenger inhabitants. In 1969, only 160 tons of paper
came from mixed refuse sources. Since 1965, various
schemes have been tried by businesses in the area to
increase inputs of obsolete paper, and some of these
attempts promise to increase the quantity of paper
recovered from Mobile residents and businesses, albeit
before rather than after discard of the paper and board.
The area's largest waste paper consumer, a container
board manufacturer, has instituted a program whereby
individuals and peddlers are paid in S&H Green Stamps
or cash for paper. The company advertised its program
extensively and, in 1969, it obtained nearly 10 percent of
its paper requirements by this program, some 2,100 tons.
The Green Stamps proved especially useful in attracting
participation by the public.
The city's largest bulk grade paper dealer is in the
process of organizing a paper collection system that will
involve schools, churches, and civic organizations at the
gathering, collection end and a new paper processing
facility at the processing end. Although details were not
disclosed, the dealer is attempting to overcome the
typical problems encountered in using institutional paper
collectors, namely the unreliability of the groups in
supplying paper at specific intervals, the unpredictability
of the quantities and quality of the product, and the
fragmented nature of the sources. The dealer hopes to
revolutionize waste paper collection in Mobile by his
new approach.
On the average, paper dealers in the Mobile area in
1969 paid $12.00 per ton for newsprint, $13.67 for
corrugated, and $6.22 for mixed paper. Paperstock
buyers on the average paid $20.45 per ton for news,
$24.89 for corrugated; and $13.00 for mixed papers.
Average price paid for all bulk grade papers by dealers
was $12.30 per ton and by final consumers $21.02 per ton.
One dealer, who disclosed his financial records to us,
realized a profit equivalent to 0.5 percent of sales in 1969.
The dealer's cost accounts did not differentiate between
bulk grade and high grade papers, but total processing
costs, including all expenses except purchase price of the
paper, averaged out to $6.59 per ton. Processing costs
176 The remainder is made up of noncorrugated packaging papers, sanitary paper, industrial paper and boards, and
construction papers.
177 Figures in paragraph based on per capita per year consumption rates as follows: total paper, 0.271 ton; newspaper,
0.038 ton; corrugated containers, 0.055 ton; printing and publishing papers, 0.021 ton.
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141
associated with bulk grade papers are higher than this
average.
High grade waste papers, of course, are also
collected and sold in Mobile. We could not construct a
picture of transactions in this waste paper grade; dealers
buy such stocks in distant areas as well as in Mobile and
they ship pulp substitute grades as far away as New
York; their records, insofar as they were made available
to us, did not permit determination of the quantities
originating in Mobile. Using national averages for
printing and packaging conversion wastes, which are not
very reliable when applied to a single community, one
can roughly estimate that around 9,000 tons of high
grade waste papers occur yearly in the Mobile
metropolitan area.
Metals Salvage. At present, the only metals
recovered from municipal wastes are steel cans proc-
essed from wastes delivered to the compost plant. Based
on the plant's 1969 inputs and steel can sales, steel cans
account for 6.8 percent of waste tonnage entering the
compost plant. If the plant were operating at design
capacity of 300 tons per day, 260 days a year, 5,300 tons
of cans would be recoverable. According to the present
buyer of this metal, such tonnage could also be sold —
and at a higher price than the city now obtains ($6.15 per
ton). The steel cans, as they emerge from the compost
plant, are exceptionally clean and well prepared; they
are hammermilled and burned and are virtually free of
contaminants. This type of steel could be sold to copper
mines for precipitation iron; Mobile is located near
enough to copper mines so that freight rates would
permit shipment of the cans to mines within economically
acceptable limits. The current low price obtained for the
cans is the result of the small quantity of such steel
available from the compost plant.
Textile Salvage. In Mobile, as elsewhere, textiles
are collected by Goodwill Industries and the Salvation
Army. Attempts to establish total quantities diverted from
wastes were unsuccessful because of the record keeping
practices of participating concerns.
One construction paper producer buys 1,200 tons of
roofing rags yearly, paying $10 per ton for this product.
All other textiles collected in the area are sold as
secondhand clothing in area stores, exported, or
converted to wiping materials.
In Mobile, we encountered the only instance, in our
survey, of a Goodwill Industries facility that converts
used clothing into wiping rags, thereby placing itself in
competition with wiper manufacturers. The Mobile
facility prepares clothing articles that cannot be sold into
five rag grades — white rags, soft white, colored mixed,
synthetic, and cottons. These are sold directly to users
(construction companies, janitorial supply houses, ga-
rages, etc.) and to wiper suppliers who simply resell them.
Buttons and zippers removed from clothing articles in
wiper preparation are packaged and sold in Goodwill's
secondhand stores. The facility obtained $10,763 in
income from textile salvage sales in 1969. Prices obtained
ranged from $45 to $700 per ton depending on grade.
New Orleans, Louisiana178
Summary. Two contracts between the city and a
salvor had been in effect in the 1948-1968 period. At
present there is no organized recovery of municipal
wastes. One glass cullet dealer operates in the city.
Introduction. We visited New Orleans as part of
our preliminary review for this study in the company of
researchers for the American Public Works Association.
We were particularly interested in past salvage contracts
between the city of New Orleans and a private salvage
company.
Based on 1967 data, 711,750 tons of waste were
collected in New Orleans by public and private forces.
With a population of 675,100, waste pickup rates in New
Orleans appeared to be 5.78 pounds per capita per day
in 1967. Wastes collected are processed through five
municipal incinerators. Residues and wastes that are not
burned are deposited at two municipal and one private
landfill.
Past Salvage Practice. In the 1948 to 1958 period,
the city had a contract with a private salvage company
according to which the salvor, for a payment of $16,000
per year, was entitled to recover solvable goods from all
municipal disposal sites. Recovery of materials from
incinerator residues was included. According to the
salvor, the contract was unfavorable to the company
from the outset; the metals and paper recovered did not
cover total salvage costs; the salvor continued to operate
under the contract in spite of adverse economics because
one of his partners, engaged in the paper recovery end
of the salvage contract, found it politically beneficial to
continue. Details of the rationale were not revealed, but
obviously considerations that extended beyond the pure
profitability of the contract overrode economics.
178 Visit was made in September 1969.
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SALVAGE MARKETS
A second contract, covering the 1958 to 1968 period
was signed upon conclusion of the first one. This
arrangement was more narrow in focus. In exchange for
a payment of $10,000 per year, the city was obligated to
deliver all incinerator residues to the salvor's facilities for
processing. Apparently the parties encountered dif-
ficulties in the fulfillment of this contract also, and the
arrangement was terminated in 1963 because it was "to
the mutual advantage of all concerned" to do so,
according to the salvor.
In the salvor's view, the city (I) failed to deliver all
residues to his processing yard; (2) permitted
unauthorized salvage of residues; and (3) delivered
residues that contained a high percentage of unburned
organics so that economical processing of the waste was
sometimes impossible.
City officials concede the truth of these allegations,
adding that unauthorized salvage was nearly impossible
to prevent and that residue hauling costs generally
exceeded income from the contract. At the same time,
demand for residues by other city agencies for road and
parkfill existed.
During the life of these contracts, metals and paper
were recovered from New Orleans' municipal wastes.
For a brief period, steel cans were shipped to copper
mines in Nicaragua for precipitation. The copper
company introduced a new process for copper leach
solution recovery soon after the salvor began shipping,
and the market for shredded steel cans disappeared.'79
Present Salvage Activity. We gained some insight
into current salvage activities (or their absence) in
interviews with the city's largest private refuse removal
firm, with a glass cullet dealer, and with a glass
company.' The refuse hauling company president is
interested in salvage, but the company does not recover
anything now because salvage is viewed as an
uneconomical, venture. The organization operates a fill
facility. At the same time, the company disposes of some
potentially salvageable commodities from industrial and
commercial concerns.
Metals. The refuse hauler receives very little in the
way of metallic wastes from its commercial and industrial
accounts. These commodities are received by local
scrapyards for sale in the domestic market and overseas,
with Japan being the principal buyer. Since metals are a
small percentage of total waste tonnage, their recovery
appears uneconomical in the opinion of the refuse
hauler. The company acquires bulky items such as stoves,
refrigerators, and automotive hulks in its waste removal
activity. Automotive hulks are given to scrap dealers free
of charge. Appliances are landfilled. The only source of
concentrated metal wastes is can manufacturers who
dispose of a steady stream of reject cans. No attempt is
made to recover this waste or to sell it; the aluminum tops
on reject beverage containers make the total can
manufacturing waste unsalvageable, according to the
company.
Paper. There is paper recovery in the city, but demand
has not been sufficient to motivate grocery stores and
retail warehouses to install paper compaction
equipment. The refuse hauler acquires cardboard from
many such accounts in sufficiently large quantities so that
the company has studied the possibility of paper
recycling. At present, however, such a project appears to
lack feasibility because of the high investment costs
required to process the paper.
Glass. The refuse hauling firm regularly picks up and
deposits in its landfill broken glass from bottling
operations, charging $2.00 per cubic yard to do so, this in
spite of the fact that a cullet dealer operates in the city.
Total demand for purchased cullet in the New
Orleans area is estimated to be at most 5,000 tons a year.
Approximately 18,000 tons of glass are discarded in New
Orleans annually.
The local cullet dealer's operation is small, consisting
of the owner and two laborers. The dealer has two sales
accounts, a glass producer who buys only flint glass and
a producer who buys Georgia green and flint glass. The
dealer pays bottling plants to color sort and store broken
glass or defective bottles in barrels that are picked up
periodically. A small quantity of glass is obtained from
peddlers who, in turn, obtain the glass from large
restaurants and bars. Glass salvaged at dumps was once
the chief source of the dealer's glass supplies. The
incoming glass is washed and crushed; metallic impurities
are removed; and the glass is then shipped to buyers in
trucks. No cost or quantitative information could be
obtained on this operation.
An interview with one of the dealer's customers
revealed that approximately 16 percent of total input
179 This company was responsible for building the can recovery facilities at the Louisville municipal incinerator. The
system was built to recover cans for the Nicaragua mines; however, the market collasped before the Louisville facility
was completed, and Louisville consequently had to find a new outlet for its recovered steel cans.
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FOR MATERIALS IN SOLID WASTES
143
tonnage to the glass plant is cullet; of this amount, 10
percent is generated in the plant and 6 percent is
purchased. The company buys an estimated 2,200 tons of
cullet yearly.
Other Materials. During our visit to New Orleans we
did not interview processors of textile wastes, organics,
and other theoretically solvable materials.
New York, New York'8°
Summary. In New York City and its surrounding
areas, considerable salvage activity is taking place:
paper, metals, textiles, glass, and rubber are recovered
and sold to both domestic and foreign users. We
encountered here one of the few large dump salvage
operations in the country about which at least some
records are kept.
Introduction. To obtain a clear picture of salvage
activity in New York City is a well-nigh impossible
undertaking thanks to the sheer size of the city (an
estimated 8.3 million people in New York and an equal
number in adjacent communities); its density (26,000
people per square mile of territory); the unique character
of New York as a mercantile, financial, and com-
munications center; and the fact that much salvage
material generated elsewhere flows through New York
ports to foreign markets. Further, New York is unique in
that more than 60 percent of the textile-garment business
is located there.
In the fiscal year 1969, New York's Department of
Sanitation disposed of more than 6.3 million tons and
handled nearly 7.1 million tons of waste.181 City forces
collected approximately 57 percent of the total, private
haulers, called "cartmen" in New York, collected most of
the remainder. The tonnage disposed of is equivalent to
4.2 pounds per capita per day but does not represent all
waste collected in the city: a certain quantity is hauled to
private landfills in New Jersey.
In fiscal year 1969, 31 percent of waste received was
processed through incinerators; the rest, including
incinerator residues, was buried in seven landfills
accessible by truck ("truck fills") and two landfills
serviced by barge. A certain quantity of construction
rubble was ocean-dumped. Throughout this complex
system, salvage was practiced at only one location, the
Fountain Avenue truck fill in Brooklyn. As a result of this
operation, 3,371 tons of waste (0.5 percent of total
received) were removed for resale, and the city received
$5,200 in income.182
Municipal Waste Recovery in Perspective. In
the 1950's, salvage was conducted at three 500 ton per
day incinerators in New York as well as at several of the
city's truck fills. The incinerators were equipped with
special pits, moving belt systems, and bins for receiving
recovered commodities. The equipment was city owned.
Private concerns were invited to bid once a year for
the privilege of operating the salvage facilities. Winning
bidders were required to pay a weekly use fee and to
maintain salvage equipment in exchange for materials
removed. Newspapers, cardboard, metals, glass, and
rags were removed manually by contractor employees.
Over the years, annual bids came in at ever lower
figures. Equipment was not maintained well by the
contractors, and in disputes between the city and the
contractors, responsibility for failures could seldom be
assigned to the latter. As a result of poor maintenance,
salvage equipment at the incinerators broke down in the
1955-1956 period. The city decided that repair or
replacement of the facilities was not justified in light of
the low contract bids, and the salvage operations at
incinerators were consequently terminated.
Salvage activity at the city's truck fills continued
thereafter, and, as already mentioned, one such contract
was still in force at the time of our survey. Bids for landfill
reclamation contracts, however, were also successively
lower each year, and the last invitation to bid to which
we have access, issued in June 1969, brought in only a
single bid for one of the four sites at which reclamation
could be practiced. This last bid, for $100 per week, was
the lowest ever received by the city.
The decline of private sector interest in salvage,
manifested by low bids or complete absence of bids, has
led the city to consider nontraditional approaches to
salvage. Heat recovery is viewed as a modern approach
to value recovery from waste.
180 Survey was conducted in July 1969 and in June 1970.
181 The first figure refers to waste received, the second to waste handled, including rehandling of wastes in the form of
incinerator residues.
182 The city had disposal costs in 1969 of $3.78 per ton; thus total benefit to the city was a disposal savings of $12,743
and an income of $5,200, a total of $17,943, equivalent to 0.07 percent of the city's disposal budget of $23.8 Million. In
addition, the city's collection costs were $94.2 million, or $27.28 per ton (excluding that tonnage collected privately).
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SALVAGE MARKETS
The Fountain Avenue Salvage Operation. The
city's last reclamation contractor operates at the
Fountain Avenue landfill in Brooklyn. In consideration of
a $100 per week payment, the contractor is allowed to
maintain labor and equipment at the disposal site and to
remove valuables from the waste before it is buried. His
operations may not interfere with disposal operations.
The contractor usually has a crew of seven men at the
site, including one of the owners of the company who
supervises activities and participates in the work. Two
small crane-equipped trucks are used on the site to lift
heavy objects. All materials are loaded into a closed-
body truck for hauling materials from the fill to the
contractor's nearby salvage yard.
Pickers at the site are paid by load or by weight of a
particular commodity removed. They earn an average of
$15 to $25 a day but tend to work only a few days each
week.
Records kept by the city on materials acquired by the
scavengers show some categories of materials that are
no longer meaningful (Table 85). For instance, the
scavenger is said to remove "tin"; upon closer inspection,
tin turns out to be enamel-covered sheet steel and
complete refrigerators, stoves, dryers, and the like, which
include other materials; materials listed under "brass"
include not only all copper- containing metals but also
nonferrous metals such as zinc, aluminum, lead, silver,
and gold. The category of "satinettes" actually means
horse and cattle hair products, with the bulk of this
category being represented by rug paddings. "Rags"
includes all textiles. "Iron" includes all ferrous metals,
cast or rolled, except enamelled products.
Because the reporting forms use antique designations
and because no great care is exercised to insure that
each outgoing load contains only one type of material,
data on the composition of wastes removed are not
reliable. Data on tonnages are reliable because outgoing
loads are weighed on the landfill scales. In addition to
materials already identified, the scavenger also extracts,
albeit in small quantities, such items as loose copper wire,
rubber innertubes, occasional pieces of furniture,
mattresses, and a bewildering variety of tools, fixtures,
and parts. In addition, much foreign material also
adheres to metals removed (for example, plaster or
balsa-wood backing to aluminum panelling materials).
Salvage operations at the landfill appear to be
orderly and, according to supervisors at the site, do not
interfere with disposal work.
Wastes retrieved are trucked to a salvage facility,
consisting of a two-story building and an open yard.
Here some of the materials are further sorted, separated,
graded, cleaned, and prepared for shipment. Iron and
steel are sold to a scrap dealer without further
processing. Aluminum, textiles, and hair are baled.
Virtually all other items are resorted or disassembled.
Appliances are taken apart and all components, with the
exception of plastics and Insulation (if any), are
recovered. Thus, for instance, cooling units are sold as
aluminum; wiring is stripped to recover copper; motors
are separated into cast iron, cast aluminum, and copper
fractions; and sheet metal is sold as ferrous scrap.
By our observation, wastes derived from the landfill
are separated into at least 100 special grades, most of
these being metal scrap grades. These are stored until a
sufficiently large quantity of one grade has been
accumulated to justify a shipment to a scrap dealer.
Disassembly, cleaning, sorting, and related work are
done by four men, including the owner. All operations
are batch operations, and unit costs as these might
pertain to, say, motor stripping, could not be determined.
A considerable quantity of waste is generated in the
operation, indicating a shrinkage in weight of com-
modities between extraction at the fill and sale. Wastes
are trucked back to the fill and are disposed of free of
charge.
For various reasons — poor or misleading records,
the nature of sorting and disassembly operations, and the
fact that the contractor is also engaged in the processing
of marine |unk obtained from other sources — the
economics of the operation cannot be precisely de-
termined. The owner declined to make his corporate
records available for analysis but stated that the
operation was only marginally profitable. The owner
and his brother have been engaged in this operation
during their entire working life and continue in it because
no better alternative seems open at present.
Our own analysis, based on data supplied by the
owner and augmented by estimates, supports the
contention that the operation is only marginally
profitable. Assuming landfill or that shrinkage is
balanced out by upgrading of low-value salvage into
higher value goods by disassembly, the company realizes
an income of $30.29 per ton of material removed from
the landfill (Table 86).
The company's investment in equipment is $50,700,
which results in capital-related expenses of $5,700 a
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FOR MATERIALS IN SOLID WASTES
145
year, assuming 8 percent money and taking the varying
life expectancies of items into consideration (Table 87).
If we assume that the two supervisors each earn $800
per month and nine laborers average $100 per week, a
total payroll of $85,000 a year results, using a 30 percent
payroll burden figure.
These expenses, plus the $5,200 a year payment to the
city, yield a total of $95,900 a year or $28.45 per ton. This
processing cost excludes insurance, maintenance, ad-
ministrative burden, fuels and supplies, general office
overhead, and property leasing costs. Quite clearly the
operation is economically marginal and could not be
replicated on a profitable basis if all costs conventionally
charged to an industrial operation were applied.
Mixed Waste Reclamation by Private Hau-
lers. With the exception of a few isolated instances (an
occasional hauler who sometimes delivered waste loads
almost entirely made up of corrugated board to a paper
dealer), private refuse haulers did not engage in salvage.
We visited one corporation, however, that was building
a waste separation and reclamation plant, to be supplied
by private haulers servicing commercial and industrial
accounts. At the time of our visit, equipment was being
installed. The facility was designed to accept 400 tons per
day of waste. A 20-hour a day, 7-day a week operation
was planned.
Concept. The company will accept waste from
private haulers, charging a fee of $2.15 per cubic yard,
the amount charged by the city; 25 percent of the fee will
be rebated to the Queens County Trade Waste
Association, Inc., to be used for research. The association
has undertaken to interest its member companies in the
venture. The waste will be automatically sorted on a
system consisting of belts to separate corrugated paper.
Some manual removal of objects will be necessary.
Corrugated will be shredded, baled, and sold. The
remainder, 75 percent of waste receipts, will be
compacted for transport to the city's landfill. Later, a
pyrolysis unit will be used to reduce the nonsalvable
residues to an inert ash.
Technology. The heart of the operation is a
patented system for separating corrugated from mixed
wastes. The system was developed by Waste Reclamation
Corp., of Los Angeles. The separator consists of a waste
receiving station from which wastes run over 13 belts,
spaced approximately 5 inches apart, to a salvage
receiving station. The belts are set on an inclined plane
with the angles of each belt unit slightly different from
that of the others. The belt-bearing mechanism is rigged
in such a manner that the belts can yield to weight
pressure or bulky and heavy ob|ects. A 5-gallon metal
can, for instance, can force the belts apart so that it drops
below the belted system. Smaller items drop down
between the belts and are conveyed to a compactor for
baling. The corrugated bridges the gaps between belts
and stays on top, moving by conveyor belts to paper
shredders and balers. "Foreign" objects carried with the
corrugated are thrown out by hand before shredding.
Company officials claim that 80 percent of the cor-
rugated in a waste load will stay on the belt system and
that 90 percent of the material delivered by the belts will
be saleable.
Economics. Company officials estimated that the
400-ton-per-day installation, representing a capital
investment of $600,000, will realize an income of $6,000
daily, against which expenses of $4,000 daily will be
charged, for a daily profit of $2,000 (Table 88).
We are in no position to comment authoritatively on
these economics, not having had access to feasibility
analyses. The following observations, however, can be
made. The company will receive a net subsidy of $7.50
per ton from refuse haulers, assuming that the waste
density of 430 pounds per cubic yard is realistic. In New
York, some waste haulers regularly achieve densities of
700 to 1,000 pounds per cubic yard. If densities are higher
than those assumed, a likely possibility, subsidy per ton
would drop without increasing the income from salvage.
Income from the sale of corrugated is estimated at $30
per ton. In New York, mills were paying $23 per ton for
this product; dealer buying prices were as high as $15 per
ton. The company's total operating cost estimate is $10
per ton of input; if 75 percent of incoming waste must be
disposed of (300 tons per day), dump charges alone will
run' $3.23 per input ton.'83 To this amount would have to
be added hauling, sorting, shredding, and baling costs,
plus amortization and overhead.
Prospects. This facility will go into operation in the
near future according to company spokesmen. According
to company estimates, the New York area will support 10
such plants which could handle 50 percent of the
commercial and industrial waste in the area. Ultimately,
the company plans to acquire its own pulp mill, linear
183 Basis: $2.15 per cubic yard; 600 cubic yards daily with density of 1,000 pounds per cubic yard; for a total charge of
$1,290 per day; this divided by 400 tons of input yields $3.23 per ton.
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SALVAGE MARKETS
board plant, and box plants, which would be supplied by
reclamation activities. At present, however, all this is still
very much dependent on the economic success of the first
reclamation plant.
Other Reclamation Proposals. At the time of our
survey, a trade association was engaged in the feasibility
evaluation of an integrated 500 tons per day waste
reclamation plant to be located near New York or
Washington, D.C. Early estimates showed a capital
investment of $12.81 million, operating costs of $1.99
million a year, and income from the sale of garbage,
aluminum, glass, ferrous metal, paper fiber, cellulose,
and electricity of $2.36 million a year. Engineering and
economic feasibility studies were under way. No
likelihood of near-term startup existed.
Reynolds Aluminum Corporation was planning to start
an aluminum can recovery system modelled on its Los
Angeles Center.
The Glass Container Manufacturers Institute was
active in the organization of a glass recovery system in
cooperation with a citizen's group.
Social Agency Activities. We interviewed three
social welfare agencies in New York: Volunteers of
America, Salvation Army, and Goodwill Industries. All
three agencies participate in the secondary materials
business by collecting textiles from residential sources
and selling textiles that cannot be resold in secondhand
stores as rags. Volunteers of America and Salvation Army
are also active collectors of waste paper from com-
mercial and industrial sources; Goodwill Industries
occasionally sells paper wastes accumulated in its
operation but does not seek paper from its sources. All
three agencies are, of course, primarily dependent on
sales of usable soft goods and hard goods in secondhand
stores. Salvage activity is not their principal occupation.
Textile Operations. The three agencies sell
between 2,500 and 2,700 tons of textiles as rags yearly
(Table 89). This represents approximately 60 percent of
their textile collections. The remainder is sold in
secondhand stores.
Prices received for textiles range from $40 to $65 a
ton. Costs of collection and processing of the ragged
portion of textiles cannot be isolated with any precision
in that these activities are part of operations that service
secondhand stores.
Volunteers of America estimates that a truck must
bring in at least $30 worth of merchandise to break even.
Drivers are paid 1
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FOR MATERIALS IN SOLID WASTES
147
the other grades are obtained from commercial and
industrial sources.
Companies contributing paper to the Volunteers
receive receipts for the paper donated, ranging from $6
per ton for mixed paper to $52.50 for IBM cards (Table
90). The tax credit basis is anywhere from $2 to $16.50
below the price received by the Volunteers; the
differentials in favor of the Volunteers are meant to
cover pickup and sorting expenses. From the agency's
point of view, of course, acquisition cost is equivalent to
their pickup costs.
The agency pays its laborers (driver, helpers) a total of
$6 per ton of paper collected. Three trucks are
continuously engaged in paper collections. A minimum of
2 tons of paper are brought in daily; a single stop may
yield anywhere from 500 pounds to 4.5 tons of paper.
Paper acquired is sorted and baled in the agency's
warehouse and sold to dealers and brokers who arrange
for delivery of the merchandise to mills.
By contrast with the Volunteers of America, the
Salvation Army paper acquisition activity in New York is
quite modest; in all, 106 tons were acquired in the
October 1969 to September 1970 period;186 income from
the sale of this paper averaged out to $32 per ton,
indicating that high grade papers (IBM cards, ledger)
were sold in some quantities as well as bulk grades (news,
corrugated, and mixed). The low collections and
relatively high income achieved in New York are not
representative for the Salvation Army as a whole. In the
same period in Newark across the river, the agency
collected an estimated 1,813 tons of paper, achieving an
income of nearly $19 per ton.
In New York, as elsewhere, social service agencies
compete directly with secondary paper dealers for most
of the paper they collect, using tax credit certificates in
place of cash to make their acquisitions. Their activities
are not viewed with favor by dealers. These agencies,
however, do in some instances acquire paper from
sources too small to be economically serviced by
commercial organizations; the agencies can do this
because of their low labor costs. At least to sources in this
category, the tax credit is a welcome contribution to
income (by reducing tax liability), whereas the al-
ternative of hauling the waste paper to dumps is a cost
item. Of course if it could be sold by the waste generator,
it would be a contribution to net income.
Miscellaneous Comments. The agencies also collect
other items that are sometimes sold as salvage, most
notably metals. Volunteers of America reports that
occasionally appliances are picked up which cannot be
sold in the stores; sometimes it is possible to sell such
metals as scrap. This agency also sells unrepairable
mattresses to an organization that repairs and resells
them. During our visit, agency employees were un-
loading half a truck full of obsolete, wired panels whose
original function could not be determined. The ware-
house supervisor believed these could be sold some-
where. We also saw a large accumulation of sheet plastic
rolls, acquired some years in the past, presumably also
with the hope that they would find a buyer. Both
Salvation Army and Goodwill Industries report that
nearly all the women's shoes acquired by them are
discarded as unsaleable and unsalvageable because the
typical donors are slender, well-to-do women; the typical
buyers are poorer heavyset women who require larger
shoes than those contributed. Goodwill Industries reports
that collections in the wealthiest areas of Manhattan tend
to be meager: domestic servants and employees of
apartment houses remove the best items before the
agency can pick them up.
Paper Recycling. Within a 40-mile area around
New York City there are 17 paperboard mills and 13
papermills and an unknown number of construction
board mills, many of which are waste paper consumers.
New York consequently is an excellent waste paper
market area. Total demand in the area for waste paper is
around 1.5 million tons a year. Approximately 100 paper
dealers operate in New York City alone.
Two of the largest dealers in New York gave the
following picture of paper recovery in the city.
A strong demand for newsprint exists in the area, in
large part because of the steadying influence of constant
news demand of the Garden State Paper Company,
which operates a news deinking plant in Garfield, New
Jersey. About 10 percent of news acquired is overissue;
the remainder is collected by individual collectors from
apartment houses; a small quantity of news is acquired
by scavengers who retrieve newspapers from trash cans;
and news is also collected by social service agencies.
Paper dealers pay around $8 per ton to scavengers and
collectors for loose paper. This material is then sorted
and baled, usually sold through a broker (brokerage fee;
$2 to $3 per ton), and delivered to the mill. The deinking
186 Extrapolated from data for October 1969 to April 1970.
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SALVAGE MARKETS
mill pays about $22 per ton for the grade, plus $3 to $4
per ton in transport costs; this is for well sorted news from
which magazines are removed. Other mills may pay less
but accept the normal magazine content of collected
news.
Corrugated board is acquired from warehouses,
department stores, retail stores, and supermarkets. One
dealer has initiated a program whereby his company
encourages waste haulers to deliver waste loads
consisting entirely or nearly entirely of corrugated to the
company's plant. Response to this appeal has been good.
Haulers receive $14 to $15 per ton for the loose board. The
board is baled and sold for $21 to $23 per ton, excluding
transportation costs.
Dealers can afford to service only generators of
corrugated who store at least a truck trailer load of
board. Smaller accounts are serviced by individuals,
scavengers, junk shops, or social service organizations
— if at all.
The most desirable paper wastes are pulp substitute
grade conversion wastes, for instance, cups and
envelope clippings, which bring anywhere from $80 to
$110 per ton. Least desirable is mixed paper, derived from
office buildings. The presence of unacceptable materials,
especially carbon paper, plastic, and garbage, makes
this grade difficult to move at any time.
Waste paper travels an average of 50 miles to
market; some trips as far as 400 miles away are made,
but these are unusual.
According to the dealers interviewed, it is impossible
to generalize about prices paid to generators of waste
paper because the conditions of purchase vary. Elements
that determine the price include the following: (I) grade
and quality of scrap paper,- (2) quantity of paper
generated per unit of time; (3) form in which it is
available (baled, loose); (4) service required (frequency
of pickup, distance, congestion around pickup site,
access to paper); (5) demand for the paper at time of
purchase; (6) market price of the paper.
In general, published prices are used only to get a
"feel" of the market; they do not necessarily reflect what
goes on in actual transactions between individual dealers
and buying mills.
Metals Recovery. Recovery of metals from mu-
nicipal wastes or residential sources is virtually non-
existent. The landfill salvage operation earlier de-
scribed is an exception. In the recent pasta corporation
approached the city of New York with the proposition to
process the city's incinerator residues in order to reclaim
the metal. The company wanted to build a recovery
operation at the city's Fresh Kill marine landfill in
Richmond Borough, which would receive the residues
from barges and deliver ash and other unusable
components to the fill. The offer was withdrawn when the
company realized that costs would exceed projected
income.
Recovery of nonferrous metal in the city follows
traditional patterns; metals are acquired from the
following sources: (I) auto dismantlers; (2) garages and
shops (primarily batteries and radiators obtained by
small peddlers for resale to dealers); (3) industrial
accounts; (4) utilities (especially lead-covered cable and
copper wiring); (5) government (all types of metals,
usually acquired by dealers by advertised bid).
Glass Recovery. There is no glass container
manufacturing plant in New York City, but in neigh-
boring New Jersey there are eight container makers, four
of which are supplied with cullet by a cullet dealer
located in Jersey City just across the river from New York.
After a relatively lean year in 1969, this dealer found
business very good in 1970, in part as a result of attempts
by the glass industry to increase quantities of glass
recycled. The dealer sold an average "of 8,126 tons of
cullet in the 1966 to 1969 period, achieving his highest
sales in 1967 (11,662 tons) and lowest in 1969 (5,019 tons). He
received an average price of $18.46 per ton, lowest in
1966 ($17.35) and highest in 1969 ($20.26) (Table 91).
In 1970, sales of cullet expanded sharply. The dealer
estimated that 1970 sales would at least double those of
1969, and might do much better than this. The dealer
stated that efforts by the Glass Container Manufacturers
Institute to induce higher cullet use rates by their
members are directly responsible for the expanded
demand.187
The dealer obtains plate glass (windowglass)from 12
accounts and container glass (flint, green, and amber)
187 In fact, the actual events leading up to the sudden upsurge in demand were reported to us by another source as
follows: the cullet dealer contacted his cullet sources to inform them that he could no longer accept their glass because
of low sales. The bottlers, thus facing high waste removal costs by private refuse haulers, turned to the glass
manufacturers. With pressure from their customers and increasing public awareness of solid waste problems, the glass
container manufacturers began purchasing cullet in increased quantities.
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FOR MATERIALS IN SOLID WASTES
149
from 35 accounts — breweries, soft-drink bottlers, and
food processors. The glass is sold to four container
manufacturers in New Jersey188 and a light-bulb
manufacturer.
Some of the glass is acquired free, in compensation
for its removal. Large accounts require payment of $7 to
$12 per ton for flint and $5 per ton for green and amber.
The dealer receives an average of $18 per ton for flint,
$16.10 for green, and $17 for amber. Freight, which will
run around $2 to $3 per ton, is paid by the buyer.
Approximately half of all acquisitions are made in New
York, half in New Jersey. All sales are to New Jersey
glass plants.
The dealer has never calculated his operating costs.
His monthly payroll, including a 30 percent payroll
burden, is estimated to be $6,500 for two drivers, eight
plant employees, and two supervisors;189 the investment
in plant and equipment is $90,000, which translates to a
monthly amortization charge of $1,120 at 8 percent
interest and an estimated 10-year life for the equipment
packages. Site lease is $295 per month; refuse removal is
$160 per month; fuel costs are at least $100 per month;
and maintenance, insurance, administrative expense,
and property taxes add about $100 per month. This comes
to a total of $8,275 per month or, using the average
monthly tonnage of 677 (4-year history), $12.22 per ton.
To this must be added payments for glass, shrinkage of
glass in handling, utilities, and general office overhead.
With demand up, the dealer is rapidly depleting his
stockpiles of glass accumulated in past years and faces a
glass shortage if demand persists at current levels. The
dealer hopes that one of several glass collection schemes
discussed in New York that will involve citizen groups,
acting as intermediaries between the dealer and
residential glass generators, will become reality.
The main technical problem encountered by the
dealer is the presence of aluminum rings around bottle
necks. A good deal of manual sorting (using rakes) must
be done to eliminate this contaminant as well as paper,
cans, and other rubbish typically encountered in a load
ofcullet.
Textile Recovery. We interviewed three or-
ganizations engaged in textile recovery (in addition to
social welfare agencies) and learned the following.
The starting point for most textile recovery is the
social welfare agency that collects textiles from res-
idential sources. Conversion wastes are also obtained
from industrial sources, but these wastes play a relatively
modest role in the field. Mixed rag bundles are prepared
by social welfare agencies and contain all items these
organizations cannot resell as used clothing. Mixed rags
may be sorted several mcire times: (I) by mixed rag
graders who in turn sell cotton to wiper manufacturers,
wool to wool specialists, and synthetics to roofing mills;
(2) by a cotton wiper manufacturer into cottons and other
textiles (woolens, synthetics); (3) by a wool specialist into
various grades of woolens, some for reuse and some for
reweaving, and into synthetics; (4) by foreign sorters into
various grades of synthetics; these materials are not
sorted in the United States; (5) by foreign sorters who
receive mixed woolens from the United States.
At the time of our survey, the only commodities selling
on the market in any quantity were cotton wipers. The
absence of markets for woolens and synthetics was
creating a special problem for wiper producers, as can
be seen in the following analysis.
Mixed rag bundles contain only about 30 percent
cotton. This grade is purchased by the wiper man-
ufacturer for $60 a ton; he must buy 3.33 tons of mixed
rags to get I ton of cotton. If he cannot sell the 2.33 tons
of woolens and synthetics acquired with the cotton, his
real outlay for the cotton is $200 per ton (3.33 tons times
$60). In addition, he must dump the woolens and
synthetics, which costs $5 per 1,200 pound bundle, $8.32
per ton, and $19.39 for 2.33 tons of unusable textiles. The
total cost of the cotton, therefore, is $219 per ton. To this
must be added sorting, washing, trimming, and baling
costs of $240 per ton of Cotton (Table 92), plus pickup of
mixed rag bundles at $2 per ton, which comes to $6.66
per ton of cotton (3.33 tons times $2). The total price is
$466 per ton of cotton, which exceeds the average price
received by wiper manufacturers for wipers by some $46.
To break even, the manufacturer must sell a ton of
woolens or synthetics, for $40 per ton, for every ton of
cotton he sells.
The price paid for mixed rag bundles in New York,
and elsewhere, has declined from a range of $80 to $120
per ton a few years ago as a direct result of the decline of
188 Includes a new account acquired in 1970, a company that has not purchased cullet from this leader in the past 16
years.
189 Drivers are paid $2.50 an hour; laborers $1.80 an hour; supervisor salaries were conservatively estimated at $800 a
month; a third driver is used part time.
-------
150
SALVAGE MARKETS
wool scrap demand in overseas markets. Ultimately,
dealers report, the current problems of the textiles waste
industry can be traced back to the 1940 Wool Labelling
Act which required the identification of all products
made of reprocessed wool. Rewoven products acquired
a bad image; domestic reweaving virtually disappeared;
and the value of used woolens declined. Foreign markets
took up some of the slack, but now foreign markets are
fading: virgin wool industries are developing overseas,
labor rates are increasing, and obsolete woolens from
the United States must compete with European scrap
textiles for African markets, where labor is still cheap and
local textile industries have not yet developed. Dealers
believe that current trends, if they continue, will
eventually cause the disappearance of the secondary
textile industry.
Wipers, while still moving strong, are also threatened
by competing materials whose economics are not
dependent on the wool scrap trade, namely mill
remnants, paper towels, nonwoven fabrics, and synthetic
wipers. These wiper types are generally higher in cost
than wipers made from obsolete materials, but the gap is
closing as costs of obtaining obsolete materials increase.
One exporter, a firm based in Garden City, Long
Island, is introducing another element into the textile
scrap business which other dealers eye with anxiety. This
company has organized or has a business agreement
with a textile sorting and preparation operation in one of
the African countries. He is buying mixed rag bundles
locally for export and offering prices generally higher
than domestic dealers can offer. His African labor cost is
$1 a day per man, and he can therefore afford to buy
bundles at a higher price, ship overseas, sort and
prepare, and even ship back commodities that will sell in
the domestic market (wipers). The activity of this single
company has resulted, according to local dealers, in a
shortage of rag bundles and an upward pressure in price.
We found dealers unanimous in their conviction that
textile recovery can be increased (or at least stabilized)
only if the Wool Labelling Act is repealed and rewoven
wool can once again be sold as new wool.
It was apparent from our interviews and observations
that several other problems could plague textile
reclamation even if woolens could be sold in quantity.
Sorting and grading of textiles is a hand operation
accomplished by labor paid the minimum wage or just
above minimum. Sorting and grading runs 2
-------
FOR MATERIALS IN SOLID WASTES
151
Introduction. The city of St. Louis has a population
of 680,000. Residential refuse removal is handled by the
Refuse Division of the Department of Streets. In 1968, city
forces collected 226,000 tons of waste,191 equivalent to
1.82 pounds per capita per day. The wastes collected
exclude all commercial, institutional, and industrial
wastes192 as well as wastes from apartment houses that
containerize their wastes and must consequently use
private haulers. Wastes are burned in two municipal
incinerators; residues are used to fill an empty quarry.
Bulky wastes are collected and transferred to a private
hauler who conveys them to a private landfill.
Residue Reclamation Program. From April 1968
until March 1969, the city had a contract with a private
corporation whereby the city received a standard
monthly fee in exchange for which incinerator residues
were delivered to the company's facilities; the city was
also required to pick up residues at the company plant
after these had been processed.
In the period April to December 1968, the-city was
paid $27,000, at the rate of $1,500 per month per
incinerator. In January 1969, the company stopped
receiving residues from one of the incinerators; payment
dropped to $1,500 a month; in March 1969 the operation
closed.
Approximately 12,000 tons of residue were delivered
to the salvage contractor monthly in 1968 and 5,200 tons
per month in 1969. Of the input materials, an estimated
18% was recovered"3, 7% was lost as moisture or fine,
and 75% required disposal in a landfill.
The residues were magnetically sorted into a ferrous
metal stream and a stream containing all else. Metals
were shredded by hammermilling and loaded on railcars
for shipment, presumably to copper mines. Company
officials could not be reached to establish final
destination of the metal..
The operation was closed down, according to the city,
because the contractor could no longer sell the metal
extracted for $10 per ton. Their price was reduced to $6
per ton, a price at which the company could not make
money.
If 18 percent of the incoming residue was saleable
metal, the company obtained 2,160 tons of metal
monthly, paying $3,000 for the total amount, or $1.39 per
ton. We estimate that operation of the residue plant itself
probably cost $7.31 per ton of product (using the
experience of the city of Atlanta) and plant amortization
cost of $2.70 per ton. this results in a cost of $11.40 per ton
of product. The company may have (I) extracted more
metal, (2) had lower operating costs, and (3) had lower
plant and equipment costs than those used here. It
remains fairly certain, however, that the company could
not have earned its costs at a $6 per ton selling price.
191 Based on 13-month summary.
192 Exceptions being one hospital and the city market.
193 Basis is analysis of incinerator residues prepared by Bureau of Mines: Kenahan, Sullivan, Ruppert, and Spano,
Composition and characteristics of municipal incinerator residues, p.l 0.
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-------
TABLE 60
REVENUES AMD EXPENSES OF AM&RILLO'S SALVATION ARM-
FACILITY - 1969*
Category Amount
Revenues:
Sale of rags (at $2.75 per hundredweight) $ 5,145
Revenue of the retail store 51,855
Total revenue $37,000
Expenses;
Rent $ 3,530
Utilities 900
Wages--? people 17,000
Wage-related expenses 2, 900
Food 2,000
Shop equipment 1,200
Freight charges on rag shipments 1,500
Miscellaneous (transport and related waste
disposal, repair of salvage, etc.) 10,070
Total expenses $39,100
Net loss ($2,100)
*From Salvation Army Facility, Amarillo, Texas.
151-2
-------
TABLE 61
ESTIMATED INCOME AND EXPENSES OF A STEEL CAN RECLAIMING
OPERATION III AMARILLO, TEXAS*
Useful Amortization
life- factor at
Category Cost years 8la interest
Capital-related expenses
Land $20,000 - 0.08
Warehouse 5,000 20 0.102
Can shredding plant 55,000 10 0.149
Trucks 7,600 5 0.250
Loader 10 ,500 5 0.250
Subtotal $98,100
Maintenance (4$ of investment excluding land)
Insurance (l$ of investment excluding land)
Administrative and general expenses (1% of total investment)
Property taxes (2$ of total investment)
Subtotal
Total capital-related expenses
Operating costs
Lease of rail siding
Payroll, including payroll burdens
Fuel and lubricants
Total operating expenses
General overhead expenses
Office salaries
Utilities
Supplies
Miscellaneous
Total general overhead expenses
Other expenses
Freight on 4,600 tons
Payment to the city for 4,600 tons of product
Total other expenses
Total expenses
Total income
Gross profit
Annual
cost
$ 1,600
510
8,195
1,900
2,625
$ 14,830
$ 3,124
781
981
1,962
$ 6,848
$ 21,678
$ 12,000
44,000
4.000
$ 60,000
$ 12,000
2,000
3,000
8.000
$ 25,000
$ 89,600
2,000
$ 91,600
$198,276
$220,000
$ 21,722
Cost per
tons of
product ,
4,000 tons
oer year
5.41
15.00
6.25
22.40
0.50
22.90
49.56
55.00
5.43
* From APCO Metals Company, City of Amarillo, Texas, and Midwest Research Institute estimates.
151-3
-------
TABLE 62
COST TO PROCESS ONE NET TON OF SALVAGE METAL FOR SHIPMENT*
Category
Labor
Power
Maintenance labor
Parts replacement
Original equipment amortization (20 years)
Cost per ton
$ 4.82
.80
.81
.88
2.70
Total cost $10.01
Selling price $10.27
*From Atlanta Sanitation Department, internal study, February 20, 1969.
Note: Excludes costs of potable water used to wash cans; water costs
are treated as a single expenditure item by the city and costs are not
allocated down to operating department.
151-4
-------
TABLE 63
RESIDUE- RECOVERY AT THE CHICAGO SOUTHWEST INCINERATOR, 1969*
Category Units
Refuse delivered 274,960 tons
Metals average 8.0$ 21,997 tons
Residue 208,318 cu. yd.
Residue average 1,500 Ib/cu. yd. 156,238 tons
Dry residue (32$ quench moisture) 106,241 tons < (38.6$ of input)
Sales of cans 9,214 tons« (8.7$ of residue)
* From Department of Sanitation, Chicago, and Midwest Research
Institute estimates.
151-5
-------
TABLE 64
STEAM SALES OF CHICAGO'S SOUTHWEST INCINERATOR*
Year Steam sold--lb. Revenue
1968 247,065,810 $167,296
1969 238,344,081 $159,062
* From: Department of Sanitation, Chicago.
151-6
-------
TABLE 65
STEEL CAN RECOVERS, INCINERATOR, INC., 1969 AM) 1970*
Year Revenue/input ton Tons sold Revenue/ton sold
1969
1970
(5 mo.)
$0.23
$0.156
4,870
N.A.
$7.55t
$5.25
*From Incinerator, Inc., Chicago, Illinois.
tCalculated by MRI based on throughput tonnage reported by company.
151-7
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TABLE 67
COLLECTION .AND REVENUES OF GOODWILL
INDUSTRIES, INC., BRIDGEPORT, CONNECTICUT,
1968*
Type of commodity
collected
Wt. in
net tons
Revenues in
dollars
Revenues per ton
in dollars
Store usables
Soft goods 98.5
Hard goods 289.5
Total usables 388.8
Salvage
Rags, mixed 989.4
Cottons 19.2
Special rags 2.4
Hair and feathers 4.3
Paper (news and mixed) 188.6
Total salvage 1,202.9
Unusable materials
dumped 397.5
Total collections 1,989.2
400,490
69,460
318
585
492
5,155
74,010
1,030.07
70.20
16.56
243.75
114.41
16.73
61.53
474,500
238.54
* From Goodwill Industries, Inc., Bridgeport, Connecticut,
organizational records.
151-9
-------
TABLE 68
PRICES RECEIVED FOR SALVAGE COMMODITIES
BY GOODWILL INDUSTRIES, INC., BRIDGEPORT
CONNECTICUT, 1968*
Type of community Price per net
ton in dollars
Mixed rags
Special rags
White wipers
White cottons
Mixed cottons
Cattle hair
Feathers
Horsehair
Folded newspapers
Mixed papers
$ 65.00 - $ 70.00
130.00
240.00
100.00
45.00
20.00
18.00
20.00
20.00
8.00
* From Goodwill Industries, Inc., Bridgeport, Connecticut,
organizational records.
151-10
-------
TABLE 69
TONNAGE OF WASTE COLLECTED AND DISPOSED IN GAINESVILLE AEEA IN 1969*+
Wastes delivered to
Compost University Municipal landfill Total
Wastes delivered by plant landfill of Gainesville disposal
Municipal collection forces
from Gainesville (exclud-
ing University of Florida) 26,350 -- 11,090 37,4=40
Private contract haulers
from Alachua County
(excluding Gainesville) 3,030 -- 6,320 9,360
University of Florida forces
from'University of Florida
properties 4,680 7,500 —• 12,180
Private forces of corpora-
tions and individuals -- — 10,400 10,400
Total 34,080 7,500 27,810 69,380
* From records of the Gainesville Municipal Waste Control Department, the
Gainesville Municipal Compost Authority, and estimates made by the owners of Mallard
Garbage Service and Mallard Trash Hauling Service, both of Gainesville, Florida.
+ Includes all residential, commercial, and industrial wastes.
151-11
-------
TABLE 70
CHARACTERISTICS OF WASTE ENTERING GAINESVILLE COMPOSTING PLANT IN 1969*
Type of waste
Paper
Ferrous metals
Nonferrous metals
Textiles
Glass and ceramics
Plastics, leather
Wood
Garden waste
Food
Ashes
Miscellaneous
Total
% of weight"1"
52.59
6.75
0.77
2.69
5.59
4.38
2.70
11.56
6.36
5.24
1.37
100.00
Tons in
1969 #
17,923
2,300
262
917
1,905
1,493
920
3,940
2,167
1,786
467
34,080
Salvaged and sold in 1969
% of 1o of
Tons material total input
2,254 12.58 6.61
1.37 0.15 0.004
2,255 — 6.61
* From unpublished records of Gainesville Metropolitan Waste
Conversion Authority.
+ Based on samples taken on January 24, July 8, and August 21,
1969, and samples taken during the week of September 10-16, 1969; all told,
2,960 pounds of waste were removed for sampling.
# Breakdown of tonnage calculated by using compositional percentages
and applying these to data on total tonnage delivered to the compost plant.
151-12
-------
TABLE 71
HOUSTON REFUSE COMPOSITION BY WEIGHT*
Material category
Paper
Textiles
Steel cans
Other metals
Glass
Conrposta'ble
organic s
Inert residues
Total
Composition-^
44.9
3.2
7.5
0.6
7.5
32.8
5.5
100.0
Estimated 1969 tonnage
41,538
2,960
6,938
555
6,938
30,344
3,238
92,512+
* From Public Works Department, City of Houston.
+ Subtotals fall short of total because of rounding.
151-13
-------
TABLE 72
WASTE RECEIVED AND STEEL SCRAP RECOVERED
AT THE HOLMES ROAD INCINERATOR, HOUSTON, TEXAS
NOVEMBER 1967 TO APRIL 1969*
Date
November 1967
December
January 1968
February
March
April
May
June
July
August
September
October
November
December
Total, 1968
January 1969
February.
March
Grand Total
Waste
received
( tons )
7,369
8,256
6,627
--
3,354
11,257
11,162
7,169
10,256
11,365
8,513
6,136
7,977
9,557
93,344
12,374
11,588
11,081
144,201
Steel cans
Steel cans as % of
recovered input
( tons ) tonnage
314
576
349
INCINERATOR
243
643
745
414
598
650
535
405
405
535
5,522
695
639
463
8,107
4.26
6.98
5.26
CLOSED
7.24
5.71
5.78
5.77
5.83
5.72
6.28
6.60
5.07
5.61
5.91
5.62
5.51
4.18
5.63
Other metal
scrap recovered
( tons )
--
--
--
--
--
--
--
12
14
13
10
7
12
7
75
--
5
80
* From incineration records of Public Works Department, City of
Houston, Texas. 151-14
-------
TABLE 73
COIJJECTIONS AND SALES OF SALVATION
AEMf FACILITY OF HOUSTON, TEXAS, 1969*
Type of commodity
collected
Store us able s
Clothing
Other
Total useables
Salvage
Textile rags
Mixed paper
Mixed metal scrap
Total salvage
Total usables and salvage
Wt. in
tons
264
2,700
2,964
337
210
742
1,289
4,253
Revenues Revenues per
in $ ton in $
264,000 89.07
20,246 60.00
1,680 8.00
4,454 6.00
26,380 20.46
290,380 68.28
* From: Salvation Array facility headquarters, Houston Texas;
tonnages were computed from monthly averages and adjusted to annual income
in 1969 sales prices received for salvage goods.
151-15
-------
TABLE 74
COMPOSITION OF ALL HOUSTON MUNICIPAL SOLID
WASTES IN WEIGHT PERCENT AND ESTIMATED
TONNAGE OF MATERIALS IN WASTE IN 196 9*
Type of vaste
Paper
Ferrous metal
Nonferrous metal
Textiles
Glass
All other
Total
wt.
37.0
7.5
0.5
1.5
10.0
43.5
100.0
Estimated
tons of material
in waste in 1969
462, 500
93,750
6,250
18,750
125,000
543,750
1,250,000
»From estimates of Refuse Division, Public Works Department, City of
Houston, Texas.
151-16
-------
TABLE 75
ALUMINUM RECEIVED BY REYNOLDS
CAN RECLAMATION CENTER IN LOS ANGELES
AUGUST 1969 TO DECEMBER 1970*
Tons of aluminum
Year Month received
1969 August
September
October
November
December
Total, 1969 138.97
1970 January 33.02
February 33.74
March 32.63
April 32.45
May 52.26
June 80.05
July 81.13
August 79.33
September 90.21
October 96.40
November 78.15
December 108.55
Total, 1970 807.90
* From Reynolds Metals Company records.
151-17
-------
TABLE 76
SUMMARY OF DATA AND ESTIMATES CONCERNING
SALVAGE OPERATIONS OF GOODWILL INDUSTRIES,
INC. OF SOUTHERN CALIFORNIA. 1967 to 1968*
Item
Collection
Number of residential pickup calls
Number of booth pickups
Total pickups
Booths on location
Bags collected from booth
Collection expenditures, total
Collection expenditures per pickup
Tons of material collected
Metal scrap
Waste paper
Rag textiles
Total salvage
Tons of other materials collected
and sold in stores (est.)
Total collected
Revenues
Metal scrap
Waste paper
Rag textiles
Total salvage revenues
Store sales (est.)
Donations and services (est.)
Total
1967
94,827
154,701
248,988
759
3,'174,816
2,500
144
3,061
5,705
3,130
8,835
$20,000
1,728
214,270
$235,998
1968
94,716
177,463
272,278
769
3,248,568
2,100
151
5,084
5,335
5.420
10,755
$8,400
2,718
231,300
$242,418
1969
98,358
177,226
275,584
807
3,234,635
$945,253+
$3.43
1,850
160
5,542
5,552
5,554
10,886
$11,100
3,200
283,360
$297,660
3,614,440
340,180
$4,252,280
* From Goodwill Industries, Inc., of Southern California and
Midwest Research Institute estimates.
+ Extrapolated from 5 months of data.
151-18
-------
TABLE 77
ECONOMIC ANALYSIS OP MADISON NEWSPAPER RECOVERY PROGRAM, EAST SIDE, JANUARY 1969 to 1970,
IN DOLLARS PER TON*
Month Year
January 1969
February
March
April
May
June
July
August
September
October
November
December 1969
January 1970
February
March
April
May
June
July 1970
Total for period
(1)
Extra
collection
costs of credit
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
(2)
Special
handling and
transport costs
58.39
44.85
34.35
26.33
23.18
23.64
21.80
19.72
19.84
17.13
17.18
23.24
21.88
15.87
13.58
11.30
12.03
13.13
14.67
21.83
(3)
Disposal
cost saved
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
(4)
Price
paid to
Madison
14.00
14.00
12.00
9.00
7.00
7.00
9.00
9.00
7.00
7.00
7.00
7.00
7.00
7.00
7.00
6.00
6.00
6.00
6.00
7.90
(5)
Apparent
profit or
(loss) to city
(42.14)
(28.60)
(20.10)
(15.08)
(13.93)
(14.39)
(10.55)
( 8.47)
(10.59)
( 7.88)
( 7,93)
(13.99)
(12.63)
( 6.62)
( 4.33)
( 3.05)
( 3.78)
( 4.88)
( 6.42)
(11.68)
* From Sanitation Department, City of Madison; Midwest Research Institute.
Notes: Column (l) - Extra collection costs are not discernible for basket-
equipped trucks. Column (2) - These are direct labor and truck costs and exclude
supervision, administrative overhead, and amortization- Column (3) - These are direct
costs based on 1968 experience. They include salary, fringe benefits, equipment operating
costs and amortization, and disposal site costs (roads, fences, etc.). Excluded are
administrative overhead, drainage, and land costs.
151-19
-------
TABLE 78
MADISON NEWSPAPER RECOVERY PROGRAM, ANALYSIS OF EAST SIDE TONNAGE DATA,
JANUARY 1969 to July 1970*
Month Year
January 1969
February
March
April
May
June
July
August
September
October
November
December 1969
Total, 1969
January 1970
February
March
April
May
June
July 1970
Total, 7
months
Total for period
Newspaper
circulation -
tons
246.0
224.9
254.4
239.2
246.8
244.9
237.4
243.2
235.1
245.8
248.9
246.3
2,912.9
246.3
225.4
225.2
239.8
256.0
253.3
237.7
1,695.3$
4,608.0
Newspaper
recovery
by city - tons
65.92
64.78
69.04
85.81
88.65
83.60
79.19
67.21
71.85
81.19
66,56
70,78
894.58
59.65
6S.97
79.05
99.94
95.37
99.72
91.56
588.26
1,482.84
Total refuse
collected by
compactor
trucks - tons+
1,898
1,577
1,627
2,254
2,196
2,393
2,310
2,137
2,070
2,104
1,892
J.,934
24,392
1,812
1,537
1,809
2,414
2,436
2,493
2,241
14,742#
39,134
Newsprint
recovery
$ of news
26.8
28.8
27.1
35.9
35.9
34.1
33.7
27.6
30.6
33.0
26.7
28.7
30.7
24.2
27.9
31.0
41.7
37.3
42.4
38.5
34.7
32.2
Newsprint
recovery
$ of refuse
3.5
4.1
4.2
3.8
4.0
3.5
3.4
3.1
3.5
3.8
3.5
3.7
3.7
3.3
4.1
4.4
4.1
3.9
4.2
4.1
4.0
3.8
• * From Madison Newspapers, Inc.; Sanitation Department, City of Madison;
Midwest Research Institute.
+ Includes newspapers collected and sold by city.
$ Apparent newspaper content of waste is 11.5 percent.
151-20
-------
TABLE 79
MADISON NEWSPAPER RECOVERY PROGRAM, ANALYSIS OF WEST SIDE TONNAGE DATA,
APRIL 1970 - JULY 1970*
Month Year
April 1970
May
June
July 1970
Total, 4
months
Newspaper
circulation -
tons
285.3
304.7
282.2
287.4
1,159.6**
Newspaper
collected
by city - tons
138.86
125.23
129.78
112.58
506.45
Total refuse
collected by
compactor
trucks - tons#
2,400
2,427
2,555
2,058
9,400**
Newsprint
recovery
% of news
48.7
41,1
46.0
39.2
43.7
Newsprint
recovery
is of refuse
5.8
5.2
5.1
5.5
5.4
* Prom Madison Newspapers, Inc.; Sanitation Department, City of Madison; Midwest
Research Institute.
+ West side collection program initiated along with local publicity.
# Includes newspapers collected and sold by city.
** Apparent newspaper content of waste is 12.3 percent.
151-21
-------
TABLE 80
ECONOMIC ANALYSIS OF MADISON NEWSPAPER RECOVER! PROGRAM, WEST SIDE,
APRIL 1970 - JULY 1970, IN DOLLARS PER TON*
(1) (2) (4) (5)
Extra Special (3) Price Apparent
collection handling and Disposal paid to profit or
Month Year costs of credit transport costs cost saved Madison (loss) to city
April 1970
May
June
July 1970
-0-
-0-
-0-
-0-
3.82
4.43
4.94
4.35
2.25
2.25
2.25
2.25
6.00
6.00
12.00
6.00
4.43
3.82
9.31
3.90
* From Sanitation Department, City of Madison; Midwest Research Institute.
Notes: Column (l) - Extra collection costs are not discernible for basket-
equipped trucks. Column (2) - These are direct labor and truck costs and exclude super-
vision, administrative overhead, and amortization. Column (3) - These are direct costs
based on 1968 experience. They include salary, fringe benefits, equipment operating
costs and amortization, and disposal site costs (roads, fences, etc.). Excluded are
administrative overhead, drainage, and land costs. In addition, the refuse milling
operation on the West side costs nearly $6.50 per ton (milling and disposal) under
conditions existing at the time of this study, but have been excluded here as a credit.
151-22
-------
TABLE 81
SUMMARY OF PROFIT AND LOSS OF MADISON
NEWSPAPER RECOVERY PROGRAM, JANUARY 1969 TO JULY 1970*
Month Year
January 1969
February 1969
March 1969
April 1969
May 1969
June 1969
July 1969
August 1969
September 1969
October 1969
November 1969
December 1969
Total 1969
January 1970
February 1970
March 1970
April 1970
May 1970
June 1970
July 1970
Total, January -
July 1970
Total, April -
July 1970
Tons of
newspaper
sold by city
65.92
64.78
69.04
85.81
88.65
83.60
79.19
67.21
71.85
81.19
66.56
70. 78
894.58
59.65
62.97
79.05
238.80+
220.60
229.50
204.14
1,094.71
893.04
Profit or
(iqss) to
city $/ton
$(42.14)
(28.60)
(20.10)
(15.08)
(13.93)
(14.39)
(10.55)
( 8.47)
(10.59)
( 7.88)
( 7.93)
(13.99)
$(15.73)
$(12.63)
( 6.62)
( 4.33)
1.50
0.53
3.14
( 0.73)
$( 0.47)
$ 1.12
Total profit
or (loss)
to city $
$(2,777.87)
(1,852.71)
(1,387.70)
(1,294.01)
(1,234.89)
(1,203.00)
( 835.45)
( 569.27)
( 760.89)
( 639.78)
( 527.82)
( 990.21)
$(14.073.60)
$(753.38)
(416.86)
(342.29)
310.33
117.88
721.62
(148.76)
$(511.46)
$1,001.07
* From City of Madison Sanitation Department Records$ calculations
by Midwest Research Institute, from Tables 77, 78, 79, and 80.
+ Program expanded to city-wide collection.
151-23
-------
-TABLE 88
MADISON NEWSPAPER RECOVERY PROGRAM, ANALYSIS OF TONNAGE DATA, TOTAL CITY,
APRIL TO JULY 1970*
Month Year
April 1970
May
June
July 1970
Total, 4
months
Newspaper
circulation -
tons
525.1
560.7
517.5
525.1
2,128.4
Newspaper
collected
by city - tons
238.80
220.60
229.50
204.14
893.04
Total refuse
collected by
compactor
trucks - tons
4,814
4,863
5,048
4,279
19,004
Newsprint
recovery
$ of news
45.5
39.3
44.3
38.9
42.0
Newsprint
recovery
% of refuse
5.0
4.5
4.5
4.8
4.7
* From Madison Newspapers, Inc.; Sanitation Department, City of Madison;
Midwest Research Institute.
151-24
-------
TABLE 83
MOBILE COMPOST PLANT WASTE INPUTS, OUTPUTS, AND REVENUES FOR 1969*
Inputs and Revenues
Category outputs, tons
Total waste received
Paper separated and sold
Steel cans separated and sold
Compost produced
Residue waste landfilled
Total
9,600
163
674
5,593
3,170
9,600
1,140
4,042
31,813
— _
36,995
* Prom Mobile Compost Plant and Department of Budget and Revenue,
City of Mobile.
151-25
-------
TABLE 84
BULK GRADE PAPER RECOVERED AND CONSUMED IN MOBILE> ALABAMA, 1969*
Materials and
sources
Newsprint dealers
Old corrugated dealers
Tons
collected
3,810
6,615
Tons
consumed
10,560
13,550
Apparent
imports (tons)
6,750
6,935
Mixed paper or grade unknown
Dealers 1,350
Compost plant 160
Direct sales "by public 2,100
and peddlers
Total mixed 5,610 4,950 1,540
Total 14,035 29,060 15,025
* From estimates or records of John Gault, H. A. Norden, and
Marine Junk (dealers); Stone Container Corporation, National Gypsum, and
Rubbermaid Corporation (consumers); and Mobile Municipal composting plant.
151-26
-------
TABLE 85
TYPES AND QUANTITIES OF MATERIALS REMOVED
BY A RECLAMATION CONTRACTOR FROM THE
FOUNTAIN AVENUE LANDFILL, NEW YORK CITY,
JULY 1, 1968 TO JUNE 30, 1969*
Type of material Quantity removed, in tons
Iron 793.6
"Tin"+ 1,862.8
"Satinettes"+ 229.4
Rags 255.9
"Brass"+ 229.2
Total 3,370.9
* From records of Department of Sanitation, City of New York.
+ See explanatory comments in text.
151-27
-------
TABLE 86
PRICES RECEIVED BY RECLAMATION CONTRACTOR
FOR SELECTED COMMODITIES AND ESTIMATED
ANNUAL INCOME FROM THEIR SALE*
Type of commodity
Iron and steel
Enamel- coated steel
Horse and cattle hair
Nonferrous metals
Textiles
Total
Estimated
quantity
sold, per
year, tons
793.6
1,862.8
229.4
229.2
255.9
3,370.9
Price, per
ton, $
23.00
8.00
32.50
290.00
60.00
30.29
Estimated
annual
income
realized, $
18,252.80
14,602.40
7,455.50
66,468.00
15,334.00
112,112.70
* From records of Department of Sanitation, City of New York,
Votta, Inc., and Midwest Research Institute estimates.
151-28
-------
TABLE 87
TYPE, VALUE, AND ESTIMATED USEFUL LIFE OF
EQJTJMENT OWNED BY RECLAMATION CONTRACTOR*
Type of equipment
Crane trucks (2)
Closed body truck
Crane
Shears (2)
Baler
Wire stripper
Front-end loaders (2)
Total
Value, $
6,000
5,000
17,000
7,100
6,000
1,300
8,300
50,700
Estimated
useful life,
years
5
5
10
10
15
10
15
Capital
recovery
factor at
8% interest
0.250
0.250
0.149
0.149
0.117
0.149
0.117
Annual
cost, $
150
125
2,533
1,058
702
194
971
5,733
* From Votta, Inc., New York, New York, June 1970; Midwest
Research Institute.
151-29
-------
TABLE 88
ESTIMATED DAILY INCOME, EXPENSES, AND PROFIT
OF A 400 TONS PER DAY WASTE PROCESSING FACILITY*
Category
Daily income
Disposal fees at !
Sales of 100 tons
$30/ton
$2.15/cubic yard+
of corrugated at
Total income
Per day
$4,000.00
3,000.00
$7,000.00
Per ton
of input
$10.00
7.50
$17 .50
Expenses
Contribution to special research fund
of a waste trade association,
25 percent of fees $1,000.00 $ 2.50
Operating expenses, including
amortization
Total expenses
Profit
4,000.00
$5,000.00
$2,000.00
10.00
$12.50
$ 5.00
* From Intergeneral Industries, Inc., Brooklyn, New York,
June 1970.
+ Assumes 430 pounds per cubic yard.
151-30
-------
TABLE 89
RAG SALES OF THREE SOCIAL SERVICE
AGENCIES IN NEW YORK CITY*
Agency
Time period
Tons sold
Price received
per
Volunteers of
America
Salvation Army
Goodwill Industries
Average year
10/1969; 9/1970+
Average year
520-720
777
1,200
$65
61
40-60
* From Volunteers of America, Queens, New York; Salvation Army,
New York, New York; Goodwill Industries, Inc., New York, New York.
+ Extrapolated from 7-month data, October 1, 1969 to April 30,
1970.
151-31
-------
TABLE 90
SALES VALUE RECEIPTS BY VOLUNTEERS OF AMERICA
FOR WASTE PAPER AND PRICES RECEIVED BY THE AGENCY FROM DEALERS*
Type of paper
IBM cards
White ledger
Colored ledger
Corrugated
Mixed paper
Newspapers
Sales value
per ton - $
$52.50
30.00
20.00
15.00
6.00
--
Price received
per ton - $
$69 .00
42.00
30.00
18.00
8.00
24.00
* Volunteers of America, Qieens, New York, 1970.
151-32
-------
TABLE 91
GLASS GULLET SOLD BY HEW JERSEY
DEALER IN 1966, 1967, 1968, AND 1969, IN TONS AND DOLLARS*
Tons sold in
jj^ype of glass sold
flint
Vindow glass
Green
Amber
Total
Jtollar sales in year
Average price per ton
1966
3,723
872
957
1,790
7,342
$127,397
$17.35
1967
2,134
5,185
1,060
3,283
11,662
$202,837
$17 .39
1968
1,605
3,444
1,046
2,386
8,481
$168,178
$19
1969
460
1,035
758
2,766
5,019
$101,699
.83 $20.26
* From records of New Jersey Gullet Supply Corporation, Jersey
feity, New Jersey.
151-33
-------
TABLE 92
REPRESENTATIVE PROCESSING COSTS OF
A WIPING RAG MANUFACTURER IN NEW YORK*
Operation
Cost per pound
of cotton sold
in j
Cost per ton
in $ Comments
Sorting
Washing and drying
Trimming
Packaging/b aling
Total cost
5
3
120
60
100
60
20
$240
Includes grading
Includes losses
Includes losses
of trimmed
•material
Includes packing
materials
* From Dean Wiping Cloth, Brooklyn, New York, 1970.
151-31*
-------
153
CHAPTER XII
MAIL SURVEY RESULTS
As part of this research, and in fulfillment of a
contractual requirement to develop a "catalog" of
municipal salvage activities, we conducted a mail survey
of communities with populations of 10,000 and above to
determine how many communities had officially spon-
sored salvage and recovery programs.
A total of 1,950 questionnaires were mailed;194
responses were received from 944 communities in time to
be tabulated, or 48.4 percent. The responding com-
munities' total population is 53.4 million people —
approximately 27 percent of the total United States
population and roughly 40 percent of the urban
population.
Of the number of communities responding, 890 (94.3
percent) had no salvage program and 54 (5.7 percent)
did. On a population basis, negative responses were
turned in on behalf of 47.9 million people (89.7 percent)
and positive responses on behalf of 5.5 million people
(10.3 percent) (Table 93).
The case study cities (Chapter XI) covered by field
survey by MRI gave additional information not detailed
by answers to the questionnaire. In the 10 case study cities
not answering the questionnaire, a total population of
21.1 million people was covered, with waste collection
and disposal of 11.2 million tons and salvage recovery of
20,800 tons from municipal waste. Salvage from
municipal waste is carried out currently in Chicago,
Illinois; three Connecticut communities; Mobile, Al-
abama; and New York, New York. (Atlanta, Georgia;
Houston, Texas; Louisville, Kentucky; and Madison,
Wisconsin, were surveyed in the field and also replied to
the questionnaire so their responses are included in the
tabulated replies in this chapter.)
Thus, in total, this study covers the municipal salvage
practices of 956 communities, 74.5 million people, and 57
communities with some type of current municipal
salvage, representing 17.5 million people in those
communities.
Only 25 of the 54 cities responding positively to the
questionnaire gave sufficient information for analysis. In
these cities, waste commodities equivalent to 3.68
percent of solid waste disposed of were recovered,
chiefly by recovery of materials at landfill sites. Total
identifiable tonnage recovered by the 25 cities that gave
detailed information was 59,500 tons a year. If we
assume that all 54 cities reporting positively recovered at
the same rate (on a population basis) as the 25 cities that
gave tonnage data, total recovery from all responding
communities was 121,200 tons yearly, or 4.5 pounds per
capita. This, extrapolated to a population of 200 million,
would indicate a total recovery of commodities from
municipal waste sources of 450,000 tons a year, or less
than I percent of total materials recycled.
Municipalities with Recovery Programs
Responses by the 54 communities with recovery
programs are displayed in Tables 94 and 95. Table 94
shows the communities that gave a sufficiently complete
response to permit comparative analysis (25 cities); Table
95 shows the remainder (29 cities). The discussion below
refers only to data given in Table 94.
The 25 communities with programs and a reasonably
complete response to all key questions had a population
of 2.8 million. These communities collected 1.3 million tons
of waste (2.6 pounds per capita per day) and disposed of
1.6 million tons of waste in community operated facilities;
the excess of disposed tonnage over collected tonnage is
accounted for by privately collected wastes disposed of
in municipal facilities.
194 See Appendix C for a copy of the questionnaire used.
-------
154
SALVAGE MARKETS
All told, these cities recovered 59,525 tons of
commodities from waste, equivalent to 3.68 percent of
disposal tonnage. Of the total, 36,225 tons were given by
type of material recovered or product in the case of
compost. Proportions were:
Percent
48.75
28.13
1.47
1.88
0.06
0.03
Paper/board
Iron/steel
Other metals
Glass/ceramics
Plastic/rubber
Textiles
Organics, other
materials for
compost
Total
Six cities recovered materials by separate collection
only, 14 recovered at landfill sites only, two at
incinerators only, one at a compost plant, one by both
separate collection and at an incinerator, and one by
both separate collection and at a landfill site.
Ten of the 25 cities carried out salvage by contract
with salvors; the remainder employed their own forces.
Payments to the city ranged from a low of 2$ per ton
salvaged to a high of $9.83 per ton; the average was
84
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bO
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fn C 05
0) O -H
H -P <0
•H Q -H
13 V
>s CO £n
+3 £> ft •
CO ft P
•P fi W i-(
W CtJ O a PH
Qj rH -H
4J O p P p
flj ft CJ W W
CJ CO flj O O
.H h ^ ft pn
"S "& o o I
-------
0,00
0) (J QJ
to H
I (Q 0)
w w -P
•H O *H
•H -P
c "
> i •
(U 4>
£ a,
+5
CO (y (0
P
xxxxxxx
XXXXOX
in
XXX
a
O IO O O
CVI r^ O Q
x x
XX
O
s
»
*
o
OJP-
cn
01
ooo
888
*
to
OOO O O OOt*-HGO OCVIOOO O OO OOO
l§§£
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vi *«
*^O
iw&^oS-o
a aa ass 58
(-
C C>,,-ISS
X BC C>,
O QOMO-P
-H 43-PC*>-r4
-------
TABLE 96
CITIES WITH NO RECOVERY PROGRAM
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Illinois
Idaho
Indiana
Iowa
Kans as
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
Worth Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Unidentified
communities*
Total
Population
represented Communities with
by reply no present program .
584,478
75,000
932,500
330,265
6,811,263
737,504
554,400
39,135
1,355,459
359,500
65,000
1,690,553
149,460
1,639,528
1,056,977
856,968
198,270
1,210,450
164,759
1,981,183
1,283,183
1,557,157
1,308,953
65,000
1,801,822
46,200
740,695
238,112
179,500
905,255
374,247
1,223,273
855,709
191,090
4,335,188
441,257
985,400
1,401,943
202,900
386,700
137,506
463,251
2,895,316
61,000
76,000
683,259
822,664
133,500
981,930
90,900
2,240,106
47,901,668
8
2
7
10
62
8
12
2
?9
13
1
50
5
19
IS
21
9
10
5
9
31
27
32
4
27
3
11
2
5
31
7
38
19
6
54
15
6
30
2
8
6
8
65
4
3
11
19
5
29
2
§9
833
Communities
with programs in past
Yes
1
1
1
-
11
1
1
-
1
-
_
2
-
2
5
2
-
-
-
1
2
5
1
-
1
_
2
1
-
1
2
5
-
-
8
3
-
2
-
1
_
-
18
-
-
2
3
1
1
-
4
92
Ho
7
1
6
9
47
6
11
2
26
10
1
45
5
17
7
18
9
10
4
8
27
22
28
4
25
2
9
1
5
24
5
31
17
6
42
12
6
23
2
7
6
8
45
4
3
9
15
3
28
2
23
693
No response
-
-
1
4
1
-
-
2
-
_
3
-
-
3
1
-
-
1
-
2
-
3
-
1
I
-
-
-
6
_
2
2
-
4
_
-
5
-
-
„
-
2
-
-
_
1
1
-
-
_2
48
Communities
allowing scavenging
Yes
1
1
1
5
9
1
3
-
1
1
_
2
-
5
1
6
2
-
2
2
5
3
1
1
7
_
2
1
1
3
1
10
3
2
1
1
2
4
-
-
1
4
2
1
1
_
2
-
6
-
_3
111
No
5
1
6
4
46
7
9
2
22
9
1
43
S
14
12
14,
6
6
3
7
25
23
23
3
18
2
8
1
4
21
6
27
14
4
53
12
3
22
2
8
5
4
59
3
2
11
11
4
23
2
22
647
Ho response
2
-
-
1
7
_
-
-
6
-
_
5
-
-
2
1
1
4
-
-
1
1
8
-
2
1
1
-
-
7
.
1
2
-
-
2
1
4
-
•
.
-
4
-
-
-
6
1
-
-
_4
75
* Community was not identified on the questionnaire or by envelope postmark.
-------
155
APPENDIX A
WASTE COLLECTIONS, COMPOSITIONS, AND
MATERIAL CONSUMPTION RELATIONSHIPS
A national survey conducted by the Solid Waste
Management Office in 1967-1968 through state solid
waste agencies provided, for the first time, some
indication of the total solid waste collected by public and
private forces in 1968 on a national basis. These data
indicate a collection rate of 5.32 pounds per capita per
day, which extrapolate to 193.7 million tons a year using
a population of 199.5 million people (Table 97).
Tonnages of waste collected are difficult to reconcile
with data on waste compositions developed by various
observers (Table 98) and data on materials consumption
available from Bureau of the Census and other industrial
sources. The problem can be illustrated by a look at
paper.
In 1968, the proportion of paper in municipal waste in
various cities ranged from 34.9 percent to 61.8 percent,
equivalent to 67.6 to 120.0 million tons, assuming that
total collections were 193.7 million tons. In the same year,
by our estimates, a minimum of around 36.6 million tons
of paper and a maximum of 40.0 million tons went into
the waste stream. Even if we assume that the paper
contained 30 percent moisture by weight, the resulting
tonnages (52.3 to 57.2 million tons) fall below the
calculated ranges apparently collected for paper in
waste. Moreover, other quantities of paper are not
collected because of self disposal, burning, and similar
occurrences.
In an attempt to reconcile these divergences, we
analyzed composition data for other materials as well
and compared the apparent tonnage of these materials
in total waste collected with tonnages consumed in those
applications that can reasonably be expected to occur in
routinely collected wastes soon after consumption
(paper, packaging materials) or to appear in roughly the
same proportions as consumption (rubber goods, textiles,
metallics in appliances and implements). The data are
shown in Table 99.
If waste collections are around 194 million tons yearly,
then composition analyses appear to overstate the
presence of paper and metals if the lowest percentages
in waste are used and to overstate the presence of all
materials except plastics and rubber if the highest
percentages are used. This discrepancy could arise from
the fact that most composition analyses are made of
packer truck loads delivered to incineration pits from
residential or commercial sources; these would not be
representative of total municipal waste composition.
Thus the methods of orientation of most sampling tests
could very well obscure the true material content
because of the exclusion from the sampling of industrial
and other types of waste not commonly found with
household waste loads.
We extended the analysis further by asking: Suppose
that the paper percentages are correct but total tonnage
collected is significantly lower than the National Survey
shows; how then would material tonnages in waste line
up in relation to consumption? The results are also shown
in Table 99.
We assumed that paper actually discarded in 1968,
36.6 million tons, contained moisture at the 30 percent
level and thus weighed 52.3 million tons at time of
discard. If this paper was 34.9 percent of waste, total
-------
156
SALVAGE MARKETS
waste collected would be 149.9 million tons, equivalent to
4.10 pounds per capita, per day, a rate not unusual in
municipal collections.195 If paper is, 44.9 percent of
waste, the total collected waste is 116.5 million tons. •
At the 149.9 million ton level, the presence of paper in
quantities equivalent to consumption (plus moisture) can
be justified. At the same time, the quantity of metal, glass,
and rubber in waste also looks mdre proportional to
consumption than at the higher waste collection level.
Plastics in waste appear to be understated at both the
low and high level, and so does the presence of textiles.
Although conclusions on the basis of such data are
risky at best, we are inclined to believe that waste
collection data are somewhat inflated and that actual
waste collection rates (as contrasted to generation rates)
ore probably closer to 4.0 pounds per capita per day
than 5.3 pounds per capita per day. Alternately, the
presence of moisture and "moisture rich" materials such
as garbage and yard wastes must be much higher than
th£ composition surveys indicate. In either event the
presehce of manufactured materials is apparently not
quantitatively what the average waste composition tests
would indicate if applied to total collected tonnage as
documented by the National Survey.
195 Most of the case study cities covered in this report in Chapter XI are in this range or somewhat lower according to
records of sanitation officials (see Chapter XI).
-------
TABLE 97
SOLID WASTE COLLECTION
RATES, PER CAPITA AM) TOTAL, 1968
Million
Pounds tons in
Waste per capita 1968,
source per day* us+
Household
Commercial
Combined
All other
Total
*Black, R. J., A. J. Muhich, A. J. Klee, H. L. Hickman, Jr., and
R. D. Vaughan. The national solid wastes survey; an interim report.
[Cincinnati], U.S. Department of Health, and Welfare, [1968]. p.13.
tExtrapolated by Midwest Research institute using a population figure
of 199.5 million for May 1968.
156-1
-------
TABLE 98
COMPOSITION OF MUNICIPAL WASTES
Origin and
references Date
New York City£/ 1939
Chandler, Az.^/ 1953
Chicago, Ill.S/ 1957
1957
1958
1958
Oceanside, N.Y.^/ 1966
1966
Cincinnati, OhioS/ 1966
Wayne, H.J.S/ 1966
Passaic, N.J.S/ 1966
Clifton, N.J.£/ . 1966
Patterson, N.J.£/ 1966
Quad-City, N.J.-' 1966
Oceanaide, S.X.-/ 196?
Flint, Mich.-' 1967
Johnson City, Term.3./ 1967
Russell H. SusagS/ 1967
San Diego, Calif.-/ 1967
Flint, Mich. */ 1967
Berkeley, Calif.i/ 1967
Raleigh, N.C.£/ 1967
Santa Clara County,
Calif .y 1967
1967
Flint, Mich.^/ 1968
Weber County, Wan*/ 1968
Johnson City, Tenn.-/ 1968
New Orleans, L&.J 1968
Alexandria, Va.5/ 1968
Atlanta, Oa.£/ 1968
1968
New Orleans, La.-' 1969
John Belli/ 1959-62
Composition - Percent bv weight
OJ
bo
at
p
ta
in
to
1
17.0
21.8
3.2
2.3
1.5
0.8
9.6
10.2
28.0
22.5
21.4
26.8
20.2
21.0
16.7
29.1
21.1
25.7
0.8
24.0
25.1
31.8
2.1
45.9
36.0
6.5
34.6
18.9
7.5
12.3
17.5
11.0
12.0
CQ
0)
43
3
a
£ J
21.9
42.7 0.4
53.3
59.3
63.7
54.7
32.8 2
39.8 3
42.0 1.6
53.7 2.4
44.4 2.3
46.8 2.3
39,8 3.0
46.0 2
53.3 3
13.0 1
59.8 0.9
41.2 0.7
h
£
a
V
(8 W
3 *H
' 1
K IH
1.0 1.9
.4 3.0
.4 3.3
1.4
1.7
7.8
2.2
5.1
.0 4.0
• 5 2.2
• 9 0.3
0.6 1.3
46.1 0.3 4.7 3.5
57.0 1.0 1.0
44.6 1.9 0.3 1.1
38.9
36.2 1.5
1.1 1.3
28.6 0.4 3.6
0.3
4.2
2.3
9.2
9.5
1.6
2.8
9.8
12.0
21.1 2.6 0.8
61.8 2.5 2.0
34.9 3.4
2.4 2.0
39.4 1.5 2.6
55.3 3
58.6 3
53.2 2
44.9 3
42.0 0.7
.1 3.7
.0 1.8
.6 2.0
.5 3.2
0.9 0.6
in
V
1
t4
8
ta
CQ
ti
H
o
5.5
7.5
5.9
6.5
5.8
3.5
9.7
9.5
7.5
5.4
5.2
3.7
10.0
7.0
11.9
12.7
7.0
12.8
8.3
6.0
11.3
11.9
10.9
5.8
23.2
4.6
9.0
16.2
7.5
10.3
6.5
9.5
6.0
rt
(0
•p
*
6.8
9.8
9.3
5.2
8.1
6.2
8.0
8.2
8.7
7.0
8.7
7.0
12.9
8.0
10.6
14. b
7.5
2.7
7.7
6.0
8.7
9.2
7.4
14.5
8.4
10.4
12.2
8.2
8.6
8.8
8.1
8.0
tJ
2.6
2.3
1.2
6.6
2.7
1.7
3.6
3.2
3.4
3.0
1.5
1.0
0.3
12.8
7.5
2.0
4.2
0.8
2.2
0.8
1.7
0.4
3.2
3.1
2.4
•H
•a
* 3
o o
p ftj
§
3 8
ll V)
•° "jj
W "O
1s
43.0
11.3
8.6
23.0
20.9
0.4
6.2
8.6
7.0
8.0
0.6
3.0
7.1
0.5
11.5
0.7
5.9
O.S
3.4
3.4
3.4
6.9
15.4
Type of waste and
comments
Municipal - year's average
based on monthly sample
Residential only
Municipal - April
Municipal - November
Municipal - April
Municipal - June
Municipal - June
Municipal - June
Residential - October
Municipal
Municipal
Municipal
Municipal
Municipal - regional composite
Municipal - February
Residential - June
Residential and commercial -
October
One week's accumulation of a
family of six - June
Residential and commercial
Commercial - estimate
Residential and commercial
Domestic refuse
Residential
Supermarket wastes
Residential - January
Residential and commercial -
April
Municipal - July
Municipal
Residential and commercial -
May
Municipal - December
Municipal - December
Municipal - February
Composite based on several
city surveys
a/American Public Works Association. Municipal refuse disposal. 2d ed.
~ Chicago, Public Administration Service, 1966. p. 47, <|8, 52.
b/Kaiser, E. R. Composition and combustion of refuse. In Proceedings; HECAR
"Symposium; Incineration of Solid Wastes, New York, Mar. 21, 1967. Metro-
politan Engineers Council on Air Resources, 1967. p. 1-9.
c/ttuad-city solid wastes projects; an Interim report, June 1, 1966 to May 31,
~ 1967. Cincinnati, U.S. Department of Health, Education, and Welfare,
1968 [181 p.]
d/Bureau of Solid Wast* Management. Unpublished data.
e/Susag, R. H. Developing classifications for refuse. Solid Wastes Manage-
~ ment/Refuse Removal Journal, 11(3); 20, 37. Mar. 1968.
f/Gplueke, C. G., and P. H. McGauhey. Comprehensive studies of solid wastes
~ management; first annual reports. Berkeley, Sanlt»ry_Engineerlng Research
Laboratory, School of Public Health, University of California, 1967. p. 3*.
g/City of New Orleans. Unpublished data. May 13, 1968.
R/Department of Public Works, City of Raleigh. Evaluating alternatives In
~ refuse disposal; progress report, Jan. 1, 1967-Dec. 31, 1968. Unpublished
data.
I/Systems analysis for solid waste disposal by incineration. Prepared by
~ FMC Machinery/Systems Group, Engineering Systems Division, FMC Corporation,
for the City of San Jose and the County of Santa Clara, Nov. 1, 1968. 167 p.
j/Bell, J. M. Characteristics of municipal refuse. Presented at National
Conference on Solid Waste Research, University of Chicago Center for
Continuing Education, Chicago, Dec. 2-4, 1963. American Public Works
Association, Special Report No. 29. p.37.
156-2
-------
TABLE 99
ANALYSIS OP WASTE COLLECTION, COMPOSITION, AND
CONSUMPTION DAXA
Reported
percent by
weight in
municipal
Material
Paper
Metals
Glass/Ceramics
Rubber
Plastics
Textiles
waste
34.9 -
8.1 -
6.5 -
0.3 -
0.3 -
1.8 -
44. 9S/
12 .2£/
16. 2S/
2.4^/
3.4*/
3.2-'
Millions of
tons in waste
class if total
collection is
193.7 million
tons
67.6
15.7
12.6
0.6
0.6
3.5
- 87.0
- 23.6
- 31.4
- 4.6
- 6.6
- 6.2
Quantity to be
expected In
municipal waste
based on
consumption,
In million
tons
37 - 4C£/
10 - 15^/
12 - 14S/
1 - 3^'
6- tfl
5 - s£/
Millions of tons
in waste class if total
collection is
149
.9
million tons
52.3 -
12.1 -
9.7 -
0.5 -
0.5 -
2.7 -
67.si/
18.3
24.3
3.6
5.1
4.8
:•
1(».S
million tons
40.7
9.4
7.6
0.3
0.3
2.1
- 52. Si/
- 14.2
- 18.9
- 2.8
- 4.0
- 3.7
a/ Prom Table 98, using samples taken in Johnson City, Hew Orleans (two occasions)
and Atlanta (two occasions) in 1968.
b/ Prom Table 98, using samples taken in Johnson City (two occasions), San Diego,
Berkeley, and Santa Clara County in 1967 and 1968; these data include residential and commercial
wastes only for low figures and municipal waste for high figures.
£/ Data for 1968; includes tonnage going to waste (lower figure) and tonnage going
to waste plus a portion of tonnage diverted and delayed in discard (higher figure). Total
consumption was 55.1 million tons for 1968 compared to an indicated minimum discard of 67.6
million tons, based on percentage in column 1, a relationship that indicates more is discarded
than is consumed. Even allowing for 30 percent moisture content with adjustments for recycling
and "diverted use" application, the minimum figure for discard is too high.
d/ Includes nonferrous metals used in packaging and steel consumed for packaging,
appliances, and utensils (lower figure); higher figure is arbitrary; 1967 data.
e/ Includes container glass and pressed/blown glass consumption (lower figure)
plus flat glass (higher figure); 1967 data.
f/ Rubber consumption in 1969; lower figure excludes, higher Includes tires.
g_/ Data for 1968; low figure includes all plastics except that used in agriculture
transportation, and construction; higher figure includes total.
h/ Data for 1968; low figure excludes, high figure includes industrial uses of
textiles.
if Including moisture at 30 percent by weight.
156-3
-------
157
BIBLIOGRAPHY
APPENDIX B
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New York, National Association of Secondary Material
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-------
..,.,. Annual data 1969. Copper, brass, bronze; copper supply and
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Bennett, K. W. Scrap sparks electric furnace charge. Iron
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-------
Blackerby, L. H. First deinked newsprint mill opens in west
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17fi
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MAIL SURVEY QUESTIONNAIRE
APPENDIX C
181
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APPENDIX C
MIDWEST RESEARCH INSTITUTE
425 Volker Boulevard
Kansas City, Missouri 64110
Telephone (816) 561-0202
August 19, 1970
Dear Sir:
The possibility of reusing solid waste materials is now in the minds of
many people. If municipalities and industry can salvage and sell mate-
rials from their wastes, this would not only reduce the quantities of
waste requiring disposal but could also provide income to offset some of
the costs of waste management.
In order to determine how feasible it is for communities and industry to
enter the salvage market, the Bureau of Solid Waste Management of the
Department of Health, Education, and Welfare has sponsored an "Economic
Study of Salvage Markets for Commodities Entering the Solid Waste Stream"
by Midwest Research Institute. The study should show how many U.S. com-
munities now perform or contract for salvage operations and give some
indication of how successful it is.
It would be much appreciated, therefore, if you or the appropriate offi-
cial in your administration would fill in the attached survey form. Even
if there has never been any organized salvaging from your community's
solid wastes, please return the form with the appropriate notations.
The results of the study should be of interest to you and other municipal
officials, and the Bureau will send you a copy of the study if you so
indicate on the survey form.
Very truly yours,
Arsen J. Darnay
Project Director
AJD:pa
Enclosures
183
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Budget Bureau No. 85-S-70019
Expiration date: Sept. 30, 1970
MUNICIPAL SOLID WASTE SALVAGE PRACTICES SURVEY
For the purpose of this survey "salvaging" is defined as the controlled
recovery and removal of reusable commodities or materials for resale. The
object of salvaging is usually that of providing income or, at the least,
of offsetting some of the costs of solid waste management.
The uncontrolled picking over or searching of refuse fro usable materials
or objects, whether or not permitted by public authority, is called
"scavenging" and is not included in the term salvaging.
General
a. Name of municipal agency or department responsible for solid
waste management.
b. Name and title of person completing questionnaire.
c. Population of community served by the agency.
d. Does your community presently salvage (recover and remove com-
modities/materials for resale) from solid wastes either directly
or by contract? Yes No
If "Yes," go on to Section 2 below.
If "No," complete the questionnaire by answering only those
questions in this section.
e. Did your community salvage commodities in the past?
Yes No
f. If "Yes" to e., when was the practice discontinued? Year
g. Why was the practice discontinued?
h. Is scavenging by your employees or others permitted?
Yes No
i« If "Yes" to h., estimate quantity of waste removed per year in
tons or cubic yards .
184
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2. Check here if you would like a copy of the final report on
salvage practices from the U.S. Bureau of Solid Waste Management.
3. Community Solid Waste Practices
a. Does your community collect and transport wastes ; dispose of
wastes collected by own forces and others ; dispose of wastes
collected by own forces only ? (Check one or more.)
b. Does your community handle residential wastes only ; commer-
cial and industrial wastes only j both ? If both, show
approximate percentage of each: residential $>; commercial/
industrial
c. Estimate quantity of wastes handled annually in tons or cubic
yards. Tons collected ; tons disposed of ; or, cubic
yards collected ; cubic yards disposed of .
d. Estimate total annual expenditures on all solid waste management
activities. $
4. Specific Salvage Practices
a. Is salvage practiced by your own community ; by others under
contract with your conmunity ; both ? Value of contract
in dollars per annum (if applicable). $
b. Are commodities recovered from mixed refuse ; by separate
collection ; both ?
c. Check each type of facility where segregation is accomplished:
incinerator ; land disposal site ; transfer station ;
compost plant ; conical (tepee) burner ,• other (Specify):
d. Is segregation accomplished manually ; mechanically
combination ?
Please describe
c. What processing, other than segregation, is done?
185
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f. Indicate quantities of materials recovered at each facility or
in each operation per year. Quantities given are in tons ;
cubic yards ; (check one).
Land Conical Separate
Incin- Disposal Transfer Compost (Tepee) Collec-
Material efrator Site' Station Plant Burner tion
Paper/Paperboa rd
Iron/Steel
Other Metal
Glass/Ceramics
Plastics/ Rubber
Textiles
Other (Specify)
186
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g. Indicate in the following table salvage costs, prices received
for salvaged materials and type of buyer for salvaged materials
for your community's non-contract salvage operation.
Material
Cost of
Salvage!/
| Per Ton
Price Received
for Salvage
| Per Ton
Type of
BuyeEE/
Paper/Pa perboa rd
Iron/ Steel
Other Metal
Glass/Ceramics
Plastics/Rubber
Textiles
Other (Specify)
_!/ Include total costs of separate collection, processing and other
functions related to salvage operation only.
2/ Show whether buyer is dealer, user (e.g., paper plant) or other
(specify).
h. For approximately how many years has solid waste been salvaged?
years.
i. Do you plan to continue this operation? Yes ; No
Why?
. Is scavenging by your employees or others permitted?
Yes No
PLEASE SEND THIS QUESTIONNAIRE TO MIDWEST RESEARCH INSTITUTE, 425 VOLKER
BOULEVARD, KANSAS CITY, MISSOURI 64110, ATTN: A. J. DARNAY.
ft U. S. GOVERNMENT PRINTING OFFICE : 1972 O - 474-078
187
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