american retroworks inc. middlebury, vt supply and demand in the international marketplace...
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American Retroworks Inc.
www.retroworks.com Middlebury, VT
Supply and Demand in the International MarketplaceNavigating the Export Issue: Economic, Environmental and Ethical Considerations
Robin IngenthronAmerican Retroworks Inc.Middlebury, Vermont
www.retroworks.com
National Recycling Coalition
American Retroworks Inc.
www.retroworks.com Middlebury, VT
1) Basic Starting Points
2) Case Studies: USA, Cameroon, Honduras, S.China, N.China, Pakistan, Egypt, Lithuania
3) Common denominators for success & failure
4) Recommended Standards
Session Goals:
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Basics behind domestic and foreign demand for used electronics and scrap
REALITY: If USA exports everything, we send 1/3 reusables, 1/3 recyclables, and 1/3 Toxics Along for the Ride.
REALITY: if USA exports nothing, we destroy reuseables (and they cannot afford new); they mine to replace the recycled metals, and mining produces even more toxic harm than recycling.
SOLUTION: Setting a Higher Standard. USA processing, limited exports (tested equipment, copper scrap), simple tests (like CRT Glass Test); market development to promote best practices; (funded) state processing contracts with restrictions and incentives; etc.
American Retroworks Inc.
www.retroworks.com Middlebury, VT
The Good: Repair, Reuse
The Bad: T.A.R.
The Ugly: Scrap Recycling
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Scrap
TAR
Reuse
Market Forces
CD, Floppy Drives Cords, cablesVideo cards,
Monitors, ATX cases
GoldCopperAluminumSteelPlastic
Leaded glass (TVs and bad monitors)Gold process wasteMercury batteries
Lax environmentalstandards
ManufacturingDemand, Free market mining
Low wages, better repair
Contrabandcamouflage
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Giant Sucking Sound Growth in Chinese demand for copper (ore and scrap): 20% per year 1999-2003
0
5
10
15
20
1999 2000 2001 2002
Reuse Forces
1. High tolerance/demand for used2. “Free” software3. Cheap parts4. Good, cheap tech. labor
Understanding Export Forces
Recycling Forces
1. Metal demand2. Balance of Trade3. Cheap labor 4. Cheap env. Laws
American Retroworks Inc.
www.retroworks.com Middlebury, VT
USA Mercury Emissions by Industry(Rank #2-#7 - w/o GOLD Mining)
0
10000
20000
30000
40000
50000
60000
Total On/Off-site Hg Releases
ElectricityPlantsPetroleum
Cement
Waste & HazWasteCopper Mining
Federal/DefenseFacilitiesSilver Mining
Source: http://www.epa.gov/region09/toxic/tri/report/01/mercury.pdf
American Retroworks Inc.
www.retroworks.com Middlebury, VT
USA Mercury Emissions by Industry(Rank #1-#7)
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Total On/Off-siteHg Releases
Electricity Plants
Petroleum
Cement
Waste & Haz Waste
Copper Mining
Federal Facilities
Silver Mining
#2-10 combined
GOLD MINING
Source: http://www.epa.gov/region09/toxic/tri/report/01/mercury.pdf
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Chinese demand in particular drives both recycling and mining
1. Electric and electronic appliances “made in China”2. Chinese “New Deal” scale infrastructure development3. Asia #1 in per capita consumption of gold & platinum (the only materials which the West does not consume most of)
Mining nightmares in Borneo, Chile, Congo, Philippines, Turkey, etc.
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Better to meet demand than not to?
E-Scrap is 300% richer in copper and other metals than mined ore
Recycling produces a fraction of the pollution from mining.
Gorilla and orangutan extinction is arguably driven by electrics metal mining.
One Copper mine in Papua New Guinea (feeding China) dumped 80,000 Tons Per Day of Cyanide tailings into the OK Tedi River from 1990-2000
USGS – At 1990 rate of consumption, all known copper reserves will be exhausted this century: Ocean mining will be the primary source of copper in our lifetimes.
USA Model? 95% from federal lands, $5/acre, 14/15 largest Superfund sites
Hard rock mining produces 45% of all toxics produced by all USA industries.
Gold mining releases more mercury into the environment thanmercury production and disposal combined!!!
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Reuse : USA is at a disadvantage. Assess knowledge, experience, ability to support. Dollars per item, categorization. USA Export Restrictions on MBPS
Recycling: Distinction between lead (CRT) markets (42% of scrap), which are rare. Gold scrap a problem (process waste), though demand is certainly high (as compared to lead).
2nd Container Inspection: Importer promises immediate feedback on first container, digital photos, permission to do site visit after second container.
Hiding high tech goods Game playing on tariffs a big frustration. Corruption and protectionism hurts legitimate environmental practices.
Export Goals, Export Policy, Export Standards
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Cameroon
-I lived there 1984-86-Friend/employee/partner is native- Connection to Rebecca Enonchong, CEO Application
Technologies Inc., World Bank Digital Divide Forum Chair- Flew Yadji there for 4 months under contract- Sewing machines- mixed clothing, shoes- dual voltage, P2 3 visits
10 container Purchase OrderNo money
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Honduras
-Former partner lives there 3 months/ year-Partnership with Vermont Rotary Club- 6 Public Schools- USA 120 voltage, P1-P2
3 years3 containersGreat follow upNo money
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Southern China: Scrap
-High Demand, fast payment-Invitation to speak, tour with Sino EPA- Combined scrap (copper, gold, aluminum) but not with repair
-Visit to 2 aluminum, 2 copper, 200+ reuse operations
6 months3 containersNo problemsCasualty in war on “counterfeit”
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Southern China: Reuse
-High Demand, fast payment-SKD TV repair demand is booming
-Tour 200+ small resellers-SKD TV Manufacturing – -1 operation = 50,000 per month
6 months3 containersNo problemsCasualty in war on “counterfeit”
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Northern China: Scrap
- Officially sanctoined- $16M in matching Beijing bank loans
- Tour – not on schedule- No visible equity
Did not proceed, no trial shipments
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Lithuania
- Officially sanctoined- EU, NATO member- Establishex
- Tour – not on schedule- No visible equity
2 trial shipments, TW, AL, scrap printersThey want negative value material, but Don’t show how they will handle it
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Other Visits (Fly and Buy)
-Pakistan: All the right answers. Failed surprise site visit. -Egypt: Working units only, Pentium II and above- Columbia/Bolivia/Peru: Black 27” TVs (repairable)- Belgium, England, Spain: gold bearing scrap- Ghana: Promising but importer was neophyte- South Africa: Screenvision – no reply, non-profits- Malaysia: Impressive 30 page environmental dossier, lies about CRT- Nigeria: corrupt mess
2 trial shipments to Egypt2 trial shipments (TVs) to Peru, BoliviaGhana no-show
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Overall USA Monitor Management$ spent and earned per 1000 monitors
-2000
-1500
-1000
-500
0
500
1000
1500
Copper revenue
Other materialrevenue
25% monitor resale
Demanufacturing
Repair Labor
Scrap handling
Most demand for used is overseas
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Possible USA Monitor Management$ spent and earned per 1000 monitors
-3000
-2000
-1000
0
1000
2000
3000
4000
Copper revenue
Other materialrevenue
75% monitor resale
Demanufacturing
Repair Labor
Scrap handling
If copper and lead returnedto 1900 prices, and monitors wererepaired at 75% rate
Countries with high reuse and no mining subsidies have the advantage
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Overseas Monitor Management$ spent and earned per 1000 monitors
-1000
-500
0
500
1000
1500
2000
2500
3000
3500
Copper revenue
Other materialrevenue
75% monitor resale
Demanufacturing
Repair Labor
Scrap handling
No mining subsidies, and 10%technical and handling labor cost
Countries with high reuse, no mining subsidies, and low wages are the winners
American Retroworks Inc.
www.retroworks.com Middlebury, VT
1) Keep 1/3 domestic2) Evaluate exports3) Keep records4) Evolving standards
Chapter 3: Know your supply
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Understanding your own supply
1) Pristine takeouts for auction, clean scrap- you can deal with anyone directly
2) Toxic Junk, Contraband, leftovers- you should insist on domestic processing
3) “I dunno”…Mix of good, bad and ugly- you should deal with USA company with capacity to separate, process and market, and get documentation
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Understanding your own supply
1) Pristine takeouts, off-lease equipment (Reuse material)Highly Sorted Working and repairable monitors, P2s+, cords, peripherals, cartridges
positive revenue
dollars per item (not pennies per pound)
high overseas demand, with incentives to hide it from tariff collectors and anti-gray-market enforcers
Working monitors-No screen damage-No VGA-No Apple-Make, Model, COM,-Year, other tech details
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Understanding your own supply
2) The Dregs: • Cherry-picked material, TVs,
obsolete equipment, residue, shredded or baled material.
• Damaged CRTs• Pennies per pound• Overseas demand based on
copper, gold and aluminum content
One USA company sold good stuff to one export market, and (misrepresented)bad stuff to another
American Retroworks Inc.
www.retroworks.com Middlebury, VT
Understanding your own supply
• “I don’t know”: Then make sure the company you select has capacity to handle either type of E-Scrap.
Working monitors
“Crapple” “We’re switching to flat screens”One fellow insisted his 1990 public schoolStuff “works as good as when it was new”.
Another commercial client insisted that working monitors, replaced by flat screens,should be recycled/destroyed here in the USA.
American Retroworks Inc.
www.retroworks.com Middlebury, VT
4 Simple Due Diligence Tests
• Glass recycling records• Gold bearing scrap records• Sample manifests (declared reuse items)• Employees or capital investment per ton
American Retroworks Inc.
www.retroworks.com Middlebury, VT
1. CRT Glass Test - no known market in Asia for screen burned, scratched or busted tubes. Legitimate USA recyclers must be able to show where the non-repairable glass goes.
Guidance document at retroworks.com, several other sites
American Retroworks Inc.
www.retroworks.com Middlebury, VT
2. Printed Circuit Board (PCB) Gold Test - Nasty recycling (and nastier mining) practices. We do all Printed Circuit Boards domestically.
Q: Will this lead to more mining?A: Gold mining is maxed out already
Reuters: chinese minerBAN: chinese circuit board / gold recycler
American Retroworks Inc.
www.retroworks.com Middlebury, VT
3. Truth in Exporting Test - Ask for shipping manifests (sensitive market info can be blocked out). Legitimate bill of lading shows make/model/voltage/COO/condition. DHS will enforce existing high tech export rules, customs declarations. How picky ? “Picky is good”
If “for repair”, is it wrapped, tested, sorted and manifested?
One export market included a carton of cigs in every sample photo of e-scrap they are soliciting at high prices. Hmmmm.
American Retroworks Inc.
www.retroworks.com Middlebury, VT
4. Employment / Capacity Test - How many tons did the company handle last year?- How many employees per ton?- If fewer employees, how much automated processing equipment is
in place?
One NE company has 2 employees and ships 1000 containerloads per year
This container certainlyhas several hundred cords,power supplies, and hard drives which could be reused - but it’sTAR, an abuse of reuse.
American Retroworks Inc.
www.retroworks.com Middlebury, VT
4 Ethical Questions
• Is there a limited number of environmental dollars?
• Is the Perfect the “enemy of the Good?”
• Does Environmental good justify tariff avoidance?
American Retroworks Inc.
www.retroworks.com Middlebury, VT
• mineralpolicy.org
• mpi.org.au
• USGS.gov
• moles.org
• ban.org
• copper.org
• www.antigraymarket.org • these and other links www.retroworks.com