the isri scrap yearbook 2012 final

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THE ISRI SCRAP

YEARBOOK 2012



The ISRI Scrap Yearbook 2012

1 Institute of Scrap Recycling Industries, Inc.

Executive Summary 2 Life Cycle of the Aluminum Can 2

About ISRI 3 U.S. Aluminum Beverage Can Recycling 2

About the Scrap Recycling Industry 4 Copper Scrap 2

Scrap Recycling and the Economy 5 Copper and Copper Alloys 2Domestic Scrap Recycling Facilities 6 Copper Scrap Exports 2

U.S. Scrap Exports 7 The Flow of Copper 2

Scrap Recycling and the Environment 8 Nickel and Stainless Steel Scrap 2

Recycling and Energy Savings 9 Lead and Zinc Scrap 3

What Materials Can Be Recycled? 10 Lead and Zinc Scrap Exports 3

Iron and Steel Scrap 11 Recovered Paper and Fiber 3

Where Does Ferrous Scrap Come From? 11 Paper Grades 3

U.S. Ferrous Scrap Supply 12 Recovered Paper Exports 3

How Is Ferrous Scrap Processed? 13 Recovered Paper Life Cycle 3

How Is Ferrous Scrap Transported in the U.S.? 14 Plastic Scrap 3Who Uses Ferrous Scrap? 15 Plastic Scrap Exports 3

Ferrous Scrap Exports 16 Electronics Scrap 4

Global Demand for Ferrous Scrap 17 Outputs of Electronics Recycling in the United States 4

Ferrous Scrap Life Cycle: From Cars to Bridges 18 Scrap Tires 4

Nonferrous Metal Scrap 19 Recycled Glass 4

Aluminum Scrap 20 Textiles 4

Aluminum Scrap Exports 21 Appendix: Global Scrap Exports by Commodity, Volume and

Value, 2011

4

TABLE OF CONTENTS

All photos courtesy of Scrap magazine. Special thanks to Bureau of International Recycling, The Jason Project, the InternationalCopper Study Group, the American Forest & Paper Association, the Aluminum Association, the Can Manufacturers Institute,

NAPCOR and the Council for Textile Recycling. © 2012 Institute of Scrap Recycling Industries, Inc.





Executive Summary

The ISRI Scrap Yearbook 2012 is the most up-to-date

and comprehensive overview of the scrap recycling

industry in the United States. The yearbook not onlyincludes useful information about the economic and

environmental benefits associated with scrap

recycling, but also provides readers with commodity-

specific overviews of how scrap is generated,

processed, traded and used. In addition, the

yearbook contains practical examples of the life

cycles and material flows of key recycled goods and

commodities.

The yearbook is intended as a valuable resource

both for members of the scrap industry and related

sectors as well as for those looking to learn more

about our industry. Teachers and students,

policymakers, members of the press and the general

public can benefit from learning more about how the

scrap recycling industry provides manufacturers with

vital and cost-efficient raw materials, while at the

same time supporting thousands of good-paying jobsand conserving our natural resources.

The initial section of the yearbook provides readers

with an introduction to ISRI, followed by selected

economic and environmental-related highlights. For

example, in 2011 alone the U.S. scrap recycling

industry processed approximately 135 million metric

tons of scrap commodities valued at $100 billion

while directly and indirectly supporting nearly

460,000 jobs. Subsequent sections provide

commodity-specific data and information across a

range of scrap commodities, including recycled iron

and steel, nonferrous metals, paper, plastics,

electronics, tires, glass and textiles. The yearbookappendix breaks down global scrap exports by

commodity, volume and value for 2011.

Data for the yearbook were provided by U.S.

government agencies, international sources

(including the United Nations Commodity Trade

Statistics Database), other industry associations,

independent studies and ISRI estimates. For more

information about ISRI and the scrap recycling

industry, visit the ISRI website at www.isri.org.

http://www.isri.org/








About ISRI

The Institute of Scrap Recycling Industries, Inc.

(ISRI) was formed by the merger of two parent

organizations in 1987: the National Associationof Recycling Industries (NARI) and the Institute

of Scrap Iron and Steel (ISIS), both of which

traced their roots to the early 1900s. Today, ISRI

represents more than 1,700 member

companies that process, broker and consume

scrap metals, paper, plastics, glass, electronics,

textiles, tires and rubber. ISRI members range in

size from small-family owned operations, manyof which have been in business for generations,

to large multinational corporations.

With headquarters in Washington, D.C., ISRI

provides education, advocacy, and compliance

training and promotes public awareness of the

vital role recycling plays in the U.S. economy,

global trade, the environment and sustainable

development.

For more information about ISRI, visit our

website at www.isri.org.









About the Scrap Recycling Industry

From the earliest uses of scrap thousands of

years ago to the optical scanners, X-rays and air

jets separating materials in today’s high-techshredders, scrap recycling has evolved as a

major industry. As the original recyclers, for

decades — and indeed, centuries — the scrap

recycling industry in the United States has been

purchasing, processing and brokering old

materials to be remade into new products. The

scrap industry is truly the first link in the supply

chain, serving as the backbone for America’smanufacturing sector while simultaneously

promoting a more sustainable society.

Today, the U.S. scrap recycling industry is a

sophisticated, capital-intensive industry that

directly employs approximately 138,000 people.As society increasingly focuses on the need to

protect our natural resources and reduce

greenhouse gas emissions, the scrap recycling

industry is recognized as one of the world’s first

green industries while serving as an economic

leader, job creator, major exporter and

environmental steward. See below for more

information about how the scrap recyclingindustry generates sizable economic and

environmental benefits.





Scrap Recycling and the EconomyRecycling goes far, far beyond the bin at the edge of

the curb. In fact, in 2011 alone nearly 135 million

metric tons of scrap metal, paper, plastic, glass,

textiles, rubber and electronics valued atapproximately $100 billion were manufactured into

specification-grade commodities by the U.S. scrap

recycling industry. These commodities were sold as

valuable feedstock material to industrial consumers

in the United States and in more than 160 countries

around the world.

The scrap industry is also a job creator. According to

a recent study by John Dunham & Associates, U.S.

scrap processors and brokers directly employed

nearly 138,000 people in 2011. Including jobs

indirectly supported by the industry, the Dunham

study shows the scrap industry supported a total of

459,100 jobs last year. These workers earned more

than $26.1 billion in wages and benefits, while the

industry paid $10.3 billion in direct federal, state andlocal taxes, excluding state and local sales taxes.





Domestic Scrap Recycling Facilities

Source: John Dunham & Associates, 2011





U.S. Scrap Exports

As the United States annually generates more

scrap than it is able to consume domestically,

overseas demand for U.S. scrap provides auseful outlet while at the same time scrap

export sales significantly benefit the U.S. trade

balance. According to figures from the U.S.

Census Bureau and U.S. International Trade

Commission, the United States exported more

than 51 million metric tons of scrap

commodities valued at more than $39 billion in

2011. Ferrous scrap and recovered paperexports represent the bulk of the volume of

overseas shipments, accounting for

approximately 45 million metric tons combined,

while nonferrous and precious metal scrap

have some of the highest per-unit scrap values.

Major overseas destinations for U.S. scrap last

year included China ($11.5 billion), Canada

($3.7 billion), Turkey ($2.4 billion), South Korea($2.1 billion) and Taiwan ($1.9 billion).

2010 2011

Value of ScrapCommodities

$29.6 Billion $39.2 Billion

Metric Tons of Scrap 45.3 Million 51.7 Million

Exports Included:

Iron and Steel (ex-Stainless and Alloys)

18.7 Million 22.7 Million

Paper 18.9 Million 21.1 Million

Aluminum 1.9 Million 2.1 MillionPlastic 2.0 Million 2.1 Million

Nickel, Stainless & Alloy 1.9 Million 1.6 Million

Copper 1.0 Million 1.2 Million

Lead 44,000 31,000

Zinc 78,000 86,000

Rubber 172,000 135,000





Scrap Recycling and the Environment

Scrap recycling offers real sustainable solutions

for balancing economic growth and

environmental stewardship. While marketfundamentals provide the incentives to recycle

and consume scrap material, recycling has

numerous positive externalities, including

significant environmental benefits.

Recycling reduces greenhouse gas emissions by

significantly saving the amount of energy

needed to manufacture the products that we

buy, build and use. In addition to energy

savings, recycling reduces the amount of

material that would otherwise be sent to

landfills, saving land for more productive uses.

Recycling also reduces the need to mine for

new ore or cut down more trees to make our

products. The scrap industry takes the job of environmental stewardship extremely seriously.

Did you know?

Energy saved using recycled materials is up to:

92% for aluminum 90% for copper

87% for plastic 68% for paper

56% for steel 34% for glass

Recycling 1 ton of:

Paper saves 3.3 cubic yards of landfill space.

Steel conserves 2,500 lbs. of iron ore, 1,400

lbs. of coal and 120 lbs. of limestone.

Aluminum conserves more than 5 metric

tons of bauxite ore and 14 megawatt hours

of electricity.





Recycling and Energy Savings

Sources: BIR, U.S. EPA Durable Goods Calculator, WARM Calculator





What Materials Can Be Recycled?

The scrap recycling industry is

extremely innovative, continually

adapting to the new products thatenter the marketplace every day.

While in the early days of the

industry, scrap peddlers would

typically buy and trade relatively

small quantities of used household

and other goods, today the U.S.

scrap industry annually processes

more than 130 million metric tons of scrap metal, recovered paper,

plastic scrap, used electronics and

other scrap commodities generated

by the manufacturing process and

end-of-life products. For more

commodity-specific information on

how scrap is recovered, processed,

traded and used, please see below.





Iron and Steel Scrap

Ferrous scrap is a vital raw material for the

production of new steel and cast iron products.

Approximately two out of every three pounds of steel made in the U.S. is made using ferrous scrap.

Where Does Ferrous Scrap Come From?

Iron and steel scrap, also referred to as ferrous

scrap, comes from two main sources: obsolete scrap

and prompt scrap. Obsolete ferrous scrap is

recovered from automobiles, steel structures,

household appliances, railroad tracks, ships, farm

equipment and other sources. According to the U.S.Geological Survey (USGS), the primary source of old

steel scrap in the U.S. is the automobile, with more

than 13.5 million tons of ferrous scrap recycled from

automobiles in 2010. In addition, prompt scrap,

which is generated from the manufacturing process,

accounts for approximately half of the ferrous scrap

supply. Home or “runaround” scrap, which is also

generated by manufacturing, is typically consumed

at the same mill at which it is generated and

therefore is not usually processed by the scrap

recycling industry.

Today, ferrous scrap is the most recycled material in

the United States and worldwide. In the United

States alone, 74 million metric tons of ferrous scrap

was processed by the scrap recycling industry last

year: more than 55% of the volume of all

domestically processed scrap.





U.S. Ferrous Scrap Supply

Thanks in part to our significant

manufacturing base and

developed economy, the U.S.already has a large inventory

of ferrous scrap in place,

in addition to the prompt

scrap that is continually being

generated by manufacturing.

A recent study commissioned

by ISRI reports that the U.S.obsolete scrap inventory

as of December 31, 2009

stood at nearly 1.2 billion tons.

As a result, the U.S. supply of

ferrous scrap is more than

adequate to meet the growing

demand for scrap both at home

and overseas.





How Is Ferrous Scrap Processed?

While a small proportion of unprepared

obsolete ferrous scrap can be directly used by

consumers, the vast majority of purchased ironand steel scrap is sorted and processed by the

scrap recycling industry. Scrapyards use a

variety of processes including sorting, shearing,

shredding, torching and baling to sort and

prepare ferrous scrap to commodity-grade

specifications.

The process of shredding,

which was

developed in

the late 1950s,

allows for

whole cars,

appliances and other end-of-life products to be

quickly shredded into fist-size pieces of metal,greatly increasing scrap processors´ ability to

handle large items and to separate nonferrous

material. In 2011, more than 340 shredders

were in operation in North America, up from

just 120 shredders in the early 1970s.

In addition to shredded,

ferrous scrap can be

grouped by prime scrap

(including busheling,

bundles and clips), cut

grades such and heavy

melting steel, and foundry

and miscellaneous gradessuch as machinery cast. To

assist members with the buying and selling of

their materials, ISRI has developed standard

specifications for scrap commodities including

over 100 ferrous scrap specifications. ISRI´s

“specs” are regularly updated and published in

the ISRI Scrap Specifications Circular . For more

information, visit www.isri.org/specs.

http://www.isri.org/specs








How Is Ferrous Scrap Transported in the U.S.?

The three most common modes of domestic

transport of ferrous scrap in the U.S. are by truck,

rail and barge, with intermodal shipments using

more than one mode. While shipping via trucks can

be a high per-unit cost option, trucks are a

significant mode of domestic transport for ferrous

scrap, especially for intra-regional scrap flows.

Shipment by rail can be a less costly option per ton

than trucking and railcars have a greater tonnage

capacity than trucks, although during times of tight

railcar availability this mode of transport can be less

predictable. According to figures from theAssociation of American Railroads, more than

240,000 carloads of iron and steel scrap were

originated by major railroads in the U.S. in 2011, a

6.8% increase over 2010.

Barges and domestic waterborne shipments are a

third major mode of transport for ferrous scrap.

Although adverse weather conditions can

significantly impact barge traffic, barges are oftenthe lowest-cost option on a per unit basis. According

to figures from the U.S. Army Corp of Engineers,

more than 7.3 million short tons of domestic iron

and steel scrap were transported on U.S. waterways

in 2010, the latest year of available data.





Who Uses Ferrous Scrap?

In recent years, approximately 70 percent of the

ferrous scrap processed in the United States has

been consumed domestically, with the

remaining 30 percent exported. Scrap dealersand brokers sell ferrous scrap to steel mills,

foundries and other

industrial consumers

to produce new steel

and cast iron products.

USGS data show that

of the 56 million tons

of domesticallyconsumed ferrous

scrap last year, electric

furnaces consumed

44.5 million tons, basic

oxygen process steelworks accounted for 8.8

million tons, and blast furnaces consumed 2.3

million tons.

By grade, shredded scrap is the single largest

grade of domestically consumed ferrous scrap,

accounting 25 percent of total scrap usage:

U.S. Consumption of Iron and Steel Scrap, by Grade,

2011 (thousand metric tons)Cut structural and plate 4,480

No. 1 heavy melting steel 5,710

No. 2 heavy melting steel 6,290

No. 1 and electric furnace bundles 3,230

No. 2 and all other bundles 997

Railroad rails 303

Turnings and borings 2,310

Slag scrap 1,490Shredded and fragmentized 14,100

No. 1 busheling 4,610

Steel cans (post consumer) 112

All other carbon steel scrap 6,440

Stainless steel scrap 1,300

Alloy steel scrap 736

Other scrap 3,740

TOTAL 56,000Source: U.S. Geological Survey





Ferrous Scrap Exports

The United States is the world’s leading exporter of

ferrous scrap. A key development in the global trade

of scrap was the introduction of containerized scrap

shipments, which opened the export market to a farwider range of domestic scrap processors.

Including stainless steel and other alloy steel scrap,

the U.S. exported over 24.3 million tons of ferrous

scrap valued at more than $11 billion to around 90

countries last year. Major overseas markets includeTurkey, China, India, Taiwan and South Korea:

Source: Bureau of International Recycling





Global Demand for Ferrous Scrap

As iron and steel scrap has become a key

feedstock utilized in manufacturing new

products worldwide, the ferrous scrap markethas become increasingly global. Ferrous scrap is

now a world-traded commodity that becomes

less dependent on local supplies and markets

every day, moving to where demand directs it

regardless of its original location.

Trade data from the United Nations Commodity

Trade Statistics Database show that the volume

of global scrap exports surged from just 9.3

million metric tons in 1990 to a record of more

than 106 million metric tons in 2011. In

addition, figures from the Bureau of

International Recycling show that total world

steel scrap use increased 7.6% in 2011 to reach

570 million metric tons.





Ferrous Scrap Life Cycle: From Cars to Bridges

Old Cars Can Become a New Bridge

The steel in cars can be recycled and used to build other items, like bridges. Did you know:

Recycling one car saves more than 2,500 lbs. or iron ore, 1,400 lbs. of coal and 120 lbs. of limestone?

Steel is the most recycled material in the United States. On average, the U.S. processes enough

ferrous scrap daily, by weight, to build 25 Eiffel Towers every day of the year.

Recycling steel requires 60% less energy than producing steel from iron ore.

By using ferrous scrap rather than virgin materials in the production of iron and steel, carbon dioxide

emissions are reduced by 58%.

Sources: The Jason Project/ISRI





Nonferrous Metal Scrap

Nonferrous metals, including aluminum,

copper, lead, nickel, tin, zinc and others, are

among the few materials that do notdegrade or lose their chemical or physical

properties in the recycling process. As a

result, nonferrous metals have the capacity

to be recycled an infinite number of times.

While in terms of volume, nonferrous scrap

makes up around one quarter of the total

quantity of material recycled in the UnitedStates, by value nonferrous metal scrap —

including precious metal scrap — accounted

for nearly 70 percent of total U.S. scrap

recycling industry earnings in 2011. More

than 9 million metric tons of nonferrous

scrap was processed in the United States

last year from a wide array of consumer,commercial and industrial sources:

everything from

copper and precious

metal circuitry in

electronic devices, to

soft-drink containers,

automobile batteries

and radiators,

aluminum siding,

airplane parts and

more.

Nonferrous scrap is then consumed by

secondary smelters, refiners, ingot makers,

foundries and other industrial consumers in

the U.S. and in more than 100 countries

worldwide. These consumers rely on

nonferrous scrap as a competitive,

environmentally friendly and energy-

efficient input to make brand new products,

continuing the nonferrous metal life cycle.





Aluminum Scrap

Aluminum holds the distinction of being

both the youngest and the most widely

used among all the base nonferrous metalsin the U.S. In 2011, USGS figures show

aluminum recovered from purchased scrap

in the United States was about 3 million

metric tons, of which about 54% came from

new (manufacturing) scrap and 46% from

old scrap (discarded aluminum products).

USGS figures also show that secondary

smelters were the largest consumers of

domestically purchased aluminum scrap last

year, recovering over 1.6 million metric tons

of aluminum by metallic content, followed

by independent mill fabricators (1.3 million

metric tons), foundries (53,000 metric tons)

and other consumers (8,000 metric tons).

The U.S. Aluminum Market

Domestic

ScrapConsumption

(mt)

Apparent

AluminumConsumption

(mt)

Scrap

MarketShare

U.S

ScraExpo

(m

2007 3,750,000 7,484,000 50% 1,546

2008 3,320,000 6,408,000 52% 1,982

2009 3,000,000 5,697,000 53% 1,658

2010 2,700,000 5,053,000 53% 1,913

2011 3,020,000 5,520,000 54% 2,144





Aluminum Scrap Exports

Given the tremendous energy savings

associated with using aluminum scrap – which

can reach up to92% compared

with primary

metal, global

demand for

aluminum

scrap has been

rising sharply in

recent years. U.S. exports of aluminum scrap – including used beverage containers and remelt

scrap ingot increased 12% by volume last year

to more than 2.1 million metric tons. China was

the largest overseas customer, accounting for

68% of the export total. By value, U.S.

aluminum scrap exports jumped 27% higher to

more than $4 billion in 2011 – a record.

*Includes UBCs and Remelt Scrap Ingot.

*Includes UBCs and RSI.

Th ISRI S Y b k 2012





Life Cycle of the Aluminum Can

Th ISRI S Y b k 2012





Sources: Aluminum Association, Can Manufacturers Institute, ISRI






Copper Scrap

Copper was one of the first metals used by

humanity, with archaeological evidence

indicating its use more than 10,000 years ago.Today, copper remains a vital commodity used

in construction, electrical equipment,

transportation, consumer goods and other

products. Copper scrap is used at smelters and

refineries to produce refined copper and is used

at the semi-fabrication stage to produce copper

rods, bars, wire and other semi-fabricated

shapes, which are transformed into powercables, plumbing tubes and other end-use

products.

According to the U.S. Geological Survey, in 2011

old scrap provided 130,000 metric tons of

copper and purchased new scrap – derived

from fabricating operations – contributed

650,000 metric tons of contained copper.

Major consumers of copper and copper alloy

scrap in the United States last year includedbrass mills (73%), foundries, chemical plants

and miscellaneous manufacturers (13%) ingot

makers (9%) and copper smelters and refiners

(5%). Globally, the International Copper Study

Group estimates that in recent years more than

30 percent of world copper usage came from

recycled copper scrap.






Copper and Copper Alloys

There are literally hundreds

of different types of copper

and copper alloys that use tin,lead, zinc and other metals to

form metal alloys. These

metals can be subdivided into

several main categories

including:

Coppers

High-copper alloys

Brasses Bronzes

Copper Nickels

Copper-nickel-zinc

alloys

Leaded coppers

Special alloys

ISRI specifications with names like Berry,

Birch/Cliff, Druid, Honey, Ocean and Pales cover

a wide range of red metal products such as bareand insulated wire, light copper, refinery brass,

red brass, yellow brass, brass ammunition,

clippings, radiators, tubes and more. For the full

listing of ISRI nonferrous specifications, visit

www.isri.org/specs.









Copper Scrap Exports

Due to the plentiful supply of

copper scrap in the United States –

as confirmed by research

conducted by Nathan & Associates

in 2004 – the U.S. is able to export

significant tonnages of copper

scrap overseas. In 2011, the U.S.

exported more than 1.2 million

metric tons of copper scrap valued

at nearly $5 billion, a remarkable

increase from the $500 million of

copper scrap exported in 2000. As

with other commodities, China is a

significant consumer of U.S. copper

and copper alloy scrap. The value

of copper scrap exports from the

U.S. to China jumped from

approximately $165 million in 2000

to nearly $3.5 billion last year.






The Flow of Copper

Concen-

trates/

Matte

Trade Blister/

Anode

Refined

Copper

Mine Smelter Refinery

Alloy

Ingot

Semis

Net Trade

Wire rod plant /

Wire mill

Brass

mill

Foundry

Other Plants

Direct

MeltHydromet.

Plant

Low Grade

Residues

Semis Supply

Ingot

Maker

Scrap for

Smelting

Scrap

RecyclingScrap for

Refining

ProductionFabrication

Alloy

Metals

Refined

Usage

incl. low grade scrap987

By-products/

slag/ashesTailings

Mining

Chemicals

SX/EW

New Scrap

Wire rod

refined

alloys

Concen-

trates/

Matte

Trade Blister/

Anode

Refined

Copper

Mine Smelter Refinery

Alloy

Ingot

Semis

Net Trade

Wire rod plant /

Wire mill

Brass

mill

Foundry

Other Plants

Direct

MeltHydromet.

Plant

Low Grade

Residues

Semis Supply

Ingot

Maker

Scrap for

Smelting

Scrap

RecyclingScrap for

Refining

ProductionFabrication

Alloy

Metals

Refined

Usage

incl. low grade scrap987

By-products/

slag/ashesTailings

Mining

Chemicals

SX/EW

New Scrap

Wire rod

refined

alloys






FinishedProducts

NetTrade

EOLProducts

NewScrap

OldScrap

Recycling

Scrap &

Low grade Net Trade

Disposal/Other Uses

Other Metal

Loops

Manufacture

DissipativeUses

Product Use(Lifetime)

End-of-Life Man agement

Construction

E&E Equipment

Ind. equipment

Transport

Consumer/ Gen.

Other Uses

C&D

INEW

IEW

ELV

WEEE

MSW & Other

Abandoned/Stored/

ReusedEnd-of-Life

Products

Copper Reservoir

in UseFinishedProducts

EOLProducts

ProductSupply

Low gradefrom Fabr.

Recycling

Recyclinglosses new

scrap

SemisImport

(EOL Managementadjusted for

export/reuse after collection)

Source: International Copper Study Group




p


Nickel and Stainless Steel Scrap

According to the U.S. Geological Survey, nickel is a

transition element that exhibits a mixture of

nonferrous and ferrous metal properties. In metal

circles, it’s much less common for nickel to beexamined on its own than as an element of

corrosion-

resistant

alloys such as

austenitic

stainless

steel. And no

wonder: 18-8

varieties of

stainless steel

(named for

their 18% chromium and 8% nickel content) account

for large quantities of nickel consumption and also

serve as an important scrap source for nickel.

USGS figures show that 46% of the primary nickel

consumed in the U.S. last year went into stainless

and alloy steel production, followed by nonferrous

alloys and superalloys (34%), electroplating (14%)

and other uses (6%). By end use, the most important

consuming sectors include transportation (30%),

fabricated metal products (14%), electrical

equipment (12%), the petroleum industry (10%), and

chemicals, construction, household appliances and

industrial machinery at 8% each.

The process of recycling stainless steel scrap can

include numerous steps, including sorting, baling,

shearing, media separation and melting.

The U.S. Nickel Market

Nickel

RecoveredFrom Scrap

(mt)

Total U.S.

NickelUsage

(mt)

Scrap

MarketShare

(%)

Stainless

SteelScrap

Exports

2007 98,600 212,000 47% 882,000

2008 84,500 201,000 42% 1,001,00

2009 63,500 173,000 37% 1,131,00

2010 100,000 217,000 46% 937,000

2011 99,000 228,000 43% 656,000

Sources: USGS, Census Bureau, ISRI Estimates




p


Lead and Zinc Scrap

Zinc and lead are the two most widely used non-

ferrous metals after aluminum and copper. Lead’s

emergence as an important industrial metal dates

from the development of storage battery technologyin the mid-19th century. The recycling of

automotive-type batteries spawned a viable

secondary lead smelting industry in the United

States. In 2011, the U.S. Geological Survey reports

that lead-acid batteries accounted for 86% of

domestic lead use in 2011.

Other uses of lead include rolled and extruded

products, shot and ammunition, alloys, pigments

and compounds and cable sheathing. USGS figures

show that approximately 1.2 million metric tons of

secondary lead was produced in the U.S. last year –

an amount equivalent to 80% of apparent domestic

lead consumption, of which the vast majority was

recovered from postconsumer scrap.

The U.S. Lead Industry

Secondary

Lead

Production

(mt)

Apparent

Lead

Consumption

(mt)

Scrap

Market

Share

U

S

Ex

(2007 1,180,000 1,540,000 77% 12

2008 1,150,000 1,500,000 77% 17

2009 1,120,000 1,410,000 79% 14

2010 1,150,000 1,500,000 77% 44

2011 1,200,000 1,500,000 80% 31

Sources: USGS, US Census Bureau, ISRI estimates





According to the International Lead and Zinc

Study Group, the principal uses for zinc

include galvanizing (50%), zinc alloying

(17%), brass and bronze (17%), zinc semis

(6%), chemicals (6%) and other uses (4%). Inthe United States, USGS figures show that

about 53% (or 134,000 metric tons) of the

slab zinc produced in the United States was

recovered from secondary materials.

Drosses from galvanizing, skimmings, ashes,

and die castings make up the bulk of

feedstock for zinc recycling. Steelmaking

dusts and zinc-coated steel scrap, however,remain rich sources of recoverable zinc.

Prices for scrap zinc, such as galvanizing

drosses, are normally quoted as a percentage of

the LME price. Other scrap items – such as die

cast – are quoted in cents per pound.





Lead and Zinc Scrap Exports

Over the course of the last decade,

the volume of U.S. zinc scrap exports

more than tripled from nearly 27,000

mt in 2001 to more than 85,000 mt

valued at almost $94 million in 2011.

Leading zinc scrap destinations last

year included China ($74 million),

Japan ($7.5 million), India ($6 million),

and Taiwan ($3 million).

In contrast, the volume of lead scrap

exports plunged more than 70%during the same time period to just

over 31 million mt last year valued at

$36.7 million. Leading overseas

destinations for U.S. lead scrap in

2011 included South Korea ($13.1

million), India ($9.6 million), Canada

($8.5 million), China ($1.3 million) and

the Netherlands ($1.2 million)





Recovered Paper and Fiber

Recovered fiber, also

known as recovered

paper and board, is

one of the mostwidely recycled

materials in the

world. Since 1990,

Americans have

recycled about 1

billion tons of

recovered fiber as the

recovery rate for paper and paperboard in theUnited States nearly doubled to reach 66.8% in

2011, according to the American Forest & Paper

Association. The paper recycling segment of the

scrap recycling industry collects, sorts and

processes the recovered fiber into specification-

grade products that were valued at more than

$9 billion in 2011.

These products are sold and transported to

paper mills at home and worldwide for

production into new packaging, office paper,

tissue, newsprint and a multitude of other

paper products. In the United States,approximately 77% of paper mills rely on

recovered fiber to make some or all of their

products thanks in part to recovered paper’s

significant cost and energy savings.

The U.S. Paper and Recovered Fiber Industry

New Supply

(short tons)

Recovered

(short tons)

Recovery

Rate2007 97,007,000 54,325,000 56%

2008 89,838,000 51,822,000 58%

2009 78,902,000 50,036,000 63%

2010 81,209,000 51,545,000 63%

2011 78,959,000 52,767,000 67%

Source: American Forest & Paper Association





Paper Grades

Recovered paper can be grouped into several main

categories including:

OCC: An acronym forold corrugated

containers, OCC

contains a rippled

middle layer that is

sandwiched between

two layers of

linerboard. Mills use

old corrugated containers to make new recycled-

content shipping boxes, as well as recycledpaperboard for product packaging.

ONP: Before your daily newspaper becomes old

newspaper, or ONP, that is ready for recycling, it

goes through several name changes. It begins life as

newsprint, defined as the paper purchased and used

by newspaper publishers. Once printed, it is called

newspaper, which is shipped to distributors and

newsstands. Only after being distributed to

customers does it become ONP. Mills primarily use

ONP to make new newsprint and in recycled

paperboard and tissue, among other grades.

Mixed paper: Mixed paper is a broad category that

often includes items such as discarded mail,telephone books, paperboard, magazines, and

catalogs.

High-Grade Deinked Paper: This grade is made of

high grade paper such as letterhead, copier paper,

envelopes, and printer and converter scrap that has

gone through the printing process. It must first be

deinked before it can be reprocessed into high-grade

paper products such as printing and writing papers

or tissue.

Pulp substitutes: Also high-grade papers, pulp

substitutes are often shavings and clippings from

converting operations at paper mills and print shops.

Mills can use pulp substitutes in place of virgin

materials to make high-grade paper products.

Sources: ISRI and EPA





Recovered Paper Exports

In addition to being consumed by domestic

paper mills, the paper and fiber recovered in

the U.S. helps to meet growing export demand

as well. In 2011, recovered paper exports from

the U.S. reached $3.8 billion, up 14% from 2010

and double the 2005 total. Last year’s biggest

customers for recovered paper and fiber

shipments included China ($2.28 billion),

Mexico ($315 million), India ($302 million),

Korea ($223 million) and Canada ($194 million).

U.S. Paper Stock Exports(short tons)

Jan-Dec 2011

Corrugated 10,321,992

High-Grade Deinking 661,454

Mixed 4,576,713

Printed News 2,415,581

Pulp Substitutes 2,168,263

Other 3,110,487





Recovered Paper Life Cycle

Sources: BIR, The Jason Project, ISRI

According to estimates reported by the Bureau of International Recycling, paper can be recycled anaverage of four to six times. Steps involved in the paper recycling process can include sorting, baling,

shredding, washing, bleaching, pressing and rolling. Newspapers go through a paper recycling

process so that trees don’t have to be chopped down to make new paper.

Did you know that recycling 1 ton of paper saves 17 trees, 79 gallons of oil, 7,000 gallons of water

and 3.3 cubic yards of landfill space?





Plastic Scrap

The manufacture

and distribution

of plastics iseverywhere.

Between 1950

and 2009, the

global production

of plastics grew

at an average

rate of 9 percent annually, and all indications

point to continued growth at a similar rate.With the explosive growth in the manufacture

of plastics comes the need to ensure that these

materials are recycled in an environmentally

responsible manner once they reach the end of

their useful lives. In addition, recycling of

engineered and industrial plastics present

tremendous opportunities that demonstrate

plastics recycling today is “Bigger Than the Bin.”

From an environmental perspective, recycled

plastic can provide enormous benefits over the

use of its virgin counterparts. For example,

plastic lumber made with scrap plastic bags,

and other materials, conserves trees andeliminates the need to use hazardous chemicals

to treat wood that will be used outdoors.

According to

the U.S.

EPA, plastic

recycling

results in

significantenergy

savings (an

estimated

50 million to

75 million Btus/ton of material recycled)

compared with production of new plastics using

virgin materials.





U.S. Postconsumer PET Container Bottle

Recycling Activity, 2001 - 2011

Source: NAPCOR

But despite the ubiquity of plastics, plastic

recycling is still a young industry because no

one really thought about recycling when

plastics were first put into use. The technology

to cost-effectively sort and recycle plastics has

been developed only in the past 20 years.

While one can picture so much opportunity for

growth in plastics recycling, many challenges

exist, ranging from the false perception by

many that recycled materials are somehowinferior to virgin materials to archaic laws and

regulations that never contemplated the

possibility of recycling plastics.

In addition to these operational challenges, a

patchwork of state laws and a lack of direction

from industry stakeholders make the collection

and recycling of scrap plastic difficult. These

challenges are not insurmountable, and plastic

recyclers are providing leadership to overcome

them. The next time you tote that box to the

curb, remember that plastics recycling is much

bigger than the bin!





Plastic Scrap Exports

U.S. Census Bureau data show the value of

plastic scrap exports from the U.S. surpassed

the $1 billion mark in 2011 for the first time.

Full year 2011 shipments were up 4% over

2010 to $1.05 billion. By volume, plastic

scrap exports also advanced, increasing 4%

to 2.1 million mt.

Census figures show the top five overseas markets

for U.S. plastic scrap last year were: China ($547

million), Hong Kong (counted separately from

China, $240 million), Canada ($94 million), India

($48 million) and (Mexico $17 million).





Electronics ScrapThe U.S. electronics recycling industry has shown

tremendous growth in recent years. This maturing

segment of the scrap industry generates revenues of

approximately $5 billion (up from less than $1 billion

in 2002) and employs more than 30,000 full-timeworkers according to a recent IDC study.

Last year, the U.S. electronics recycling industry

processed 3 million to 4 million tons of used and

end-of-life electronics equipment. More than 70

percent of the collected equipment is manufactured

into specification-grade commodities — including

scrap steel, aluminum, copper, lead, circuit boards,plastics and glass. These valuable commodities are

then sold to

basic material

manufacturers in

the United States

and globally as

raw material

feedstock for

new products, such as steel, copper, aluminum,plastic and glass.

Electronics recyclers repair, refurbish and resell

functioning electronics equipment as used products

into domestic and international markets. Companies

also provide a number of logistical services, like

collection, storage and transportation, as well as

scrubbing hard drives of sensitive personal and

commercial data.





The industry is driven

by equipment

collected from

businesses and

commercial interests,

comprising up to 75%

of the market on a

volume basis. The

electronics recycling

industry is poised to

meet the anticipated

increased demand for

more used products and specification-grade

commodities, with companies currently

operating at about 50% of their operational

capabilities.

The electronics recycling industry has seen a

dramatic increase in the use of third-party

certifications. The marketplace is pushing

electronics recyclers to become certified to

programs like ISRI’s R2/RIOS™ program

(www.isri.org/certifyme) to improve

operational controls, meet customer demands

and secure a competitive advantage.

The reuse of used electronics equipment and

consumption of commodity-grade materialsrecovered from electronics to manufacture new

products boosts the U.S. economy, creates jobs

and sustains natural resources, conserves

impressive amounts of energy in the

manufacturing process and reduces greenhouse

gas emissions from those facilities.


http://www.isri.org/certifyme







Outputs of Electronics Recycling in the

United States(by weight %)

Source: IDC Survey: Inside the Electronics

Recycling Industry (2011)





Scrap Tires

Each year, the American public generates

approximately 300 million scrap tires. In the

past, scrap tires — generated when an old,

worn tire is

replaced with a

new tire — were

often dumped

illegally in lakes,

abandoned lots,

along the side of

the road and in sensitive habitats. Today, scrap

tires are playing a much different role as an

important part of the manufacturing process.

Scrap tire rubber is used in the manufacture of

new tires, playground surfaces, equestrian mats

and rubberized asphalt, among other products.

Other cutting-edge manufacturers are

combining scrap tires with materials such as

scrap plastic to produce flower pots, roofing

tiles and auto parts.

A tire is a highly engineered and extensively

designed product that is meant to be virtually

indestructible under a variety of conditions.Because of this, tires can be difficult to recycle,

but that has changed. Tire recyclers have

invested millions of dollars in technologies and

equipment to recycle tires, allowing scrap tires

to play an important role in strengthening our

economy and protecting our environment.

At tire recycling facilities, the main piece of

equipment is the tire shredder, which uses

powerful, interlocking knives to chop tires into

smaller pieces. Shredding a tire at room

temperature using such knives is called ambient

shredding. Tires can also be shredded through a

cryogenic process that uses liquid nitrogen to

freeze them at a sub-zero temperature. Such

temperatures cause the physical properties of

the tires to change dramatically and become





very brittle. The tire is placed in an enclosure in

which powerful hammers smash the tire apart.

Cryogenic grinding is used to make fine crumb

rubber powders that are then used in products

such as synthetic turf.

The non-rubber portions of the tire also are

recycled. For example, the steel beads that give

the tire its shape and structure are recovered by

recyclers and processed into specification grade

product used by steel mills for the production of

new steel.

Scrap tire rubber is a highly sought material. In

2010, scrap processors produced more than 1

billion pounds of crumb rubber that was used in

the creation of new products ranging from

sidewalks to horse tracks. Tire recycling is an

economically sound, environmentally friendly

activity that can contribute to the reduction of a

product’s overall carbon footprint. In fact, the

use of recycled rubber in molded products

provides a substantial carbon footprint

advantage compared with the use of virgin

plastic resins, having between four and 20 times

lower carbon footprint.

The future for tire recycling is strong.

Applications for scrap tire rubber — such asrubberized asphalt — have become recognized

for their

preferable

properties

and is

gaining in

prominence

andwidespread

use. Many states already use rubberized asphalt

when they design, reconstruct or repair their

roadways, and it is used for several simple and

straightforward reasons: it can cost less,

provide safety benefits and last longer than

conventional asphalt.





Recycled Glass

Glass is made from

readily available

domestic materials,

such as sand, sodaash, limestone and

“cullet,” the

industry term for

furnace-ready scrap glass. Glass can be recycled

again and again with no loss in quality or purity.

In 2009 (the latest data available), 31 percent of

all glass containers were recycled.

For every ton of glass recycled, more than a ton

of raw materials is saved, including 1,300 lbs. of

sand, 410 lbs. of soda ash, 380 lbs. of limestone

and 160 lbs. of feldspar.

Recycled glass is substituted for up to 70% of

raw materials used in making new glass. An

estimated 80% of recovered glass containers

are made into new glass bottles. In 2009, the

latest figures available, 39 percent of beer and

soft drink bottles were recovered for recycling.

Another 18 percent of wine and liquor bottles

and nearly 18 percent of food jars also were

recycled. Manufacturers benefit from recycling

in several ways: it reduces emissions and

consumption of raw materials, extends the life

of plant equipment (such as furnaces) and saves

energy. Glass recycling creates no additional

waste or byproducts.

Glass manufacturers are requiring more and

more high-quality recycled container glass to

meet market demands for new glass containers.Color-sorted, contaminant-free recycled glass

helps ensure that these materials are recycled

into new glass containers.

While curbside collection of glass recyclables

can generate high participation and large

amounts of recyclables, drop-off and

commercial collection programs are also

effective at yielding high-quality container glass.





Textiles

The textile segment of the

recycling industry

processes billions of

pounds of cotton, wool,

synthetic and synthetic-

blend products each year.

These scrap materials

come from a number of

sources, ranging from

apparel and home furnishing manufacturers to

textile mills and consumers.

Each year, 1.1 million tons of textiles recovered

from individuals (postconsumer) and

manufacturers (preconsumer) are recycled as

new raw materials for the automotive,

furniture, mattress, coarse yarn, home

furnishings, paper and other industries. This

translates to about 8 lbs. of textiles per person

in the Unites States in 2010.

Used clothing collected from households is

graded into a number of categories. Garments

in good condition are exported for resale in

parts of the world where new clothing is not

affordable for many. This trade provides

employment not only among the exporting

nations, but also in the importing countries.

Source: Council for Textile Recycling





Commodity Volume (mt) Value ($)

Aluminum scrap 7.5 million $13.2 billionCopper scrap 5.6 million $25.5 billion

Ferrous scrap 106.7 million $53.9 billion

Glass 3.2 million $386 million

Lead scrap 272,000 $417 million

Nickel scrap 131,000 $751 million

Plastic scrap 15 million $6.9 billion

Precious metal scrap 122,000 $28 billion

Recovered paper 59 million $12.1 billionRubber scrap 1 million $514 million

Textiles 911,000 $496 million

Tin scrap 151,000 $251 million

Zinc scrap 373,000 $644 million

Other base metal scrap 440,000 $2.1 billion

TOTALS 200.6 million $145.2 billion

Appendix: Global Scrap Exports by Commodity,

Volume (metric tons) and Value (US $), 2011Source: UN Comtrade Database





© 2012 Institute of Scrap RecyclingIndustries, Inc.

1615 L Street, NW, Suite 600

Washington, DC 20036-5664

Tel: 202/662-8500 Fax: 202/626-0900

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