The downward trend in steel prices, predicted by MEPS (International) Ltd. in September, has already begun for flat products in some European countries. Material has been in fairly short supply in recent months because producers have continued to restrict their output. Moreover, buyers have undertaken some stock replenishment, after paring back their inventories to minimum levels.

It was anticipated that the mills’ planned production increases would tilt the supply/ demand balance and halt the recent upward movement in prices. In fact, this has been exacerbated by the absence of any sign of a substantial improvement in end-user demand. The higher selling figures available have also attracted imports – particularly from Asia. Most flat steel products have become more readily available and values have started to fall in mainland Europe.

There are some exceptions. Holes in inventories have buoyed the price of galvanized steel in some countries. Furthermore, while plentiful supply has constrained commodity grade plate figures, it has been possible to achieve higher selling numbers for superior specification material.

MEPS’ research has found more optimism in the Nordic countries. Notwithstanding, it is not clear at this stage whether there is a pick-up in real consumption, or if it is an example of the region’s traditional lag behind the markets of Western and Southern Europe.

Demand for long products, too, has diminished after a brief period of restocking, and this will be aggravated by the seasonal downturn in construction activity. Small price increases for many products, at the beginning of October, were supported by earlier hikes in raw material values. However, scrap costs have since fallen and longs selling figures are destined to follow. Meps

A recent report on the metal recycling market in the United Kingdom is now available. The report looks at the UK metal recycling market, which reached an estimated value of £2.41bn (US$3.9 billion) last year. The volume of scrap metal consumed in 2008 stood at 5.6 million metric tons — 6.4 percent less than the 2007estimates, which were at their highest level since 2001 at just over 6 million metric tons.

The negative growth in 2008 spelled the end of the run of a rising period of recycled metal sales, and the start of the recession in UK manufacturing output. In value terms, scrap metal consumption declined by3 percent in 2008 from a 10-year high of £2.49bn (US$4.123 billion) in 2007. Between 2004 and 2008, overall sales of scrap metal increased significantly, boosted by the high rise in the value of scrap metal during this period, particularly in 2005 and 2006.

The report is divided into the broad categories of ferrous and non-ferrous metals. The report also includes references to precious metals such as gold, silver, platinum and palladium.

While the metal recycling has traditionally been one of the most profitable sectors of the recycling industry in the UK, the recession in the UK and the global economic downturn in 2008 had a major effect on the UK and international metal recycling markets. Prices tumbled in2008, with contracts cancelled and steel, aluminum and other metal producers shutting down excess capacity. This was in stark contrast to the previous year’s buoyant conditions of high prices and demand for recycled metals.

The current recession in the UK is expected to have a continued negative impact on the metal recycling market well into this year, before gradually recovering as key export markets such as China begin to pick up.

Three general factors lying outside the economic cycle that will have a strong influence on the market in the future are: increased adoption of newer and sophisticated metal recycling equipment; further environmental pressures to encourage people to recycle more metal; and EU and UK legislative changes to reduce barriers to UK exports of recycled metal and impose tighter controls on the metal recycling industry. The author forecasts that the market will contract by 12.5 percent by volume in 2009, but will increase by an overall 24.6 percent from 4.9 million metric tons to 6.1 million metric tons between 2009 and 2013.

The report includes the following sections: An Executive Summary; Market Definitions ; Coverage of ferrous, nonferrous, precious, and specialty metals; Market trends; Economic trends; Market position; Overseas trade; Industry background; A look at key trade associations; Competitor Analysis; Strengths, weaknesses, opportunities and threats; Buying behavior; Current Issues;  Global market; Forecasts; And company profiles.

More information on the report can be obtained by calling (718) 473 08 72.
 

The state of Wisconsin’s Division of State Facilities will be requiring construction and demolition waste to be recycled, rather than landfilled. The new policy covers any construction or demolition project valued at more than $5 million, and will begin Jan. 1, 2010.

The decision to implement the program came after a demonstration project between two Wisconsin agencies and a nonprofit organization showed the effectiveness of recycling C&D debris.

The pilot project brought together the nonprofit group WasteCap Resource Solutions (formerly WasteCap Wisconsin), along with the Wisconsin Department of Administration, Division of State Facilities under a contract with the Department of Natural Resources. The goal of the project, which began in 2007, was to develop methods, standards and trained staff to result in successful, measured C&D debris recycling on state projects.

A study performed by the DNR in 2002 found that C&D debris made up close to 30 percent of the municipal solid waste stream; with five of the 10 largest single components of the waste stream found in C&D debris.

“We recognized this was a significant effort, not only because of the potential to reuse and recycle C&D debris from state projects,” said Jenna Kunde, executive director of WasteCap. “We knew if we could give contractors experience with C&D reuse and recycling and make it a part of the way they do business with the state, it would have the potential to allow them to implement successful C&D recycling on projects throughout Wisconsin and beyond. It’s a result we’re already seeing realized.”

“By any measure, this effort has been a success,” said Dave Haley, State Chief Architect and Deputy Director of the Bureau of Architecture and Engineering for the Department of Administration. “Every pilot project exceeded the 50 percent goal and many of the contractors that recycled on these projects are now recycling on other projects where they are not required to recycle. These projects have an average 84.8 percent recycling rate and have diverted 41,771 tons of material to date—the equivalent of removing 1,500 cars from the road for one year.”

In supporting the goal, the DNR highlighted a number of projects that were able to achieve significant recycling levels. They are the following:

UW Madison Biochemistry Phase II (Demolition and Construction)
Division of State Facilities Project Manager: Russ VanGilder
Lead Contractor: JH Findorff & Son, Inc.
Recycling rate: 99.12 percent
Tons diverted to date: 25,592

UW Parkside New Residence Hall Construction
Division of State Facilities Project Manager: Bob Kilgust
Lead Contractor: JP Cullen
Recycling rate: 60%
Tons diverted: 334

UW Stevens Point – Balwin Hall Renovation
Division of State Facilities Project Manager: Larry Earll
Lead Contractor: Ellis Stone
Recycling rate: 90.65%
Tons diverted: 231

UW Superior-Rothwell Student Center Replacement (Demolition and Construction)
Division of State Facilities Project Manager: Angela Zar
Lead Contractor: Immel Construction
Recycling rate: 95.75%
Tons diverted to date: 1,339

UW Whitewater Hyland Hall, Demolition Phase
Division of State Facilities Project Manager: Rex Loker
Lead Contractor: Miron Construction
Demolition Contractor: Zenith Industrial Services
Recycling rate: 97.65%
Tons diverted: 13,694

UW Whitewater Hyland Hall, Construction Phase
Division of State Facilities Project Manager: Rex Loker
Lead Contractor: Miron Construction
Recycling rate: 65.65%
Tons diverted: 581

“I’ve led recycling efforts on a few of my sites now. The specifications and internal practices that we developed in this program were very important to making the recycling work well,” said DSF Project Manager Rex Loker. “I’m glad the state is leading the way in recycling.”

Tim Andrew, senior project manager of Miron Construction Co., Inc., one of the contractors involved in the pilot projects, said the experience has helped to change the way his company operates. “Miron is now recycling on all of our construction projects, regardless of project-specific recycling requirements” he said. ”The costs of implementing a construction waste management plan are offset with the savings in avoiding landfill disposal fees. 

“Change is always difficult at first, but once the field personal and subcontractors are aware of the benefits and CWM expectations, it’s not difficult to implement, and actually becomes a positive experience. We have no problem complying with the state’s requirements or implementing our standard CWM plan on our projects,” Andrew noted.

“I’m proud to have been a part of this effort of inter-agency cooperation and leadership,” said Kunde. “The governor provided the vision. The DNR provided the funding and their support. The DOA DSF provided the commitment and the time to make these efforts happen. They all provided leadership – producing a change in how construction and demolition debris will be handled in Wisconsin. It’s significant, and I’m so pleased for both what is being done and the way it was done.”

International Paper announced plans to close its paper mill and associated operations in Franklin, Va., and its containerboard mills in Pineville, La., and Albany, Ore. The company also announced it would permanently shut down the previously idled No. 3 machine at its Valliant, Okla., containerboard mill. The Valliant Mill's other two machines will continue to operate.

These permanent shutdowns will reduce the company's North American paper and board capacity by 2.1 million tons.

"We recognize these are very difficult decisions affecting our employees, their families and the communities surrounding these mills," said Chairman and CEO John Faraci. "We have concluded that we have excess capacity in our North American paper and packaging businesses, and these decisions will better match our supply with our expected customer demand."

Since the onset of the global recession, the decline in demand for International Paper's uncoated freesheet in North America has accelerated, and consequently the company has decided to further reduce its uncoated freesheet capacity.

In its containerboard and coated paperboard businesses, International Paper expects demand to resume growth as the economy rebounds. However, the company's demand is not expected to return to 2008 levels in the near future. Therefore, permanent IP capacity closures are necessary.

The closures, which will impact about 1,600 employees, will result in permanent North American capacity reductions of the following: 600,000 tons of freesheet; 140,000 tons of coated paperboard; and 580,000 tons of containerboard.

Following these permanent shutdowns, IP will have about 10 million tons of North American containerboard capacity, 2.6 million tons of North American uncoated freesheet production capacity, and 1.7 million tons of North American coated paperboard capacity.