Plastic film scrap has seen strong demand heading into 2021, and the availability of polyethylene terephthalate (PET) bottle scrap has tightened. Regardless of which material contacts are sourcing, all of them point to transportation issues that are making movement of material more difficult and expensive.
“Scrap availability for postconsumer A Grade film is very tight,” says Charlotte Fischer, senior commodities manager for PreZero US Inc.’s Jurupa Valley, California, plant. She attributes that in part to more aggressive buying by consumers in Indonesia, Malaysia and India, the latter of which she describes as actively buying off the West and East coasts. Additionally, she says, “Some LDPE (low-density polyethylene) mills in Taiwan are coming into the market to buy film.”
Fischer says new domestic consumers also have emerged in California and are buying trial loads of film as they ramp up their reclamation operations.
“The market is getting tighter and tighter,” she says. “It’s going to be an interesting year.”
As one would expect, pricing for film scrap has increased along with demand.
“I am looking for 2021 to be a better year than 2020. I don’t think it can be anything but better, but you just never know.” -- a PET reclaimer based in the Midwest
Fischer says A Grade LDPE film bales were selling for 10 to 11 cents per pound in the summer of 2020. By the fall, the material was selling in the 13 to 14 cent range. As of mid-January, it is selling for 16 to 17 cents per pound delivered to domestic consumers or FAS (free alongside ship) to the Port of Long Beach, she says.
When it comes to PreZero’s recycled pellets, Fischer says, “Demand is definitely up. We have been selling out every month,” though she adds that operations are still ramping up at the company’s Jurupa Valley plant after it experienced COVID-19-related delays with its startup last year.
Virgin LDPE pricing also has increased recently. “Last spring, virgin pricing was way below where PCR (postconsumer resin) was,” Fischer says. “It’s now way above where PCR is at.”
However, she adds, PreZero is more focused on selling to consumers that are committed to using recycled content rather than to those that are solely motivated by pricing.
Fischer says her colleague who is buying for the company’s South Carolina facility, which is currently reclaiming mixed rigid plastics (MRP), has had no issues securing material. “In the fall, MRP can get pretty tight. He didn’t have that issue this fall going into the winter. There is more than enough MRP to go around.”
By August of this year, Fischer says, PreZero also should be processing MRP in California, while the South Carolina location should be processing film in March and will be ramping up its buying of this material to correspond with the startup of that line.
A PET bottle reclaimer based in the Midwest says scrap material was readily available over the last three to five months following some tightness early in the pandemic related to changes to municipal recycling collections and reduced staffing at material recovery facilities in line with social distancing measures. However, she says, bottle bale supplies began to tighten in January, with a corresponding increase in pricing, though modest.
She says her company is seeing increased demand for its recycled PET (rPET) from new customers and from existing customers that want to increase the recycled content in their packaging.
That interest has not served to boost the price of PET bottle bales significantly, however, in her region. She says pricing is “phenomenally low,” adding that it would normally increase over the winter as supply wanes.
Paul Bahou, president of PET reclaimer Global Plastics Recycling Inc. in Perris, California, says of scrap availability, “When the weather gets colder, supply is tighter and so pricing goes up.” In California, that tightness has been exacerbated by increased buying out of Mexico, he says, as is the case for LDPE scrap. “Part of that has to do with changes in the relative value of the currency,” he says.
However, Mexico’s peso lost value in early January, while the U.S. dollar increased in value.
Bahou adds that California’s AB 793, which is designed to bolster the market for rPET in the state, is poised to change the market dynamics in the region. Manufacturers must meet a number of deadlines for recycled content, achieving 15 percent by 2022, 25 percent by 2025 and 50 percent by 2030.
Grade A PET bottle bales in California are selling for 16 cents per pound as of mid-January, he adds, though transportation costs are adding considerably more to the cost of bringing in material.
Bahou jokes that securing a truck costs “a full semester of college tuition.” He adds that transportation rates are “more regional than they used to be,” with long-haul prices having increased significantly. For example, the rate to ship via truck to Texas from California has tripled, he says.
Fischer says she’s seen rates double for long-distance hauls and often increase at the last minute. Availability also is tight.
The PET reprocessor in the Midwest also is having issues with long-distance trucking, which has caused her company to plan further ahead in this area. “We are trying to look two and three days ahead and try not to wait until the last minute.”
She also has seen increases in rates at the last minute, though she adds that tends to be on hauls to more remote areas where it’s more difficult for the trucker to get a back-haul.
Despite this issue, the reprocessor says, “I am looking for 2021 to be a better year than 2020. I don’t think it can be anything but better, but you just never know.”
Containerboard production rates increased in December 2020 compared with the same month in 2019. According to the American Forest & Paper Association’s (AF&PA’s) latest "Containerboard Monthly" report, containerboard production in December increased 3 percent compared with December 2019, and it was up 4 percent for all of 2020 compared with all of 2019.
For December 2020, the containerboard operating rate was at 93.7 percent, essentially flat from December 2019, and up 2.3 percent year to date. The association reports that December 2020 production of containerboard for export decreased 22 percent compared with the same month in 2019, and it was up 9 percent year to date.
Mill inventories of containerboard at the end of December 2020 increased 3,000 tons from the previous month and were up 3,000 tons compared with December 2019.
In addition, AF&PA released its December 2020 "Packaging Papers & Specialty Packaging Monthly" report. The association says packaging paper shipments in December increased 8 percent compared with December 2019 and were up 5 percent in 2020 compared with 2019. For December 2020, the operating rate for packaging papers and specialty packaging was at 83.3 percent, which AF&PA states is up 0.6 percent compared with December 2019 and flat year to date.
For packaging papers in December 2020, mill inventories increased 2,000 tons compared with the previous month and increased 3,000 tons compared with December 2019.
Complete reports with detailed tables, charts and historical data can be purchased by contacting Kory Bockman at statistics_publications@afandpa.org or 202-463-4716.
Liebherr
Liebherr develops brake assistant, incident map for wheel loaders
The brake assistant slows the speed of the loader if it detects personnel, and the incident map displays potential risk zones.
Liebherr offers active personnel detection as an assistance system for its L 526 and L 586 XPower range of wheel loaders. The company has announced that it has added two extra functions—the brake assistant and incident map—to its personnel detection. The brake assistant automatically slows the speed of the wheel loader to a standstill the moment the active personnel detection issues a warning signal, and the incident map displays potential risk zones on the site using GPS data in LiDAT, Liebherr’s transfer and location system.
Liebherr
Liebherr's brake assistant
Brake assistant
Active personnel detection visually alerts the machine operator via the display screen and sounds acoustic signals if there is danger in the wheel loader’s rear area, Liebherr states in a news release on its new personnel detection assistance systems. The assistance system, using smart sensors, provides specific warning of people in the rear area of the wheel loader at a greater distance than for obstructions such as walls, columns or other vehicles. This means the assistance system avoids unnecessary signals, thereby reducing the burden on the machine operator and causing fewer distractions, Liebherr says.
The moment the active personnel detection system identifies a source of danger, the brake assistant slows the wheel loader to a standstill. According to Liebherr, the braking process is initiated at an earlier stage and more quickly than in the case of traditional braking since, with the brake assistant, there is no delay caused by human reaction time. This means the stopping distance is reduced which, in turn, reduces the frequency and severity of accidents.
In the case of the brake assistant, the hydrostatic components of the drivetrain automatically reduce the speed. Liebherr says this means the machine operator can continue to operate the wheel loader service brake in the normal way and can do this in addition to the brake assistant.
Liebherr
Liebherr's incident map
Incident map
Besides the brake assistant, a second new function for the active personnel detection at the rear is the incident map. According to Liebherr, each time the assistance system detects a danger and a warning signal is issued, the system transmits a GPS signal to LiDAT, Liebherr’s in-house transfer and location system. On the basis of this signal, and for each operator of a wheel loader with active personnel detection, Liebherr provides a Google map in LiDAT showing these GPS points.
The result is an incident map displaying the risk zones and potential sources of danger on the site. According to Liebherr, the operator can use this to take measures to prevent accidents and increase safety. For example, the operator might reroute footpaths, block areas and alter dangerous work sequences. The head of operations can use the incident map to train employees and make them aware of risky situations.
Other loader assistance systems
Liebherr says it also offers several intelligent assistance systems for its mid-range and large wheel loader series. In addition to active personnel detection, these include adaptive working lighting, front space monitoring, the skyview 360-degree camera system, the tire pressure monitoring system with sensor support and the new weighing device. According to Liebherr, its goal with its assistance systems is to increase safety and comfort and to support the machine operator.
Closed Loop releases report on reusable packaging systems
Bringing Reusable Packaging Systems to Life details ways forward for durable reusable packaging systems that reduce the need for single-use packaging.
The Center for the Circular Economy at Closed Loop Partners recently released a report detailing ways forward for durable reusable packaging systems that reduce the need for single-use packaging. In the report, Bringing Reusable Packaging Systems to Life, Closed Loop Partners draw on insights from multiple reusable cup pilots conducted in partnership with the NextGen Consortium and IDEO, outlining key lessons learned and sharing a blueprint and open-source resource to encourage collaboration and the growth of reuse models.
“Reuse models are a critical tool in the fight against plastic waste, and brands and retailers are increasingly exploring them as a viable waste reduction strategy,” says Kate Daly, managing director of the Center for the Circular Economy at Closed Loop Partners. “Reusable packaging and cups are just the beginning; refill, resale and rental models that keep materials in circulation are poised to reinvent all kinds of product formats and industries. The future for reuse is bright, and now we need to work collaboratively toward it.”
Closed Loop Partners convened the NextGen Consortium, with founding partners Starbucks and McDonald’s, among others, to address the world’s single-use food packaging waste by advancing the design, commercialization and recovery of packaging alternatives––starting with the hot and cold, to-go fiber cup system. Through the efforts of the NextGen Consortium, robust testing, funding and scaling of reusable cup models have been underway. Most recently, the Consortium ran pilots with NextGen Cup Challenge winners, CupClub and Muuse, across clusters of local cafes in the City of San Francisco and City of Palo Alto, Calif.
NextGen used a validated methodical approach to test and evaluate various reuse models, Closed Loop Partners says. These include engaging diverse stakeholders, making sustainable material choices, selecting appropriate locations, choosing the right payment model and optimizing health and safety protocols. It was decided that reuse models must provide a seamless, convenient experience for companies and customers.
“McDonald’s cups are an iconic part of the customer experience and can serve as a key gateway to increasing circular systems for our restaurants,” says Marion Gross, chief supply chain officer, North America, McDonald’s. “We remain committed to meaningful collaboration and solutions that will reduce waste and impact change at scale.”
“Now is the perfect moment to design, implement and scale reuse models, as technological developments, regulatory pressures and consumer demand for eco-friendly alternatives converge,” says Chris Krohn, project lead, IDEO. “Piloting the reusable packaging models helps us better design a system that works for all.”
“With single-use packaging volumes on the rise amidst the pandemic, safe and hygienic reuse models are critical to addressing the urgent issue,” says Erin Simon, head, Plastic Waste and Business, World Wildlife Fund. “The NextGen Consortium’s reusable cup pilots are critical for providing the necessary data and understanding to advance these kinds of models as a whole and reduce waste.”
“Changing mindsets and offering consumers reuse options must be part of our efforts to end plastic pollution once and for all,” says Kristin Hughes, Director of the Global Plastic Action Partnership, the platform for accelerating plastic pollution and waste action at the World Economic Forum. “It is crucial and very exciting to see innovative models being tried and tested on the ground by the NextGen Consortium and others.”
A pouring ladle transferring iron to the molding line at Plant 4 in Marinette, Wisconsin.
Photo courtesy of Waupaca Foundry Inc.
Sustainable resolve
Scrap consumption is one of the many sustainable aspects of Waupaca Foundry Inc., headquartered in Wisconsin.
Waupaca Foundry Inc., headquartered in Waupaca, Wisconsin, produces iron castings largely from scrap metal for use in the transportation, construction, agriculture and industrial markets. The company, which has been owned by Tokyo-based Hitachi Metals Group since 2014, says it is committed to continuous improvement and dedicated to “advancing technology, safety and productivity.” One item missing from that list is sustainability.
An original recycler
Iron foundries are among the original recyclers, creating new products out of recycled steel scrap and iron.
Founded as the Pioneer Foundry in 1871 by John Rosche on the banks of the Waupaca River, the company took the Waupaca Foundry Inc. name in 1955 when Clifford Schwenn purchased it.
Waupaca Foundry now operates six iron casting foundries and two machining facilities in Wisconsin, Indiana, Tennessee and Illinois, as well as a location in Ironwood, Michigan, where castings produced at its Waupaca foundries are cleaned and finished. Recognizing that capacity exceeded demand, in the summer of 2020, the company closed a seventh foundry in Lawrenceville, Pennsylvania. That facility primarily produced automotive suspension components, including steering knuckles, control arms and brackets.
According to the company, it melts up to 9,500 tons of iron daily across its six foundries.
Brian Powell, director of procurement and supply at Waupaca Foundry, says, “Approximately 85 percent of the materials used in our melt process come from recycled materials.”
Image courtesy of Waupcaca Foundry Inc.
At any given time, Waupaca foundries only have a four-horr supply of scrap on the ground.
He notes that in its 2019 fiscal year, Waupaca consumed 1 million tons of steel scrap in the production of its various grades of gray iron and ductile iron, including Hitachi Metals HNM Series high-strength and austempered ductile iron. Other metallic inputs include pig iron and copper.
The company purchases scrap from the automotive, appliance and general scrap market, Powell says.
“Melting 9,500 tons daily requires multiple strong partners,” he says. “Waupaca Foundry aims to source locally where, and as often as, possible. At any given time, there is only a four-hour supply of feedstock on the ground.”
According to Waupaca’s sustainability report, 8 of its top 10 supplier relationships go back 25 years or more, and all suppliers are certified through a defined, documented process.
Waupaca employs two types of melt processes—induction, or electric, and cupola—Powell says.
“The advantage of electric melt is the flexibility for frequent material changes and starts/stops,” he explains. “Cupola melting is still generally recognized as the most economical melting process if the furnace is operated continuously, such as is the case at Waupaca Foundry.”
Powell adds that even though the cupola process is 300 years old, it is the more efficient of the two processes and the primary method used at Waupaca.
Given the company’s use of continual and large batch melting, Powell says Waupaca Foundry holds its scrap tolerances to high standards. “There is an audit and review to ensure tramp [metals] are to the specification that allows Waupaca to meet our customers’ high-quality standards. It all starts with melt, and we work closely with our partners to ensure their standards are met.”
Waupaca Foundry Director of Environmental Engineering Bryant Esch says the company melts more than the weight of the Eiffel Tower daily across its operations, which includes a considerable amount of tin cans.
When scrap enters the company’s foundries, Esch says, it is sorted and sized “so it is optimal for our process.” He adds that this helps the company maintain production.
While Esch describes scrap usage as “one of the major cogs of sustainability” at Waupaca, it is not the only one.
“The shift away from ICEs to electrification is accelerating. However, the ratio of pure EVs—EVs that run only on batteries—is forecast to be about 10 percent of vehicles produced in 2030, and, until then, engines will still be installed, including [in] hybrid vehicles. Parts for internal combustion engines will continue to contribute to our portfolio.”Brian Powell, director of procurement and supply at Waupaca Foundry
Sustainable beyond scrap
Despite its significant use of ferrous scrap, Waupaca acknowledges that foundries also consume a good deal of energy and water and produce wastes, including foundry sand, which is why the company has focused on the following sustainability goals for its 2020 fiscal year, which ends March 30:
reduce energy use intensity by 25 percent;
reduce water consumption by 80 percent;
promote alternative processes and maintain advanced pollution control technologies; and
reduce spent foundry sand generation by 30 percent while promoting off-site reuse/recycling opportunities for remaining spent foundry materials.
Esch says that as of early January, Waupaca has achieved a 23 percent reduction in its energy use relative to 2010 and earned a U.S. Department of Energy 2020 Better Project Award for a system that removes humidity from the air entering the cupola at its Tell City, Indiana, foundry.
The federal program recognizes manufacturers for creating and implementing industrial energy and water efficiency projects, as well as renewable energy and energy resiliency projects.
Esch says plant engineers installed a desiccant cupola blast air drying system that removes water vapor from ambient air prior to introduction to the foundry's cupola, enabling the company to use less coke in the melting process.
“The system passes air through a desiccant air wheel which works like a filter to remove water from the air, increasing the efficiency of the combustion process,” Marco Gonzalez, corporate energy manager for Waupaca Foundry, says in a news release the company distributed after receiving the award in June of last year. “It’s like if you’re trying to light a barbecue during a rainy day, the moisture in the air will consume power from your charcoal and they will take longer to light. By removing the moisture from the air, the fuel can burn more efficiently.”
Removing humidity from the air stabilizes operations throughout the year and reduces energy consumption, according to the company. “Every pound of water removed equals a certain amount of coke reduction,” Esch says.
The cupola system also is designed to recover and return waste heat to the cupola’s melting zone, which further boosts the system’s energy efficiency, he adds.
In addition to the energy savings, the system reduces ash and solid waste produced during the melting process.
The melting process represents 65 percent of the Tell City foundry’s total energy usage, with coke being the largest energy source.
In addition to supporting the direct melting processes, excess “waste” heat from the cupola furnace supplies building heat and is used to heat water at Waupaca Foundry facilities in cold months. Heat recovery systems used at Waupaca Foundry plants provide 70 percent of the foundries’ space heating requirements, and 100 percent of the plants' hot water needs where the recovery technology has been implemented, the company says.
Esch says Waupaca Foundry also wanted to reduce its use of fresh water in its foundry pollution control and noncontact machine cooling applications. He says each of the company’s foundries in Waupaca used 1 million gallons of water per day for these purposes. Plant upgrades substituted these single-use water cooling systems with closed-loop and air-cooled heat exchangers, cutting water demands by nearly 67 percent, Esch adds, and reducing noncontact cooling water discharge to near zero.
The company’s sustainability efforts also have been recognized by the American Foundry Society, Schaumburg, Illinois. In 2020, Waupaca Foundry was awarded the Green Foundry Sustainability Award for initiatives that included implementing the ISO 50001 Energy Management System, a formal management system approach to energy reduction. To gain the ISO certification, the company says it created and implemented a program in energy management at its gray iron foundry Plant 1 in Waupaca and then reviewed and checked data to ensure consistent results. After 12 months of preparation and a verification audit by an independent registrar, the certification was granted in 2017.
Waupaca Foundry says energy is one of the company’s greatest expenses, costing about $150 million in fiscal 2019 across all Waupaca Foundry locations.
Additionally, Waupaca Foundry recycles 450,000 tons of foundry byproducts annually, including sand. One grain of sand can be recycled approximately 50 times internally at the company’s foundries by cooling and reconditioning it, Esch says.
Sand that can no longer be recycled internally is removed from the process and sourced to general construction, road construction, agricultural use and geotechnical fill, according to the company. About 75 percent of Waupaca’s sand is going off-site for beneficial use in these applications, he adds.
Waupaca Foundry’s sustainability initiatives and its focus on continual improvement have helped to position the company for future growth, Esch says.
Room for growth
“Waupaca Foundry is well-positioned to grow,” Powell says. “Waupaca will continue to expand in markets in support of its customers’ growth. This will be realized through key strategic capital investments throughout our facilities. And it can be seen in new technology, such as expanded use of automation, which carries positive social and environmental impacts.”
He says that upon completion of its 2020 sustainability goals, new three-year targets are being developed to facilitate ongoing improvements. “Waupaca is also investigating the procurement of long-term renewable energy, such as solar and wind power, using variable power purchase agreements, as well as to maximize the use of waste heat to work towards a carbon-net-zero business model.”
While sustainability will factor into the company’s future, Powell says Waupaca Foundry’s ongoing use of scrap could be challenged by the growth in the use of specialty metals in many industries. “The more high-strength steel, the more challenging it will be to use a straight scrap supply to melt iron. This indicates more reliance on virgin materials like pig iron, direct reduced iron, etc.,” he says.
For the time being, global trade issues are affecting the supply chain that Waupaca is part of.
Powell says, “The industry supports a global supply chain. Components and commodities move all over the globe.” However, tariffs have affected U.S. metal producers’ ability to sell globally, he adds. “The economic conditions created by tariffs artificially decrease demand with fewer buyers. This puts all the control in the U.S. mill market. We have seen dramatic raw material price increases recently. We expect this volatility will continue in 2021, which began in December 2020.”
One might think that Waupaca Foundry would find the growth in electric vehicle (EV) demand and production a potential threat; however, the company does not see it as such for a number of reasons.
“Waupaca Foundry produces iron castings for both on- and off-highway vehicles with internal combustion engines (ICEs),” Powell says. “The shift away from ICEs to electrification is accelerating. However, the ratio of pure EVs—EVs that run only on batteries—is forecast to be about 10 percent of vehicles produced in 2030, and, until then, engines will still be installed, including [in] hybrid vehicles. Parts for internal combustion engines will continue to contribute to our portfolio.”
Additionally, while EVs may lead to decreased demand for some iron engine components, the company says iron castings will remain in demand for suspension, breaking and driveline components. Waupaca Foundry says a hybrid-electrification model also could present opportunities for new iron components.
Infrastructure impacts that arise from the growth of EVs could in turn increase demand for municipal, construction and other industrial components that the company manufactures. Because Waupaca Foundry is diversified across multiple market sectors, the company says it is well-positioned to adapt to this change.
A 120-ton holding furnace transfers iron to the ladle at Plant 2/3 in Waupaca, Wisconsin.
Bryant Esch, Waupaca Foundry director of environmental engineering
A pouring ladle transfers iron to the molding line at Plant 4 in Marinette, Wisconsin.
Gray iron castings are separated from gating, risers and sand molds at Plant 2/3 in Waupaca, Wisconsin, using a robotic manipulator.
Recycled foundry sand is transported via conveyor and will be reused to make new sand molds in the iron casting production process.
An employee checks burners on the cupola furnace at Plant 5 in Tell City, Indiana.
Waupaca foundries only have four hours' of scrap on the ground at any given time.
Ten induction (electric) melt furnaces at Marinette, Wisconsin
Ten induction (electric) melt furnaces at Marinette, Wisconsin
The No. 1 transfer ladle at Plant 1 in Waupaca, Wisconsin