Newsworthy

METALS

UK steelmaking complex may be permanently idled

An integrated steelmaking complex in Middlesbrough, United Kingdom, that was temporarily idled in late September may be shuttered permanently.

The September idling was attributed to ongoing issues with the supply of raw materials and services and the company reported at the time that its goal was to retain the plant in a condition that it could be brought back into production at a future date.

SSI UK, a subsidiary of Thailand-based Sahaviriya Steel Industries, has laid off 1,700 workers at the complex, local news outlets have reported.

Furnaces at the mill were being kept heated while the Thai company and the British government explored options to keep the mill open. Because of debts owed by the steelmaking company to its coal supplier, the furnaces may not stay lit for much longer, according to a Financial Times report. If the coal supply is cut off, the mill’s remaining 500 employees are likely to be laid off and it may prove difficult to resume operations.

SSI UK said in September that its Redcar coke ovens and power station would continue to operate at a reduced level. Production at South Bank Coke Ovens was to be ceased.

SSI has owned the complex since 2011, when it was purchased from India’s Tata Steel, but the idling of the mill on the 1,800-acre complex would end a steelmaking tradition at the site that dates back to the early 20th century.

Cornelius Louwrens, U.K. business director for SSI said in September, “It is with great regret that we have had to make this announcement and we are deeply aware of the concern it will give to our employees and their families.”

 

METALS

NASDAQ launching steel index futures

The NASDAQ Commodities exchange, Stockholm, plans to launch futures contracts for U.S. shredded steel scrap (Midwest U.S. Shredded Steel TSI Index Futures) and iron ore cost and freight China (CFR China 62% Iron Ore TSI Index Futures) in November 2015, followed by U.S. hot-rolled coil and other products in December 2015.

World Steel Exchange Marketing, a marketing partner of NASDAQ, says the combination of its marketing efforts with those of World Steel Dynamics, TSI/Platts and NASDAQ, and support from the industry, should lead to a rapid ramp-up of steel scrap futures trading on NASDAQ. More details can be found at www.worldsteeldynamics.com/pg/survey.

BATTERIES

Battery recycling conference highlights the rise of lithium-ion batteries

The battery recycling sector needs to adjust to increasing volumes of lithium-ion batteries on the market as the number of lithium-ion batteries in use continues to grow, particularly in the fields of electronics and electric mobility.

The topic was discussed in early October 2015 in Montreux, Switzerland, where 200 delegates from the international battery recycling industry gathered at the International Congress for Battery Recycling ICBR 2015. The event was organised by the Swiss company ICM AG, which specialises in recycling industry events.

The two-day congress included presentations from more than 20 industry experts and was complemented by a workshop on the safe transportation of lithium batteries and a tour of Batrec Industrie AG in Wimmis, Switzerland.

Lithium-ion batteries were the focus of many presentations. The high-performance batteries provide energy for a host of mobile electronic devices such as smartphones and digital cameras. Last year, around 1.8 billion mobile telephones, 230 million tablets and 170 million notebooks were sold worldwide and the upward trend appears to be continuing.

According to Christophe Pillot, CEO of the French market research institute Avicenne Energy, between 2010 and 2025, the demand for mobile telephones is forecast to rise, and consequently, demand for lithium-ion batteries is also multiplying. Nevertheless, lead-acid batteries accounted for around 90% of the market share in 2014.

Lithium-ion batteries are likely to be used even more in the future, according to presenters. For the recycling industry, this means getting adjusted to a new mixture of materials going forward. Therefore, several of the ICBR lectures dealt with possible ways of optimising existing recycling processes. In addition, new trends in the recycling of both lithium-ion and alkaline batteries were presented.

 

METALS

American ship dismantler to open Denmark location

A Louisiana-based ship dismantling company has signed a contract to invest in a vessel recycling facility at the port of Frederikshavn, Denmark.

Modern American Recycling Services (M.A.R.S.), Gibson, Louisiana, will open the new European ship dismantling operation by the end of 2017, according to a press release issued by the Port of Frederikshavn agency.

The port agency says the new activities are expected to create 150 to 200 jobs in the Frederikshavn harbor area and that the agreement constitutes an important building block in the harbor’s strategic foundation with respect to an upcoming $8.6 million port extension.

M.A.R.S., with its location on the Gulf of Mexico, has traditionally focused on the recycling of oil platforms and ships, though the company says it recycles ships of all sizes as well as tug boats, barges, platforms and drilling rigs.

The contract in Denmark consists of a lease agreement for land in the harbor area plus a handling agreement concerning the scrap metal generated by ship and platform dismantling activities.

“One of the port’s focus areas is the environment and recovery industry, and for a long time we have been looking for a well-established company with experience within offshore oil and gas to set up operations in Frederikshavn,” says Port of Frederikshavn Managing Director Mikkel Seedorff Sørensen. “This partner has now been found in Modern American Recycling Services.”

 

METALS

Aluminum Association responds to U.S-China joint presidential statement

The Aluminum Association, based in the United States, has issued a statement commending the Joint Presidential Statement by the United States and China that lays out concrete and achievable goals for addressing climate change promptly.

The association says the U.S. aluminum industry has long been part of the solution to address climate change, citing the automotive, construction and packaging industries as three sectors that have relied on the use of aluminum.

The U.S.-China Joint Presidential Statement promises to make these kinds of gains enjoyed in the United States commonplace in China within a short period of time, the Aluminum Association states.

“We welcome China’s commitments to a cleaner manufacturing future, and the use of aluminum will be a meaningful solution to the challenges of global climate change,” says Heidi Brock, president and CEO of the Aluminum Association. “As they work to address climate change, we believe China should commit to setting appropriate standards for aluminum production emissions and coal usage, taking offline production assets that do not meet those standards.”

According to the Aluminum Association, in 2005, China supplied 13% of the world’s aluminum. Today, Chinese producers supply roughly half of this metal, the association says. China’s tax regime also incentivises the export of this excess, carbon-intensive production which has displaced energy-efficient, sustainably produced North American aluminum, the association claims.

 

METALS

LME delays metal delivery volume rule

The London Metal Exchange (LME) has opened a two-week consultation to invite comments on possible anti-abuse provisions that would govern the application of its proposed queue-based rent capping (QBRC) rules. The QBRC rules are part of the LME’s warehouse reform effort that dates back to November 2013.

On 1 July 2015, the LME sought feedback on a proposal to introduce a cap on the rent charged for metal in a queue. It suggested that, from 1 May 2016, warehouses that failed to deliver stored metal within specified periods would be required to discount the rent charged to the affected metal owners. That consultation closed on Aug. 17, 2015.

The LME says it also is aware “that it could be possible for a metal owner to request delivery of a large amount of metal at once, and thus take advantage of QBRC to create load-out queues, which would allow them to benefit from the rent discounts applicable under QBRC.”

To counter this, the LME has proposed an anti-abuse mechanism that would stagger the dates at which the rent caps would come into effect to better reflect established load-out schedules.

The LME says it has considered the results of its July consultation and plans to proceed with the implementation of QBRC along with the increase to the minimum load-out rate for metal stored in LME-approved warehouses proposed in that consultation. However, a final decision will only be taken once the LME has finalized its analysis.

The time required for the new consultation round means the implementation date of Dec. 14, 2015, outlined in the July consultation, should be pushed back to March 1, 2016, says the LME.

“The LME has always highlighted the potential for QBRC to be used by metal owners to achieve free storage at the expense of warehouses. In the feedback to the consultation, a number of respondents felt this was a significant concern, requiring a specific anti-abuse provision,” says Matthew Chamberlain, the LME’s head of business development.

 

CIRCULAR ECONOMY

Ellen MacArthur Foundation partners with Google

The U.K.-based Ellen MacArthur Foundation has announced that U.S.-based Google is its latest Global Partner in accelerating the transition to the circular economy. Google joins the foundation’s five existing Global Partners: Cisco, Kingfisher, Philips, Renault and Unilever.

The foundation says its Global Partners are selected for their leadership positions and work closely with the foundation to identify circular business opportunities. Identified as a technology leader, Google is expected to help build on its existing track record in energy efficiency and resource effectiveness.

 

PLASTICS

Third annual Recoup conference marks the group’s 25th anniversary

The U.K.-based plastics recycling organisation RECOUP (Recycling of Used Plastics Limited) held its third Plastics Recycling Conference and annual general meeting in Peterborough, England, on 23-24 September. The more than 200 guests in attendance represented the plastic, packaging and recycling industries, RECOUP reports. The conference also marked the group’s 25-year anniversary.

The conference was opened by BBC News correspondent and Countryfile reporter Tom Heap, who chaired the leaders’ panel tackling the question of whether plastic is a sustainable resource. Panelists included Richard Kirkman of Veolia, who shared a view of the future highlighting advances in technology, and Sandy Roger of the Ellen MacArthur Foundation, who advocated for an aligned collections model instead of separate requirements for individual councils.

Recoup CEO Stuart Foster outlined the progress and influence of Recoup over the years in advancing the cause of plastic recycling. In his presentation, Foster also said the recycling industry had work to do in terms of forming partnerships.

 

METALS

Alcoa to separate into two companies

Aluminium producer Alcoa has announced that its board of directors has approved a plan to separate into two independent, publicly traded companies, culminating Alcoa’s successful multiyear transformation.

The separation will launch two Fortune 500 companies, according to Aloca: an upstream company that will comprise five business units that today make up Alcoa Global Primary Products, bauxite, alumina, aluminum, casting and energy; and a technology-driven, value-add company including global rolled products, engineered products and transportation and construction solutions.

After the separation, the upstream company will operate under the Alcoa name. The value-add company will be named prior to closing, Alcoa says.

The transaction is expected to be completed in the second half of 2016.

“In the last few years, we have successfully transformed Alcoa to create two strong value engines that are now ready to pursue their own distinctive strategic directions,” says Klaus Kleinfeld, chairman and CEO of Alcoa. “After steering the company through the deep downturn of 2008, we immediately went to work reshaping the portfolio.”

Kleinfeld continues, “Our multimaterial value-add business is a leader in attractive growth markets. We have intensified innovation, made successful acquisitions, shed businesses without product differentiation, invested in smart organic growth, expanded our multimaterials profile and brought key technologies to market, all while significantly increasing profitability.

“Inventing and reinventing has defined our company throughout its 126-year history,” he continues. “With the unanimous support of Alcoa’s board, we now take the next step—launching two leading-edge companies, each with distinct and compelling opportunities, and each ready to seize the future.”

Upon completion of the transaction, Kleinfeld will lead the value-add company as chairman and CEO. He also will serve as chairman of the upstream company for the critical initial phase, ensuring a smooth and effective transition, Alcoa says.

Each company will have its own independent board of directors that will include members of the current Alcoa board. Full management teams and boards for both companies will be named in the months leading up to the launch of the two companies in the second half of 2016.

After the separation, the upstream company’s footprint will include 64 facilities worldwide and approximately 17,000 employees. Its asset base will include one of the world’s largest bauxite mining portfolios, and its alumina refining system will have operations positioned to serve major adjacent growth markets in Asia, the Middle East, and Latin America, according to Alcoa.

Alcoa says it has reshaped its alumina and primary metals segments, closing, divesting or curtailing 33% of total smelting operating capacity since 2007. After the separation, the value-add company will provide multimaterial products and services through 157 locations and approximately 43,000 employees.

 

EVENTS

Chinese association leaders on roster of RISI event

RISI has named several of the speakers who will address its Recycled Fiber Conference, set for 2-4 December 2015, at the JW Marriott Shenzhen in China.

The U.S.-based information provider for the forest products industry says the conference “will focus on the opportunities and challenges that the [Chinese] recovered paper industry has faced under the ‘new Normal’ economic situation,” says RISI. Toward that end, the conference will cover trends within the U.S. recovered paper industry and also will analyze the growing markets in Asia. Confirmed speakers include:

• Guo Yongxin, deputy director of the China Light Industry Information Center and independent supervisor of the China Paper Industry Chamber of Commerce;
• Liu Shousheng, deputy director and secretary-general of the China Packaging Federation Paper Products Committee;
• Tang Yanju, secretary general of the Recovered Paper Branch of the China Resource Recycling Association;
• Bill Moore, president of U.S.-based Moore & Associates;
• Sarah Feng, associate director of RISI China (UMPaper);
• Hannah Zhao, global recovered paper-senior economist of RISI; and
• Marc-Antoine Belthe, head of Recycled Paper Sales for Europe at Veolia Environmental Service and CEO of VP France Recycling.

More information on the conference, including how to register, can be found at http://2015.rcpconference.com/en.

 

PLASTICS

Polymark group releases results on PET marking efforts

The Polymark consortium has published preliminary technical results outlining the development of food-contact-approved chemical markers to mark targeted polyethylene terephthalate (PET) packaging and a detection technology suitable for high speed sorting.

The three-year research project funded by the European Commission brings together stakeholders from the PET value chain with the aim of developing a new technology to identify and sort polymers, including PET, in the high-value plastics waste stream. The new technology is expected to help the recycling industry more effectively distinguish between food-contact and non-food contact PET while meeting the European Union regulation on the use of recycled PET for food-contact applications. The technology can also be used for other purposes, Polymark says.

“After 18 months of work and a good project review with the European Commission in June, we are now pleased to present the first technical results of the Polymark project,” explains Patrick Peuch from Petcore Europe. “Our research partners have successfully developed a complete technology package.”

During the next 18 months, Polymark will focus on scaling up the technology to industrial conditions as well as on communicating the results and benefits to potential users.

The report containing preliminary technical results is available at www.polymark.org and outlines the development of a prototype, coating-based approach for marking PET bottles, detailing the combination of suitable food-contact approved chemical markers and polymeric matrices used, Polymark says.

The Polymark research project is funded by the EC under the European Union Seventh Framework Programme.

 

CIRCULAR ECONOMY

Northern Ireland circular economy could add 13,000 jobs

U.K.-based WRAP, the Waste & Resources Action Programme, has released a report indicating that more than 13,000 jobs could be created if Northern Ireland moved to a circular economy. Produced by the Belfast-based ReNEW network, in conjunction with charity WRAP, the report was launched in late September.

The report, titled “Job Creation in the Circular Economy – Increasing Resource Efficiency in Northern Ireland,” says jobs could be created at various skill levels across Northern Ireland and within a number of sectors, including food and drink, biorefining and the bioeconomy. The role of renewable energy and smart energy grids in enabling development of manufacturing is also a key factor, according to the report.

WRAP says the report aims to encourage wider understanding of the potential of the circular economy for jobs growth, stimulating action such that the circular economy can support the economic aims for Northern Ireland.

The £5 million ReNEW project (Resource innovation Network for European Waste), brings together researchers, public authorities and businesses in North West Europe to explore ways to extract resources such as metal, nutrients and chemicals from households and industrial waste.

Commenting on the report, Environment Minister Mark Durkan says, “Building a circular economy is a win-win for the economy and the environment. It makes sense to keep our natural resources in use for as long as possible through recovery, reuse, repair, remanufacturing and recycling.

“This benefits the environment and can also drive economic growth by unlocking millions of pounds worth of value from materials used in key sectors in Northern Ireland which can drive economic growth. By departing from our traditional economic model of ‘make, use and dispose,’ we will be less vulnerable to dwindling natural resources, and increased price instability and energy costs.”

 

CIRCULAR ECONOMY

European associations offer packaging closed loop recommendations

Brussels-based EUROPEN is one of 29 associations that has announced a set of joint recommendations for the new Circular Economy proposals expected from the European Commission by the end of 2015. EUROPEN says the coalition represents a range of sectors including consumer goods, packaging producers, material producers and extended producer responsibility (EPR) organisations.

The 29 organisations have called for a long-term strategic EU framework that facilitates what they call “sustainable resource use from a full life cycle perspective [and] incentivises economies of scale” at all levels.

“In order for the forthcoming EU proposals to benefit the environment as well as European competitiveness, jobs and growth, we need a holistic approach that recognises the positive role of packaging in optimising resource use, minimising product waste and protecting products all along the many and varied value chains that are concerned,” says Martin Reynolds, chairman of EUROPEN. “We call on the EU to ensure that a full life cycle approach to packaging and the internal market principle is firmly embedded in future EU measures, as it is today in the Packaging and Packaging Waste Directive, the cornerstone of EU law for our sector,” adds Reynolds.

The joint industry recommendations announced by the associations call on the EU to ensure that the Circular Economy package:

• safeguards the free movement of packaging and packaged goods in the EU Internal Market;
• ensures the full implementation and enforcement of existing EU laws;
• strengthens the EU legal framework for Extended Producer Responsibility (EPR) for used packaging;
• establishes a solid, comparable and harmonised calculation method for packaging recycling rates;
• sets realistic and achievable packaging recycling targets based on known baselines; and
• diverts packaging from landfill.

“The packaging supply chain has achieved considerable progress in resource efficiency, including recycling and recovery over the past 20 years, supported by the holistic approach enshrined in current EU legislation,” says Virginia Janssens, managing director of EUROPEN.

 

METALS

September steel production drops by almost 4 percent

Figures released in October 2015 by the World Steel Association (Worldsteel) indicate that world crude steel production for the 66 countries reporting to worldsteel was 131 million tonnes in September 2015, a 3.7% decrease compared with September 2014.

The crude steel capacity utilisation ratio for the 66 countries in September 2015 was 69.3%, which is 4.0 percentage points lower than September 2014. Compared with August 2015, it is 1.3 percentage points higher.

In the first nine months of 2015, Asia produced 828.9 million tonnes of crude steel, a decrease of 2% over the first three quarters of 2014. The EU produced 127.5 million tonnes of crude steel during the first nine months of 2015, slightly down by 0.3% compared with the same period from 2014.

North America’s crude steel production in the first nine months of 2015 was 85.1 million tonnes, a decrease of 6.8% compared with the first three quarters of 2014. The Commonwealth of Independent States (CIS) produced 75.9 million tonnes of crude steel in the first nine months of 2015, a decrease of 5.8%.

Turkey’s crude steel production for September 2015 was 2.5 million tonnes, down by 14.1% on September 2014. China’s crude steel production for the month was 66.1 million tonnes, down by 3.0%.

 

EVENTS

BAUMA ConExpo Africa attracts 14,300 people

BAUMA ConExpo Africa, which took place from 15-18 September 2015 at the Johannesburg Expo Centre, drew more than 14,300 visitors from 75 countries, say the event’s organisers.

The event, which was billed as an International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles, drew predominantly South Africans, although 13% of the visitors came from outside that nation. The African countries sending the most attendees beside the host country were Zambia, Zimbabwe, Namibia, Mozambique and Botswana.

“We have achieved our goal of welcoming more and higher quality visitors from the sub-Saharan region,” says Stefan Rummel, managing director of Germany-based Messe München, one of the lead organizers of the event. “BAUMA ConExpo Africa has now without doubt established itself as a platform for the industry that brings together African and international companies.”

Says Megan Tanel, vice president for exhibitions at the U.S.-based Association of Equipment Manufacturers (AEM), adds, “Africa continues to be an important market for our North American equipment manufacturers. BAUMA ConExpo Africa is the event to not only enter into the market but also to engage with existing customers.”

A total of 616 exhibitors from 42 countries exhibited at the event, using 68,000 square metres (730,000 square feet) of exhibition space. The top 10 exhibiting countries were South Africa, China, Germany, Italy, the United Kingdom, India, the U.S., France, Turkey and Spain.

METALS

LME lines up support for new steel and scrap contracts

The London Metal Exchange (LME) has announced the appointment of four new members to its Steel Committee as it prepares to launch two steel industry-related contracts in November 2015—one for ferrous scrap and the other for steel rebar.

The new Steel Committee board members are William Schmiedel, Sims Group Global Trade Corporation, an affiliate of Sims Metal Management; Spencer Johnson, INTL FCStone; Phillip Killicoat, Goldman Sachs Commodities; and Gianpiero Repole, Liberty Commodities. The LME also has appointed industry veteran Christian Schirmeister as a senior consultant in its Product Development team.

“We are pleased to welcome these new members to the committee,” says Matthew Chamberlain, the LME’s head of business development.

 

PLASTICS

Ioniqa Technologies of the Netherlands plans new PET recycling plant

Ioniqa Technologies BV and venture capital firm Chemelot Ventures BV, both of the Netherlands, have finalized €2.5 million ($2.8 million) in financing for Ioniqa’s new commercial-scale polyethylene terephthalate (PET) recycling process. The chemicals company says its process removes coloring from PET and allows for conversion into raw materials.

“Chemelot Ventures’ contribution is a major milestone in the financing of Ioniqa’s upscaling to industrial level and building a (mini) plant,” says Tonnis Hooghoudt, Ioniqa Technologies CEO. “With our game-changing chemical recycling process we are able to contribute to the circular economy by converting coloured postconsumer PET into pure and clear raw materials for ‘virgin’ PET.