ALUMINUM CAN MAKERS REPORT RECYCLING STATS
Reynolds Metals Co., Richmond, Va., and Alcan, Montreal – two of the largest aluminum can producers in the world – recently reported their used beverage can recycling figures for 1996. Reynolds reportedly recycled 584 million pounds of consumer-generated aluminum during 1996, an increase of more than 7 percent compared to its 1995 collection total of 544 million pounds.
The total included more than 11 billion UBCs that came primarily through Reynolds’ Recycling division.
Alcan claims it recycled more than 550 million pounds or about 17 billion UBCs at its plants in the United States in 1996 – an increase of 12 percent over the record level the company set in 1995. In fact, the company estimates it recycled nearly 30 percent of all the aluminum cans recycled by Americans last year.
In addition to its U.S. recycling operations, Alcan’s aluminum can collection system in Canada processed more than 2 billion cans in 1996, or 60 percent of the aluminum cans recycled by Canadians last year.
Also included in Reynolds’ 1996 total were almost 228 million pounds of non-can aluminum scrap. Alcan recycled more than 100 million pounds of non-can scrap aluminum in 1996, as well.
Consumers were paid more than $175 million for recycling with Reynolds during 1996. The economic value of the cans recycled by Alcan in 1996 topped $300 million. Overall, the aluminum industry paid out more than $1 billion to UBC recyclers in 1996.
As for the entire industry, figures just received at press time show that the industry-wide recycling rate for UBCs in the United States rose slightly to 63.5 percent in 1996, up 1.3 percent from 62.2 percent in 1995. That rate has remained stagnant, hovering around the low to mid 60s since 1990.
ALUMINUM SCRAP USE UP 17 PRECENT IN JANUARY
Aluminum scrap consumption in the United States during January was 734 million pounds, up 17.2 percent over January 1996. Metallic recovery from this amount of scrap was 639 million pounds. Compared with the previous month, recovery of aluminum scrap rose 12.9 percent.
ANALYST PREDICTS COPPER SURPLUS
The brass mill market has enjoyed a number of good years in the U.S., and strong market conditions are likely to continue due to the strength of the domestic automotive, electronics, housing and coinage industries, according to David Lang, vice president of purchasing and metals management for Olin Brass, East Alton, Ill. Speaking at the Institute of Scrap Recycling Industries’ annual convention in Las Vegas in March, Lang added that strong potential demand from Southeast Asia, and especially China, adds to this rosy prediction.
But copper scrap prices will not enjoy such favorable conditions, as all the new mine capacity coming on line over the next few years may lead to a supply surplus and depressed prices, said Robert Lesemann, consultant for Resource Strategies, Exton, Pa.
He predicted that as a result of the new capacity, prices will average around $1.10 to $1.15 per pound in the first half of 1997, but that by the end of the year they will slip below $1.00 a pound. The annual average would be $1.08, according to Lesemann. As surpluses mount in 1998 and 1999, he said, prices will probably fall into the mid-70 cent per pound range.
"There is simply too much new mine capacity being developed," said Lesemann. "Thus, we must anticipate a severe price depression ahead. However, the timing of that depression is far less certain."
Stronger demand in the West or in China, a drop in Russian exports, a strike or other production disruption could "easily change the forecast from surplus to deficit and with stocks as low as they are now, we could see one more price explosion before the party is over," said Lesemann.
INMETCO TO INCREASE NI-CAD RECYCLING EFFORTS
INMETCO, Ellwood City, Pa., plans to spend $3.7 million on increasing its ability to recycle nickel-cadmium batteries, according to John Liotta, the company’s national account manager, as he addressed delegates at Metal Bulletin’s Minor Metals Seminar in Miami recently.
INMETCO began recycling spent nickel-cadmium batteries – the first to do so in the United States – in December 1995, and has invested $5 million to install four furnaces. The facility has enough space for 16 furnaces.
Last year, INMETCO processed 3,000 metric tons of spent batteries, which will increase to 3,600 metric tons this year with the expansion. Even with the increase in capacity, the company will still only be handling about 10 percent to 15 percent of the nickel cadmium batteries made in the U.S. Some spent batteries are imported from Europe.
Battery recycling organizations estimate that by 2002, half of all nickel cadmium batteries made in the U.S. will be recycled.
LEAD GOES FLAT, ZINC IS READY TO RUN
According to the speakers at the lead and zinc commodity focus session titled "Better Prospects In 1997?" held during the Institute of Scrap Recycling Industries’ March convention in Las Vegas, the market for lead is down, but the market for zinc seems to be poised for an upswing.
"Zinc has been an underachiever in prices," said Larry Parkinson, vice president and general manager of Interamerican Zinc Inc., Adrian, Mich. "It has been at around 46 to 47 cents a pound, mainly due to too much supply in the market. Now, LME stocks have been reduced by about two-thirds and zinc is trending up at about 57 cents a pound – its highest price since September 1992."
The zinc market fundamentals are positive right now, according to Patricia Foley, vice president of international mining and metals for HSBC James Chapel, New York. "Zinc is ready to run," she proclaimed, pointing to already rising prices.
Foley said zinc usage was up 16 percent from 1992 to 1996, partly due to the increase in the use of zinc for galvanizing steel, most notably in the construction and automotive sectors. As for the expected upsurge in steel-framed housing units, Foley warned that growth might take time. "Let’s just call that segment a ‘residential bonus’ when it takes off," she said.
Saying the zinc market bears resemblance to the copper market of the 1980s, Foley predicted that zinc prices will peak at 55 cents this year, rise to 60 cents a pound in 1998, 63 cents a pound in 1999, and then fall back into the 55 to 60 cent-a-pound range.
In addition, Foley pointed to rapid growth in countries that are industrializing as a positive sign for a continued strong zinc market. The two biggest downsides in the zinc market in the next few years could be demand tanking in Europe and China deciding to export, said Foley.
As for lead, the domestic market for the metal is sound but flat, as world demand for the commodity fell short last year, according to Bud DeSart, director of metals and raw materials for GNB Inc., Atlanta. "The price of lead is currently at just more than 28 cents a pound, which is low," he said.
Brian Mciver, vice president of marketing for NOVA Pb Inc., Quebec, Canada, said that lead prices recently went from $100 a ton to $20 to $30 a ton. "They dropped like a lead brick," he quipped. Mciver said that because of uneven supply and demand cycles, lead scrap prices will most likely see higher peaks and lower valleys in the future.
Battery recycling will remain strong, according to Mciver, as all the U.S. battery manufacturers now have dedicated recycling facilities for their products.
SPECIAL EARTH DAY COLLECTION NETS 110 TONS OF USED BEVERAGE CANSAnnaco Inc., which claims to be the largest recycler of scrap metal in the Akron, Ohio, area, has recently completed its special collection of aluminum used beverage cans in honor of Earth Week 1997. The yearly ritual, which has become a big hit in the Akron area, was started in 1990. Back then, only 20 tons of cans were collected and processed during a one-day event. This year, the company netted 110 tons of UBCs during a five-day event. The collection occured April 21 through 26 during Earth Week.
Part of the lure for consumers is that Annaco pays a premium price for the cans during the Earth Week celebration.
In all, about 7 million cans were processed into 218 bales by Annaco’s two-ram baler from Lindemann Recycling Equipment, Charlotte, N.C. Last year Annaco processed 132 tons, or about 8 million UBCs, that were made into 240 bales. A spokesman for Annaco says that other collection programs in the area prevented a record turnout this year.