Steel output continues to waver - Recycling Today

2022-08-20 01:23:48 By : Mr. Helly Yuan

Latest weekly U.S. figure shows a small decline from previous week and 6 percent drop from one year ago.

The Washington-based American Iron and Steel Institute (AISI) says in the week ending July 16, 2022, steel production in the United States checked in at 1.74 million tons at a capability utilization (mill capacity) rate of 78.9 percent.

The weekly figure is down 0.6 percent from the previous week ending July 9, 2022, when production was 1.75 million tons and the rate of capability utilization was 79.3 percent.

One year ago, in the week ending July 16, 2021, output was 1.86 million tons, representing a 6.7 percent decrease year on year. The mill capacity rate one year ago was 84.4 percent.

Year-to-date steel production in the U.S. through July 16, 2022, stands at 49.35 million tons, which is down 2.5 percent from the 50.62 million tons made during the same period last year.

The mill capacity rate year to date, at 80.4 percent, is not greatly changed from last year’s 80.1 percent rate through July 16, 2021.

The stagnant steel situation in the U.S. will not help the price of ferrous scrap, which already is suffering from a lack of export market demand. Pricing service Argus has calculated the No. 1 busheling grade as having a $480 per ton national average price in the early July buying period. That means its value dropped a whopping $150 per ton, or nearly 24 percent, in just 30 days.

J&B Recycling's most recent upgrade further improved quality and increased capacity.

Altshausen, Germany-based Stadler designed and built a dry mixed recyclables sorting plant in Hartlepool, United Kingdom, for J&B Recycling in 2008 and has since supported the company in a continuous improvement of the plant.

“We continually improve the plant, and our focus is producing the best quality material possible,” says Matt Tyrie, operations director at J&B Recycling.

The composition and density of the material stream are evolving constantly. “Over the years, the amount of cardboard has significantly increased,” says Benjamin Eule, director at Stadler UK Ltd. “Sorting plants are receiving bigger volumes of packaging generated by the growth of online shopping and deliveries. Another change that is having an impact is the switch to different printing techniques in magazines, which makes it more difficult to separate the ink from the fiber. Plastic packaging is also changing, with multilayers, and bottles with different types of sleeves resulting in detection becoming more challenging. Metals have also evolved since we first designed the plant in 2008, with a shift from aluminum to ferrous metal in drinks packaging, and the increasing volumes of coffee capsules which contain aluminum.”

For this reason, sorting plants must be able to process multiple materials flexibly while delivering the consistently high purity rates demanded by the recycling industry, Stadler says. The plants’ designs also need the flexibility to accommodate subsequent upgrades and modifications to meet the changing requirements.

Eule says, “The J&B Recycling plant was originally designed to process 12 [metric tons per] hour, with Stadler trommel screens, conveyors and ballistic separator taking care of the mechanical presorting, preparing the material flow for effective downstream processing. Conveyors make sure that the material is sent efficiently to the next sorting process and bunker storage conveyors hold the product before being baled.”

In 2017, J&B Recycling and Stadler worked together on a concept to remove paper and aluminum, adding a Tomra Autosort optical sorter and an eddy current separator.

Since then, six additional upgrades have further optimized the plant to meet evolving market demands. The latest upgrade, completed in March, aimed to achieve even higher paper purity and to increase capacity to 15 metric tons per hour.

“We installed a further optical sorter, the latest Autosort sorter, to remove film, plastic bottles and cardboard from the PAMS (newspapers, periodicals and magazines) fraction to achieve a 95 percent purity paper,” Eule says. “We recirculate the materials we removed into the plant to be reprocessed into their respective streams, increasing the recovery of the plant.”

“The upgrade has hit the targets we outlined, that is improve quality, reduce labor costs and increase throughput,” says Matt Tyrie, operations manager at J&B Recycling. “We have increased the quality of our hard mix grade by adding a laser object detection (LOD) system to the Autosort optical sorter to remove more nonfiber contamination. This technology allows each shift to run with reduced labor, and it has allowed the throughput to increase, as the quality of the hard mix was a bottleneck on the plant.

“In all the years we have worked with Stadler, the quality of their product and their ability to hit deadlines on the install stand out,” Tyrie adds. “We really appreciate the excellent planning of the projects and their ability to turn ideas and drawings into reality.”

A dosing drum feeds the material, which goes through a presort platform for the manual removal of old corrugated containers (OCC) and large film. A Stadler screening drum separates the remaining material into three fractions: fines, midsize and oversize.

The oversize materials, measuring more than 170 millimeters, or 7 inches, go through a quality control cabin and an Autosort to remove mixed paper, cardboard and plastics and produce a PAMS fraction.

The midsize fraction, smaller than 17 millimeters, or 7 inches, is separated into fines, 2D and 3D fractions by the Stadler STT2000 ballistic separator. The 2D flat fraction is processed through eddy current separators and Autosort optical sorter before a final quality control check to produce two streams: mixed paper and metals. The 3D rolling fractions follow a similar process, which begins with and overband magnet, to produce mixed plastic, high-density polyethylene and polyethylene terephthalate fractions. Fines are being processed to remove contaminants to create a glass product. All the output fractions, with the exception of glass, are baled and sold, according to Stalder.

Thailand-based SCG Packaging will expand its footprint in the European paper, board and plastics recycling sector.

SCG Packaging Public Co. Ltd., Bangkok, has completed the acquisition of Peute Recycling B.V., an international paper and plastic packaging materials recycling company based in Dordrecht, the Netherlands, for 78.19 million euros, or $79.7 million. This purchase is through SCGP Solutions Pte. Ltd., a wholly owned subsidiary of SCGP. Peute’s financial performance will be consolidated from July 2022 onward.   

According to a news release, the transaction will enable SCG to expand into the rapidly growing international packaging material recycling business. It also will assist in SCG’s long-term strategic direction to strengthen all levels of the packaging business from raw material sources, upstream and downstream production through to the integrated packaging solutions.   

SCG says the global surge of sustainability awareness and demand for recycled content have been expanding significantly and continuously. The prominent packaging materials recycling and sourcing capabilities from this transaction will allow SCG to fulfill the emerging demand for recycled materials, which are driven by changes in customers' and consumers’ behavior. The ability to directly access the sources of recovered paper also will provide SCG the opportunity to enhance the efficiency of recycling operations in the Association of Southeast Asian Nations by adopting the practices of the advanced waste management model in Europe.   

Peute says it can competitively source 1 million tons of recovered paper (RCP) and 100,000 tons of recovered plastics at its facility in Dordrecht annually. It also has an ongoing project to relocate the facility to Alblasserdam, Netherlands, to double the sourcing capacity and improve cost efficiency.   

In 2021, the company recorded revenue of 249 million euros ($254 million), a profit of 3.2 million euros ($3.26 million) with assets of 52 million euros ($53 million) at the end of the year.  

As SCG has been expanding its diversified and integrated packaging business, the key strategic raw material for the fiber packaging operation is RCP. At present, SCG uses 4.4 million tons of RCP annually and expects to increase its use with the expansion of packaging paper capacity going forward. The expansion will create competitiveness for SCG in terms of RCP sourcing networks through owned recycling stations, direct collection from primary sources and local suppliers and diversified import sources from the USA, Europe, Japan and Oceania.   

Currently, SCG operates more than 50 facilities across Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the United Kingdom and Spain. SCG is listed on the Stock Exchange of Thailand and has a current market capitalization of approximately $6.3 billion.    

The acquisition of the subsidiary would equal 1.4 percent of total assets stated in SCG consolidated financial statements as of Mar. 31, and when combined with those in the past six months before the date of this transaction, the total size is 2 percent. Thus, investment disclosure is not required under the disclosure rule for the acquisition and disposition of assets. This transaction is not a connected transaction.  

The company says the acquisition expands its footprint and adds trucks and containers to its fleet.

DTG Recycle, Mill Creek, Washington, has announced the acquisition of Cascade Recycling's assets for an undisclosed price. Cascade Recycling provides and services recycling containers and operates a recycling facility in the Puget Sound region in Washington. 

This is the eighth acquisition in eight months for DTG, which says the purchase expands its footprint in the south Puget Sound. With facilities located throughout the Puget Sound region, DTG Recycle serves its customers while minimizing its carbon footprint.   

The purchase also significantly adds to DTG Recycle’s hauling capacity with an addition of more than 950 containers and a large trucking fleet.  

DTG Recycle welcomes the addition of Cascade Recycling employees. DTG Recycle says it offers DTG University, DTG commercial driver's license school and other benefits that provide security and growth opportunities to its employees.

The Shred1 Ballistic Separator from Eriez has demonstrated its ability to offer ROI quickly and in many ways.

After several years on the market, the Shred1 Ballistic Separator from Eriez has demonstrated its ability to offer return on investment (ROI) quickly and in numerous ways.

The foremost ROI factor is the Shred1’s ability to create an upgraded ferrous shred product with a low enough copper content to fetch a $40-per-ton premium, according to a white paper by Eriez Market Manager-Recycling Mike Shattuck.

In a market that in the last several years has seen prime grades (busheling and other factory scrap) sell for $100 per ton or more than shredded scrap, closing the quality and price gap is in the best interest of auto shredding plant operators. This is especially so if they wish to sell shred to mills that produce sheet steel or otherwise have stricter chemistry requirements.

The Shred1 works its magic after being “positioned after the primary scrap drums, placed just before a picking station,” Shattuck writes. “A unique magnetic element at the end of the separator attracts the more magnetic pieces of steel and drops them behind a splitter,” he adds.

The pieces directed behind the splitter—typically about 75 percent of the ferrous shred—is the low-copper stream that can be marketed as No. 1 Shred, Shattuck says. “This material is conveyed to the stacking conveyor with no further action required,” he adds. (Additional low-copper scrap from the other 25 percent fraction can be added to the No. 1 Shred via an Eriez polishing drum.)

The deployment of the Shred1 at an existing shredder yard “allows shredder yards to provide a more desirable scrap to steel mills seeking a low-copper scrap,” Shattuck writes. “These steel mills gain a competitive cost advantage by using less pig iron/DRI (direct reduced iron) and prime scrap, and more low-cost, low-copper shredded scrap in electric arc furnace (EAF) sheet steelmaking.”

Eriez, which operates a sophisticated test center of its own in Pennsylvania, has tested some 1,000 tons of shredded material under a Gamma Tech bulk analyzer to verify the Shred1 difference in quality.

The average copper content of tested post-Shred1 material was below 0.2 percent. That compares with a significantly higher percentage found in a “control” group obtained from multiple shredder yards. The higher value Shred1 fraction was harvested before any hand pickers were involved, yielding another form of ROI.

By installing a Shred1 Ballistic Separator scrap yards can provide premium low-copper shred to steel mills, fetching up to $40 per ton more, while reducing labor costs. That, concludes Shattuck, is the magic of the Shred1.

The complete Eriez “Producing Low Copper Shred for Steel Mills” white paper can be viewed at www.eriez.com/LowCopper-SteelMills.