The metals market hasn’t had it easy in recent times, but is it possible to be profitable in the face of continually difficult trading conditions? That was the question put to Marcus Brew, managing director of UNTHA UK in a recent article for Recycling and Waste World. If you missed the feature, you can read it in full, here…
There can be no disputing the fact that, in recent months, the metals market headlines have often made for tough reading. The UK steel industry is in turmoil, waste crime is prevalent in the sector and commodity prices have been far from buoyant, at a time when other recyclates such as cardboard have been thriving.
In a recent online poll, we therefore asked: ‘Do you think it’s still possible to make money in the metals industry, in the current depressed market?’ The findings were decidedly mixed, reinforcing the air of uncertainty and perhaps frustration in the face of difficult trading conditions. 44% of respondents said that yes, they do still think it’s possible to make money, whilst the exact same proportion of participants claimed that it isn’t feasible. 12% didn’t have the answer, choosing to select the ‘not sure’ option.
Innovation drives change
Yet, let’s look beyond simply the negativity. Metals recycling is a £5.6bn industry in the UK, employing over 8,000 people. Its processing of ferrous and non-ferrous scrap is crucial to one of the oldest ‘circular’ concepts known to man – the smelting of old metals to produce new. It is a long-standing and important ‘operation’, at the heart of the British economy.
However, it is an industry, like many strands of business, with varying levels of sophistication. Some operators have continued to embrace ever-smarter sorting, grading, separation and size reduction technologies to maximise the effectiveness of their recycling lines. Others ‘like what they know’ and have been resistant to change. Traditional shear equipment has been utilised to cut metals down, because the perceived high-wear nature of the application would make alternative methodologies too expensive.
In a number of instances there has therefore been no new thinking regarding how to improve upon the basic mechanical breakdown of metals using big, cumbersome pieces of kit.
But margins have been squeezed in this sector for some time, and whilst the temptation is to sit tight and wait for change, this often perpetuates the problem, especially if conditions don’t pick up. That’s why, approximately two years ago, the changing state of the metals market prompted us to investigate new ways to boost clients’ profitability through engineering innovation.
Our pledge was to find a way to heighten metal recycling efficiencies, sophistication and revenue yield for operators of all sizes.
A focus on metal quality
The focus was metal recyclate quality. Of course, well-segregated, clean metals are much easier to process and sell on. But, if metals are contaminated, or ‘locked’ within other more complex material streams, their value is practically lost. On a simple level, this describes something as basic as aluminium cans contaminated with organic matter that has been placed inside by a consumer. But it also summarises the challenges associated with handling uPVC windows or end-of-life vehicles, for example – multifaceted products from which it is difficult to extract all metal content. A similar problem is often experienced in MRFs and alternative fuel production plants too. Overband magnets exist to extract metals from the lines for maximum waste hierarchy compliance. But up to 50% of the material can be contaminated with substances like plastic film, which renders the metal worthless. In fact, in recent times, operators have had to pay a fee to dispose of the metals, rather than being able to generate any revenue stream whatsoever, from the scrap.
Maximising recovery and revenue levels
The solution is to shred the contaminated metals with a high torque, slow speed and low wear shredder which liberates the materials and maximises the volume of clean ferrous and non-ferrous scrap that can be truly recovered from the process for resale.
A four shaft machine with screen is the perfect solution to regulate the particle homogeneity and robustness of the shred, before the material is sent via a discharge conveyor and through two density separators for further segregation.
Whilst investment is of course needed in such a process, this new thinking proves that it is still possible to make money in the depressed metals market, and, a return on that investment could be achieved in as little as 18 months.
Wider contamination considerations
It must be noted that the problem of contamination doesn’t solely exist among metals recyclers and operators handling this material stream/arising. Contamination levels have risen across the board in England, with a recent BBC Freedom of Information report revealing an 84% increase in the amount of household waste that has been rejected for recycling, for example. Whilst education and awareness issues will undoubtedly play a part in these statistics, the findings support the overall point that, although recycling is on the up, quality remains a significant issue.
This goes some way to explaining the launch of The Recycling Association’s new Quality First campaign – a fresh initiative to improve recyclate quality and boost market security for the materials we produce. The integrity of the waste hierarchy risks being jeopardised if a focus on quantity is to the detriment of quality.
A long way to go, but a positive journey ahead
Of course there is a long way to go in the world of metals recycling, with Brexit, export conditions and even the classification of scrap metal all likely to play a part in its future. For example, if, under the end-of-waste regulations, clean, high quality metal could be considered, quite simply, as a ‘secondary raw material’, rather than waste, there would be much greater potential to partner with organisations in countries such as Indonesia and Egypt. But call it a waste and costly hurdles may remain.
As a waste system manufacturer we’re therefore not professing to be able to solve everything. But we can empower operators to heighten the quality of the metal recyclates they produce, and the revenues they can yield as a result.