Nashville, Tennessee
The Institute of Scrap Recycling Industries (ISRI) Convention held last week underlined two key matters vital to the worldwide scrap industry: how recycling is faring in China and attempts to refine shipping regulations.
Attendance records were broken at this year’s conference located in Nashville, Tennessee. Over 6,600 participants congregated to take part in what was deemed to be ISRI’s largest gathering yet.
At its annual event, this year held at the Music City Center from April 17 to April 20, ISRI highlighted its core principle of emphasizing the global trade of recycled metals and other materials. This was seen through several conversations between on-stage panelists.
More Stringent Regulations
Discussing how the recycling of non-ferrous metals has changed over time, on April 19th, a forum titled “The Current State of Recycling in China,” delved into what stricter regulations on imported non-ferrous materials would indicate for this sector.
On November 1st, 2020, China rolled out updated policies regarding the handling of certain recycled metals, a move that was noted by Robin Cai, managing director of Asia for U.S.-based Alter Metal Recycling. The ramifications have been far-reaching and felt by metal recyclers around the world.
“Our industry has experienced some unprecedented difficulties,” Cai stated on stage. “The brand new standards established are far harder to reach than the ISRI [specifications].”
Another session introduced Carl Bentzel, commissioner of the Federal Maritime Commission. He presented information about a report released last week which proposes measures designed to boost data transparency, and also alert shippers when there are changes within the ocean freight supply chain.
Due to challenges posed by COVID-19, communication between cargo carriers and material shippers had become notably strained. This new report suggests a range of solutions that endeavor to restore collaboration and alleviate residual communication problems.
At the ISRI Convention, Bentzel argued that shippers must be able to keep track of “where their cargo is at all times and when [they] can get it out of the terminal going forward.”
An Internal View of China
During the session on recycling of non-ferrous metals in China, Cai from Alter Metals was joined by Zhang Lin, deputy secretary general for the China Nonferrous Metals Industry Association Recycling Metal Branch. Different from ferrous metals, non-ferrous metals do not contain iron and usually include aluminum, copper and brass which are widely recycled globally.
Though various policies have been put in place by the Chinese government to regulate imported material for recycling, it appears that demand persists. This is evidenced by a marked increase in the production of processed material from recycling companies across the country, suggesting that China’s metal recyclers still require a steady flow of feedstock.
Lin stated that in 2022, China’s output of non-ferrous metals recycling had surged to 16.55 million metric tons, an impressive 5.3% year-over-year growth rate. This significant increase in production marks a trend that has occurred for more than ten years. In 2012, for example, the sector was producing 10.39 million metric tons.
A Period of “Restorative Growth”
Noting a trend of “restorative growth”, it appears that China’s import of non-ferrous recycled materials is on the rise. Specifically, in 2022, Lin stated that the country imported 1.77 million metric tons of copper and brass, a jump of almost 900k metric tons from just two years earlier in 2020.
For comparison, in 2012, China imported a significant 4.86 million metric tons of recycled copper and brass. However, the total began to dwindle significantly starting in 2018.
“China hopes to deepen its cooperation with countries around the world,” Lin explained, through the assistance of a translator.
According to Cai, the Chinese government’s new metal standards necessitate higher costs for processors in the U.S. and other foreign countries, in order to meet purity levels, a task that has become even more difficult due to constricted labor markets over recent years.
In her observation, India and other nations are also striving to enhance their potential to process goods that have been recycled by customers, and supply these items to manufacturers.
“Recycled metals are a global commodity,” she explained. “They will go to the most efficient market.”
Difficulty at Sea
At the Federal Maritime Commission meeting on April 18th, Bentzel brought attention to the difficulties that material shippers encountered during the most severe period of the pandemic.
He declared that in normal circumstances, a ship journeying between Asia and America would convey approximately eight shipments annually. However, during late 2020 into 2021 due to complications such as delays and lack of containers, these vessels only managed to transport between one or two shipments over a 12-month span.
The economic damage from the chaos was estimated to be trillions of dollars, with consequences that are still being seen today, Bentzel said.
“We have inflation in large part because we were having challenges with the movement of cargo,” he stated.
With the shipping industry thrown into disarray, the Federal Maritime Commission set out to determine which elements had caused the various backups and bottlenecks. As part of its investigation, various meetings with global stakeholders were held during the first half of 2022 to determine what had caused these interruptions.
He was left in awe of the conversations he had witnessed, “What I saw was stunning,” Bentzel commented.
Citizens Permitted to Weigh-In on Data
Bentzel’s newly released 65-page report which resulted from his study, calls for the introduction of a comprehensive Maritime Data Transportation System that would help to revolutionize ocean shipping by increasing the availability of real-time data on vessels in voyage, and make essential information about cargo more easily accessible. This initiative proposes greater transparency in the maritime industry, allowing for improved efficiency in general.
Going forward, members of the public will be invited to provide feedback on both the report and its proposed solutions.
Acknowledging the strain on those tasked with shipping recycled materials, Bentzel highlighted the challenges recycling firms faced during the pandemic. With a high demand for transport and vessel space, carriers had no other option than to prioritize certain materials over others, leaving recycling stakeholders and anyone else with cargo in limbo.
“Usually, bigger guys do better and that’s competition,” Bentzel commented.
“But I know your market and I know how it functions. I think it’s really important to maximize these resources and put them back into commerce. … Scrap metal and resource products don’t always get the same attention as agricultural products and others of higher value. I will continue to be vigilant for ISRI’s members.”
