1. ISRI Update on the Copper Scrap Market
World Trade Organization
Environmental Goods Negotiation
The Critical Role of Recycled Commodities
and Recycling Equipment in the
Global Economy
Thursday, September 25, 2014
13:00-15:00
Eric Harris
Associate Counsel & Director of Government and International Affairs
Institute of Scrap Recycling Industries, Inc.
3. Recycling Industry Supports
• Reducing tariffs on recycled commodities and
recycling equipment as environmental goods
• The listings already on the APEC 54 list
• Scrap paper HS 4707
• Shredders and parts HS 847989
• A separate and stand-alone category for recycling
4. • Recycling companies face a range of overseas
import tariffs as high as 35%
• There are no (zero) general duties on such imports
into key markets, including the U.S.
• Numerous benefits in reducing tarrifs...
• Promote trade, economic growth, create jobs,
and result in significant environmental benefits
7. Industry employs over 100,000
in U.S. and has been creating
“green jobs” for decades.
Many ISRI members have been
in business for 3 generations or
more
Over 100 years of recycling experience
8. Evolution of an Industry
Innovative, competitive and capital-intensive.
A wide range of capital equipment including high-tech
shredders, shears and balers as well as the optical scanners,
X-rays and air jets that are used to separate recycled
materials.
2013
Volume of Scrap Material Processed Annually
in the U.S. (metric tons)
Iron and Steel 77,000,000
Paper 45,450,000
Aluminum 5,350,000
Copper 2,000,000
Lead 1,100,000
Zinc 240,000
Plastics (bottles) 515,000 (2012)
Electronics 4,400,000 (2011)
Tires (# of tires) 110,000,000
9. Economic and Trade Benefits
of Recycling
Joseph Pickard
Chief Economist & Director of Commodities
Institute of Scrap Recycling Industries, Inc.
10. 2013 U.S. Scrap Exports
42.8 $24B 160
Total exported
(million metric tons)
Value of materials
exported
Number of destinations
exported to
+130,000,000
Tons processed annually
$87BIndustry in U.S.
12. Life Cycle Example: Turning Cars Into Bridges
Old Cars Can Become a New Bridge
The steel in cars can be recycled and used to build other items, like bridges:
• Recycling one car saves more than 2,500 lbs. or iron ore, 1,400 lbs. of coal and 120 lbs.
of limestone
• Steel is the most recycled material in the United States. On average, the U.S. processes
enough ferrous scrap daily, by weight, to build 25 Eiffel Towers every day of the year.
• Recycling steel requires 60% less energy than producing steel from iron ore.
• By using ferrous scrap rather than virgin materials in the production of iron and steel,
carbon dioxide emissions are reduced by 58%.
Sources: JASON Learning/ISRI
13. What Are the Economic Benefits of Recycling?
Recognized as one of the world’s first green
industries, the scrap recycling industry creates
and supports jobs while also having a positive
impact on the environment. In 2013, the
independent economic consulting firm of John
Dunham and Associates performed an economic
impact analysis to document the size and scope
of the scrap recycling industry in the United
States and document its significant
contribution to the U.S. economy in
terms of employment, tax generation
and overall economic benefit.
The study found that the people and firms that
purchase, process and broker recycled materials to be
manufactured into new products in America support
462,940 good paying jobs in the United States
and generate more than $87 billion annually in
economic activity. According to the Dunham study,
U.S. scrap processors and brokers directly employed
nearly 138,000 people in 2013 and indirectly supported
nearly 325,000 jobs. These workers earned $26.8
billion in wages and benefits, while the
industry paid $10.3 billion in direct federal,
state and local taxes, excluding state and local
sales taxes.
15. U.S. Exported Nearly 43 Million Tons of Recycled
Commodities to 160 Countries Last Year
2013
Value of Scrap Commodities Exported: $23.7 billion
Metric Tons of Scrap Exported Including: 42.8 million
Iron and Steel (ex-Stainless and Alloys) 17.3 million
Paper 19.0 million
Aluminum 1.9 million
Plastic 1.9 million
Nickel, Stainless and Alloy 1.2 million
Copper 1.2 million
Lead 35,000
Zinc 88,000
Number of Destinations Scrap was Exported To: 160
China $8.8 billion
Canada $2.0 billion
Turkey $1.9 billion
Korea $1.6 billion
Taiwan $1.4 billion
Germany $1.2 billion
Mexico $840 million
United Kingdom $840 million
India $772 million
16. Globalized Marketplace: Ferrous Example
Ferrous scrap
exports from
the United
States alone
surged from
less than 5
million metric
tons in 2000 to
more than 22
million metric
tons in 2011.
17. Global Recycled Commodity Export Values
UN’s Comtrade Database in 2012:
• $48 Billion for Iron and Steel Scrap
• $24.4 Billion for Copper Scrap
• $23.7 Billion for Precious Metal Scrap
• $12.4 Billion for Aluminum Scrap
• $11.7 Billion for Stainless and Alloy Steel Scrap
• $10.2 Billion for Reocvered Paper and Fiber
• $7 Billion for Plastic Scrap
• $497 Million for Scrap Rubber and Tires
18.
19. U.S. Recycling Equipment Export Revenues 15%
U.S. exports of
recycling
equipment
totaled $435
million in 2011
as export sales
20. Environmental Benefits of Recycling
Ross Bartley
Environmental & Technical Director
Bureau of International Recycling (BIR)
34. Environmental Benefits of Recycling
In addition to generating significant economic benefits,
the scrap recycling industry is a pivotal player in
environmental protection, resource
conservation and sustainable development.
The industry recycled more than 130 million metric tons of
materials in 2013, transforming outdated or obsolete
scrap into useful raw materials needed to produce a range
of new products. In so doing, scrap recycling:
• Reduces the need to mine for new ore, cut down
more trees and otherwise deplete our natural
resources.
• Produces significant energy savings as compared to
using virgin materials, thereby reducing greenhouse
gas emissions.
• Reduces the amount of material being sent to
landfills, saving the land for better uses.
While market forces provide the incentives to recycle and
consume scrap material, scrap recycling offers real
sustainable solutions for balancing economic growth and
environmental stewardship.
Not only does recycling conserve our limited
natural resources, it also reduces greenhouse
gas emissions by significantly saving the amount
of energy needed to manufacture the products that we
buy, build and use every day. The energy saved by recycling
may then be used for other purposes, such as heating our
homes and powering our automobiles.
Did you know?
Energy saved using recycled materials is
up to:
92% for aluminum 90% for copper
87% for plastic 68% for paper
56% for steel 34% for glass
35. Benchmark Energy Use Data
(expressed as TJ)
Material Primary Secondary Savings
Aluminium 4700 240 4460
Copper 1690 630 1060
Ferrous 1400 1170 230
Lead 1000 13 987
Nickel 8330 186 8144
Tin 1440 20 1420
Zinc 2900 1800 1100
Paper 3520 1880 1640
36. Benchmark CO2 Data
(expressed as ktCO2)
Material Primary Secondary Savings
Aluminium 383 29 354
Copper 125 44 81
Ferrous 167 70 97
Lead 163 2 161
Nickel 833 22 811
Tin 165 3 162
Zinc 236 56 180
Paper 170 140 30
41. ENVIRONMENTAL IMPACT
BY COMPACTING AND DENSIFYING COMMODITIES
FOR TRANSPORTATION THE INDUSTRY REDUCES FUEL
CONSUMPTION BY 25-50% RESULTING IN A
SIGNIFICANT CARBON FOOTPRINT REDUCTION
42. BALER: TRADE CODE 8457
COMPACTION AND REDUCTION OF FERROUS SCRAP,
PAPER, AND PLASTICS FOR TRANSPORT TO PROCESSOR
44. ENVIRONMENTAL IMPACT
LIKE THE PREVIOUS CATEGORY BY COMPACTING
AND DENSIFYING COMMODITIES FOR
TRANSPORTATION THE INDUSTRY REDUCES FUEL
CONSUMPTION BY 25-50% RESULTING IN A
SIGNIFICANT CARBON FOOTPRINT REDUCTION
FOR LOWER VALUE COMMODITIES, THE REDUCED
TRANSPORTATION IMPACT IS THE ECONOMIC DRIVER
THAT SPURS RECYCLING OF SUCH COMMODITIES
45. POWDERIZERS AND REFINER MILLS
TRADE CODE 846711
REDUCTION OF NON METALLIC COMMODITIES TO
SMALLER PARTICLES FOR END USE APPLICATIONS
EXAMPLES
47. ENVIRONMENTAL IMPACT
BY REDUCING SCRAP TIRES THE INDUSTRY
CONVERTS A PREVIOUSLY LANDFILLED MATERIAL
INTO A SAFE, LOW MAINTENANCE, ARTIFICAL
SPORTS FIELD MATERIAL REQUIRING NO
WATERING AND NO MOWING
HIGHER VALUE USES FOR THE TIRES WHEN FINELY
GRANULATED ARE FOR USE IN ASPHALT PAVING
APPLICATIONS RESULTING IN ROAD SURFACES
THAT PROVIDE LONGER SERVICE AND REDUCED
SOUND LEVELS
48. CRUSHER- GRINDERS
TRADE CODE 847982
COVERS A BROAD ARRAY OF SINGLE AND MULTI-SHAFT
GRINDERS PROCESSING ALL COMMODITY GROUPS
50. ENVIRONMENTAL IMPACT
THE MACHINERY IN THIS CODE IS WIDELY APPLIED TO
RECYCLE MATERIALS THAT HAD PREVIOUSLY BEEN
DEEMED “NON RECYCLABLE”
MATERIALS SUCH AS OLD CARPETS ARE CONVERTED
TO FUEL OR INTO THEIR ORIGINAL COMPOUNDS,
WHILE OTHER MIXED WASTE MATERIALS ARE
CONVERTED INTO ALTERNATIVE FUELS
51. CONVEYORS
TRADE CODE 842839
COVERS A WIDE VARIETY OF MATERIAL
HANDLING DEVICES INCLUDING BELT
CONVEYORS, VIBRATING CONVEYORS,
AND ELEVATING CONVEYORS
56. ENVIRONMENTAL IMPACT
REPLACEMENT PARTS FOR THE MACHINERY
PREVIOUSLY DISCUSSED ARE THE LIFE BLOOD OF
THE OPERATORS AND REPRESENT ONE OF THEIR
LARGEST REPETITIVE EXPENSES TO KEEP THEIR
RECYCLING AND ENVIRONMENTAL MACHINERY
IN SAFE AND EFFICIENT WORKING ORDER
60. EGA Meeting at the World Trade Organization
September 25, 2014
61. Caterpillar Inc.
• World’s leading manufacturing of construction and mining
equipment, diesel and natural gas engines, industrial gas
turbines and diesel-electric locomotives
• Serving customers in more than 180 countries with more
than 300 products
• $16.6 billion total exports worldwide in 2013
62. Caterpillar Supports Free Trade
• Free Trade
Agreements are a
positive force for
change
• Caterpillar supports
the Trade Facilitation
agreement through
the WTO
• 13 million American
and European jobs
rely on transatlantic
trade and
investment
63. Caterpillar’s Sustainability Vision
• Fulfill all people’s basic needs
and improve quality of the
environment
• Enable economic growth
through infrastructure and
energy development
• Provide products, services
and solutions that make
productive and efficient use
of resources
• Improve sustainability
performance with innovation
and technology
64. Commitment to Sustainability
• Over 25 percent reduction in
energy use intensity in
manufacturing operations since
2006
• World leader in industrial
remanufacturing with over 170
million pounds processed
annually
• Dealer and customer
sustainability initiatives
• SA Recycling power
installation and emissions
reduction with Quinn
67. Wheel Loaders (WL)
• 30+ models
• Sourced from the U.S.,
India, Belgium, Brazil,
China, and the UK
• Applications
• Material handling
• Stockpiling, sorting, and
separating
• Cleaning
Trade Code
842890:
Material Handler
68. Skid Steer Loaders (SSL)
• Seven models
• Sourced from the U.S.
• Applications
• Material handling
• Stockpiling, sorting, and
separating
• Cleaning
Trade Code
842890:
Material Handler
69. Mobile Cranes
• Eight models
• Sourced from Ireland, France,
and the U.S.
• Applications
• Material handling
• Unloading and loading
• Stockpiling, sorting, and
separating
Trade Code
870510:
Mobile cranes and
electric material handlers
70. Shears
• Six models
• Sourced from the
Netherlands
• Applications
• Shearing
• Material handling
• Material processing
Trade Code
820330:
Metal cutting shears,
cable cutters
71. Grapples
• Four types, 10+ models
• Sourced from the
Netherlands and the U.S.
• Applications
• Material handling
• Unloading and loading
• Stockpiling, sorting, and
separating
Trade Code
843141:
Grapples
72. Cat Equipment in Solid
Waste Management
• 30+ machine models
• Sourced globally at 20+
locations
• Applications
• Material handling
• Unloading and loading
• Compacting
• Stockpiling, sorting,
and separating
• Cleaning
Multiple Trade
Codes
73. Conclusion
• Four HTS Codes for
scrap/recycling industry
• 50+ Caterpillar equipment
models
• Sourced globally
• Varying applications
• Economic growth in an
environmentally sustainable way
74. Thank you!
Eric Harris, ISRI
EricHarris@ISRI.org
Joseph Pickard, ISRI
JosephPickard@ISRI.org
Ross Bartley, BIR
BIR@BIR.org
Mike Hinsey, Granutech-Saturn Systems
mhinsey@granutech.com
Patrick Van den Broek, Caterpillar
Van_den_broek_Patrick@cat.com
