BIR Leads Waste Fight

A BIR legal fund and the help of renowned British lawyers are the weapons the BIR uses in its efforts to prevent recyclables from being classified as waste.

The spring convention of the Bureau of International Recycling, held in Amsterdam in late May, attracted a record 750 delegates, 40 of whom hailed from the U.S.

There was one common complaint – due to the restrictions by the Basel Convention, the Green, Amber and Red lists set by the Organization for Economic Cooperation and Development and the European Union Regulation 259/93 – trade in recyclables from OECD to non-OECD countries is getting more difficult.

All of these regulations have been instituted to prevent developed countries from dumping hazardous waste on less-developed countries, but the unintended consequence has been to include recyclables in the broadly-defined category of "hazardous waste" (see related story in the June, 1995 issue of Recycling Today).

But that is going to change, if members of BIR have their way. The newly-elected president of BIR, Britain’s Tony Bird, is raising money for a Legal Fighting Fund. In a speech to the General Assembly, Bird pointed out why this fund was needed so badly.

"The greatest problem, and the one above all others in my view, is the classification of our industry within the waste sector and the classification of our products as waste," said Bird. "The world recycling industry employs over 1 million people in 53 countries – using $500 billion worth of equipment, processing plants and machinery – to carry out the industrial processes of recovery of metals and materials, which its members supply to the steel industry, the foundries, the paper mills and the plastic, textile and glass consumers across the world. The value of raw materials recovered, processed and delivered to consumers now exceeds 175 billion U.S. dollars annually."

COURT JUSTICE

Bird said he finds it impossible to comprehend authorities are classifying such an important industry in the waste sector. "The word ‘waste,’ when it is applied to our products, is a misnomer," he said.

Of course, BIR cannot achieve the removal of recycling from the definition of waste by itself, Bird said. "We need the help of our members, friends and customers – which includes manufacturers of steel, non-ferrous, glass, paper, plastic and textiles. We want to cover all these commodities. The waste legislation has an impact on all of these, although for metals the situation is very serious."

BIR is prepared to challenge the definition of waste in the courts, starting in Europe, according to Bird. If the definition of waste can be changed to exclude recyclables in Europe, BIR will then go to court in other parts of the world with the same objective.

BIR AMBASSADORS

Bird succeeds Jean Pierre Lehoux of France, who served as president of BIR for four years. Bird, joint managing director of UK’s Bird Group and deputy chairman of Sims-Bird joint venture, is the fourth British BIR president.

In his speech, Bird announced the appointment of eight ambassadors. He acknowledged many important meetings and events in the world,

especially on the issue of environmental legislation, where BIR should be represented by its president.

"With this in mind, I intend to create jobs to be filled by people who are leaders of industry in their own right, who are members of BIR and wish to promote freedom to trade in materials on a worldwide basis and create satisfactory conditions for business on the international front," said Bird. "I am going to select and appoint in eight important regions of the world, eight BIR ambassadors, each of whom will represent BIR's president with the international and government authorities on industrial and technical matters which are of importance to BIR members in the region in which that person has influence."

Bird stressed it is not his intention to interfere with any National Federation. BIR ambassadors should join forces with home federations and politically deal only with BIR’s supra-national matters.

ENVIRONMENT COMMITTEE

In the meeting of BIR’s Environment Committee, the dangers and problems for the world’s recycling industries was the main topic of discussion.

The threat of a major disruption – or even termination – of world trade in some recyclables was debated at length. The problem arises from the general classification of recyclables as "wastes"’ – modified under European Union and OECD definitions to "wastes for recovery" as opposed to "wastes for final disposal." Movements of recyclables from OECD-countries (which includes all EU member states) to non-OECD countries (virtually all developing nations) face serious difficulties from restrictive measures.

Metals-exporting countries in the European Union suffer from the control procedures under the OECD green, amber and red lists which classify materials based on how "hazardous" they are deemed, from green (non-hazardous) to amber (somewhat hazardous) to red (hazardous).

The focal point of BIR’s concern, however, is the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, which is designed to prevent the export of dangerous waste from the industrialized nations for dumping in developing countries. While supporting the measure, BIR warns that confusion between recyclables and useless wastes will lead to disruptions in long-established trade in these essential feedstocks. Some non-OECD governments have even called for a total ban on all imports of "waste," regardless of whether it might be classified as "hazardous," or are implying severe red list-control procedures to recyclables.

The U.S. will not feel the same effects from the Basel Convention as the EU member states, as the U.S. has not ratified this treaty. As Herschel Cutler, executive director of the Institute of Scrap Recycling Industries, Washington, pointed out during the ISRI March convention in Las Vegas, "The Basel Convention was initially a good idea. But there have been so many amendments and changes that the U.S. recycling industry could not back it up at the moment. So chances that we will ratify are slim."

European legislators are taking the threat to the international recycling trade even further. In April the European Commission announced a proposal for a ban on all exports of "hazardous waste" – although there is still no clear definition of what constitutes "hazardous waste." This proposal would be introduced by January 1998, echoing a similar decision already taken by the parties to the Basel Convention.

FERROUS

Speakers giving reports of their region at the ferrous meeting pointed to world financial markets as the biggest influence on ferrous scrap prices and scrap demand. The weak dollar has led to more exports from the U.S., causing a fall of the prices in Europe.

Raymond George of Belgium, president of the European Ferrous Recycling Industry, noted reported total steel production in the European Union increased to 165 million metric tons. Scrap consumption increased by 10 percent in most countries. Total shipments from Europe totalled 64 million metric tons in 1994, of which 55 million metric tons went to national consumers and 9 million metric tons was exported.

Because of the growth in EU steel production and the installation of electric arc furnace capacity, George predicted higher scrap demand for 1995. John Crabb of Simsmetal, Australia, reported that currency relationships were more important in Southeast Asia than traditional supply/demand considerations.

Thanks to the strong yen, Japanese consumers have imported greater quantities lately. Estimates show Japan will import as much as 800,000 tons of scrap the first half year of the current financial year, five times higher than last year.

On the demand side, the Korean steel industry is growing strong, probably resulting in higher scrap imports in 1995. Thailand has fallen away from the market, due to many steel mills operating at 20 to 30 percent of capacity. "Thus, scrap imports for 1995 could be as low as half a million tons," Crabb remarked.

Ed Hollander of the U.S. reported signs of a weakening scrap market in the U.S., although he expects growth to continue at a smaller pace assuming no interest rate rises. "The slowdown is evident in the automotive industry, the appliances sector and new housing," Hollander pointed out.

Hollander noted the operating rate at U.S. mills remains high at about 92.5 percent in May and 94 percent from January through April. Much of this output is for exports of steel products boosted by the weak dollar.

Apart from long products, now also flat rolled products are exported, in March a total of 1.2 million metric tons. Hollander continued: "On the other hand, imports of steel products into the U.S. remain strong. Through March 1995, imports totalled 7.7 million metric tons, about 10 percent higher than in the first quarter of 1994.

NONFERROUS

Chairman Robert Voss of Eurometrec, the European Metal Recycling Federation, regretted to say that "secondary nonferrous traders are learning to live with the Basel Convention and learning to live with its limitations." He urged BIR to keep fighting the waste definitions set by the supra-national legislators and support Bird’s legal fighting fund.

The market report on the North American situation was given by Robert Stein of Louis Padnos Iron & Metal, Holland, Mich. "The non-ferrous industry has seen good business, but I believe the economic outlook is not as good as it was six months ago," Stein noted. Secondary grade aluminum is substantially lower, with lower ingot price and scrap demand unlikely to improve, he said. The used beverage can market has reversed itself and now there are more than ample supplies, despite the fact that summer has just begun.

Demand for No. 2 copper scrap is strong. Brass mill scrap is in good demand, but rod mill turnings have been exported in significant volume. Stein noted interest in shredder material from Taiwan and China. Eberhard Kerscher from Germany said business in Europe was good. "Copper scrap is selling very well. Casting plants are buying copper. Brass turnings and heavy brass is all bid for at LME prices."

The Pacific Rim report came from John Crabb of Simsmetal. He pointed to the demise of Japan as the predominant importer of non-ferrous materials, the emergence of China and the influence of the Basel Convention. Korea has benefited from the pressure on the Japanese market. The economy there, said Crabb, remains buoyant with a growing auto industry. In Korea demand for copper remains strong.

STAINLESS STEEL