A Brighter Outlook

As the spring convention season drew to a close at the end of May, optimism appeared to be growing among recyclers, particularly those who addressed attendees of the 2010 Bureau of International Recycling (BIR) World Recycling Convention & Exhibition, which took place May 31-June 2 at the Swissôtel The Bosphorus, Istanbul.

That optimism appeared to be shared by many speakers at WasteExpo, a conference organized by Penton Media. The event took place in Atlanta at the Georgia World Congress Center, May 3-6.

LOOKING UP

BIR drew approximately 1,600 attendees from 69 countries to Istanbul for its World Recycling Conventions, making it one of the largest gatherings in the group’s history, according to its organizers.

During the general assembly session at the World Recycling Convention, Dominique Maguin of La Compagnie des Matières Premières, Paris, noted that recyclers offer “the perfect response to growing global awareness of the need for environmental protection.”

Maguin, BIR president, added that the recycling industry had become “completely indispensable to the life of our planet” but had not always realized the importance of its mission. “We must, therefore, ensure that our contribution is understood by the international community so that it can gauge our importance and, in return, respect the interests of our companies,” he said.

In his keynote address during the general assembly, Hamish McRae, associate editor and principal economic commentator for the U.K.’s The Independent, praised the recycling industry for “enabling growth to go on without increasing the footprint on the world’s resources.” As the business world increasingly recognized the value of developing a “green” reputation, this would bring “a huge benefit to your industry,” he said.

Professor Philippe Chalmin with the French research firm CyclOpe presented the findings of the first global BIR commodity survey and emphasized the importance of the shift away from annual benchmark pricing in the iron ore sector. He also expressed concern the global market’s reliance on the Chinese market.

ROOM FOR IMPROVEMENT

The meeting of the BIR’s International Trade Council (ITC), held during the conference, focused on ways the industry could promote the free trade.

The ITC’s key success was stopping a South African ban on aluminum scrap exports.

Attendees expressed concerns about the growing interest in access to raw materials, adding that the European Union (EU) and the OECD (Organization of Economic Cooperation and Development) were carrying out studies on this subject which, some feared, could eventually hinder the free movement of recyclables, according to Voss.

The implementation of Notice 21 in China, which is designed to eliminate under-declaration of consignment values by demanding individual packaging of each item contained in a mixed load, was also cause for concern among attendees. According to David Chiao, Uni-All Group, BIR ambassador to China, there had been indications that Chinese authorities would regard zorba (defined by the Institute of Scrap Recycling Industries Inc. (ISRI) as shredded nonferrous scrap, predominantly aluminum) as a single item so long as the proportion of other materials did not exceed 2 percent by weight. For mixed loads of one type of aluminum, a detailed analysis of the contents appeared likely to be required.

Chiao also explained that China’s AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine) registration renewal process for overseas suppliers would begin July 1 for those suppliers whose licenses were scheduled to expire Dec. 31, 2010. Certification to ISO 9001, RIOS (Recycling Industry Operating Standard) or an equivalent quality-assurance standard would be required for first-time applicants for an AQSIQ license, he said.

BIR’s Ambassador to the Indian Sub-Continent Ikbal Nathani of the Nathani Group of Cos., based in Mumbai, India, highlighted the key role recycling industry representatives played in convincing the Indian government to overturn its classification of ferrous and nonferrous scrap as “hazardous.” He urged government officials to resolve the duplication of paperwork demanded of India’s scrap importers.

IN THE DRIVER’S SEAT

When it comes to global markets for recovered fiber, the economic downturn caused some short-term turmoil, but 18 months after the sharp downturn, demand for recovered fiber is relatively healthy.

At a session focused on paper recycling at WasteExpo, which took place at the Georgia World Congress Center in downtown Atlanta May 3-6, industry consultant Bill Moore of Moore & Associates, Atlanta, remarked that in just 30 years—from 1980 to 2010—the world went from consuming 50 million tons of scrap paper annually to 210 million tons.

A major component of that change was the rapid development of the paper industry in China. “When you boil it down by country, it’s China,” Moore says of the growth trend in recent years.

A forecast co-authored by Moore predicts that by 2014, China will import 35 million tons of scrap paper.

China’s demand should continue to keep OCC (old corrugated containers) in the $130 to $140 per ton range in 2010 and 2011, Moore predicted. He described the old newspapers (ONP) grade as “a supply-constraint grade,” and said ONP may remain at above $100 per ton because of lackluster supply.

Moore said, “China’s recovery rate is fairly high, but so much of what they make is put into boxes and exported” that even with its high recycling rate, it still needs to import material. Moore added that he does not see China becoming self-sufficient in sourcing recovered paper in the next 10 or even 20 years.

Vic Gaylor of Caraustar Industries, Austell, Ga., gave the perspective from a North American company that operates seven paper mills that consume recovered fiber and eight paper recycling plants.

Gaylor said China is “improving toward self-sufficient supply” and offered the example of Japan, which imported a great deal of scrap paper before eventually becoming a net exporter.

He also said that even though the U.S. has doubled its scrap paper exports from more than 10 million tons in 2002 to more than 20 million tons in 2009, “the domestic market remains the major consumer of U.S. recovered fiber.”

GAINING STEAM

A decade worth of changes and advancement in the realm of C&D recycling were discussed by panelists at a session at the 2010 WasteExpo.

Moderator Ben Harvey of E.L. Harvey & Sons, Westborough, Mass., said that in 10 years’ time, the mentality of many solid waste authorities and business owners had moved from “citing a landfill” to “looking at the recycling opportunities” when it came to C&D materials.

Tony Colosimo, CEO of Phoenix Recycling, Des Moines, Iowa, provided an example of the fast-changing pace of C&D recycling. “The things we’re doing now weren’t even possible 24 months ago,” Colosimo said of the automated sorting and end markets in the C&D recycling sector.

CHECKING THE SCHEDULE

The 2011 WasteExpo will be held in Dallas at the Dallas Convention Center from May 9-11, while the next BIR event will be the 2010 Autumn Round Table Sessions in Brussels, Oct. 24-16. More information can be found at the group’s respective Web sites, www.wasteexpo.com and www.bir.org.