ISRI and the American Metals Recycling Industry

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1 ISRI and the American Metals Recycling Industry MRAI s 2 nd International Indian Metal Recycling Conference Mumbai, India February 5 6, 2015 Robin Wiener Doug Kramer President, ISRI President, Kramer Metals, Inc. and Chair of ISRI

2 Overview ISRI Who we Are Who we represent (snapshot of the US based Recycling Industry) Role of ISRI as Interface between the Trade & Governments U.S. Domestic & Global Market Trends Opportunities Going Forward About Kramer Metals, Inc. 2

3 ISRI: Voice of the Recycling Industry 1,600+ Member companies 7,000+ Recycling facilities worldwide 34 Countries 3

4 Institute of Scrap Recycling Industries Ferrous & non-ferrous metals Paper Plastics Glass Rubber Textiles Electronics 4

5 Snapshot: Recycling Industry in the US $90 Billion Industry 138, ,000 Direct Employees Induced 135,000,000 Tons processed annually 75 million tons ferrous 5.4 million tons aluminum 2 million tons copper 46 million tons paper 5

6 Snapshot: Recycling Industry in the US Part of the Global Industry 42.8 $24B Total exported (million metric tons) Value of materials exported 160 Destination countries to which recyclables were sold With between 30 & 40% of all scrap processed in US destined for export each year, the health of the US recycling industry is directly tied to the health of the global economy 6

7 Institute of Scrap Recycling Industries Role of ISRI is to help our members operate better, safer, cleaner and more profitable companies. Represent industry interests before the U.S. Congress, White House, in State Capitals, and with international bodies around the world Provide networking and professional development programs for the industry Provide assistance to members companies to help them operate in safe and environmentally responsible manner & comply with government regulations Developed & maintain RIOS, only integrated QEH&S certification program developed by the industry, for the industry Provide market analysis resources, incl. ISRI s globally accepted Scrap Specifications Circular to promote the trade of scrap Raise awareness & educate the public about the vital role recycling plays in the economy, global trade, the environment & sustainable development 7

8 Highlights: Worker Safety Ensuring the safety of our employees, and all those who enter a scrap yard is ISRI s number one priority Outreach Services Training Resources National Safety Stand-Down Day Circle of Safety Excellence Working with OSHA to develop alliance to promote safety in the industry While much progress has been made in the US, and globally, over the last 10 years we still have a long way to go. 8

9 Highlights: Advocacy 2 important concepts Scrap Waste Recycling Disposal ISRI is aggressively working within the U.S. and globally on this issue Just last month U.S. EPA reaffirmed the commodity-like nature of scrap metal, but industry still impacted by confusion on all levels of government At same time, working with federal & state governmental authorities as part of the solution to the global problem of metals theft (including container theft) that impacts operations & reputations of recyclers In the US, patchwork of laws with inconsistent requirements Problem result of combination of limited enforcement, bad players, bad legislation, and theft ISRI working to bring law enforcement and the recycling industry together 9

10 Highlights: Promoting International Trade ISRI actively involved in discussions with the OECD, WTO, Basel, & with our trading partners Our goal: free & fair trade of recyclables Why? Frequent attempts at non-tariff trade barriers, in addition to outright export restrictions popping up all over the world. Can come in the form of licensing, inspection, tariffs, outright bans, & more EU South Africa Throughout Asia (including China, India, & Indonesia) Good News:WTO Environmental Goods Agreement (EGA) Goal is to liberalize trade in environmental goods through reduction/elimination of import & export tariffs for any item on designated list ISRI lobbying USTR & trade representatives to expand EGA list to include up to 80 scrap commodities & recycling equipment unique to the industry 10

11 Highlights: Tackling the Industry s Image Start with children our next generation of lawmakers, journalists, business people, etc Providing Recycling curriculum to schools 25 Lesson Plans Teaches life cycle of commodities how a car can be recycled and become a bridge how recovered fiber is made into new cardboard boxes how tires are recycled into road insulation, crash barriers & rubberized asphalt used to make highways safer & quieter. Opportunity to work positively with governments and give back to communities where recyclers are located As government budgets become more restricted, they welcome these resources from the industry 11

12 Thank you and Please join us for the 2015 ISRI Convention to be held April 21-25, 2015 in Vancouver, Canada!! For more information, please visit: Contact: 12

13 ISRI and the American Metals Recycling Industry MRAI s 2 nd International Indian Metal Recycling Conference Mumbai, India February 5 6, 2015 Robin Wiener Doug Kramer President, ISRI President, Kramer Metals, Inc. and Chair of ISRI

14 Overview ISRI Who We Are Who We Represent (snapshot of the US based Recycling Industry) Role of ISRI as Interface between the Trade & Governments U.S. Domestic & Global Market Trends Opportunities Going Forward About Kramer Metals, Inc. 14

15 U.S. Ferrous Scrap Industry Steel is the most recycled material both in the United States and worldwide. In the United States alone, 77 million metric tons of ferrous scrap was processed by the scrap recycling industry last year, making ferrous scrap the largest scrap commodity processed by volume in the U.S. Obsolete ferrous scrap is recovered from automobiles, steel structures, household appliances, railroad tracks, ships, farm equipment and other sources. In addition, prompt scrap, which is generated from industrial and manufacturing sources, accounts for approximately half of the U.S. ferrous scrap supply. Both obsolete and prompt scrap are processed by the scrap recycling industry into commodity grade material that is used to produce more than 60 percent of total raw steel produced in the United States, predominantly at electric arc furnaces In 15

16 U.S. Nonferrous Scrap Industry In terms of volume, nonferrous scrap including copper, brass, aluminum, lead, zinc and tin scrap together make up a relatively small percentage of the total quantity of material processed in the United States. But given the high per-unit value of nonferrous scrap, ISRI estimates that by value nonferrous metal scrap including precious metal scrap accounts for more than half of total U.S. scrap recycling industry earnings. More than nine million metric tons of nonferrous scrap was processed in the United States last year from a wide array of consumer, commercial and industrial sources: everything from copper and precious metal circuitry in electronic devices, to soft-drink containers, automobile batteries and radiators, aluminum siding, airplane parts and more. Nonferrous scrap is then consumed by secondary smelters, refiners, ingot makers, fabricators, foundries and other industrial consumers in the United States and in approximately 90 t i ld id 16

17 Domestic Scrap Industry Trends Heightened competition for available feedstock domestically. Margin compression. Uneven manufacturing growth. Excess domestic scrap processing capacity. Logistical challenges across the transportation front. Constantly shifting regulatory landscape. But scrap industry remains innovative and resilient. 17

18 Global Scrap Industry Trends Scrap in a global market and U.S. is key scrap exporter. But weaker overseas demand generally and from China in particular. Excess global production across a range of commodity markets. Dollar and commodity price volatility. Transportation headaches. Need for free and fair trade. 18

19 Overseas Demand for U.S. Ferrous Scrap 19

20 Overseas Demand for U.S. Copper Scrap 20

21 Opportunities Ahead Despite the challenges facing our industry, opportunities exist, including: Opportunity to improve safety. Expanding range of commercially recyclable commodities. Rising quality demands at home and abroad leave U.S. scrap processors wellpositioned. Opportunities to develop new overseas markets and expand US-India trade flows. Certifications on the rise. Confluence of demographic, environmental and market changes that should bode well for the health of the industry in the long term. 21

22 About Kramer Metals, Inc. Kramer Metals, Inc. was founded in the late 1930 s and has been serving Southern California industry for over 75 years, specializing in providing industrial scrap metal management and recycling services. Kramer Metals was founded by Morton Kramer, built by the second generation, Stanley and Howard Kramer, and now by Doug and Lewis Kramer, the third generation owners of Kramer Metals, Inc., which is located in the heart of the City of Los Angeles. Joseph Levin & Sons Established in 1892, Joseph Levin & Sons is the oldest continuously operating ferrous scrap processing operation in Los Angeles serving industrial generators of ferrous scrap and other scrap metal companies. Heavy Burning Co. Established in 1994, Heavy Burning Co. specializes in complex cutting torch and burning bar cutting of wrought and cast steel, large steel structural products and cast iron. The company has the capability of cutting material up to six (6) feet in thickness. Spectrum Alloys, Inc. is Southern California's premiere processor of alloys and specialty metal scrap. Founded in 1983, Spectrum Alloys, Inc. has been serving Southern California industry and other scrap metal firms for over 30 years. We specialize in servicing the aircraft, aerospace and defense industries, refineries and chemical plants as well as any industrial generator of specialty alloy scrap metal and other scrap metal dealers. 22

23 Kramer Metals, Inc. offers complete industrial scrap metal collection recycling services. Services include: Complete industrial scrap metal collection services to aircraft companies, refineries, machine shops, manufacturing facilities and demolition job sites. Recycling Consulting Services. Demolition. Toll processing for the scrap metal industry. Analytical & Metallurgical Services. Metal Brokerage. Trans-loading. Equipment Fabrication. Plant clean-up services. Inventory Liquidation's. Electronic Waste Recovery and Recycling. Certified Destruction & Demilitarization. Heavy Duty Towing & Wrecking. Specialized and Heavy Haul Transportation. Appliance Recycling. 23

24 Thank you and Please join us for the 2015 ISRI Convention to be held April 21-25, 2015 in Vancouver, Canada!! For more information, please visit: 24