December 02, 2008

Steel scarp recycling in US holds strong despite low inventories

US based Steel Recycling Institute has announced that the recycling rate for globally most recycled material steel is 68.7%. This means more than 72 million tons of US domestic steel scrap was charged into furnaces, both in the United States and abroad to make new steel products.

As worldwide production of steel has continued to escalate, so too has the global demand for quality steel scrap. This increased demand has had some notable consequences. Prices for steel scrap remain significantly above the historical average price and as a result, inventories of steel scrap across America are at their lowest levels since World War II.

Mr Bill Heenan president of the Steel Recycling Institute said “As price goes up due to domestic and international demand for scrap, the collection effort increases in the local communities such that scrap peddlers go further and further out from the metro areas to gather scrap. This intensive effort has drawn down scrap reserves that typically accumulate during periods of lower scrap demand.”

One thing that will help meet this need for increased supply is that an increasing number of cities, including New York, Portland, and Seattle, are expanding their curbside programs to include light ferrous materials, such as toaster ovens, clothes hangers, and irons. The Steel Recycling Institute, through its regional operations staff, will continue to work with communities to increase the volume of steel being recycled and diverted from landfills.

Mr Heenan added that “We are actively working with recycling coordinators to educate them about the benefits of additional sources of steel scrap in their recycling programs. At the same time, we are increasing public and institutional education efforts to maximize the volume of steel that they are recycling so it gets back to the mills where it is needed.”

Mr Heenan said that “Steel continues to be recycled at a volume higher than all other recyclables combined, and the steel can still holds the distinction of being food’s and beverage’s most recycled container. As we continue to work with recycling coordinators to increase the flow of steel scrap to meet the demands of the scrap hungry steel furnaces, the steel industry will continue to benefit from the environmental benefits of recycling steel scrap.”