Beijing on a clear day.

We have all seen the pictures of the urban smog in many cities in China. In fact, the country is home to 20 of the world’s 30 most polluted cities. Key among the factors involved is that coal produces 70% of China’s energy. The country burns nearly half of the world’s supply.

And it’s not just the air that is of concern. It has been estimated that 90% of China’s urban groundwater is contaminated. Over one third of the fish species native to the Yellow River are now extinct and millions of people in rural areas rely on unsafe water supplies.

The Green Fence

In a well-reported speech last month to a conference of delegates at the Boao Forum, the President of China, Xi Jinping, said that China “needs to balance industrial development with green, sustainable development.”  This means that more emphasis would be placed on low carbon industries such as recycling.

Often criticized for a lack of environmental standards and compliance, the Chinese government has, earlier in the year, begun a crackdown on low quality imports from overseas. They called this The Green Fence.

Every Fence Has Two Sides

On our side of The Green Fence, these initiatives in the Chinese market are generally seen as encouraging. But they have created a ripple effect into world markets. We are often asked by our customers if most of our material is being shipped to China for processing and resale. The answer is no. It used to be the case that low value commodities in particular were containerized and shipped overseas for processing, but now the combination of awareness and controls both inside our country and externally have drastically reduced these types of export shipments.

In fact, a number of customers in our industrial base have insisted we see to it that the scrap metal we purchase from them is not exported. And this is not an uncommon request in our industry these days.

On the Chinese side, since the Green Fence has been erected, stepped-up inspections have resulted in fines, jail terms, seized containers and hold-ups at busy ports. Shippers are looking at other markets as alternatives as the costs and business implications pile up due to a lack of clarity and issues surrounding the uniformity of enforcement. But this is to be expected as the global market adjusts to these substantial changes in Chinese policy.

Paradoxically, Many Barriers In China Are Breaking Down

Like the butterfly, China is emerging from its cocoon, to slowly but surely become a major free market power.

The Green Fence is largely being driven by a single major factor. The emerging middle class which has evolved as a direct result of the economic growth in China.

Urban, well-educated and relatively well-off, they represent the most important consumer force in China’s future industrialization and development. They are seen to be well represented in and the influential driving force behind a number of cultural, industrial and economic changes in China regarding, among other things, working and environmental conditions, product quality and foreign trade. As suggested by Arthur Mol in an article on China’s middle class, their purchasing power reflects the Chinese goal of economic development through consumer spending.

Of course some adjustments are necessary to absorb the changes, but we can feel encouraged by these developments. China is a truly remarkable country and one of amazing contrasts. And while change has generally happened slowly in China, these recent developments such as The Green Fence, appear to be moving at a healthy clip.

Our Media Does Not Report The Whole Chinese Story

Because the North American press does not always tend to emphasize the positives, perhaps we can be forgiven for failing to take into account the enormous strides the Chinese have made in the race to sustainability. It is the world’s leading renewable energy producer. By 2010 it accounted for 47% of all wind energy investments globally. It has actively increased its forest coverage, subsidized battery powered cars and plug-in hybrids, exceeded the capacity of the U.S. in terms of renewable electric power capacity and the list goes on.

We encourage you to find out more about China, because the more you discover, the more you will be amazed. Because no matter which industry you are in, your industry’s future and China’s are already or soon will be intertwined.

For further reading on this topic we refer you to the following articles:

http://www.letsrecycle.com/news/latest-news/waste-management/china-pledges-2018more-effort2019-to-develop-recycling

http://www.recyclingtoday.com/isri-convention-2013-green-fence.aspx

http://www.amm.com/Article/3169360/China-cracking-down-on-waste-imports.html

http://www.china-mike.com/facts-about-china/facts-pollution-environment-energy/

5^th Annual Environmental Awareness Day In Oakville

For those of you that will be in the area, come out and join us at our booth at the Oakville Chamber of Commerce, 5^th Annual Environmental Awareness Day. It takes place on July 7^th between 11:00 am and 2:00 pm at Trafalgar Village, 111 Cross Avenue in Oakville.

http://www.oakvillechamber.com/environmentalawarenessday.aspx

But rather than give up in frustration or give in and have his production moved offshore, like many other North American manufacturers have done, he decided to tighten his belt and stick to his guns. His decision was prompted to some extent by stories that he was hearing of failed products made offshore and he believed that, in the long run, the quality of the “Made in America” products that his company produced would prevail.

And that is exactly what happened. By consistently producing a high quality product and being innovative and smart in terms of keeping costs in check, his company is busier now than it ever was.

 Inferior Metals Can Be A Self-Perpetuating Problem.

You might wonder why this story would be of interest to those of us in the scrap metal industry. Well, it’s because the fact is that we have been seeing an increasing amount of downgraded product. It can be difficult to tell by visual inspection if, for example, the brass we are looking at has been made offshore. It may look like a better grade brass casting (C-Metal) or red brass but because it essentially contains no tin, its value is the same as (lower grade) yellow brass.

Even more alarming is the fact that this situation is not confined to brass. We see it with stainless steel and other types of material including even insulated wire.

Correspondingly, importers of this material, sometimes by the container load, face the prospect of having their cost advantage offset by a loss of customer good will, as the material is off spec and therefore prone to failure and subsequently complaints from customers.  This results in material “Made Overseas” and “Scrapped in North America”.

Opportunity Is Knocking For North American Manufacturers.

All of this is very tantalizing for our own manufacturers as it hints, dare we say even indicates, that we may have reached some kind of turning point whereby outsourcing is less attractive – at least for some products.

A recent report by the Boston Consulting Group actually predicts that there will be a manufacturing renaissance in the U. S. over the next five years as a result of these factors:
• A convergence of the net labour costs in China and the U. S.,
• The appreciation in value of the Chinese yuan,
• An intensification of logistic and bureaucratic barriers,
• Increased efficiency and innovation on the part of North American manufacturers.

The Downside of Buying First & Considering The Consequences Later.

These circumstances were brought about by the fact that many companies who were initially attracted to offshore production did not give due consideration to the full scope of both the costs and risks associated with overseas manufacturing. Studies are now showing that in an increasing number of cases, there may be no advantages at all, or even a cost, associated with manufacturing offshore.

This is not to say that there are no high quality manufacturers overseas. There certainly are. But you can be certain you will pay a premium for their products and that makes the whole process even less attractive.

If there have been benefits to all of this playing out, high among them is the fact that it has elevated development in many countries and provided economic benefits which will translate into on-going industrialization to meet their own consumer needs. At the same time, the developed world has worked harder to find innovations which will optimize their operations and ensure they remain competitive.

Here are some links to get you started on more reading on this topic.

http://www.manufacturingnews.com/news/design-for-manufacturing-316122.html

http://www.halfcostproducts.com/offshore_manufacturing.htm

http://www.manufacturingnews.com/news/11/0831/reshoring.html

“Put Your Junk In Your Trunk” Promo Winner

We recently ran a promotion directed to automotive dealers and repair shops and were pleased to award an IPad to the winner from Oakville Trailers and Auto Service. Needless to say, he was delighted!

We have weighed-in on regulations in a previous blog citing the costs and other issues involved for businesses charged with the responsibility of compliance. In the case of regulations surrounding occupational health and safety, they are particularly complex and they span various jurisdictions.

Generally, the regulations governing occupational health and safety are either prescriptive or performance based. Prescriptive regulations outline what must be done and how work is to be carried out. Performance based regulations focus on outcomes rather than on the precise factors to be controlled or the means of controlling them.

Occupational Health & Safety Training Is A Necessary and Worthwhile Investment

At the end of the day, however, the fact is that the average cost of a lost time injury in the province of Ontario is estimated at well over $100,000.00 including the costs of re-hiring, retraining and lost productivity. This number alone really tends to focus management attention on the importance of safe work practices. But even more importantly, everyone has a right to return home safely at the end of a work day.

While common sense is probably the best resource when it comes to safety it still pays to have a plan. If you are going to collect and/or process scrap metal, at the very least you need to ensure that you have the necessary personal protective equipment, that you know how to use this equipment and that you know how to safely operate the tools which you will be applying to the work.

Basic personal protective equipment would include, safety glasses, safety shoes, gloves, hearing protection, masks and a first aid kit. A hard hat and hearing protection should also be available.

Moreover, you need to be mindful of potentially harmful or toxic substances that you may come across. More commonly substances such as gasoline or oil in old machines and motors, refrigerants in air conditioning and cooling units, dust, fumes, flammable or explosive hazards.

Some guidelines are offered in a publication from the U. S. Department of Labour, Occupational Safety and Health Administration which can be found at:
http://www.osha.gov/Publications/OSHA3348-metal-scrap-recycling.pdf

Working Safely Also Means Reducing Physical Stresses.

Finally, there is an aspect of work that the experts call ergonomics (work laws) or more specifically, physical ergonomics. In our case, this has to do with the types of material handling and repetitive motions which are most often associated with the scrap metal industry.

One area of this applies to lifting techniques. The Ergonomics Program at the U.S. Army Center for Health Promotion and Preventative Medicine offers the following excellent guide, an example of which, we have posted here.

The entire lifiting guide can be found at:  http://www.yorku.ca/dohs/documents/armylift.pdf

A Good Training Program Helps Increase The Workplace Safety Factor.

At Peel Scrap Metal, our employees undergo training in a variety of areas. This training includes, but is not limited to:

A: Certification on all of the machinery they drive,

B: Formal training in regard to the Workplace Hazardous Material Handling System (WHMIS) and

C: Training with respect to accessibility standards for customer service as required under the Accessibility for Ontarians Disabilities Act.

At each of our locations there are employees trained in first aid and CPR, spill containment procedures and the transportation of dangerous goods. Some employees also receive advanced PMI training in regard to the use of our Niton Analyzer, a gun which determines the type and composition of the metals and alloys which we buy and sell. There is also specialized training on various types of equipment we use to process scrap metal.

It is complex, but all of this training and effort is designed to manage and minimize risk and promote a work safe attitude to protect the health and safety of our employees, customers, contractors and visitors to our sites. Injuries, occupational illnesses and accidents can be prevented

Industry News: More Volatility In The Copper Market

To follow-up our blog at the end of December, the U. S. Securities and Exchange Commission has now approved the bid from Blackrock to trade shares in a physical copper exchange traded fund. The initial size of the fund is 121,000 tons of copper as anticipated. Blackrock has said that if the fund proves successful, they will apply to increase its size within three years.

 http://finance.yahoo.com/news/blackrock-ishares-copper-etf-gets-201325882.html

Perhaps as one of your new year’s resolutions, you have decided to clean-up and recycle some of the odds and ends around the house or business. You can put your junk in your trunk and just head off to one of our locations in either Mississauga or Oakville. Or, you can consider what could be done to add value to your scrap metal and ensure that the trip is as worthwhile as possible.  

Our conveniently located Mississauga and Oakville locations make dropping off your scrap metal quick and easy. See our home page for addresses.

Some Things To Keep In Mind

First of all…bringing your scrap metal to Peel Scrap Metal means that you will be dealing with a scrap metal recycler where the buyers are knowledgeable and can grade your material properly.  Our scales are certified legal for trade, so the weights will always be accurate and the pricing always current. And because we are community based in the GTA, if you ask, you may well learn that among family, neighbours, work colleagues and friends, there are folks who are already Peel Scrap Metal customers and can attest to the positive experience they had with us.

Sorting & Cleaning Your Metal In Advance

Secondly, if your scrap metal is properly prepared, sorted and assembled in a way that is easy to handle, you will get through the process more quickly and maximize the value of your material.

The issue with preparing and sorting the material you bring in to Peel Scrap is cost. Your cost or our cost. So you need to decide what your time is worth. From our point of view, if material needs to be graded, sorted and processed it will be purchased at a lower rate to take into account the costs involved in doing that additional work. So compare the value of the material when the work is done to the value of the material when no work is done and see if the difference is worth your time.

For example, we are often asked whether it pays to strip insulated wire and sell the bare copper or whether it is worth it to remove the copper from motors and transformers and sell it separately.  You just have to do the math.

Using round numbers for pricing as an illustration, suppose you have 100 lbs of insulated wire that is 70% brite copper (the other 30% is the insulation or plastic which we don’t buy). If you sell it as is it would be worth 100 lbs x $2.00 per pound = $200.00. If you stripped the 100 lbs, you would get 70 lbs of brite copper (70% of 100 lbs) at $3.20 per pound = $224.00. The difference is $24.00. If it took you an hour to do this, you earned $24.00 an hour. Is that worth your time and effort?

The price chart on our home page always reflects the most up-to-date pricing for the most popular metals we recycle.

Lots Of Information On Our Site

Our website can be helpful in sorting some of this out as it provides current price indications and descriptions of the more common types of metal that we purchase.

In general, whatever the type and grade of metal you have to sell, its value will be maximized by removing any off-spec material.

 Rant–Let’s Make One Thing Perfectly Clear About Scrap Metal

In our business, which is recycling, one of the most misused descriptions of the material we handle is ‘waste’. SCRAP METAL IS NOT WASTE! Metals are commodities that are bought and sold. They are essential to the production of the goods and the delivery of the services that we enjoy on this planet. They are part of everything from the cans that package our food and beverages to the construction of our homes and offices, the airplanes, cars and other transport we use for travel, the entertainment we enjoy, the appliances and computers we rely on, the equipment we use for our agriculture and so on and so on.

The fact that metals can be used over and over again without loss of their physical properties is a bonus we should celebrate. Not only because it is a sustainable solution to the problem of finite resources in a world of increasing demand…but also because it is significantly less costly to use recycled metal and this is reflected in the prices we pay for our goods and services.

Unfortunately, many private and public institutions still don’t get it, despite all the talk about recycling, green living and landfill diversion. Business models need to move forward to accommodate the benefits of the new recycling realities as metals, and almost everything else that is produced these days, can now be re-used in some form whether they are turned into new products, turned into energy or refurbished for re-use.

If you have any comments on this blog or questions about recycling we would be happy to hear from you.

#1 Copper. A hot commodity in the worlds of both recycling and finance.

Copper is certainly one of the most favoured commodities that our customers like to trade with us. At current prices of around $3.25/lb for millberry (brite, copper wire) and $3.10/lb for no 1 copper even a small amount of weight adds up very quickly. This is particularly handy at this time of year and in fact, many people will accumulate copper material and sell it to us in time to coincide with the gift giving season that is now upon us.

It’s kind of like keeping money in the bank and if you have been saving your copper this year, you are fortunate, because
a reasonably strong market has kept its value at favourable rates.

Copper As A Traded Commodity?

This week, however, there has been a significant stirring of the pot. For at least two years now, JP Morgan and Blackrock’s iShares have been battling with the Securities and Exchange Commission (SEC) in the U.S. to allow them to offer copper based exchange traded funds (ETF’s). This would allow investors to actually trade copper like stock but with physical exposure to copper with each unit bought and sold i.e. backed by a real amount of the metal.

Expected to reach a decision in October, the SEC delayed their decision until just this week when approval was granted to JP Morgan Chase & Co. to allow trading in physical copper ETF’s. Essentially, the reason for the delay was a letter filed with the regulators by a New York based law firm which was representing several large firms including fabricators. The reasoning was that if these funds were backed up by physical amounts of copper, there would be less copper available for manufacturing creating a shortage of supply and driving up demand and correspondingly, the price of copper and the price of goods with copper content.

The offering by JP Morgan could remove as much as 61,800 tonnes of copper from the market. The offering by Blackrock anticipated the removal of about 120,000 tonnes. While, together, this is only a fraction of the global market for copper on an annual basis, it represents a significant  portion of the London Metal Exchange’s stock of copper in its bonded warehouses.

In its ruling, the SEC said that it, “does not believe that the listing and trading of the shares is likely to disrupt the supply of copper available for immediate delivery, which is what the copper fabricators predict would increase the price of copper.”

We are certainly not experts in this complex area but we are inclined to believe that the jury is still out. Although the U.S. is a different “kettle of fish,” similar funds launched in Europe over the past eighteen months have not been that successful. There is also the issue of costs associated with storing that amount of copper (it takes about 500 times the amount of space to store copper versus the same value in gold.

Customers for Copper Funds

As you can see the news about copper comes as no surprise as it’s price has steadily increased throughout the last decade.

Finally, it will be interesting to see who actually buys the funds. There are few investors large enough to take on this quantity of copper and would those that might buy in take a long term strategic view – i.e “buy and hold.”

What has been created by this exchange traded fund is another form of demand for copper and in the process it has divided industries who use copper in their manufacturing from those who want to attract investors in the physical copper market. At the very least, this is a recipe for volatility.

And now for the disclaimer. Our aim here is to inform and to encourage discussion. It is not to provide investment advice. The commodities market is a very complex business and we would certainly not claim to be experts in that area. We are merely interested in metals such as copper and those factors which affect their price as a commodity in the recycling industry.

Happy Holidays To You

We want to take this opportunity to sincerely thank all of our customers and consumers for their support in 2012. It is hard to believe that another year has already gone by. Please accept our very best wishes for good health and much happiness over this Holiday Season and throughout the New Year.

Our Holiday Hours

Saturday     December 22nd  Open 7:30 A/M to 12:00 Noon

Monday       December 24th  Closed

Tuesday      December 25th  Closed

Wednesday December 26th   Closed

Saturday     December 29th  Open 7:30 A/M to 12:00 Noon

Monday       December 31st  Closed

Tuesday      January  1st      Closed

Within our economy, the steel industry clearly plays a significant role.  Statistics for 2010 indicate that, in Canada, we produced 13 million tons of steel and sold more than 12 billion dollars of product of which more than 6 billion dollars worth was exported. The industry also directly employs 25,000 people and has made capital investments of 2 billion dollars since 2005.

Steel also plays a vital role in many aspects of our individual, daily lives. The buildings we live and work in, the bridges we travel over, the appliances and motor vehicles we use, the trains and ships we travel on and even the buttons and zippers on our clothing. It is estimated that the average Canadian actually owns about 2000 lbs of steel.

Steel—A Surprisingly  Green Metal

Like other metals, steel is very much a renewable resource. We have been recycling it in North America for more than one hundred and fifty years. It is important that we do so because the steel industry actually needs scrap steel in order to produce new steel. This is because there are  significant economic benefits.

Steel is an alloy of iron and carbon. Not only is it cheaper to recycle steel than to make new products from virgin ore that is mined but it is also an environmentally friendlier alternative. Historically, steel has made up the largest category of metals in the municipal and industrial waste streams.

For these reasons, steel products generally contain from 25% recycled content, in the case of steel produced in a BOF or Basic Oxygen Furnace, to 100% recycled content in the case of steel produced in an EAF or Electric Arc Furnace. These two types of furnaces are the main technologies used in North America to produce steel.

Recycling Is The Key To Steel’s Re-Use

The Scrap Metal Recycling Pyramid.
Courtesy Natural Resources Canada.

As part of the supplier chain, the scrap metal industry has a vital role to play in the steel industry since it bears the responsibility for providing much of the feedstock. The scrap metal industry has been truly innovative in its approach to recycling the many different kinds of “post” and “pre” consumer” scrap steel such as cars, appliances and steel from manufacturing, construction and demolition sites. Millions of dollars have been invested in new technologies, machinery and equipment to address the challenges of efficiently handling and recycling scrap steel and providing products that are in an acceptable form for the steel industry.

The advances in both the scrap metal industry and the steel industry largely go unnoticed despite best efforts to inform people of the important work that is being done. The Canadian Steel Producers Association cites Canada’s steel recycling rate in excess of 60%. This is steel that is being diverted from landfills and other sites thereby reducing the burden on non-renewable resources and retaining much of the energy that was expended initially to produce that steel.

 The Steel Industry Works Hard At Being Responsible

For its part, the steel industry has made significant strides in reducing its footprint. The American steel industry in particular operates with the lowest energy consumption per ton of steel produced in the world. Between 1990 and 2010, it has also reduced its CO2 intensity by 33% and continues to invest heavily into research and development to make it part of the solution.

At Peel Scrap, Steel Is An Important  Part of Our Business

We are currently in the process of focusing on steel recycling though some of our marketing efforts. In particular we are talking to garages and automotive dealers and repair shops, to encourage them to recycle their used auto parts. Used auto parts contain a number of  other  recyclable metals, apart from steel, such as aluminum, stainless steel and insulated wire.

Find Out More About Steel

If you would like to read more about the steel industry, here are some links to get you started.

 Steel Recycling Institute                              www.recycle-steel.org

Canadian Steel Producers Association       www.canadiansteel.ca

The American Iron and Steel Institute       www.steel.org

Recycling News

This is a new feature we have added to our blog. It will run at least once a month and keep you updated on the top stories in the metal markets and how this news affects scrap metal commodity prices.

The past month has seen a distinct softening of the metal markets.   Copper on Comex has dropped from U.S.  $3.79  on  Oct. 5th,  to U.S.  $3.47 on Nov. 8th. Aluminum has also softened From US. $0.95  to  $0.86. This trend has been worsened by the fact that metal consumers in Canada, the U.S. and the Far East have not only lowered prices, but in many cases have stopped buying altogether. Metal recyclers, unfortunately have had to follow suit. Though prices of most non-ferrous metals have dropped, most recyclers have continued to buy metals, but in a less aggressive manner. These conditions may continue for some time to come. With world debt issues and softening demand in world markets, caution is the word that will dominate our industry for the near future.

The amazing thing about all this ‘stuff’ is that when they were introduced to the world they were all applauded and widely accepted as true cutting edge technologies.

End-of-life electronics sorting and dismantling at our Oakville warehouse.

The Stats Around Electronic Waste Are Staggering

According to the EPA’s most recent report, over 142,000 computers and 416,000 mobile devices alone are either recycled or trashed in the U.S. every day.

And it is not only really old stuff that is being cast away. A study released by the Consumer Electronics Association in May 2011 revealed that the average U.S. household spends $1170.00 on consumer electronics each year. Personal computers are replaced every three to four years as operating and interactive systems are changed or revised and key software programs are no longer viable or supported on older platforms.

Similarly, televisions are replaced every five to seven years and this process has been accelerated recently by the conversionfrom analog to digital programming and the introduction of high definition television.

Rapid obsolescence is really a defining characteristic of electronic technology and so there is an urgent need to ensure there is a sustainable solution to the problem of what to do with older electronics. Certainly, recycling is the preferred alternative to disposal in landfills.

The Symptoms of Rapid Change

One of the more curious aspects of this rapid obsolescence, however, is that as technologies advance, the improvements are immediately put to work to more rapidly develop even newer technologies.

In the tech world, this reality is known as Moore’s Law. It was inspired by Gordon Moore, co-founder of the chip maker, Intel, who essentially predicted that the speed and processing power of computers would double every two years. Create a new computer chip to boost the speed and processing power of computers and it will immediately be deployed to create a new generation of more powerful chips.

This presents a real challenge for businesses who rely on technology and for individual consumers, who find themselves constantly playing a wasteful game of catchup.

Computer frames. Created from many different alloys and metals.

Time Magazine ran an interesting discussion of this in an article dated June 19th, 2000. In the article, which is entitled “Is Technology Moving Too Fast,” the author, Stewart Brand, makes a number of incisive observations including a warning that rapid change can be deeply divisive. Perhaps we need to get off the train from time to time and create some type of normal which will allow us to catch up.  www.time.com/time/magazine/article/0,9171,997268,00.html.

 Interesting Links

A Day Made of Glass

If you haven’t seen it yet, take a look at Corning’s fascinating video on YouTube entitled A Day Made of Glass at www.youtube.com/watch?v=6Cf7IL_eZ38 . It is a remarkable glimpse of what may be in store for us over the next few years.

It’s Amazing What You Can Do With Scrap Metal

Ingenuity on steroids.

We don’t often think of scrap metal as appropriate building material but some folks in China seem to have a different view. In one case, a man built his own bionic hands and in another, a Lamborghini Reventon. Here are the links:

http://micgadget.com/28965/chinese-man-builds-himself-bionic-hands-after-losing-both-of-his-hands/

http://www.dailymail.co.uk/news/article-2191478/Put-pedal-scrap-metal-Chinese-mechanic-builds-840-000-Lamborghini-6-000-convincing-knock-off.html

Nike Pop Up Store in Tokyo

One of the newer innovations that we have seen in retailing over the past few years is the development of “Pop-up Stores”. You will recognize these, as they seem to just appear in a particular space for a relatively short period of time and then disappear. As we approach the Halloween and then the Christmas Season, we will see more of them.

The trend has been adopted by a number of well-known companies including Nike, Walmart and Target to name just a few. These pop up stores offer a low cost way to heighten brand awareness, promote particular product lines and, of course, to entice consumers to spend.

Pop Up Scrap Yards…Wrong For A Number of Reasons.

Although the scrap metal recycling industry operates on a reverse retail model, buying from many sellers and selling to fewer buyers, it is not immune from the pop-up trend. We are beginning to see more and more pop-up scrap yards.

In fact, the situation has become so acute in Los Angeles that some recyclers have formed a coalition to alert law enforcement and other government agencies to what has actually become quite a problem.

This LA Times article has more information:

http://articles.latimes.com/2012/aug/21/local/la-me-metal-theft-20120822

Competition Is Good…But On A Level Playing Field.

The reason for the concern is not about competition. Competition is healthy and we are all in favour of it. But there needs to be a level playing field. These pop-up scrap yards are operating outside the law with zero of the substantial compliance costs that legitimate operators incur.

They characteristically breach buying regulations and even worse, environmental regulations. We are left being tarred by the same brush.

Unlike the retail stores which create a buzz around their pop-up outlets and may promote a particular product line at slightly reduced prices, pop-up scrap yards operate under the radar and may offer slightly higher prices on a variety of commodities. They can do this because of their comparatively low overhead and because the material is just stuffed into containers and quickly sent to various locations around the world.

And, it is not only the material that is being exported. Recycling jobs are being exported along with it and often to countries where compliance standards in terms of labour, safety and environmental concerns are also an issue.

 Avoiding Pop Up Scrap Yards Is The Right Thing To Do.

We don’t think that for the few cents a pound more that may be involved, people should look to these pop-up scrap yards as a buyer for their scrap metal. They are not a sustainable recycling solution over the long term. We need to take the same responsibility for our downstream operations as we do for our upstream operations if we are to nurture a better environment for all of us on the planet.

Some Upcoming Changes at Peel Scrap Metal Recycling Ltd.

Our website will be undergoing some changes over the next few weeks as we continue to incorporate ideas and suggestions from our customers to make the site as informative and helpful as possible. As part of this development, we will soon be accessible through various social media and we are looking forward to this development as a further means of interacting with our customers and the communities we serve.

This work is being done through our good friends at Onwords & Upwords and tmhr Consulting.

If you have comments on this blog or any others we would be pleased to hear from you. Let us know what you think.

Use A Magnet To Attract The Best Product

This year, I decided to take another tact. I could have borrowed the Niton Analyzer gun, which we use here at Peel to determine specific metal content. But instead, armed only with a Peel Scrap Metal hand magnet, I went to an upscale appliance store to find a barbecue whose flavour bars and burners were made of at least 18/8 stainless steel (18% chrome and 8% nickel). The reason is that they would be both ‘food grade’ and less resistant to corrosion.

Drop into either of our locations to chat about recycling and pick up a free handy magnet.

I was surprised to discover that some of the most popular barbecue brands had flavour bars and burners that were either not made of stainless steel or made from lower quality stainless steel. The salesman was surprised too. He had me check a number of different brands along with some of the many fridges, stoves, dishwashers and other appliances in the store. I finally gave him my magnet to use as an uncompromising sales tool and left after purchasing a quality barbecue that I am hopeful will last a while.

About Stainless Steel

Stainless steel is the “generic” name given to a large group of low carbon steel alloys, all of which differ in their composition but are similar in that they contain at least 10.5% chromium by weight. Stainless steel was discovered in 1913 by an English metallurgist by the name of Harry Brearly, and like many scientific discoveries, he stumbled upon it serendipitously.

Henry Bearly...the father of stainless steel.

It was around the time of World War I and Brearly had been commissioned to eliminate corrosion in gun barrels. The friction created by the bullet spiraling through the gun barrel eventually caused the barrel to become too big for the bullet and this led to inaccuracies when the gun was discharged. He needed something harder that could deal with the high temperatures inside the gun barrel.

After months of trying different alloys, he tossed his samples in a scrap heap. A few months later, he happened to notice that one was still shiny while the rest had rusted. Upon further examination, he found that this sample contained chromium.

The Stain In Stainless Steel

There are many, many grades of stainless steel but it is the chromium content that gives the steel its stain “less”, or corrosion resistant properties as opposed to other types of steel. The way this works is that when the chromium is in contact with the oxygen in the air it forms a thin barrier or film that can actually repair itself.

Those corrosion-resistant properties, and other useful properties of stainless steel such as hygiene, strength to weight ratios and fire and heat resistance are enhanced as the chromium content is increased and other elements are added such as nickel and molybdenum.

In general, better grades of stainless are non-magnetic and this is what I was looking for with the magnet. There are grades of stainless steel that are magnetic but they are generally a lower quality application in a barbecue (or sink for that matter) and will rust unless they receive a lot of attention.

Stainless steel is 100% recyclable and is extremely durable. In fact, the peak of the Chrysler building, which was constructed in New York City in 1930, is clad in 302 stainless steel and has shown no signs of corrosion in more tan 80 years. I hope my new barbecue will be just as durable!

A Big Thank You To The People Of Oakville

We are pleased to announce that Peel Scrap Metal Recycling Limited has been selected as the best recycler in Oakville. We were chosen in the Oakville Beaver’s 19^th annual Readers Selection Awards. It is a great privilege for us to be the top pick and we want to sincerely thank our customers and the Oakville community for their support.

The Rich History Of Gold

Any deep discussion about gold is bound to be a complicated one since it has been in use for at least the past 6,000 years for a variety of purposes, and also because humans have strong emotional ties to gold. The real question here, however, is motivated by the high value of gold today as it relates to its use in electronics and that is why our customers are asking us about it.

Historically, economists have referred to gold as a storehouse of value.  It was used to facilitate transactions by allowing people to exchange goods and services. Countries have even fixed the price of their currencies in terms of  specified amounts of gold. No country currently uses such a gold standard as the basis of its monetary system but several do hold substantial gold reserves.

There’s A Lot of Gold Out There

Today the world’s stock of gold is estimated at 170,000 metric tons which at about $1600.00 a troy ounce, would be worth $8.7 trillion U.S. What drives gold’s value, at least according to billionaire businessman Warren Buffet, is fear and speculation. Unlike farmland, for example, gold doesn’t produce anything. It doesn’t pay interest and it doesn’t pay dividends. That one ounce bit of gold placed in your safety deposit box today will still be one ounce of gold when it is reweighed one hundred years down the road. The only change will be what it is worth.

Gold in The Digital Age

Extracting gold from computer chips is tricky business, and can cost you way more than it's worth.

With the dawn of the “New Age” of computers, we did indeed find a new use for gold. The reasons it is so useful in electronics are because it is a highly effective conductor of both electricity and heat. It is also an inert metal and does not corrode or tarnish. It therefore maintains its reliability over time

More gold was used in some of the older electronics but as the industry has evolved computer engineers have found that micron thin plating is actually just as effective. That is what we see in electronics today when we are looking at the gold on circuit boards, pins, microprocessors, bonding wire, contacts and so on.

The Reality Is Much Less Of A Gold Mine

In the average home computer, most estimates are that the amount of gold is less than a gram. Since one gram equates to 0.032 troy ounces, at $1600.00 a troy ounce that would be $25.00 for half a gram. The cost of recovering that half gram of gold is another matter. We would not  recommend anyone try this at home because of the substantial health, safety and environmental risks involved.

Recovery of gold from end-of-life electronics is best left to experts who can do this safely and efficiently on enormous quantities of end-of-life electronics. This allows them to take advantage of the economies of scale. Some 20 to 50 million metric tons of end-of-life electronics is discarded worldwide each year so the feedstock for these large electronic recycling facilities is certainly available. And they do this efficiently, recovering more gold from one metric ton of electronic scrap from personal computers than is recovered from 17 metric tons of gold ore.

So there you have it. There is gold in those computers but not much and it is costly to recover. And a reminder, the price of gold is not constant at $1600.00 a troy ounce.

Interesting Recycling Fact

This month, the world’s first nuclear powered surface warship, the USS Long Beach, was sent to auction. The 720 foot, 7.35 million pound vessel is to be dismantled and recycled. The defense contractor estimates the process will take from 18 to 26 months. Anyone handy with a torch?