Aluminum Scrap – Myths and mysteries

Platt’s Aluminum Symposium
January 15-17, 2012
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Speaker and Company Context
Aluminum Scrap Landscape
Blending Myths and Challenges
Economic Myths and Misconceptions
The Mysterious Scrap Mine
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Conalco – Hannibal
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Conalco – Ben’s Run
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Casthouse startup
1100 finstock
JW – Jackson
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EC through old sheet
Innovative furnaces, no baghouse, no shredder
JW – Russellville
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Construction, UBC purchasing
JW – Mt. Holly
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Smelter to cold charge
Plant resurrection
Litho/painted siding
Shredder, baghouse
OVACO – Shelbyville
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6063/6061 extrusion scrap
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Ohio Valley Aluminum
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Not in Ohio
On a hilltop
Major Independent Billet Caster
6063, 6061 and related alloys
Melts bare and painted scrap
Casting for over 50 years
Sold out in 2011 and 2012
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Cans
Largest single market
3104 body/5182 lid
Only major item not totally recycled
Cars
“Secondary” aluminum
A380/A319/A413
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Houses
3105
Body (3104)
Lid (5182)
Silicon
.60
.20
Iron
.80
.35
Copper
.25
.15
Manganese
1.5
.5
Magnesium
1.3
5.0
Auto (A380)
LME (NASAAC)
Silicon
9.5
9.5
Iron
1.3
1.0
Copper
4.0
3.5
Manganese
.50
.45
Magnesium
.10
.10
Market Price
$1.06
$.948
P1020 Price
$.968
$.894
1100
3003
5052
3105
Silicon
+Fe .95
.60
.25
.6
Iron
+Si .95
.70
.4
.7
Copper
.20
.20
.1
.3
Manganese
.05
1.5
.1
.8
Magnesium
.05
.05
2.8
.8
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Companies set limits within AA maximums
Minor and trace elements can be deal breakers
Testing instruments, furnace condition and
processes can impact results
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Melt Loss, Contamination, Alloy Risk, Counter
Party Risk
Offsets – Pre-Alloyed, Customer Ties, LEED
points
Hidden Costs – Capital, Infrastructure,
Productivity
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UBC’S
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1.5B pounds per year is less than 60% of total
Best Use – Recycle, don’t Downcycle
Realistic Specs
Landfill Mining