High recycling rate of aluminium, long waits: World Aluminium Conference

Aluminium has a high recycling rate but there are many products that take a long time to reach the scrap yards. The value of aluminium scraps and its recyclability is very well documented. But many aluminium products have the limitations on the ability of the scrap to supply above 20% of raw materials required by aluminium industry.

In the CRU World Aluminium event 2014 held in Hong Kong in the middle of May, Chris Bayliss from International Aluminium Institute based in London said, “long life cycle products dominate” among uses of aluminium and the exception is packaging. Bayliss also said, 200 mn metric tonnes of the metal was produced between the period 1880-1980, 800 mn tons produced in last 30 yeras.

Will Savage of Aluminium Federation in UK said the energy savings in using scrap and increased corporate sustainability efforts will mean “the demand for aluminum scrap is expected to be enormous in the next 20 years.”

Norton aluminium’s Henry Dickinson said increased efforts for collecting scrap will not result in oversupply. “I don’t think rising scrap volumes will impact scrap demand,” he commented.

Michael Lion of Sims Metal Management said the long life cycles of aluminum products means China will continue to look for aluminum scrap from rest of theworld for another 5-10 years. China currently consumes about 31% of aluminum scrap in the world, said Lion.

“China still needs to import scrap,” Lion stated. He said even if its middle class continues to grow and begins to generate more aluminum scrap, that still means the economy is growing and smelters will require yet more scrap feedstock. “If China generates more scrap it means they’ll need more scrap” before the imbalance begins to correct itself, said Lion.