Iowa scrap metal recyclers transform junk to cash

To some, they are eyesores.

High fences and landscaping often surround the properties to obscure views of the wrecked autos, abandoned appliances and piles of metal refuse inside.

'The scrap metal industry is the oldest recycler in the world,” said Jim Brown, co-owner of Marion Iron Co. 'We've been recycling scrap metal for over the last 150 years for one basic reason - it's profitable.

'It's cheaper to melt down scrap metal than it is to use raw ore.”

The recycling process costs less because it does not require as much energy as the mining and refinery processes.

'It's more environmentally friendly to recycle scrap than it is to refine metal from ore,” said Duane Hoefing, facility manager at Alter Metal Recycling in Cedar Rapids.

Beside consuming less energy, scrap metal recycling conserves virgin materials for future use, reduces carbon dioxide emissions and mining waste, and eases the burden on landfills.

Moreover, with advances in technology, it has become a lossless process - meaning 100 percent of the material is recovered.

'Very little is wasted of the metallic content,” Hoefing explained. 'A large percentage of the material is recovered in recycling.”

Because of its significant cost benefits, scrap metal is a vital raw material in the production of steel, cast iron and other metal products. According to the Institute of Scrap Recycling Industries, scrap metal recyclers processed 74 million metric tons of steel and iron scrap in the United States in 2011, with a value of more than $35 billion.

Cleanups, scrap drives

So how do scrap metal recyclers turn junk into cash?

There are three main components of a scrap metal recycling operation - collecting, processing and reselling metals.

As with many scrap recyclers, Marion Iron collects metal from a variety of sources.

'We have two facets of the business,” Brown said. 'We have our industrial accounts where we buy the byproduct from a manufacturing process. We provide a box at the facility and take their excess material and pay them for it.

'And we have people who bring scrap in. They could be contractors, private individuals, demolition companies and sometimes garbage companies.”

Some companies, such as Tournier's Recycling and Auto Salvage in Independence, also provide on-site services. These may involve cleaning up a construction site or cutting and loading old bridge parts onto a semi for removal.

'We also do town cleanups and scrap drives,” owner Dean Tournier noted.

The types of metal accepted by scrap metal recycling facilities are just as varied as the people who bring it in.

'We see everything from sink handles to aluminum car rims to stainless steel tables used for food preparation,” Brown said.

Most companies accept both ferrous metal and non-ferrous metals. Ferrous metal contains iron and is magnetic. Common sources are sheet metal, steel beams and pipes, wiring, automobiles, and even old cast iron sinks and bathtubs.

Aluminum is the most widely recycled non-ferrous metal, and may arrive to a recycling facility in the form of industrial scrap, used beverage cans or old siding. Other common non-ferrous metals include copper, brass and stainless steel.

'If it's made from metal and doesn't contain hazardous material, we'll recycle it,” Hoefing said.

When a truckload of scrap comes into a recycling facility, the driver is directed to a scale where an attendant identifies the material and weighs the load.

Some facilities also scan the material for radiation.

'You don't want radioactive materials in a steel mill,” Hoefing explained. 'It typically isn't a problem in this part of the world, but we certify on our shipping documents that all materials have been scanned.”

Uniform processes

With operations in eight states, including Alabama and Mississippi where recycled oil field testing equipment sometimes carries trace amounts of radiation, Alter Metal has implemented uniform processes at all its facilities.

After the truck is weighed, the driver is directed to the appropriate spot in the yard, based on the type of scrap, and the material is unloaded. The driver then returns to the scale to obtain the 'tear weight” - the weight of the empty vehicle - from which the net weight of the load is calculated.

The seller is paid for the load based on weight.

'If we're not busy, the whole process takes 10 minutes,” Tournier said.

The price a recycling facility will pay for scrap metal fluctuates based on supply and demand.

'It's a fluid market,” Hoefing said. 'Some metals, like copper, are more volatile than others.”

Because copper and some other non-ferrous metals can be valued in the dollars-per-pound - versus pennies-per-pound for steel - the sale of stolen scrap has been a problem for the industry.

To combat theft, sellers of scrap must present a valid state-issued identification and, by law, recycling facilities must maintain a database of sellers. Many facilities also use security cameras to augment their anti-theft measures.

'It keeps people out,” Hoefing said. 'All the information is there if there's a problem.”

Processing scrap metal typically involves breaking the material down to a size that can be fed into a furnace. Size-reduction is accomplished by cutting, baling, compacting and shredding, often using automated machines.

Tournier uses a car crusher and baler in his operation.

'It's all portable,” he said. 'If somebody has a real big mess, it's easier to transport the equipment than loading and hauling everything.”

The final step is shipping out the processed scrap for resale.

Much of the scrap metal from local recyclers may end up in steel mills in Wilton and Montpelier, Iowa, and in Sterling, Ill.

'It depends on whoever prices it best, taking freight costs into account,” Brown said.