Careers Business Ownership An Introduction to Metal Recycling An Overview of Metal Recycling, Its Importance, and Recycling Processes Share PINTEREST Email Print Monty Rakusen, Getty Images Business Ownership Operations & Success Sustainable Businesses Supply Chain Management Operations & Technology Marketing Market Research Business Law & Taxes Business Insurance Business Finance Accounting Industries Becoming an Owner By Rick LeBlanc Rick LeBlanc Facebook LinkedIn Twitter Consultant and news editor in the supply chain pallet and packaging trade Simon Fraser University Rick LeBlanc wrote about sustainability and supply chain topics for The Balance Small Business. He has been covering the pallet and packaging industries for 25 years. Learn about our Editorial Process Updated on 03/04/21 Metals can be recycled repeatedly without altering their properties. According to the American Iron and Steel Institute (AISI), steel is the most recycled material on the planet. The other highly recycled metals include aluminum, copper, silver, brass, and gold. Why Do We Recycle Metals? Metals are valuable materials that can be recycled again and again without degrading their properties. Scrap metal has value, which motivates people to collect it for sale to recycling operations. In addition to a financial incentive, there is also an environmental imperative. The recycling of metals enables us to preserve natural resources while requiring less energy to process than the manufacture of new products using virgin raw materials. Recycling emits less carbon dioxide and other harmful gasses. More importantly, it saves money and allows manufacturing businesses to reduce their production cost. Recycling also creates jobs. Quick Metal Recycling Facts Although almost every kind of metal can be recycled again and again without degradation of properties, in 2018, only 34% of metal in U.S. municipal waste facilities was recycled. Below are some additional facts: In 2019, 490.98 million (32%) of the the 1,532.51 million metric tons of crude steel produced worldwide was made using recycled materials.Around 69% of crude steel in the United States in 2019 was made of recycled materials.In the United States alone, around 2.2 million tons of steel cans and other steel packaging waste were generated in 2018.Steel and iron are the most recycled materials in the world due in part to the opportunity to recover large structures as well as the ease of reprocessing. The use of magnets in the sorting process enables recyclers to easily separate them from the mixed waste stream.Currently, the single most recycled container in the world is the aluminum can.Recycling a single aluminum can save enough energy to power 100-watt light bulb for nearly four hours. Types of Metals Recycled Metals can be classified as ferrous, or non-ferrous. Ferrous metals are combinations of iron with carbon. Some common ferrous metals include carbon steel, alloy steel, wrought iron, and cast iron. On the other hand, non-ferrous metals include aluminum, copper, lead, zinc, and tin. Precious metals are non-ferrous. The most common precious metals include gold, platinum, silver, iridium, and palladium. The Metal Recycling Process The main stages of the metal recycling process are as follows: 1. Collection The collection process for metals differs than that for other materials because of higher scrap value. As such, it is more likely to be sold to scrap yards than sent to the landfill. The largest source of scrap ferrous metal in the U.S. is from scrap vehicles. Other sources include large steel structures, railroad tracks, ships, farm equipment, and of course, consumer scrap. Prompt scrap, which is created in the course of new product manufacturing, accounts for one-half of ferrous scrap supply. 2. Sorting Sorting involves separating metals from the mixed scrap metal stream or the mixed multi-material waste stream. In automated recycling operations, magnets and sensors are used to aid in material separation. At the entrepreneurial level, scrappers may employ a magnet, as well as to observe the material color or weight to help determine the metal type. For example, aluminum will be silver and light. Other important colors to look for are copper, yellow (for brass) and red, for red brass. Scrappers will improve the value of their material by segregating clean metal from the dirty material. 3. Processing To allow further processing, metals are shredded. Shredding is done to promote the melting process as small shredded metals have a large surface to volume ratio. As a result, they can be melted using comparatively less energy. Normally, aluminum is converted into small sheets, and steel is changed into steel blocks. 4. Melting Scrap metal is melted in a large furnace. Each metal is taken to a specific furnace designed to melt that particular metal. A considerable amount of energy is used in this step. Still, as mentioned above, the energy required to melt and recycle metals is much less than the energy that is needed to produce metals using virgin raw materials. Based on the size of the furnace, the degree of heat of the furnace and volume of metal, melting can take from just a few minutes to hours. 5. Purification Purification is done to ensure the final product is of high quality and free of contaminants. One of the most common methods used for purification is Electrolysis. 6. Solidifying After purification, melted metals are carried by the conveyor belt to cool and solidify the metals. In this stage, scrap metals are formed into specific shapes such as bars that can be easily used for the production of various metal products. 7. Transportation of the Metal Bars Once the metals are cooled and solidified, they are ready to use. They are then transported to various factories where they are used as raw material for the production of brand new products. When the products made of these metal bars come to the end of their useful life, the metal recycling process cycles again. Challenges for the Metal Recycling Industry The current overall metal recycling rate of around 34% is not acceptable, given the recyclability of almost every kind of metal, and challenges remain with respect how to recapture more material for recycling. The expansion of community recycling programs and public awareness help in this regard. Another important reason for the low recycling rate has to do with the design of various metal products. The growing complexity of various modern products and their material mix makes recycling increasingly difficult. For instance, a smartphone can contain more than 70 different elements. So, extracting every kind of materials from a mobile phone and reusing them in the production of new products makes it difficult. Metal Recycling Technologies Modern recycling technologies can effectively identify many different kinds of metals, though there is still the need for even more effective recycling technologies to separate non-ferrous metals. Separating ferrous metals from non-ferrous metals is one of the most important steps in the sorting process. As ferrous metals contain iron, they are attracted by magnets and easily pulled out of the mixed waste stream. In scrap yards, cranes fitted with an electromagnet can remove larger pieces of ferrous scrap. When sorting metals from a mixed stream of recyclable material, the paper is removed first, leaving only plastics and metals. Then, electric currents are induced across the stream where only metals get affected. This process is called eddy current separation. Although aluminum is not magnetic, this technology can levitate it and allow plastics to drop out of the process. Recovering precious metals such as palladium, platinum, gold and other valuable metals such as copper, lead, and silver from electronic waste becomes economically viable only if enough scrap is collected. Such separation takes more technologically advanced and sophisticated recycling equipment. These days, in large recycling facilities, the use of sensors to identify metals through infrared scanning and x-ray has become popular. Three common categories of metal sensing processes include biotechnology, hydrometallurgy, and pyrometallurgy. The use of these technologies can effectively improve metal recovery rates. Business Opportunities in Metal Recycling Traditionally, metal recycling has been regarded as a profitable business opportunity. In recent years, however, depressed prices have proved to be challenging. At an entrepreneurial level, a common entry point into the metal recycling business is through starting scrap metal collection business or becoming a scrap metal vendor. Metal Recycling Laws and Legislation If you are looking to set up a metal recycling-related business in the U.S., you should know relevant recycling laws in your state. This interactive map allows you to find metal recycling laws pertinent to every jurisdiction. Metal Recycling Trade Associations ISRI (Institute of Scrap Recycling Industries Inc): ISRI is the largest trade association for businesses related to recycling. It represents over 1,300 for-profit companies from 40 different countries worldwide. BMRA (British Metals Recycling Association): BMRA represents over 270 scrap metal recyclers of UK and is the leading trade association in the UK. AMRIA: AMRIA refers to Australian Metal Recycling Industry Association. CARI: CARI stands for Canadian Associations of Recycling Industries. It has over 200 member companies. Being a member of trade associations in the recycling industry enables a new recycling business to know and understand the trends in the industry and maintain a good relationship with other businesses in the industry.