Focus on Markets

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March 29, 2016
Massrecycle R3 ConferenceMassrecycle R3 Conference

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Founded in 1988, Now part of AISI
In 2000, SRI merged with AISIIn 2000, SRI merged with AISI
AISI has represented the domestic steel &AISI has represented the domestic steel &
iron industry since 1855iron industry since 1855

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Formed in 1988, now part of
SMDI & AISI
American Iron & Steel Institute =
Steel Market Development Institute
+SMDI-Sustainability
+Steel Recycling Institute
+ several other steel related groups
Mark A. ThimonsMark A. Thimons
Vice President, Sustainability, SMDIVice President, Sustainability, SMDI
David KeelingDavid Keeling
Director, RecyclingDirector, Recycling
Steel Recycling InstituteSteel Recycling Institute
Brandie SebastianBrandie Sebastian
Manager, Life CycleManager, Life Cycle
AssessmentAssessment
Steel Recycling InstituteSteel Recycling Institute
Eamon GearyEamon Geary
Manager, ConstructionManager, Construction
SustainabilitySustainability
Jackie KirbyJackie Kirby
Executive AssistantExecutive Assistant

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AISI Lends the Steelers Logo

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Economics - saves money - substitution costEconomics - saves money - substitution cost
Environment - conserves resourcesEnvironment - conserves resources
Energy: 5450 BTU saved per lb. Of steelEnergy: 5450 BTU saved per lb. Of steel
Saves per ton of steelSaves per ton of steel
Coal - 1,400 lbsCoal - 1,400 lbs
Iron ore - 2,500 lbsIron ore - 2,500 lbs
Limestone - 120 lbsLimestone - 120 lbs
Saves landfill spaceSaves landfill space
1 cubic yard whole steel cans = 150 lbs1 cubic yard whole steel cans = 150 lbs
1 cubic yard flattened steel cans = 850 lbs1 cubic yard flattened steel cans = 850 lbs
Why recycle Steel?Why recycle Steel?

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A Partnership in Steel MakingA Partnership in Steel Making
Two Production Methods:Two Production Methods:
BOF or Integrated MillBOF or Integrated Mill
About 40% of overall U.S. productionAbout 40% of overall U.S. production
Uses coke to convert Iron ore to Pig ironUses coke to convert Iron ore to Pig iron
Typically 65-75% molten ironTypically 65-75% molten iron
and 25-35% scrapand 25-35% scrap
EAF or Mini MillEAF or Mini Mill
About 60% of U.S. productionAbout 60% of U.S. production
Uses primarily scrap andUses primarily scrap and
direct-reduced iron (DRI)direct-reduced iron (DRI)
Typically 0-25% iron and 75-100% scrapTypically 0-25% iron and 75-100% scrap

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OVERALL STEEL RECYCLING RATE

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Millions of tons recycled per yearMillions of tons recycled per year

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World Steel MarketWorld Steel Market
• World Production = 1,490,000,000 tonsWorld Production = 1,490,000,000 tons
• Chinese Production = 800,000,000 tonsChinese Production = 800,000,000 tons
• US Production = 86,000,000 tonsUS Production = 86,000,000 tons
( There is one single town in China that( There is one single town in China that
produces more steel thanproduces more steel than
all US producers)all US producers)
China on pace to export 100 million tonsChina on pace to export 100 million tons

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Struggling economies in rest of world especially ChinaStruggling economies in rest of world especially China
Strong US dollar is encouraging importsStrong US dollar is encouraging imports
““Feels like Deja vu all over again”Feels like Deja vu all over again”
• Finished steel imports were 30% of domestic steel market,Finished steel imports were 30% of domestic steel market,
which is about double their normal levels.which is about double their normal levels.
• China is not the only culprit, South Korea, Japan, Brazil and Turkey are allChina is not the only culprit, South Korea, Japan, Brazil and Turkey are all
dumping their steel on our shores.dumping their steel on our shores.
• 20% overcapacity in Chinese Steel production20% overcapacity in Chinese Steel production
• 25% overcapacity in Chinese Aluminum production25% overcapacity in Chinese Aluminum production
• Glut of 50 million condos in ChinaGlut of 50 million condos in China
(September 3, 2015 AMM article with Adam Minter, author “Junkyard Planet”)(September 3, 2015 AMM article with Adam Minter, author “Junkyard Planet”)

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CONTAINER RECYCLING RATE

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Steel cans in the marketplaceSteel cans in the marketplace
Steel food cans make up 90% of the steel can marketplaceSteel food cans make up 90% of the steel can marketplace
Steel Aerosol cans are 7% of the steel can marketplaceSteel Aerosol cans are 7% of the steel can marketplace
Steel paint cans are 3% of steel cans in the marketplaceSteel paint cans are 3% of steel cans in the marketplace

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72 OF TOP 100 CURBSIDE PROGRAMS INCLUDE72 OF TOP 100 CURBSIDE PROGRAMS INCLUDE
EMPTY STEEL AEROSOL CANSEMPTY STEEL AEROSOL CANS
Over 5900 programs collectOver 5900 programs collect
empty aerosols in their steel can mixempty aerosols in their steel can mix
(Los Angeles to Chicago to New York and a lot of places in between)(Los Angeles to Chicago to New York and a lot of places in between)

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Paint Cans: Empty with Dry Skin!
Approximately 4800 programs include empty steel paint cansApproximately 4800 programs include empty steel paint cans
Steel paint cans still have 55% ofSteel paint cans still have 55% of
paint container marketpaint container market

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AUTOMOBILE RECYCLING RATE

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Total of 3,863 pounds, 58%
steel
Steel Content in Today’s AutomobileSteel Content in Today’s Automobile

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Appliance Recycling RateAppliance Recycling Rate

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APPLIANCE RECYCLING
A typical appliance is produced using about 65 percent steel which is the primary reasonA typical appliance is produced using about 65 percent steel which is the primary reason
nearly 90 percent of discarded appliances are recycled each year.nearly 90 percent of discarded appliances are recycled each year.
The steel content drives the recycling of appliances!The steel content drives the recycling of appliances!

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Nobody likes a smart_ _ _!

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10/30/09
American Metal Market

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Historical Perspective (‘06 &’09)

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Structural recycling rate steady for
last 10 years!

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Today, Construction means structural steel recycling!Today, Construction means structural steel recycling!

30. w w w . Recycle-Steel . o r g10/30/09
American Metal Market

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Rebar Recycling Rate
Rebar recycling grows as concrete recycling expands!Rebar recycling grows as concrete recycling expands!

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• Ultra light Steel Auto BodyUltra light Steel Auto Body
• Steel BridgesSteel Bridges
• Steel Utility PolesSteel Utility Poles
• Residential Steel FramingResidential Steel Framing

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Willis Tower, Chicago, IL
Then (1972)
• Sears Tower
• 76,000 tons of steel
• 20% recycled content (est)
Now (2013)
• Willis Tower (second tallest in hemisphere)
• 60,000 tons of steel (strength)
• 90% recycled content (for structural steel)
•43,000 automobiles
•7,000 tons of steel cans from curbside-drop off
•10,000 tons of industrial scrap
• 876,000 fewer man-hours
•58% smaller carbon footprint
• 74% less embodied energy
The Strength and Sustainability of Today’s SteelThe Strength and Sustainability of Today’s Steel

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Ferrous Scrap DealersFerrous Scrap Dealers
Years of steel recycling experienceYears of steel recycling experience
Convenient locationsConvenient locations
Container and transportation capabilitiesContainer and transportation capabilities
Complete processing equipmentComplete processing equipment
Strong relationships with end marketsStrong relationships with end markets
Look for additional consolidation/vertical integrationLook for additional consolidation/vertical integration

35. w w w . Recycle-Steel . o r g
262-662-4435262-662-4435
dkeeling@steel.orgdkeeling@steel.org
Website: www.recycle-steel.org
Twitter: @EnviroMetal
Facebook: www.facebook.com/EnviroMetal
YouTube: www.youtube.com/EnviroMetal
Dave KeelingDave Keeling
P.O. Box 160P.O. Box 160
Big Bend, WI 53103Big Bend, WI 53103