THE ESG ISSUE/Recycling
Scrap Solutions A METAL RECYCLER’S PERSPECTIVE ON UNLOCKING VALUE By Trey Lipsitz, Manager, Market Street Recycling
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crap metal recycling within the oil and gas industry has never been a popular subject.
Companies have their horror stories and managers often cringe at the mere mention of scrap. As a metal recycler, I get it: scrap metal is not your main business; it’s a by-product and a headache to manage. Regardless, scrap metal is a valuable line item and, in challenging markets – like the present one – becomes even more so. From my experience, many businesses find themselves a bit in the dark on scrap values and lack the time to invest in overseeing the recycling process to its full potential. While often overlooked, a well-run scrap program can serve as a beneficial and profitable complement to your oil and gas business. It’s 20
Energy Connection/Q2 2020
important to be in-the-know regarding the scrap market today, both globally and domestically. As with any other commodities, understanding past trends, current market impacts, and future predictions helps manage expectations and set the stage for proper planning and decision making. In 2019, the metal commodity market suffered the perfect storm of events. Trade war issues and China’s Green Fence Plan were largely responsible for the downturn at the outset of the year, there was hope for a potential rebound in 2020. With the passage of the United States-Mexico-Canada Agreement (USMCA) and China’s reclassification of scrap grades, it appeared – at least initially – that the metal market would get the shot in the arm it so desperately
