Improve stainless, nickel alloy scrap ROI

Stainless steel and high-nickel scrap can bring a handsome price if it is segregated by type and grade and labeled clearly.

Stamping manufacturers that generate stainless steel and high-nickel alloy scrap can increase the return on their material investment easily. They can attain higher value from their scrap by following a few simple guidelines.

Stainless Steel, Nickel Alloy Scrap Supply Chain

Traditionally, when stainless steel and nickel alloy scrap is generated at a stamping manufacturer’s plant, scrap dealers collect the material at the site. The dealer, acting as an intermediary, sells these scrap materials to a stainless steel and nickel alloy processor. The processor is the last stop in the scrap supply chain before the scrap is melted at a mill into new coil, sheet, and bar stock at stainless and nickel alloy mills and foundries.

A processor goes further than a scrap dealer in readying the scrap for the mill. It employs proprietary chemistry-blending programs to control material quality. The processor ensures that mills and foundries are stocked continuously with raw materials that meet the agreed-upon chemistry and density specifications. Processors work in partnership with the mills to establish these guidelines based on the mills’ production needs at any given time. It is the processor’s expertise in blending that sets it apart from the scrap dealer in the supply chain and enables it to directly supply the mills and foundries.

Blending is the practice by which a processor mixes nickel-bearing scrap of differing chemistries, sizes, and forms to create a homogenous heat. When melted at the mill, these heats will yield the desired nickel, chrome, molybdenum, and iron levels.

More important, the processor’s blending expertise enables it to control harmful residual elements. Residual elements include copper, tin, phosphorus, lead, boron, and sulfur. The residuals are held to tight tolerances, often not exceeding hundredths of a percent. If residuals are not controlled, the new stainless or nickel alloys produced from the blends will yield undesirable properties and structural weaknesses. To control the ingredients going into their blended heats, processors employ X-ray technology and in-house specialty metallurgical labs to sort and test all incoming shipments.

Failure to meet the mill’s specifications results in the rejection of entire shipments or blown heats. A heat, also called charge, occurs during the next step in the metals recycling process in which the scrap is heated in a furnace at the mill to a molten blend from which new coil or plate will be made (see Figure 1).

If a batch heat contains too much of certain contaminants, such as lead, or too high a percentage of an ingredient, such as copper, the heat is “blown.”

The scrap materials that the processors purchase vary not only in chemistry, but also in physical form. Materials range from heavy plate to light-gauge sheet, punchouts, and turnings. Employing balers, shears, and torches to cut the material to size, processors ensure that the blends are uniform and meet density requirements.

Processors maintain the proper safety equipment to ensure that no environmental or harmful health agents are released during the torching processes.

Meet Processors’ Material Expectations

Processors are willing to engage in the direct sourcing of stainless and nickel alloy scrap from stampers. However, for stampers to sell directly and realize a higher return, they should keep a few things in mind.

Figure 1
A heat, also called charge, is the step in the metals recycling process in which the scrap is heated in a furnace at the mill to a molten blend from which new coil is made.

Importance of Chemistry. Processors’ operations are focused on chemistry. They view each type of stainless and nickel alloy scrap as a distinct blend of nickel, chrome, molybdenum, and iron and each individual alloy is its own blend.

A processor prefers clean scrap that is segregated by alloy type. Segregation and cleanliness enable a processor to quickly and accurately account for the chemistry units going into their blends. If scrap materials are mixed, the chemistry is potentially less accurate, and more intense testing is required. Segregated alloys will always garner the highest value from the processor.

Scrap Stream Consistency. Processors commit to supplying thousands of tons per month on an ongoing basis to mills and foundries. Their ability to supply materials consistently—both in terms of quantity and quality—is why they have exclusive supply arrangements with stainless mills and specialty foundries.

Therefore, processors appreciate consistent quantity and quality of scrap from their sources. This consistency gives the processor greater insight into forecasting its ability to meet demand. If the processor knows that it is getting a known quantity of materials with a high degree of purity, it is more likely to pay a higher price for the materials.

Four Steps to Prepare Scrap for Processors

Stampers must follow a few simple guidelines to meet processors’ expectations so that they can sell directly to them:

1. Segregate. Stampers should segregate all stainless and nickel-bearing scrap by their alloy designations as they come off the production line. This can be done by using dedicated bins, hoppers, roll-offs, and pallets, with clear labeling identifying a specific alloy to be placed in them or a part number or job ID that corresponds to a specific alloy.

They should label the slitting line, stamping press, laser table, and CNC machine with a sign indicating which job and alloy type it is running (see Figure 2).

2. Establish Cleanliness Culture. Stampers should establish a culture of accountability and cleanliness in the plant.

The scrap generator should educate machine operators on the importance of keeping materials segregated and how their workstations can affect segregation.

The stamper assigns responsibility to the machine operator to clean his or her machine and work area completely before switching to a new job with a different alloy. Operators should take extra care when job changeovers are occurring that involve materials that are detrimental to stainless and nickel alloy production, such as alloys of copper, brass, bronze, aluminum, and lead.

Figure 2
Stampers should label the slitting line, stamping press, laser table, and CNC machine with a sign indicating which job and alloy type it is running.

When dumping materials from their workstation hoppers or bins into larger collection points, like a roll-off, machine operators should be made to sign off on a check list indicating the time, material dumped, and quantity. This will be helpful in tracking sources of contamination and identifying which actions may be taken to avoid them in the future.

3. Use Lists, Manifests in Shipping. Stamping manufacturers can use detailed packing lists and shipping manifests to maintain clarity.

Each individual hopper, tote, box, or skid should be clearly labeled by the alloy type it contains and the gross, net, and tare weights.

Each scrap container or pallet should be given a unique ID number.

Packing slips should be divided by alloy type and list each individual item with its container’s unique ID number and weights. This helps the processor in reporting back any discrepancies to the stamper. The stamper can then refer back to their signoff sheets to find where an error occurred in the plant.

4. Be Transparent About Contamination. The stamper should communicate the inevitable contamination problem to the processor when it does occur. They have systems in place to handle it.

The stamper should describe the alloy types mixed together and, if possible, provide an approximate percentage of each.

The item should be sent as a separate category on the packing list so that it is treated with care.

If any questions remain, stampers can reach out to any of the processor’s trained staff members. They are more than willing to answer any questions and aid in the design of scrap management programs to bring the stamping manufacturer up the supply chain.S

Max Leder is a trader for ELG Metals Inc-Chicago, 103rd St. and the Calumet River, Chicago, IL 60617., max.leder@elgmetals.com, 312-415-4476, www.elg.de.