Many data points must be considered to derive a fair and accurate price assessment.

Catalytic converters are the most complex nonferrous item in our industry. How to properly evaluate your returns and results can get confusing, especially when you are new to toll refining and assay. Most companies only look at their average price per unit, but this statistic can be extremely misleading. With that said, this article will give you a more in-depth explanation of all the important data points that should be tracked when selling to a toll refiner, which in turn will provide you with the confidence to review and interpret invoices from a toll refiner with ease.

To begin, it all starts with your tally and having an accurate daily runningcount of your converters. Some recyclers in our industry resort and count an entire load before it ships out; however, this typically increases the chance of errors. Having an organized tracking and inventory system in place from the start will prevent counting errors from occurring. A sophisticated counting system also will allow for accurate evaluation of gross and net weights from a final invoice because a true physical converter count will be recorded for each load. 

As a side note, every time you fill a box of converters, the gaylord should be securely wrapped and remain unopened until it gets to your buyers’ facility.

Once a count is established, it’s important to work with a processor that also counts and touches each unit upon arrival. Having access and being provided with a detailed grading report is essential:

At PMR, we like to call this statistic booking accuracy. As a rule of thumb, if a recycler is within the plus-or-minus 2 percent range, it is accurately counting its material. Unfortunately, many companies are well above the 5 percent mark, which is too high. More importantly, when your booking accuracy is truly reflective of your load, it is a great tool for not only hedging metals accurately but also monitoring theft.

Next, we want to track the extras percentage. An extra is any converter type categorized outside of an original equipment manufacturer’s (OEM’s) ceramic converter, which includes aftermarkets, foil and diesel converters. Most yards will have an extras percentage of 10 percent to 20 percent on average per load. This is important to track because if hedging in advance, a potential overhedge can occur as converters categorized as extras will not generate many ounces (or any ounces at all if they are paid by the piece in light of insufficient weight requirements for assay).

Moving on, we want to look at the partial percentage. This represents how much loss on average a converter load might have. Data show that a typical load will have 4 percent to 5 percent broken or partially full converters. If a recycler is less than 5 percent, this is a good indicator that material is being dismantled correctly and units are being managed with care. On the other hand, if the partial percentage is more than 5 percent, this could be the result of improper dismantling owing to aggressive pulling. If converters are mangled during dismantling and dust is being lost or flying out of the converter, a different method, tool or solution should be found to remove the converter from the vehicle.

A scrap yard buying from the public also should be cautious and validate that the material being purchased is not the result of dumping predominantly broken converters. (This is a major red flag.) Individual sellers might bring empty or half-full converters to a scrap yard and, when converter fullness isn’t verified, the converter could be purchased for more than it is worth because the purchase price assumes a full unit. To go even further, if you are a recycler purchasing converters from the public, exercise extreme caution when purchasing by serial number or code.

 Deceitful practices have emerged, including restamping converter shells with high-value serial numbers and faking OEM units by either filling empty converters with aftermarket material or fabricating a brand-new converter shell/heatshield, such as a Honda O2 Premium or Hyundai, with a brand-new aftermarket puck within.

Such practices could result in extreme overpaying for material.

Converter count, booking accuracy, extras and partials percentages are data points that must be tracked and considered before a load is processed.

The next set of data points will focus on what to evaluate and analyze once assay results are available from toll refining.

Parts per million, also referred to as PPM, are one of the most important metrics on an invoice when selling on assay. This metric provides clear readings of the precious metal content within a converter load.

Let it be known that it is difficult to have absolute consistency with these evaluations because the mixture of a given load varies from one shipment to the next. Vehicle mileage, the region in which the converter was manufactured for, converter wear and tear as well as different emissions standards laws influence converter value. With that said, the precious metal content will differ in each converter load. Keep in mind that results from a scrap yard will have a greater propensity to vary because material is being purchased from a multitude of sources, unlike the auto recycler strictly pulling converters from vehicles.   A number of other factors influence the assay results:

Next up is weight per converter, which is an exceptionally critical statistic that will only be trackable if your processor provides a complete grading report displaying full and partial units. An average converter contains about 2 pounds of honeycomb inside the shell. Therefore, if the weight per converter is higher than 2.3 pounds, this indicates that the converters are more likely to be older, heavier converters with lower PPM. If weight per can is under 1.8 pounds, that most likely indicates a composition of late-model units with very high PPMs. A good grading report can provide greater insight on how results will turn out, or at least provide certain benchmarks. For example, if you had a low weight per converter (below 1.8 pounds) but your grading report shows 40 percent-plus of preunits, then the weight makes sense and there is no cause for alarm.

The next data point to review is returnable ounces. Ounces are generated from material’s processed weight and PPM, and tracking this metric will help a recycler decipher patterns. For instance, if a hedge is made upfront, specifically an estimate of 80 percent of total ounces, this can then be compared with the results when the assay is complete. In tracking this, a recycler can figure out if a good number of ounces is being hedged or if a constant overhedge is occurring and if the hedge percentage needs to be reduced over time. As a side note, if no assay history is available, a safe bet would be to aim for 60 percent to 80 percent of national average when hedging material.

Once enough assay history has been accumulated, recyclers will have the ability to validate each of the above data points against a running average of past lots. This will truly give recyclers the ability to track their own converter statistics and identify irregularities.

Outliers do happen in refining, but when tracking the right metrics, they can be explained easily from the information found in the grading and/or assay report. For example, if platinum PPM is exceptionally low on an assay report, but the palladium part per million is exceptionally high, this will indicate no cause for concern because these two metals usually work as opposites (under the assumption that a lot is not cherry-picked). The same would apply for weight per converter versus PPM for late-model vehicles; typically, the lower weight per converter, the higher the PPM.

Most converter buyers and processors only track a few statistics, such as average value per unit and PPM. However, to evaluate a load or a processor, many data points must be considered to derive a fair and accurate assessment and comparison.

At PMR, we help our suppliers not only in the proper tracking of all the data points listed above but also in understanding what these statistics mean for them and their business. If you think the results of one of your converter loads is off, ask your buyer and processor to further explain your numbers. If it cannot give you a statistical explanation and justification, it might be time to find a buyer and processor that can. Start working with a partner that provides the answers and not more questions.

Ryan Carrafiello is director of corporate accounts at PMR Inc., Boisbriand, Quebec,  and Chrysten Newton is the company's marketing director.  

If passed, California SB 54 will enact a 25 percent reduction in plastic packaging and foodware by weight and item count by 2032.

The California legislature has made public the updated text of SB 54, or the Plastic Pollution Producer Responsibility Act, introduced by state Sen. Ben Allen. The landmark legislation calls for a 25 percent reduction in plastic packaging and foodware by weight and item count by 2032. It mandates that nearly half of the reduction result from the direct elimination of plastic packaging or switching to reuse and refill systems rather than replacing it with alternative single-use materials. A press release from the Ocean Conservancy says the bill paves the way for a growing reuse and refillables market to cut single-use plastics altogether.

“Without a doubt this bill, if passed, would be the strongest plastics legislation we have ever seen here in the United States,” says Anja Brandon, Ph.D., U.S. plastics policy analyst at Ocean Conservancy and a principal contributor to the bill text.

“It mandates a reduction in the amount of single-use plastics sold in California, full stop. My fellow Ocean Conservancy scientists and I have crunched the numbers and this provision alone would directly eliminate nearly 23 million tons of single-use plastic packaging and foodware over the next 10 years. To put that in context, that amounts to nearly 26 times the weight of the Golden Gate Bridge. This is in addition to mandating tried and true policy measures like extended producer responsibility that holds plastics makers financially responsible for the full lifecycle of their products.”

Brandon tells Recycling Today the mandate would require producers to create a plan that contains an evaluation of their materials and production and data on weight and number of plastic items. This plan would be sent to a producer responsibility organization, which would ensure that all individual plans add up to the 25 percent mandate over the next 10 years. Of the 25 percent source reduction, 10 percent must be accomplished by eliminating plastic packaging without replacing it with another material or through reuse and refill systems, Brandon says. The bill, she says, also would jump-start investments in the state’s reuse economy.

The legislation would require that all single-use packaging and foodware, including nonplastic items, be recyclable or compostable within the state of California by 2032 and mandates a 65 percent recycling rate target.

“And as importantly,” Brandon says, “the legislation provides hundreds of millions of dollars in funding to support communities and restore ecosystems most impacted by plastic pollution. Especially given that the United States is the No. 1 generator of plastic waste globally, this is a huge win for our ocean and all the communities who love and depend on it and will have impacts here in California and around the world.”

Sixty percent of this fund paid for by plastic producers and resin makers would go to address current and historic harms to disadvantaged low-income and rural communities, Brandon says.

Scientists estimate that some 11 million metric tons of plastics enter the ocean every year. Data from 35 years of Ocean Conservancy’s International Coast Cleanup show that the most common items littering beaches and waterways are single-use plastic packaging and foodware.

“Targeting single-use plastic packaging and foodware has to be central to any strategy tackling plastic pollution because it is these items that are most likely to end up polluting our beaches and ocean,” says Nicholas Mallos, senior director of Ocean Conservancy’s Trash Free Seas program. “This bill boils down to fewer plastics on shelves, and less plastic pollution in our ocean. As the country’s biggest state economy, California has the potential to lead the United States out of its plastic pollution crisis.”

Ocean Conservancy has expressed support for this bill and another ballot measure, the California Plastic Waste Reduction Regulations Initiative, which also addresses plastic pollution and reduction. 

“Our priority is fewer plastics on shelves and less plastic in our ocean, and both the ballot measure and SB 54 can get us there,” says Jeff Watters, vice president of external affairs at Ocean Conservancy, Washington. “If the legislature fails to act on this landmark opportunity with SB 54, we will do everything we can to pass the ballot measure. This is the year California will lead on this issue.”

Brandon says the model of extended producer responsibility and source reduction found in SB 54 would set a new baseline for policies moving forward. The bill would be the first source-reduction mandate in the country and the first mandate for reuse and refill systems and elimination of materials.

Commenting on SB 54 in a news release, Joshua Baca, vice president of Plastics at the Washington-based American Chemistry Council, says, "As an industry, we are concerned with several elements of SB 54 that require further clarification and specificity to improve its implementation. Specifically, the definition of recycling needs to be improved and made clearer so new, innovative technologies that keep hard-to-recycle plastic out of the environment and landfills count in achieving the circularity goals in the legislation. Without new, innovative recycling technologies, it will not be possible to meet the demand for recycled plastic in food-grade application. Also, last-minute carve-outs for certain materials could ultimately jeopardize an effective recycling system that is supported by all the materials going through it. And finally, as global brands and industries commit to using more recycled material in their products, the legislation places an 8 percent cap on post-consumer recycled content to meet the requirements in the legislation. We believe future legislation or regulations should incentivize the use of more post-consumer recycled content in plastic packaging and take into consideration the climate impact of switching to materials with a higher carbon footprint."

Baca adds, "Nevertheless, we will work constructively with lawmakers and CalRecycle to support appropriate implementation of SB 54, and we will support subsequent legislation to make the necessary improvements to help ensure the intent of SB 54 is carried out effectively."

Recycling Today has reached out to the Plastics Industry Association and the Institute of Scrap Recycling Industries for further comment.

*This article was updated June 30 to add comments from the American Chemistry Council.

Rumpke and SWACO will help supply Thailand-based PTT Global with plastic scrap.

The PTTGC America (GCA) business unit of Thailand-based PTT Global Chemical Public Co. Ltd. (GC) has agreed to locate a plastic recycling facility in central Ohio.

GCA says it has signed a nonbinding memorandum of understanding (MOU) to locate what it calls “a new recycling complex” in a business park operated by the Solid Waste Authority of Central Ohio (SWACO), based in Grove City, near Columbus.

GC, which describes itself as Thailand’s largest integrated petrochemical and refining business, says it plans to construct and operate a manufacturing plant of recycled plastics in Grove City with a final investment decision to be made by the end of this year.

GCA also has signed a separate MOU with Cincinnati-based waste and recycling firm Rumpke regarding scrap feedstock for the facility.

“Aligned with the Paris Agreement, GC Group aims to reduce current CO2 emissions by 20 percent by 2030 on our journey toward achieving net zero by 2050,” GCA CEO Panod Awaiwanond says. “This project illustrates our commitment to fight climate change and contribute to a circular economy. It also reaffirms our commitment to the United States and the state of Ohio.”

GCA describes the complex as an enclosed operation that will make recycled polyethylene and polyethylene terephthalate (PET) into products. The facility will be located in SWACO’s Green Economy Business Park, which is being developed to use research, technology and manufacturing “to bring together the sustainable materials management supply chain.”

“We are pleased that PTTGCA has selected Ohio for their project,” says Joe Lombardi, SWACO executive director. “As SWACO continues to advance a more circular economy, we are constantly looking for ways in which materials from the local waste stream can be used to create economic development opportunities, supply sustainable businesses with materials and create new products for consumers.”

Rumpke Director of Recycling Jeff Snyder says, “As the leader in Ohio when it comes to recycling, we are always looking for new end users for our commodities. We are excited to have GC coming to the Midwest as this aligns nicely with our announcement of our new Resource Recycling plant in Columbus, Ohio, and the continued growth of recycling.”

Group’s backing will help Broken Arrow, Oklahoma, purchase five recycling collection trucks.

Closed Loop Partners has announced its Infrastructure Fund has agreed to a second loan to support the municipal recycling efforts of Broken Arrow, Oklahoma.

Closed Loop, based in New York, says its Closed Loop Infrastructure Fund (CLIF) signed and funded its second loan to the Broken Arrow Municipal Authority. The new loan of $1 million is being used to help Broken Arrow purchase five new automated side loader recycling trucks.

Last year, the CLIF closed its first loan of $2.6 million to Broken Arrow to help purchase more than 37,000, 96-gallon recycling carts, three recycling trucks and four maintenance vehicles.

“Our work is centered in advancing more efficient circular supply chains for recyclable materials—from the collection to processing stage,” says Ron Gonen, founder and CEO of Closed Loop Partners. “The Broken Arrow Municipal Authority plays a key role in this work, building systems to ensure that valuable recyclable materials are collected and kept in circulation. We’ve made good progress advancing recycling in the Southwest United States, and we look forward to seeing that continue.”

Jerry Schuber, director of solid waste and recycling in Broken Arrow, says “The new equipment helps us increase our tonnage and diversion rates so that we’re diverting more waste from the landfill and into efficient recycling systems. We have a goal of increasing diversion tonnage to 25 percent of solid waste generated. The new equipment will help tremendously with achieving that goal.”

Broken Arrow’s Recycling Program serves 35,000 households in the city, according to Closed Loop. The city of about 100,000 people is considered the largest suburb of Tulsa, Oklahoma.

Lorain County will receive $300,000 from Ohio EPA to go toward tire shredding equipment.

The Lorain County Solid Waste Management District in Ohio has been awarded a $300,000 grant from the Ohio Environmental Protection Agency (EPA) to help it purchase a shredder, portable sidewall cutter, alligator shears, mulch shredder and other equipment to process collected scrap tire.

The grant is one of 18 announced by the Ohio EPA tied to recycling, waste diversion and litter collection efforts. The combined value of the grants is $1.4 million.

Other recycling- and diversion-related grants include: $200,000 to the Cuyahoga County Solid Waste Management District and Waste Management to purchase a glass breaker and recycled glass cleaning system; nearly $175,000 to the Portage County Solid Waste District for a recycling collection truck; $160,000 to the city of Avon Lake (also in Lorain County) and Westlake, Ohio-plastics compounder Geon Performance Solutions to purchase recycling equipment; $100,000 to Lake-Geauga Habitat for Humanity to purchase two box trucks for recycling events; $100,000 to the Mahoning County Solid Waste Management District to help purchase a shredder, auger, biofilter and other recycling equipment; $96,000 to the city of Elyria (in Lorain County) to purchase a chipper, pick-up truck and recycling equipment for green waste processing; $60,000 to Holden Forests and Gardens in Lake County to help construct compost bays to recycle organic materials; and nearly $56,000 to Aluminum Cans for Burned Children to purchase a box truck for recycling events.

Several of the smaller grants went to litter cleanup efforts organized by not-for-profit groups in various Northeast Ohio cities.