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Is waste copper recycling business profitable in 2021

Views:1     Author:Site Editor     Publish Time: 2020-10-23      Origin:Site

1. Reuse of domestic waste

We are making a lot of domestic waste every day. If we carry out a simple landfill disposal, a ton of waste will cost 200 to 300 CNY, meanwhile it will occupy a lot of land, and cause soil pollution. Domestic waste, such as plastic bottles, cans, old newspapers, glass bottles and E-waste are sold to waste yard or recycling companies. Waste recovery company will send them to plastic, metal, paper processing plants or glass factories for production. 

Those recycling plants usually equip efficient and automatic metal wire recycling machines, such as waste baling machine, wire stripping machine or cable granulator, metal cutting shear, plastic cardboard baler. After process on machines, those metal or nonmetal waste become raw materials to make various products can be reused. In addition to reducing the amount of waste, it also saves material and energy.

According to a report from one big Chinese Glass Company, after continuous improvement of the use of waste glass, the company's use rate of recovered waste glass has risen from 30% at the beginning, lately up to 60%, even 80%. At the same time,they can save 4,200 tons of soda ash, 2,108 tons of coal, and 380,000 kilowatt-hours of electricity every year. Good way for saving money and protecting the environment, Chinese saying “killing two birds with one stone”.

 

2. Profitable E-waste recycling

From the abandoned electrical appliances waste,we can extract many valuable precious metals, such as gold, platinum, and indium. Needless to say, indium is called metal vitamin, and its price has risen from US$70 per kilogram to US$1,200. If the waste batteries in the old mobile phones are recovered, 200 grams of gold can be extracted by accumulating to 1 ton. You must know that generally only 2 grams of gold can be extracted per ton of gold-bearing ore. 

At present, the annual profit of American e-waste disposal companies has reached 25-30 million US dollars (according to statistics, mining 1 ounce of gold requires 300 US dollars, and recovering 1 ounce of gold only requires 10 US dollars). Known as China’s "Hardware Capital", Yongkang is currently the largest scrap metal recovery base. There are more than 200 scrap metal processing and melting companies, with an annual scrap metal transaction value of 6-7 billion yuan and an output of 250,000 tons around aluminum alloys. The most popular machine applied in E-waste recycling is wire granulating separator machine.

 

3. The copper price will go up or down?

The IWCC revised its copper demand forecast for this year, as consumption has begun to recover from the epidemic (covid-19), but it is still expected that 2020 will be the first year in which annual demand decreases in more than a decade.

IWCC predicts that this year's refined copper demand will be 22.9 million tons, a 4.6% decrease from the previous year, and all regions will see a decline.

However, Loveitt pointed out that the latest forecast is nearly 300,000 tons higher than the IWCC estimate in May. The industry organization expects a 5% recovery in demand in 2021, higher than the previous estimate of 4.4%.

Copper prices rose above the $7,000 mark on Wednesday, the first time since June 2018, aided by hopes for the US economic stimulus plan, strikes at Chilean mines, expectations of

healthy Chinese demand, and a stronger RMB.


China, the number one consumer, has a record high copper imports this year.

 

Chicago September 29 news, CME Group Senior Director of Metal Products Sachin Patel said that copper prices rebounded strongly after hitting an 11-year low in March. With the surge in Chinese demand and the impact of the new crown epidemic on South American supplies, copper has regained 50% of its lost ground after briefly falling below US$2/lb.

 

Demand rises, supply falls.

China's manufacturing and construction industries consume about half of the world's copper. Earlier this year, these two industries in China stopped production due to the new crown epidemic, but they have now recovered strongly. China's factory activity in June recorded the fastest growth rate since December last year.

The supply side supports copper prices . The new crown epidemic continues to run rampant in Chile and Peru, the two largest copper producers in the world. Peru's copper production fell by 42% in May, while Chile's state-owned copper mining company Codelco temporarily closed its largest smelter and refinery and suspended the construction of its flagship mine.

 

Hopefully the copper market will recover and copper price still going up in 2021. It's never too late to start your scrap metal recycling business. Now start with a reliable metal wire recycling machine, welcome to contact KLAY. 


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