David Luu on the Dynamic World of Metal Recycling: Challenges, Trends, and RSR's Vision

In the ever-evolving landscape of the metal recycling industry, professionals like David Luu find themselves at the forefront of a dynamic and challenging sector. We recently had the opportunity to sit down with David to gain insights into what makes this industry so exciting, unique, and the driving forces that are shaping its future. Here's a glimpse into our conversation.

Embracing the Excitement of Metal Recycling

For David, the metal recycling industry's allure lies in its constant state of flux. With variables like domestic and export prices, buy prices, currency rates, product quality, and recovery always in flux, every day is a new puzzle to solve. The thrill comes from making decisions on when to buy or sell, negotiating the best prices, optimising product choices, and strategically considering logistics. It's a dynamic environment where even the slightest change can have far-reaching implications for a business, both in the short term and the long run.

The Unique Culture of Trust

One unique aspect of working in the metal recycling industry is the unwavering emphasis on trust and integrity. David emphasises that your word is your bond in this business. When you make a deal, you honour it. This dedication to honesty and keeping one's commitments is not just good practice; it's essential because personal reputation is paramount in this close-knit global community. It's an industry where people from all over the world meet and collaborate, creating a sense of global camaraderie.

Winds of Change: What's Transforming the Industry?

Over the past decade, several factors have significantly impacted the metal recycling industry. Market news and information are now more accessible to everyone, allowing for greater transparency and informed decision-making. Investments in Safety, Health, Environment, and Community (SHEC) have seen substantial growth, reflecting an industry-wide commitment to responsible operations. However, one of the most noteworthy changes has been the increasing capital costs required to operate efficiently, a shift that has reshaped the industry's landscape.

Future Trends: The Path Ahead

Looking ahead, David foresees increased consolidation within the industry. Family-owned businesses may gradually give way to corporations due to the capital costs associated with modern equipment, essential for improving efficiency and reducing operating costs. These changes are a response to the evolving landscape of the industry, driven by a quest for competitiveness and sustainability.

The Hidden Power of Metal Recycling

Not many are aware that metal recycling produces secondary metals, requiring significantly less energy than mining ore concentrates to produce primary metals. This eco-friendly aspect of the industry underscores its contribution to environmental conservation.

The Challenges That Lie Ahead

Challenges are part and parcel of any industry, and the metal recycling sector is no exception. A significant challenge is finding a workforce willing to engage in physical labour, as the industry competes for talent with social media and the high-tech sector. Additionally, the cyclical nature of the metal market poses a perennial challenge. While recent years have seen prosperity, the economic climate is currently shifting, presenting new hurdles.

RSR's Vision: A Look Into the Future

For David, the future holds both challenges and opportunities. Rather than resting on past achievements, the focus should be on what lies ahead. In these economic conditions, it's more prudent to prioritise margins and profitability over volume and market share growth. This adaptive approach will ensure that when the right opportunity arises, RSR is poised to shift gears and seize it.

RSR's Industry Leadership

Richmond Steel Recycling stands out as an industry leader due to its long-standing reputation and financial stability. Suppliers feel secure knowing that RSR has the resources to fulfil its commitments. While the business deals are a significant part of the equation, it's the dedication and exceptional customer service provided by RSR's team that fosters supplier loyalty. Strong relationships also enable RSR to procure materials at competitive rates, ensuring a mutually beneficial partnership.

Leveraging Technology for Improved Operations

RSR's commitment to excellence is reflected in its investments. For instance, technology investments have enhanced the recovery of non-ferrous (NF) materials from the dense non-ferrous (DNF) stream, leading to a cleaner product and less waste going to landfills. These innovations have not only improved environmental sustainability but also added positively to the bottom line.

Embracing Data and Analytics

Data and analytics have a growing role in optimising operations. David highlights the importance of conducting yield tests on supplier materials to understand their quality and value after shredding. This data-driven approach ensures that material quality is reflected in pricing, recognizing that not all materials are of the same quality and should be valued accordingly.

In conclusion, the metal recycling industry is an ever-evolving and exciting realm where challenges are met with ingenuity and opportunities are seized with resilience. The vision for Richmond Steel Recycling and the industry as a whole is to adapt, evolve, and continue providing sustainable solutions in a world that increasingly values environmental responsibility. David Luu's unique insights provide a glimpse into this ever-changing landscape.

Exploring the Ever Evolving World of Metal Recycling: A Conversation with Industry Expert John Rai

In an era where environmental consciousness and sustainable practices take centre stage, industries that contribute to the circular economy have gained unprecedented attention. One such industry, often operating quietly but with immense impact, is the metal recycling sector. In this insightful discussion, we sat down with John Rai, Vice President of Business Development at Richmond Steel Recycling (RSR), a renowned player in the metal recycling domain, to uncover the intricacies, challenges, and exciting facets of the metal recycling industry.

A Legacy of Value Creation

For many, the principles of recycling and reusing are deeply ingrained, guided by the belief that nothing should go to waste and everything holds inherent value. This sentiment resonates deeply with industry insider John Rai, who reflects on his upbringing, "I was raised to not waste anything and that everything has value. My family has been recycling and reusing since the late 1970s and 80s. My dad, a trained mechanic, would use a spark plug cleaning machine and re-use plugs 2 or 3 times before replacing them with new ones, along with rebuilding many auto parts. The gratification of recycling materials rather than sending them to landfills is truly fulfilling." This intrinsic ethos infuses a personal touch into the industry, fostering a profound sense of fulfilment through material diversion from waste sites.

John Rai,
Vice President of Business Development at Richmond Steel Recycling

Unearthing the Rich History of Metal Recycling

The metal recycling industry possesses a unique historical significance. From the inception of refined metal, it was recognized as a valuable resource. John highlights this, stating, "What sets the metal recycling industry apart is its status as the oldest recycled material. Since the first metal was refined, it was seen as a precious resource. The notion that some of the metal we handle has been in circulation for centuries is truly captivating." This historical context imparts a distinctive dimension to the sector, bridging the gap between bygone eras and the present. These are such simple concepts that we as general consumers fail to recognize.

Adapting to the Winds of Change

Over the last decade, the landscape of metal recycling has undergone remarkable transformation. John emphasizes the integration of steel mills and recyclers, accompanied by cutting-edge technology facilitating the recovery of non-ferrous metals from waste streams. This confluence has redefined the industry's dynamics. Rai also notes the increasing acquisition of scrap dealers of all sizes, underscoring the industry's evolution and adaptability.

Anticipating Future Trends

Looking ahead, industry expert John Rai anticipates two pivotal trends that could reshape the metal recycling landscape. The first revolves around establishing domestic melting capacity in North America, propelling regional recycling endeavours. The second focuses on China's self-sufficiency in scrap metal supplies, triggering global trade shifts and reconfiguring the industry's structure.

Unlocking the Hidden Truth of Recycling

Recycling often remains enigmatic to the masses, leaving individuals unaware of the ultimate destination of their recycled items. John Rai sheds light on this aspect, stating, "A lack of awareness persists regarding where recycled metals or items end up. For instance, our recycled steel is melted and utilized in local buildings as rebar. Meanwhile, plastics and other materials might be shipped offshore to countries with fewer environmental regulations." Addressing this knowledge gap becomes imperative to comprehending the complete life cycle of recycled materials.

Confronting Challenges Head-On

In the face of progress, the metal recycling industry confronts a series of challenges. From urban sprawl encroaching on industrial land to stringent environmental regulations, the industry grapples with multifaceted hurdles. John Rai highlights the theft of valuable non-ferrous metals during price surges and supply shortages as additional barriers. Striking a balance between capacity and demand remains an ongoing challenge, exemplified by localized oversupply issues. Addressing these challenges necessitates collaboration across government, industry, and the public to sustain and enhance these critical practices.

A Vision of Impact and Recognition

Richmond Steel Recycling's vision extends beyond mere business operations. Their aspiration encompasses revitalizing industrial sites and attaining recognition as a pivotal player in the circular economy. John Rai's vision is clear: "My goal is for Richmond Steel to emerge as a driving force in reclaiming industrial spaces. Furthermore, I envision the industry being lauded for its indispensable role within the circular economy, rather than being viewed solely as a cost center."

Leadership through Fairness and Commitment

Richmond Steel Recycling's leadership stands out due to its unwavering commitment to fairness, environmental stewardship, and safety. These values guide their actions, ensuring contributions to global well-being and local community welfare.

In the realm of metal recycling, each piece of scrap carries a narrative – a story of transformation, value, and sustainability. Throughout this series, the Conversation with Industry Experts, we hope to create a deeper appreciation for this silent yet impactful industry emerges. As the sector navigates challenges and embraces innovation, its role in the circular economy assumes ever-greater significance. From grassroots recycling efforts to grand visions of industrial renewal, the metal recycling industry paves the way towards a greener, more sustainable future.

HR Employee Spotlight #3 - Tammy Long

Richmond Steel is nothing without it's people. Their thoughts and feelings are of the utmost importance to us.

What has been your experience with our company? Years of work? Different positions?

I have been with Richmond Steel for over 11 years, I have worn many hats over the years and continue to do so.  I come to the company with much admin and logistic experience, but absolutely no metal recycling knowledge, the first while was an eye opener let’s just say. I started as a scale operator/office admin and it grew from there, working in an outlying yard gave me the freedom and opportunity to take on many roles and responsibilities, and continue to do so.  I am now in a regional administration role supporting all the outlying yards as well as our OOY projects. 

How is your team?

My team members of course have changed and grown over the years, but key members have remained consistent. I consider my team as family members, we share in not only work related but also share in the personal moments as well. It is nice to have those connections to be able to celebrate not only work achievements but personal ones as well.

What improvements have you seen within yourself after joining RSR?

The knowledge that I have now vs. when I started is vast, over the years I have been granted the opportunity and participation to be involved in all areas of the business and has given me the ability and confidence to be diverse and handle new challenges as they arise.

Who do you think is your biggest inspiration in our company?

Inspirations have been the people that have given me the freedom and support to learn and grow within the company.  Doug Hallson has been the most inspirational, he is always there to make sure that “I am not selling myself short” his faith in me has always been a huge inspiration, Geoff Salton for the encouragement and always being there and  Kelly Brown for being my work “husband” that inspires (tests) me daily J

How have you grown professionally after joining our team?

Wow, how have I grown, I would have to say that my confidence has been the biggest growth, at the beginning there were many second guessing moments, now with the knowledge and experience that I have gained I continue forward with the confidence to take on any new challenges that arise and continue to prepare me for greater responsibility.

What resources and benefits do you like within the company?

I would have to say the greatest benefit is that RSR is willing to let people grow and advance within ourselves, the opportunity is there to continually learn and take on challenges. The members of upper management are willing to allow that growth and help in any way to achieve success not only for the individual but for the company dynamic as well.

What do Richmond Steel, the Evolution of Junk, and the Library of Congress have in common?

As a modern metals recycling facility, Richmond Steel Recycling (RSR) processes thousands of tons of recyclable metals every month.  From its earliest beginnings in the 1960s and early 1970s, it was focused on recycling what modern society at the time termed “junk.” 

The word “junk” was very much a part of the daily vernacular at the time.  Many businesses were named “junkyards” and guarded by “junkyard dogs.”  The latter of which took on a life of itself as a slang term for being mean and tough.  A famous wrestler even took on the name.

Popular on television at the time, viewers tuned in weekly to watch the ramblings of scrap metal collector Fred Sanford and his adult son – “We buy & sell junk” clearly emblazoned in the opening credits and on the patina laden pick-up truck they used to collect it.

For the past couple of decades, the word junk has never even been a part of our regular vernacular here at RSR.

We have many long term employees and customers at RSR, some that have been around since the 1970’s and 80’s.  They have been first hand witnesses to the changing perceptions of junk in society and the drive to recycle more to lessen our impact on this planet. 

As well, they’ve seen some vehicles that were once seen as worn and rusted out junk destined to be sent to a landfill, not only become a commodity as metal, to be recycled but turn into collectible antiques as they became rare and desirable. The best example of this I can think of is the story of one RSR customer sending a vehicle to our auto shredder circa 1982 and the same model in 2020 being entered into the Library of Congress’ National Historic Vehicle Register in the USA.

In today’s blog, I present the story of two cars; both the same year, make, model, and colour that no one today would consider junk. 

When you are in the business of shredding old vehicles and steel for re-melting one meets many interesting people that have interesting stories to tell. In one such case a supplier related a memory of his youth in the early 1980’s. 

Into fixing up old cars and making them faster for what I’m sure was to take them to a registered track and see how fast they could run, he and his friend came to own a black 1970 Dodge Challenger. Nothing too spectacular about this model at the time, it was a popular car when new and used versions were easily found in weekly classified ads.

This particular car was too rusted for them to repair, but it had an engine that is well known to classic car enthusiasts.  Once banned from NASCAR for being too dominant, the 426 street Hemi has always held a special allure to hot rodders and backyard mechanics. The customer and his friend removed the Hemi engine from the car and sent the rusty body of the car to RSR for recycling.  As best he can remember, the year was 1982.   

In 2020, the USA’s Library of Congress added two vehicles to its National Historic Vehicle Register. One of those vehicles is a black 1970 Dodge Challenger equipped with the Hemi engine that was known to race on the streets of 1970’s Detroit.   (read about it here: https://money.yahoo.com/1970-street-racing-dodge-challenger-220000515.html )

One can speculate on the monetary value of these two cars today but one thing is clear, they would not be considered junk today by any stretch of the imagination.  – John Rai, Commercial VP Richmond Steel Recycling 

Does recycling really do anything to reduce global warming?

Recycling can help reduce global warming — but how, exactly, is still a lesson many people around the world are learning.

Svante Arrhenius published his scientific theory of global warming in 1896. He suggested that the earth’s atmosphere was becoming polluted, and that the pollutants were trapping sunlight rather than releasing it back into space. Earth was subsequently undergoing the greenhouse effect, and its temperature was rising.

It would take nearly a century for global warming to become a public concern.

Environmentalists in the early 1970s circulated information about the correlation between human activity and the planet’s polluted atmosphere. Their cause was met with a confused reaction of belief versus disbelief.

Some doubt the reality of global warming altogether, while others believe that because it appears to have no effect on their life, the planet’s rising temperature is not their problem.

Who is affected by global warming?

Whether they know it or not, everyone on Earth is directly or indirectly affected by global warming.

Among those directly experiencing the effects of global warming are farmers. The health of crops, such as wheat and corn, depends on the amount and steadiness of rain. As the climate becomes warmer, the air retains more moisture, so global warming makes it increasingly difficult for agriculture experts to predict rainfall patterns.

A common misconception is that global warming’s only effect on crops is droughts (a lack of adequate moisture from rainfalls), but these periodic droughts go hand-in-hand with floods.

Sudden overloads of water are catastrophic to farmlands, ultimately straining food production.

The less such crops yield, the less food is available to consumers, who thus indirectly experience the consequences of global warming.

Sure, global warming is gradual, and anyone alive on Earth today is unlikely to experience the end of the world, but the rate of climate change has been increasing since the Industrial Revolution. NASA’s Goddard Institute for Space Studies reports that, “…the average global temperature on Earth has increased by about 0.8°Celsius (1.4°Fahrenheit) since 1880. Two-thirds of the warming has occurred since 1975, at a rate of roughly 0.15-0.20°C per decade.”

Human activity causes small, but significant, changes to the climate every day.

Which is exactly why small changes in our recycling habits can help reduce global warming.

How does recycling help reduce global warming?

Recall Arrhenius’s theory that pollutants in the atmosphere trap heat, causing global warming. Some of these pollutants, referred to as greenhouse gases, are carbon dioxide, ozone, nitrous oxide, and methane.

Greenhouse gases are created both naturally and by human activity. Consider metals, such as aluminum, copper, steel, and iron. When humans manufacture metal commodities from raw materials, the process of industrial production causes greenhouse gas emissions.

In other words, smelting new metal directly contributes to the pollution of the atmosphere. A robust example is steel production. Steel is made of iron ore, the mining of which causes CO2 emissions. NASA reports that CO2 contributes to 20% of the planet’s greenhouse effect, and CO2 has a tremendous duration (think centuries) in the atmosphere.

While scientists are still determining whether or not harmful gases in the earth’s atmosphere may ever completely disappear [4], it has been determined that metals may be reused. Therefore, humans have the opportunity to lessen the rate of climate change. Recycling steel, rather than mining for its elements from Earth’s precious raw resources, is a substantial way to mitigate the emission of CO2.

Where can you recycle scrap metal in Canada?

Most major cities in Canada have facilities for recycling scrap metal.

In Western Canada, Richmond Steel Recycling’s main location is in Metro Vancouver, but also has facilities in three other British Columbia locations: Kamloops, Prince George, and Fort St. John. In Alberta, Edmonton is home to a fifth facility.

If you’re considering bringing scrap metal to a recycling facility, first asses the types of metal you need recycled. Cars, for example, are frequently comprised of steel, aluminum, and iron. If your scraps are comprised of more than one type of metal, it’s important to select a company with the capacity to conduct across-the-board metal recycling.

Richmond Steel Recycling accepts a long list of ferrous and non-ferrous metals, such as steel, tin, brass, iron, aluminum, copper, lead, and zinc.

By bringing your scrap metal to Richmond Steel Recycling, rather than sending it to landfills, you will contribute to a lowered rate of greenhouse gas emissions and the overall reduction of global warming.

Lead disposal: How to dispose of lead.

Lead disposal has been happening since 4,000 BC, as discovered when ancient figurines were found in Egypt. Little did people know, their ornaments contained a material that would become a controversial global resource.

The uses of this metal evolved as people recognized its malleability. Over time, and especially during periods such as the Industrial Revolution, lead became a go-to metal in the production of daily-use items. Silvery-blue in color and rust-resistant, lead gained its status as a popular component of house paint, plumbing fixtures, and vehicle batteries.

Then came lead poisoning.

Lead poisoning is classified as an environmental illness, because the presence of lead in building materials and manufactured goods can harm the health of both children and adults, especially pregnant women. In serious cases, lead poisoning can lead to cancer.

Although not as close to us as toxic mercury-based dental fillings, the lead in water pipes and cooking utensils inevitably surfaces in our food. We can also contract lead poisoning just by living and working in buildings with lead-based paint and wood via inhalation of toxic dust and vapor.

How does lead affect human health?

When people who had been exposed to lead toxins in their environment showed symptoms of lead poisoning—headaches, respiratory problems, and forgetfulness, to name a few—health and safety officials recognized the need to regulate the usage of lead in close-contact items. Health Canada implemented a strategy specifically to reduce the presence of lead in products likely to be ingested, inhaled, or in contact with human mouths, such as toys and cosmetics.

However, lead-based items still exist in our homes, workplaces, and other areas of daily life.

Consider paint—although the World Health Organization prioritized a goal to eliminate lead paint by 2020, and paint sold commercially after 1992 in North America is lead-free, many buildings pre-dating 1960 are coated in lead paint. This realization spurred lead abatement projects, such as that in Vancouver which saw the removal of lead paint from four pool houses in 2018.

Workers removing lead-based paint from buildings and infrastructure can protect themselves and others by using polyethylene covers to limit debris to the renovation site. Anyone with old paint cans kicking around should also seek responsible lead disposal.

Scrap metals such as lead, copper, and mercury should not be disposed of in landfills alongside household or retail garbage, because metals can leach toxic matter into the soil surrounding a landfill. Scientists suggest that air pollution arising from toxic soil can poison the people and wildlife living within five kilometers of a landfill.

How does lead affect the environment?

Metals are considered precious resources for their increasing scarcity, so keeping metals out of landfills protects the environment.

Recycled lead, and recycled metals in general, can be reused in the production of new commodities, lowering the global need to conduct metal mining. Decreasing the amount of metal mining also means decreasing the amount of greenhouses gases damaging Earth’s atmosphere.

Who helps with responsible lead disposal?

Metal-recycling companies such as Richmond Steel Recycling exist to help people dispose of and recycle lead-based items in a safe and an environmentally conscious manner.

Richmond Steel Recycling accepts lead-acid batteries and removes them from vehicles we buy for shredding, which would cause pollution if added to landfills. Companies such as this have resulted in North America’s high (nearly 100%) battery recycling rate. Furthermore, they helped the global usage of recycled lead surpass that of mined lead in 1995, and this statistic remains positive today.

Ultimately, bringing scrap metals to organizations such as Richmond Steel Recycling is an environmentally responsible practice, which helps prevent both human illness and global warming.