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INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC.
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Chapter II:
How the Scrap Recycling Industry Works
Overview of the Scrap Recycling Industry
The use of scrap dates back to the beginning of human
existence itself. Since the dawn of civilization and the earliest
attempts at manufacturing, humans have recognized the
intrinsic value of scrap and the benefits associated with
using and re-using existing products to create new goods.
The modern, capital-intensive, and global scrap industry we
know today evolved from humble origins.
In the early days of recycling, scrap
peddlers would typically buy and
trade relatively small quantities
of used household items, used
farm equipment and other goods,
and today’s scrap processors and
brokers have certainly retained
that entrepreneurial spirit.
As manufacturing ramped up and
became more complex in response to society’s expanding
needs, scrap recycling took on even greater importance,
adapting not only to market drivers, but also shifting
priorities in the context of our finite natural resources.
In the second half of the 20th century, the scrap recycling
industry continued to grow, becoming more innovative,
competitive, and capital-intensive.
Today, the scrap recycling industry
utilizes a wide range of capital
equipment including high-tech
shredders, shears and balers, as well
as the optical scanners, X-rays, and air
jets that are used to separate recycled
materials. In the last several decades,
the introduction of containerization
and the surge in commodities demand
from China and other developing
economies helped to create an even
more globalized scrap marketplace.