Cleveland-Cliffs reports revenue boost - Construction & Demolition Recycling

2022-07-25 08:46:38 By : Ms. Sunny Di

Steelmaker’s CEO also says company has no immediate plans to install EAF in Ohio.

Cleveland-Cliffs Inc. has reported second-quarter 2022 consolidated revenue of $6.3 billion, representing a 26 percent increase compared with 2021 second-quarter revenue of $5.0 billion.

The firm’s second quarter net income of $601 million included deductions for one-time charges for debt extinguishment, accelerated depreciation related to idling a coking facility in Middletown, Ohio, and some severance costs. Thus, the firm’s income fell percent from $795 million one year ago.

Lourenco Goncalves, Cleveland-Cliffs board, president, and CEO comments, “We were able to achieve our largest quarterly debt reduction since our transformation began a couple years ago, while delivering substantial capital returns via share repurchases. As we move into the second half of the year, we expect this healthy level of free cash flow to continue, as a result of declining capex needs, the accelerating release of working capital, and the heavy use of fixed price sales contracts. In addition, we expect to see further significant increases in the average selling prices for these fixed contracts resetting on October 1.”

Adds Goncalves, “Our industry-leading exposure to the automotive sector separates us from all other steel companies in the United States. With automotive demand outpacing production for more than two years now, the consumer backlog for cars, SUVs and trucks has become enormous. As supply chain problems continue to be resolved by our automotive clients, pent-up demand for electric vehicles continues to increase, and light vehicle manufacturing catches up with demand, Cleveland-Cliffs will be the primary beneficiary among all steel companies in the U.S. This important distinction of our business relative to other steel producers should become clear as we progress through the remainder of this year and into next year.”

In a conference call with steel sector analysts held late last week, Goncalves also noted, “We are seeing a lot less competition for prime scrap. At the beginning, we had to really fight to get the deals done. But now apparently, the competition is not really looking for a prime scrap. They should have their reasons. To be honest with you, I don’t care. For us, prime scrap is important. We prefer to use prime scrap. Prime scrap allows me to use less cook and using less scope to generate less CO2, and that's a good thing. And prime scrap that I use coming from automotive to go back to automotive in the steel that I produce is great to create a closed loop solution with our clients, and there’s a value on that.”

Last year, Cleveland-Cliffs cited access to prime scrap as a key reason for its acquisition of Detroit-based Ferrous Processing & Trading (FPT).

Although in a previous earnings call Goncalves had hinted at possible additional electric arc furnace (EAF) melting capacity, last week he stated, “There’s no EAF coming at Middletown [Ohio]. We are good with the footprint that we have. We are probably the most environmentally friendly blast furnace operator in the entire world.”

CDRA says ninth version of Shingle Recycling Forum will be held near Chicago Oct. 5-6.

The Construction & Demolition Recycling Association (CDRA) has announced that the 9th Shingle Recycling Forum has been scheduled for Oct. 5-6, 2022, at the Loews Chicago O’Hare Hotel.

CDRA says the event is designed to bring together state Department of Transportation (DOT) officials, recyclers, asphalt plant operators, road pavers and other interested parties “for impactful networking and cutting-edge presentations from industry experts.”

The Maryland-based Asphalt Roofing Manufacturers Association and Arkansas-based Paragon Resource Management are sponsors of the event. Additional exhibitors and sponsors are being sought by CDRA, adds the group.

A schedule for the October event posted to the CDRA web page indicates a facility tour will be offered to attendees. Topics to be covered include: the state of recycled shingle use in pavements; guidance from the Federal Highway Administration (FHWA) on the use of recycled asphalt shingles (RAS) in highways; working with state DOTs to Use shingles in the highway environment; and panel discussions offering contractor perspectives and a review of other process shingle end markets.

Two Michigan counties are incorporated recycled tire rubber in asphalt used in paving projects, but that's not the only way tires are being repurposed in Michigan.

Rubber is meeting road not in the usual sense of tires rolling on pavement, but in rubber from scrap tires becoming part of road surfaces in some areas of Michigan. Recent paving projects backed by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) in Bay and Clare counties are expanding Michigan’s use of rubber tire scrap in road resurfacing, keeping the materials out of landfills and shaping the highways of the future.

Elsewhere, plastic scrap has been integrated in asphalt as companies and materials recovery facilities become more creative in finding end uses for plastic, rubber and other materials which have proven challenging to reuse in the past.

The projects in Bay and Clare counties also highlight a Michigan recycling milestone. As of 2022, the state’s major scrap tire processing businesses—about 10 in all—no longer send any regular scrap materials to landfills. Apart from small quantities too dirty or contaminated to be recycled, all the material is recovered and repurposed for use not only in road work but as mulch, in rain gardens and septic fields; as weights for construction barrels and silage covers; in molded and extruded plastic product; as porous pavement for trails and pathways; as tire-derived fuel and more.

“The scrap tire market in Michigan is in a transformation from managing scrap tires as a waste to creating economic value,” says Kirsten Clemens, scrap tire coordinator in EGLE’s Materials Management Division.

The repaving in Bay and Clare counties used material from about 59,500 tires on more than 5.5 miles of roadway. EGLE awarded Michigan Technological University a $396,000 grant for project design and testing. Each county’s road commission performed the paving work, resurfacing 4.5 miles of Seven Mile Road from E. Midland Road to E. Beaver Road in Bay County and 1.15 miles of W. Haskell Lake Road from Cook Avenue to Lake Station Avenue in Clare County. At both locations, the repaving was divided into sections to enable side-by-side comparison of the rubberized and conventional paving materials.

These two are far from the first such projects in Michigan. Last year alone, four Michigan counties completed rubberized local road projects using scrap from more than 30,000 tires. As far back as 2005 and 2006, Saginaw County rolled out a pair of 2-mile sections of rubberized asphalt. The Michigan Department of Transportation allows a portion of asphalt mixes to be recycled materials, but it is not required.

“We have about 20 years of projects, and we’ve got some really solid technology now,” Clemens says. “What we’re trying to do is expand the use by getting the material into the communities that need infrastructure solutions.”

The growing consensus is that rubber-modified paving is a winner for local roads. In 2019, EGLE helped fund a Michigan Tech project in Dickinson County to see how an asphalt-rubber mix would hold up to extreme Upper Peninsula weather. A study two years later found the pavement resists rutting during hot weather and cracking in the cold. Researchers will continue monitoring the project—which won a 2019 County Road Association of Michigan award—for 10 or more years.

Installation of rubber modified chip seal on Seven Mile Road in Bay County.

The company says the CDE Recycling facility helps Maryland lead the way for materials reuse.

Repurpose Aggregates, an aggregate materials manufacturer based in Joppa, Maryland, has recently commissioned a new 250tph construction, demolition and excavation (CD&E) waste recycling plant, designed and engineered by CDE, Cookstown, Northern Ireland. 

The company is hosting an open house hosted by CDE on Sept. 22, 2022. The event will offer a look at the operation of the plant, providing opportunities to hear from CDE engineers about the economic and environmental benefits of its wet processing solutions.  

Repurpose Aggregates says it was first introduced to CDE at CONEXPO in 2020, and was impressed by their technology and how it integrated with their company vision. Following virtual meetings through 2020, the company completed the investment to expand the company’s recycling and reuse operations becoming the first of its kind in Maryland.  

The company says the plant will enable a more sustainable future for the local community and the business. The plant is optimized to accept CD&E waste from various sources, including mining backfilled materials from the site, and produce a range of recycled sand and aggregate products that can be reintroduced to the local construction industry as sustainable alternatives to virgin quarried materials.  

The 250tph recycling facility will include the R4500 primary scalping screen, M4500 mobile washing plant, AggMax 253R modular log washer, Shear Clean Attrition Cells, DS60-6 scrubbing and washing equipment, Counter Flow Classification Unit density and size classification system and EvoWash sand wash plant.  

Repurpose Aggregates also invested in CDE conveyors, an A1500 AquaCycle thickener and a Filter Press sludge dewatering system, which allows the recycling of more than 95 percent of process water.  

The company says the patented R-Series technology allows for a constant, even flow of material to be delivered to the integrated screen before being sent for additional screening, washing and sizing. The modular M4500 sand wash plant integrates feeding, screening, sand and aggregate washing and stockpiling on a single chassis.  

The AggMaxTM log washer incorporates attrition of agglomerates to release sands through scrubbing and organics removal, as well as recovering fines and removing filtrates, while the patented ShearClean Attrition Cells technology further enhances the process as it consistently provides efficient contaminant removal for high-quality sand products.  

The Counter Flow Classification Unit provides a system for the removal of lightweight contamination from fine material fractions. CDE’s dual pass EvoWashTM employs modular hydrocyclone technology, giving control of silt cut points.  

The plant will produce are washed C33 Concrete sand and fine sands as well as ready mix aggregates like #8 Stone, #57 Stone and #3 Stone. Being modular by design, the plant can be adjusted so the final product output can be fine-tuned to meet the market’s needs and the customers' specifications.  

The CD&E solution will also enable Repurpose Aggregates to partner with public and private entities to process material from local construction and infrastructure projects. Over time, these recycling efforts will help establish a full cycle materials economy, moving the industry and region toward a more sustainable future.  

Since commissioning in April 2022, the plant has been delivering several high-quality recycled materials for the local construction industry, including 1" recycled asphalt, 1" and 3¼" gravel, 1" and 3¼” recycled concrete and recycled drain concrete.  

CDE and Repurpose Aggregates are extending an invitation to the industry to attend an upcoming Open House event at the Maryland facility.  

To register for the event on Sept. 22, click here. Registration is mandatory. 

Tim Flanagan has been a member of SWANA since 2005.

The Solid Waste Association of North America (SWANA), Silver Spring, Maryland, has selected Timothy S. Flanagan as the new president of the SWANA board of directors. As of July, Flanagan has been at the helm of SWANA’s 21-member board after Brenda A. Haney transitioned into the role of past president.  

“Tim Flanagan brings a strong variety of both public and private sector solid waste experience to the board, and he will be an excellent president,” says David Biderman, SWANA executive director and CEO. “He is very passionate about solid waste, recycling, and SWANA and I look forward to working closely with him.”  

President Flanagan has been a member of SWANA and the SWANA Gold Rush Chapter since 2005. He is a SWANA-certified manager of Landfill Operations and served as director of SWANA’s Sustainable Materials Management (SMM) Technical Division, which he also represented on the International Board. In 2016, he was elected to SWANA’s executive board and the SMM Technical Division recognized him with its Distinguished Individual Achievement Award. Before joining SCS in February 2022, Flanagan served as general manager of Monterey Regional Waste Management District from 2015 through 2021, after 10 years as assistant general manager. He is currently serving as project director for SCS Engineers. 

"It is truly an honor to be voted the president of SWANA,” Flanagan says. "I stand on the shoulders of many current and former SCS managers and directors, including past President Michelle Leonard, who helped lead SWANA to be the preeminent solid waste and recycling association in the world.” 

This transition was delayed in FY 2022 in response to the pandemic. Additionally, Art Mercer has taken on the role of vice president, Tammy L. Hayes has become treasurer and Elizabeth Roe was elected to the board as secretary.  

SWANA’s board of directors is responsible for setting strategic direction and overseeing the association’s operations and policy positions. The board receives input from an advisory board made up of delegates from all SWANA chapters, technical divisions, private sector groups and from Young Professional members.