Steelmakers in the People’s Republic of China will start 2021 with access to imported ferrous scrap newly redefined as a resource and with a former tariff barrier completely removed.
China’s Standardization Administration has confirmed that a roster of more than a dozen ferrous scrap grades (plus two stainless steel grades) have been approved as a “resource” for quota-free importation. Received shipments will be subject to inspection when arriving in Chinese ports, but not to a pre-inspection approval process.
That policy approval was quickly followed by another from China’s Ministry of Finance that will see a former 2 percent duty on imported ferrous scrap retired effective Jan. 1. According to Argus Media, the ministry also reinstated most favored nation status on the approved ferrous and stainless scrap resource categories.
The combination of policies seems to have been put in place to support increased electric arc furnace (EAF) steelmaking capacity in China. The EAF method is gaining favor both because China is generating more of its own ferrous scrap, and as a way to phase out integrated production as China tries to lower its carbon emissions level.
A report from Davis Index indicates steelmakers such as Rizhao Steel and Jiangsu Steel Group intend to import as much as 1 million metric tons of ferrous scrap in 2021.
Whether Chinese mills buy ferrous scrap off the United States Pacific Coast or not, the increased presence in the global market will likely place additional upward price pressure on ferrous scrap in 2021. Ferrous scrap prices in the U.S. closed out 2020 with an $80 per ton increase.
Scrap trader and consultant Nathan Fruchter of New York-based Idoru Trading says a large-volume re-entry of China into the global market “is not good news” for steelmakers, “as it will create a shortage of scrap amongst the current pool of scrap buyers.”
Predicts Fruchter, “As a result, it will push scrap prices further up and also usher in higher steel prices. As goes scrap, so goes steel. Think scrap prices are high this New Year? Just wait until the Chinese New Year [on Feb 12].”
No matter if you were engaged in a socially distanced conversation, perusing social media, watching TV or otherwise awake and breathing, the message was the same as the New Year approached: Thank God 2020 is coming to a close.
While 2021 promises to offer hope for regaining much-awaited normalcy in our day-to-day lives through the rollout of the COVID-19 vaccine, industry participants are less bullish on the prospect of an immediate bounce back in the building, demolition and C&D recycling sectors.
With this uncertainty in mind, Construction & Demolition Recycling polled some industry participants to get a feel on what to expect over the coming months.
Ken Simonson, chief economist of the Associated General Contractors of America noted, “Homebuilders will be busy all year, whereas the outlook is mixed but largely negative for other contractors. There will be a few bright spots. Demand should be strong for distribution facilities, especially ‘last mile’ or ‘last hour’ structures near residential customers. Some of these will be repurposed from stores and other existing buildings, potentially generating more recycled material than new construction. ... But most categories of nonresidential construction are likely to shrink until well after other parts of the economy regain their footing. That upturn depends on rapid, widespread vaccination and restored public confidence.”
Bill Turley, executive director at the Construction & Demolition Recycling Association, expressed similar comments regarding the state of C&D recycling, stating, “2020 was of course a difficult year for C&D recyclers with the coronavirus causing the slowdown or even shutdown of construction sites throughout the country, which means recycling facilities got reduced infeed. But eventually, everything largely picked back up as far as incoming volumes, but that may be a temporary thing. Several recyclers have reported the return in incoming material volumes was because ongoing projects [that were suspended by COVID-related considerations] started back up again, which is a good thing. But in many—but not all—locales, it was noted that once those projects are completed, there aren’t a lot of new projects starting up.”
Jeff Lambert, executive director for the National Demolition Association, noted that nonresidential demo job losses were likely to become more commonplace as backlogs slip, but that “the NDA is hopeful that Congress will invest in infrastructure in the New Year.”
This hope for a renewed investment in infrastructure likely got a shot in the arm with democrats winning Georgia’s runoff elections on Jan 5, giving the party control of the Senate, and presumably making it easier for President-elect Biden to advance his previously announced infrastructure objectives.
While this may offer some hope for industry, it’s clear that getting the building, demo and recycling markets back on track is going to take some time.
Change in California wood waste regulations to lead to greater challenges, costs, recyclers say
In late September 2020, California Gov. Gavin Newsom vetoed Senate Bill (SB) 68. This bill would have allowed for an extension of alternate management standards that govern treated wood waste (TWW) in the state, which were set to expire on Dec. 31 of last year. While this extension would have allowed TWW to continued to be accepted at Class II and III landfills, the bill was struck down.
DTSC says the sunsetting of the state’s alternate management standards will impose significant new regulations and requirements for how TWW is managed.
Specifically, DTSC Director Meredith Williams comments in a letter written Dec. 16, “Treated wood waste will no longer be eligible to be managed according to the alternative management standards, and instead will be subject to the full set of hazardous waste regulations. This includes the requirement that treated wood must be disposed in Class I hazardous waste landfills (or in landfills in other states that do not regulate treated wood waste as hazardous wastes).”
However, despite the effective date of the new regulation, DTSC says there will be a temporary variance that allows businesses short-term relief from complying with the standard. The temporary variance will allow the state legislature to explore and consider alternative options for the management of TWW within the state.
“We have notified all our customers, especially our debris box customers and transfer stations that ship C&D materials to us, that we shall be inspecting every load received,” Michael Gross, director of sustainability at San Jose, California-based Zanker Recycling, told Construction & Demolition Recycling. “Our land checking program starts at the gate, and if we see TWW in a contractor’s load, we will give them the option to remove the TWW prior to tipping and take it back with them or they will not be allowed to dump their materials. When we find materials in a load already tipped, our load checker along with the driver will take a photo of the TWW and the load will be charged an extra $100 service fee. We’re still developing a cost to clean a load, but the ballpark price will be $100 to $300 per yard. Disposal of the TWW will cost us over $100 per yard and that is without all collection and processing costs, and since all materials at Zanker are sorted prior to disposal, we know we will find orphaned TWW. We’re just hoping for a quick solution by the DTSC, but like most things in life, we expect to be disappointed.”
“The veto of SB68 has caught the C&D recycling industry by surprise, to say the least. Sure, we can do better as a population to reduce the amount of toxicity in our landfills, but this was not the way to go about it,” Brock Hill, owner of the San Jose-based Premier Recycle Company, told Construction & Demolition Recycling. “Like the arbitrarily high landfill mandates of the past decade, this vetoed bill effectively places the onus of producer responsibility on the sorting facilities and processors themselves. There was no intention to speak to stakeholders and put the pieces of a plan in place. Instead, we are forced to cut off valued customers, leading them to feel like they were part of the problem.
“Logistical issues aside, there is only one landfill in the Northern California area, and another in Nevada, that can accept the TWW that is now considered a hazardous waste. The generators ... will face astronomical cost increases associated with TWW disposal.”
Hill continued, “My worry is that in a state with a rampant illegal dumping problem as it is, many small companies will resort to just that, as there was no time to build a robust infrastructure capable of handling the newly oncoming wall of demand.
“Industry groups are scrambling to look for a fix, but unfortunately, time is quickly running out. Facilities are lining up to reject the material.”
According to the company, UMM operates 34 routes with a fleet of 55 collection vehicles from six locations in Massachusetts, including two rail-served transfer stations and an advanced construction and demolition (C&D) recycling facility.
Wheelabrator says the acquisition of UMM’s 22,000 residential and 2,500 commercial and roll-off customers, as well as UMM’s rail and transfer infrastructure, expands the company’s collection and disposal services in New England and provides a direct connection to the company’s Ohio-based landfills where it disposes municipal solid waste and C&D volumes.
The acquisition includes UMM transfer stations in the Massachusetts cities of Taunton and Leominster. The acquisition also includes UMM’s C&D recycling facility in Millbury, Massachusetts, which is located adjacent to Wheelabrator’s Millbury waste-to-energy facility.
The company says the acquisition of UMM’s C&D recycling facility will expand its offerings through the aggregate that is generated for construction and the recovered wood that can be used for fuel or to make particle board. The facility also accepts material from LEED projects and will help the company provide sustainable waste management options for its customers, it says.
“We’re excited to welcome UMM’s 111 hardworking employees to our team. We appreciate the trust UMM has placed in us to guide this new partnership in New England, which will allow us to continue to build critical waste and environmental infrastructure, serve Massachusetts customers and communities and create new growth opportunities for employees,” Michelle Nadeau, spokesperson for Wheelabrator, says.
A higher standard
Features - Cover Story
Brandenburg took down 76 buildings as part of the Bannister Federal Complex demolition with no recorded incidents in 750,000 manhours worked.
Even the smallest demolition projects require detailed planning, on-site coordination and constant communication, but when the task is taking down 4.5 million square feet of buildings located on 300 acres, the importance of proper preparation cannot be overstated.
The site of the Bannister Federal Complex was agricultural land until the 1920s, when the Kansas City Racetrack was constructed and briefly operated. In 1943, Pratt & Whitney began manufacturing airplane engines at the site during World War II and did so until 1948, when the production of jet engines commenced. Jet engines were manufactured at the site until 1961.
Beginning in 1949, the U.S. Atomic Energy Commission expanded manufacturing operations at Bannister, including the manufacturing of non-nuclear components for nuclear weapons. Operations continued until 2012, when the government closed the site due to obsolescence and contamination.
In November 2017, it was turned over to Bannister Transformation and Development LLC (BT&D), who hired Brandenburg one month later to perform the environmental remediation and demolition activities.
According to Brandenburg VP of Sales and Estimating Dennis McGarel, the company’s comprehensive suite of services and diverse equipment fleet made Brandenburg the ideal contractor to tackle the Bannister project.
“There are a few factors that made Brandenburg uniquely qualified for this particular project,” McGarel says. “Brandenburg’s fleet of equipment allowed for multiple crews working in multiple areas and for work to proceed concurrently in several locations. The ability to perform demolition, concrete removal, concrete crushing, material segregating and load-out with company-owned and -maintained equipment allowed the project to proceed with minimal interruptions. The environmental contaminants required several disciplines from asbestos and PCB removal to contaminated soil and water handling. Brandenburg self-performed all removal with licensed and trained personnel. Having the ability to self-perform all aspects allowed for greater safety, communication and coordination of all site activities.”
Precise planning
With a demolition project the scope of Bannister, a significant amount of work had to be done to lay the groundwork for the job. Preliminary planning and feasibility studies for the project began in 2007. After being hired, Brandenburg worked with BT&D, engineers and environmental consultants to obtain Environmental Protection Agency and Department of Natural Resources approval for the property transfer.
Site assessments found the presence of asbestos, beryllium, lead-based paint and PCBs in the interior manufacturing areas. Fuel, PCBs and solvents also contaminated soil and groundwater on the site.
Due to the environmental concerns on the project, public hearings were held to keep citizens informed of the planned remediation and demolition processes and safeguards that would be taken to ensure no contaminants would be released from the site. After soliciting feedback from the community, Brandenburg committed to implementing a number of measures to counteract potential contamination, including deploying on-site air monitoring equipment; placing decontamination units at all entry and exit points; and using dust suppression technology, carbon filtration systems, sediment control basins, filtration systems and tire wash stations on-site.
“The local community’s fears of environmental contamination and [staying on top of safety measures] were the first challenges [we faced] and were addressed through public meetings, presentations and question-and-answer sessions,” McGarel says. “The remainder of the challenges were addressed with engineering controls and the use of best management practices. There were multiple real-time air monitoring stations that operated continuously, a water management system designed to handle extraordinary weather events, a state-of-the-art truck wash station for vehicles leaving the site, robust dust control equipment, and railroad tracks installed to limit truck traffic through the local community—just to name a few of the long- and short-term controls in use for the duration of the Bannister project.”
Because of the complexities of the project, McGarel says that Brandenburg went all-in to dedicate adequate resources to the job.
“This project resulted in one of the largest management teams in Brandenburg’s history to be solely dedicated to one project,” McGarel says. “The field staff was comprised of some of Brandenburg’s most experienced personnel that routinely support multiple projects. The project management and general superintendent roles had to be adjusted to allow these individuals to remain solely dedicated to the Bannister project.”
According to McGarel, Brandenburg employed over 120 people on-site for the ACM removal, interior removal and structural demolition.
Hitting the ground running
Following the initial planning and assessment work, Brandenburg workers began removing regulated and hazardous materials while tackling soil remediation efforts.
After the abatement work was completed, contractors were ready to begin demolition. All buildings on the site with the exception of a groundwater treatment facility and an existing substation were planned for removal. Additionally, the existing utility infrastructure was substantially removed or abandoned in place.
In all, Brandenburg demolished 76 buildings on the site. These buildings comprised over 3.4 million square feet of concrete structures and over 300,000 square feet of steel-framed building structures, including all basements and mezzanines on the properties.
Brandenburg’s machine demolition included the use of over 195 pieces of equipment, including excavators, loaders, skid steer loaders, water trucks, concrete crushers and a full contingent of attachments to complete the work.
To minimize truck traffic and ease public concern, Brandenburg used a rail spur to transport hazardous debris from the site to specialized landfills.
The company also made recycling a priority.
Brandenburg removed and recycled more than 70,000 light bulbs, 46,000 tons of structural material, and filtered more than 290 million gallons of water.
In total, the company removed 358,419.67 tons of debris, scrap and salvage materials from the site. Total scrap materials salvaged or recycled was 50,235.67 net tons and Brandenburg crushed over 750,000 tons of clean concrete to be reused on-site.
An emphasis on safety
Due to the sheer scope of work involved on the Bannister project, ensuring safe operations was of the utmost importance, according to McGarel. With safety paramount on the job, Brandenburg signed a strategic partnership agreement with the Kansas City OSHA Office. The partnership identified common issues that could be encountered on the site, such as falls, struck-by and caught-in-between accidents, and electrocution. The partnership encouraged worker participation in Brandenburg’s safety and health programs and prioritized educating employees on best practices to improve their overall safety and health. Two of Brandenburg’s safety and health managers were on-site full-time to ensure a safe work environment for all. Additionally, the company provided safety training for all 510 site workers and visitors. The company’s safety managers also developed a site-specific safety training orientation video requiring all contractors and visitors to view the video before receiving access to the site. This due diligence manifested in the following safety-related accomplishments:
Total case rate (TCR) and Days Away, Restrictive and Transfer (DART) of 0 on a project with more than 750,000 manhours worked
No occupational overexposures to silica, total dust, respirable dust and asbestos were determined during the duration of the demolition project
During the project, 920 employees and 48 supervisors completed the site-specific safety orientation
Each contractor had a supplemental Health and Safety Plan (HASP) that correlated with the Site-Specific Health and Safety Plan (SSHASP). Contractors had to adhere to stringent policies encountered in the site plans to meet these requirements.
Brandenburg participated in OSHA’s Stand Down for Fall Protection week, Safe and Sound Week, and Heat Illness Prevention campaign.
According to McGarel, working with OSHA helped to keep all contractors on the same page.
“The partnership with OSHA showed the commitment from Brandenburg and the daily work practices showed the commitment from the site personnel,” McGarel says. “The daily morning safety talks [we engaged in] were interactive and employee involvement with safety observation cards allowed for the site employees to take ownership of their own safety while following the health and safety standards of the company.”
Brandenburg’s adherence to safety best practices did not go unnoticed, as the Kansas City OSHA Office recently recognized Brandenburg for its work on the job.
“During the demolition initiative, not only did Brandenburg … go above and beyond to ensure the safety and health of their own workforce, [they] also ensured the safety and health of all the workers at the job site,” Karena Lorek, OSHA area director of the Kansas City office, said during an award ceremony celebrating Brandenburg’s work.
According to McGarel, carrying out the Bannister project safely and without any incidents was a testament to the company’s due diligence.
“We consider the project a great success,” he says. “First and foremost, the project was executed safely and the client and local community were pleased. Beyond that, Brandenburg formed a successful partnership with the OSHA area office; executed a large-scale project that was under close supervision from many regulatory agencies to their satisfaction; and developed a very safety-conscious, dedicated and talented local work force to pursue future projects.”
In September 2020, with all demolition and remediation nearly complete, the DOE announced that Kansas City-based commercial landlord NorthPoint Development had a contract to redevelop the property into 2.6 million square feet of industrial use space. Construction has begun on a 240,000-square-foot building, which will be the first of seven facilities at the site.
*Editor's revision: The original version of this article cited CenterPoint Properties as the owner of the project. The copy has been edited to reflect Bannister Transformation and Development LLC (BT&D) as the owner.
The author is the editor of Construction & Demolition Recycling magazine and can be reached at aredling@gie.net.
Adam Redling
