Scrap yards adjust operations amid virus crisis

The US scrap metal recycling sector has taken a multi-pronged approach to maintain operations and keep employees safe as the coronavirus outbreak sweeps the nation, with many halting the retail buying sides of their businesses to reduce exposure to the public.

As the situation is in flux and containment measure intensify, the industry remains on the cusp of imposing drastic measures that could stunt operations across the recycling supply chain.

Retail scales and yard operations

An increasing number of recyclers in hot-spot areas have closed all retail recycling locations to the general public in order to minimize potential spread of the virus, potentially leading to a drop of supply of obsolete ferrous and nonferrous grades.

Recyclers that have closed to the public are instead concentrating on maintaining commercial and industrial accounts.

Argus has heard of multiple closures to the public throughout the northeast region of the country where the number of cases has been drastically rising through the week. The industry has also called on the federal government to classify recycling operations as essential to keep them operating as state and local governments close businesses.

Other recyclers remain open to the public but are enforcing social distancing and limiting the number of peddlers allowed at drop-off points with customers remaining in vehicles.

And given the broader impact on the economy, some dealers see the potential for peddler traffic to increase as more people scrap to earn money even as prices for scrap drop.

"The junk business may be the only place in the world where someone gives you cash for something that has no useful purpose," a southern broker said. "People may need the cash more than they need higher prices."

In the yard, companies have also been forced to adapt due to shared equipment and machinery and have put caps on the number of yard workers in certain areas.

Operating machinery with multiple shifts has posed one of the greatest challenges with some facilities limited a piece of equipment to one person a day with the inside of cabs cleaned at the beginning and end of the work day.

Inbound and outbound truck deliveries

Inbound and outbound truck deliveries pose one of the most vulnerable threats for companies in containing the spread of the virus among their internal workforces.

As such, recyclers have taken extreme measures to limit employees' essential contacts with truck drivers by initially screening drivers for fevers or symptoms of the coronavirus, with authority to turn drivers away if they are believed to be ill.

Other steps include limiting the number of trucks allowed at loading bays and various drop-off points, as well as establishing designated areas for drivers to congregate as trucks are loaded or unloaded.

On the other end, scrap yards too have taken safety protocols with their internal teams of truck drivers, requiring daily screenings to check for fever or symptoms.

In order to comply with social distancing standards, most commercial employees have now been instructed to work remotely, while other non-essential office roles have followed suit.

As such, these measures have effectively led some companies to temporarily postpone engaging with any new suppliers or vendors unless critically needed.

Other companies have been laxer on this issue and have only minimized third-party visitors to their premises for now.

By Brad MacAulay