Author: UCC Team

How do recyclers assist the US in creating a secure critical mineral supply chain? By recycling scrap catalytic converters and the electronics found in vehicles, appliances, and electronics containing Platinum Group Metals and Rare Earth Elements. Both the Trump and Biden Administrations have emphasized by Executive Order the importance of securing the domestic supply chain of critical minerals to national security and the economy.  

In May 2018, Jeffery A. Green, then president of a bipartisan government-relations firm in Washington DC and a former US Air Force commander, wrote in Defense News that, “without access to such minerals, our precision-guided missiles will not hit their targets, our aircraft and submarines will sit unfinished in depots, and our war-fighters will be left without the equipment they need to complete their missions.” 

Jim Sims Vice President of External Affairs NioCorp Developments Ltd. testified before the U.S. Senate Committee on Energy and Natural Resources that in the 1960s what took 12 elements on the periodic table to create a computer chip now takes 60 elements. We need all of these and more of them. 

The 2018 and expanded-2022 list of critical minerals produced by the U.S. Geological Survey (USGS) and the Department of the Interior (DOI) contains 50 mineral commodities, including Platinum Group Metals (PGMs) which come from mining, recycling, or import.  

The United States produces less than 10% of the global supply of most critical minerals, relying heavily on imports for many of these essential resources. China dominates the production of rare earth elements, accounting for about 61% of global production and is also a major producer of other critical minerals, including graphite, lithium, and cobalt, contributing significantly to the global supply. Russia is a key producer of PGMs, including palladium (around 40-45% of global production) and platinum (about 10-15%). Russia also produces significant amounts of aluminum, nickel, cobalt, titanium, and other critical minerals. 

Platinum group metals (PGMs) play a crucial role in various military applications due to their unique properties. They are used in catalytic converters for military vehicles to reduce harmful emissions and meet environmental regulations. These metals are also essential in the production of high-performance electronics used in communication systems, radar, and other advanced military equipment. Platinum, in particular, is a critical component in fuel cells, which are being explored for military applications due to their efficiency and reliability. Additionally, PGMs are used in various aerospace applications, including jet engines and other high-temperature environments, because of their durability and resistance to extreme conditions. 

Mining, from a few key countries, accounts for two-thirds of the world’s global supply of PGMs. For platinum, South Africa leads with approximately 70-75% of global production, followed by Russia with around 10-15%, and Zimbabwe with about 7-8%. In the case of palladium, Russia contributes roughly 40-45% of global production, South Africa provides approximately 35-40%, and Canada accounts for around 10-15%. When it comes to rhodium, South Africa dominates with about 80-85% of the world’s production, while Russia and Zimbabwe contribute around 10% and 5-7%, respectively.  

Recycling, mainly from spent automotive catalysts or scrap catalytic converters, accounts for one-third of the world’s supply of PGMs. The United States contributes a notable portion to the secondary supply of platinum group metals (PGMs) through recycling. Specifically, the U.S. contributes about 10-15% of the global recycled platinum supply, around 15-20% of the global recycled palladium supply, and approximately 10-15% of the global recycled rhodium supply. Recycling in the U.S. plays a crucial role in supplementing the primary supply of these metals, helping to meet demand. 

Recycling of PGMs must increase to ensure a secure U.S. supply of these critical minerals. However, in the past two years post-Covid, and post the price spike in 2020 – 2022, there has been a decrease in the secondary supply from scrap catalytic converters of 50 percent or more. At the recent Winter Meetings of the PGM Refining Committee of the International Precious Metals Institute, Jacob Smith, Senior PGM Analyst for Metals Focus an UK-based independent precious metals consultancy, along with various industry panelists, discussed six possible reasons for the sharp decrease in supply: Hoarding; Exports to foreign nations; Pipeline cleared out  at higher PGM prices; Legislation impeding recycling; Wrong data on the amount of available supply; Unattractive prices.  Smith summarized the sentiment of discussion as follows:  

My main takeaway from the Winter IPMI was uncertainty—both in the autocatalyst scrap market and on a broader macroeconomic level. From our analyst’s perspective, these catalysts should be reaching the market but are not. Despite cars being driven longer and higher interest rates driving weaker car sales, de-registration figures indicate that vehicles are being taken off the road, yet they are not entering the refining pipeline. This is not a new issue. Hoarding amid low prices and exports to developing markets continue to be cited as key factors, yet the lack of improvement after three years is notable. A decade ago, vehicle production was rising in low-single-digit percentages, while PGM loadings increased alongside tighter emissions regulations. Ultimately, this demand drove the market to deficit and caused the exceptional prices seen in 2020–2022. The metal is out there and should be moving through the supply chain, yet it remains absent. On the macroeconomic side, President Trump has implemented sweeping changes in a short period. Some policies favour PGMs, some are detrimental, and others have indirect effects. At this stage, it remains unclear whether the overall impact is positive or negative for PGMs, though the broader implications for the automotive sector will likely be the key driver.  

To the looming issue of where are the converters that should be entering the recycling market, the author and many of the panelists cited that the most common reason given by recyclers to processors, smelters, and refiners is unattractive PGM prices.  

The spike in platinum group metals (PGMs) prices from 2020 to 2022 was indeed notable and can be considered an anomaly when compared to historical trends. During this period, prices for palladium and rhodium reached exceptionally high levels due to supply constraints and increased demand. Disruptions in mining operations, particularly in South Africa and Russia, reduced supply, exacerbated by logistical challenges and geopolitical tensions. There was a surge in demand for PGMs, especially for use in automotive catalytic converters to meet stricter emission standards. High prices motivated long-term holders to release metal and consumers to acquire excess metal to mitigate future risks. These price spikes were significantly higher than the historical averages, making the 2020-2022 period an outlier in the context of PGM price trends. 

In fact, in the past two years, while supply dipped, PGM prices experienced very little change. In 2023, the average price of platinum was approximately $965 per ounce, and it remains stable at around $965 per ounce in 2025, resulting in a 0.0% change. Palladium saw a significant decrease, with its price dropping from about $1,307 per ounce in 2023 to approximately $970 per ounce in 2025, reflecting a -25.78% change. Rhodium experienced a slight increase, with its price rising from around $4,850 per ounce in 2023 to about $4,925 per ounce in 2025, resulting in a +1.55% change. 

Of the three sources of PGMs critical to the U.S, mining, recycling, and importing, recycling is the key. The supply is ample if recyclers do their part to release the material into the market. Supply from recycling could more than double in the next 10 years. The cost of recycling is far less than mining. The carbon footprint is minimal. The level of vulnerability to foreign dependence, specifically on Russia and China, is reduced significantly. In June 2020, Mark Caffarey, President of Umicore USA, testified before the U.S. Senate Committee on Energy and Natural Resources that if the U.S. would fully recycle its automobiles, its appliances, and its electronics that it would become the Saudi Arabia of critical minerals and never look outside of its borders for these minerals. As secondary producers of PGMs and many other critical minerals, recyclers play a crucial role in creating a resilient U.S. supply chain. 

UCC Article Archive – September 1st, 2021 – Becky Berube 

Autonomous Driving, Connectivity, Electrification of Vehicles, and Shared Mobility (ACES)  

Tesla is now the fifth-most-valuable company in the S&P 500, overtaking Facebook at that position. Cars that connect to each other and the road are here to stay. Connected features like navigation, internet, apps, driving controls are no longer luxury items, but standard features. Models like Cadillac’s 2021 Escalade offers Super Cruise, a hands-free driving experience. Five hundred shared vehicles can take the place of thousands of privately-owned vehicles, staying in motion in major cities. If recycling is cool than clean is even cooler. What do these megatrends mean for automotive recycling? Rather than fear the future, we need to embrace the future because it means opportunity for all of us.  

The Industrial Revolution 4.0 

The industrial internet of things refers to interconnected sensors, instruments, and other devices networked together with computers’ industrial applications, including manufacturing and energy management. This network of connected devices that send and receive data is the cornerstone of what is called the fourth industrial revolution. Digitization gives auto manufacturers a way to optimize manufacturing and have constant feedback throughout the life cycle of the vehicle. It also means that the cost of the vehicle is no longer limited to the build but tied to the lifetime value of the vehicle with real-time application solutions being employed.  

With vehicles running over 150 electronic control units (ECUs) and nearly 300 million lines of code by 2030, this alone represents critical technology materials that will need to be reclaimed. At United Catalyst Corporation, we already have a processing line for ECUs. Recyclers are cashing in on those ECUs that are considered scrap value and not for remanufacturing or resale. 

The Weakening US Supply Chain of Critical Materials 

The COVID-19 induced semiconductor shortage, made worse by the cold snap in Texas, forced auto manufacturers to cut back production and leave the entire global electronics supply chain in the hands a few manufacturers, mainly in Taiwan. The average automobile contains dozens of the integrated circuits, controlling air bags, power windows, catalytic converters and dashboard displays. The new Administration is reviewing potential weaknesses in US supply chains for four vital products – semiconductor chips, large-capacity batteries for electric vehicles, critical minerals, and strategic materials such as rare-earth elements. All four of these products can be found in automotive recycling.  

In June 2011, Mark Caffarey, now President of Umicore USA Inc., a global material technology company, responsible for the coating of nearly one-third of all automobile catalyst, testified before the Senate Subcommittee on Energy & Natural Resources,  

“If the United States committed itself to meeting its critical materials needs in large part through recycling, there is no nation on earth that could match American resources. The United States has the largest “aboveground” mines of critical materials in the world, in the sense that this country’s supply of industrial scrap and end-of-life automobiles, electronics, and electronic appliances…can’t be matched by any other nation. In essence, these “above-ground mines” make the United States the Saudi Arabia of critical materials. A well-developed recycling system could tap these mines for U.S. critical materials security without limit.” 

Already, as an automotive recycler, you are already harvesting the precious metals from scrap catalytic converters and electronic control units (ECUs) with hybrid battery materials and rare-earth-containing magnets becoming emerging markets.   

The Next Commodity Super-Cycle 

A super-cycle is an extended period during which demand for specific raw materials drives prices well above their long-run trend. Both Goldman Sachs and Bloomberg have alluded to a bull market in commodities. Copper, platinum, rhodium, and natural gas may be the next commodity super-cycle. The new super-cycle will be driven by the post-pandemic recovery, massive stimulus spending, rising inflation, growth in China, more aggressive environmental policies, and a deteriorating U.S dollar. Platinum has rallied to six-year highs, pulling palladium with it. Copper has hit its highest levels since 2012. Rhodium hit its highest level in history at a spot price of $29,000 in March. Again, automotive recyclers are cashing in on scrap catalytic converters, harness wire, and the like.  

Getting the Most from Your Commodities with a Process You Can Trust 

You own an “aboveground” mine. Your commodities include precious metals from scrap catalytic converters, oxygen sensors, semiconductor chips and ECUs; rare earth materials from magnets; critical materials from hybrid batteries such as lithium, nickel, cobalt and graphite. At United Catalyst Corporation we are on a mission to deliver recycling solutions that generate more profits for the companies that work with us. We accomplish this through serving the needs of our clients with accurate, reliable, and scientific processes. We strive to uphold the highest ethical standards displayed in our core values and operational practices. We are working diligently to bring you programs and tools that will help you do just this, increase your profits.  

If you have questions about this article or any issue pertaining to the recovery of precious metals and materials from automotive recycling, we, at United Catalyst, are here to help you. Recycling is a journey. We hope you will rely on us at United Catalyst to be your guide. 

UCC Article Archive – 2020 – Becky Berube

In converter recycling, the best recyclers are partnering with companies that educate. We encourage our customers to sell on assay, the analytic procedure that measures the content or quality of a metal or ore contained in the catalytic converters. In this, the fourth installation of our series, Getting the Most from Your Converters with A Process You Can Trust, we are going to discuss, The Scoop on Interest and Metal Price Discounts.  

In the first article of this series, Getting the Most from Your Converters with A Process You Can Trust, we emphasized Know Your Numbers. We strongly advise our customers to know their count before they sell. If you don’t have an accurate unit count, you won’t know your true average. In the second article, we discussed why it is necessary to your bottom line to Understand the Importance of Weights.  If you’re missing weight during processing, you’re missing money. In the third article we explored Making Sense of the Assay Report and Final Invoice. Both can look like mumbo-jumbo, but when you understand what should be on them, you are less likely to fall prey to any unethical practices and leave money on the table. 

Assay reports and final invoices are complex no matter how they are reported to you. Interest and metal price discounts only add to their complexity. 

What is interest? Why do some companies charge interest and others don’t? The bottom line in refining converters is that you are getting paid on the assay result of the sample which typically takes 3 to 5 weeks; but the physical metal is not available for approximately 10 to 12 weeks which is called the metal out turn date. Therefore, any time you take a payment before the metal out turn date, there is interest. Basically, the refiner sells its metal early to make a payment for your metal which is not yet available. For this reason, the refiner charges you a simple interest amount on the number of days you use the metal and money before the metal out turn date. For example: $80,000 x .06 / 360 = $13.33 / day interest. $13.33 x 90 days = $1,200.00. The bottom line is that whether a company shows the interest on your invoice or not, it exists. And if you need the payment to buy more cars or pay overhead, it is just a cost of doing business. The increased margin you are realizing by selling on assay should help make up for any interest charges. If you do not need the payment right away, you can save the interest by waiting to take payment until metal out turn date.  

If I wait to take payment will I be exposed to market price fluctuation? The answer is no. If you choose not to take an advance payment, with most companies, you can still hedge (lock-in) your metal prices even before you take any money. In this way, you have guaranteed your price against a downward market, but, likewise, you have also limited yourself against gains in an upward market. Remaining open, or playing the market, is considered speculating and should be a strategy only if you can afford to lose. Otherwise, locking in your metal prices, and continuous selling into the market when you ship, is risk neutral and resembles dollar-cost averaging in investing. 

 Why is the metal price on my invoice not the same as the price I see on the internet? The price you see published on the internet is the buy and sell price for investment grade metal or bullion. When you recycle scrap catalytic converters on assay and refining terms, you produce an industrial grade of precious metal known as sponge. This form of precious metal is sold back into the market place to make fresh applications. Precious metal in this form is discounted when it is sold. It is important for you to ask your processor how much they are discounting each metal on average so that you can track the price. Several factors can affect this discount. Because you are selling metal at a date in the future, your price is likely based on a futures price versus a spot (immediate cash) price. Expect the discount for Rhodium to be significantly more than Platinum or Palladium for two reasons: it is in shorter supply, and it has a miniscule trading volume. Often the price quoted for Rhodium is spot or whatever the refiner or trading desk can get for the metal that day versus a futures contract. 

Selling on assay with refining terms is the best way to recycle scrap catalytic converters. In fact, it is the only way to recycle a converter. It happens once it leaves your facility whether you sell it this way or not. Learning the way assay and refining works and how to avoid unethical trading practices takes time, but if done properly with a reliable recycling partner, yields much greater value. Get the most from your converters with a process you can trust.  

If you have questions about this article or any issue pertaining to catalytic converter recycling, I, or any member of my team at United Catalyst am here to help you. Recycling converters on assay is a journey. We hope you will rely on us at United Catalyst as your guide. 

UCC Article Archive – 2020 – Becky Berube

You are Rock Stars.  

When I write these monthly columns, I know my audience. I realize you are recyclers who mainly sell parts and steel. But in the past 10 years something truly amazing has happened. You have become some of the savviest business people I know. You are not sitting at the parts counter waiting for the phone to ring. Your facilities are immaculate. You are inventorying everything. You are segmenting your cores for higher sales. You are partnering with other recyclers to sell more. You are maximizing economies of scale at every turn. And you are buying up more facilities or expanding your profile to full-serve, self-serve, and scrap.  

What in the world is going on?  

In my own life and business so much has changed in the past 30 years. I am not sure I ever envisioned Rhodium heading back toward $10,000 a troy ounce. Today we are 25% away from re-reaching that all-time high. The price of Palladium is up to nearly 1,000% from its all-time lows in 2008.  

Even with auto sales trending downward, emission standards world-wide are increasing. This means more precious metal loadings in auto catalyst. Palladium being the dominant metal being used. Rhodium being the best means to treat NOx emissions.  

Are cat sales making your year? They should be. 

Maybe I sound a little ignorant when I ask if cat sales are making your year. I know that scrap catalytic converters are not your main product for sale. But when you look at the fact that some of you are producing $10,000 to a $1,000,000 a load that is not chump change anymore. With steel prices down this past year, you can’t afford not to look at the importance of your converter sales.   

I will say it until I am blue in the face, assay-based selling with a process, a program, and a partner you can trust (and verify) is the only way to maximize the money you get for your cats with any certainty.  

In life there is more than one way to do most things. This is not true with converter recycling. There is a specific amount of precious metals in each converter. There is a cost to recycle it. There is a price for each metal that is sold. You’re either in the real game or you are not. You are either getting treated fairly or you are not.  

Flash Boys and The Stock Exchange 

I just finished reading Flash Boys by Michael Lewis about how the Big Banks and High Frequency Traders (HFT) made speed the issue with the stock market so they could make billions off of private investors with dark pools and arbitrage (the simultaneous buying and selling of securities, currencies, or commodities in different markets in order to take advantage of differing prices for the same asset). And how a few smart guys and private investors created the Investors Exchange (IEX) to correct the inequalities in the Stock Market.  

The same thing is happening in cat sales. 

If you don’t hear anything else that I am saying, hear this. The grading and bidding out of cats is the same thing as telling you that if I have the fastest trading platform, you will make more money trading with me. It is a trick. A false leader. A way to make more money off of you not for you. Behind those scenes the converters still have to be recycled and sold the same way. On assay. Period.  

The 4 P’s of Converter Recycling Profitability 

In recent articles I have written that you need a Process, a Program, and a Partner you can trust, and you need to learn the Power of Education. A Process. You can sell on assay instead of selling by the piece. You will need to be paid on a sample and assay that are official, accurate, and verifiable.  A Program. You need to be able to get money when you need it to run your business. Getting you the most money from your converters shouldn’t mean you have to wait until you have a truckload or can hold out for 3 months to get paid. With most processors, you have payment choices like the ones mentioned above. A Partner. Selling on assay or recovery helps to eliminate that problem because there is a test result that can be considered the basis for the sale. However, even with this method, working with a Partner you can trust cannot be overstated. The Power of Education. We take a complex process and try to make it understandable and easy to use. We know that once you learn about your converters and your yard profile, you will increase your profits, and no one will ever be able to take advantage of you again. 

UCC Article Archive – 2020 – Becky Berube

What in the world is going on?  

In my own life and business so much has changed in the past 30 years. I am not sure I ever envisioned Rhodium heading past $10,000 a troy ounce. Some analysts predict that the Rh shortage and lack of mining projects may push the price to double. Even with auto sales trending downward, emission standards world-wide are increasing. This means more precious metal loadings in auto catalyst. Palladium being the dominant metal being used. Rhodium being the best means to treat NOx emissions.  

Are cat sales making your year? They should be. 

Maybe I sound a little ignorant when I ask if cat sales are making your year. I know that scrap catalytic converters are not your main product for sale. But when you look at the fact that some of you are producing $10,000 to a $1,000,000 a load that is not chump change anymore. With steel prices down this past year, you can’t afford not to look at the importance of your converter sales.  

One Way. Assay.  

 I will say it until I am blue in the face, assay-based selling with a process, a program, and a partner you can trust (and verify) is the only way to maximize the money you get for your cats with any certainty.  

In life there is more than one way to do most things. This is not true with converter recycling. There is a specific amount of precious metals in each converter. There is a cost to recycle it. There is a price for each metal that is sold. You’re either in the real game or you are not. You are either getting treated fairly or you are not.  

Key Metrics are Everything.  

In converter recycling, the best recyclers know their numbers and partner with companies that educate. Knowing key metrics about your converter loads safeguards you against misleading data like a false average price. Key metrics like your average price per unit, average price per pound or kg, and average weight per unit, can increase your bottom line.  

Every recycler looks at his or her average converter price. It’s an easy metric to track but an even easier number to get wrong if you didn’t get an accurate whole-body count before you shipped. You would be surprised how many recyclers consider the average sales price as gospel, but do not take the time to count their load before selling it. Relying on your processor to count for you, could be costing you.  

To avoid common pitfalls in converter recycling, we suggest the following actions. 

Know your count before you sell. Train a key person to count and inspect the converters before you package them up. Teach him or her the difference between the ceramic and metallic (foil/wire) converters. And if you are selling on assay recovery, send in the empties if they have just a little catalyst in them. A good processor will cut those and add that material. Also, if it’s genuinely empty, you and the processor will both agree that it is.  

Become an educated seller. Work with a company that believes in educating you about your loads. A good company will not hesitate to explain your invoice and how the numbers are derived. With selling on assay recovery, your results can be verified. That’s the beauty of the program. However, as with all science and commodity sales, we are taking something complex and simplifying it for ease. This lack of uniformity across companies that process and refine, makes you an easy target for skimming weight, actual value, and YOUR profits.  

Audit your program. Become a data junkie. Learn all the key metrics to avoid misleading data, like your average converter price, and track true sales. You will be amazed as you gain data points, how easy it is to get misled.  

The 4 P’s of Converter Recycling Profitability 

In recent articles I have written that you need a Process, a Program, and a Partner you can trust, and you need to learn the Power of Education. A Process. You can sell on assay instead of selling by the piece. You will need to be paid on a sample and assay that are official, accurate, and verifiable.  A Program. You need to be able to get money when you need it to run your business. Getting you the most money from your converters shouldn’t mean you have to wait until you have a truckload or can hold out for 3 months to get paid. With most processors, you have payment choices like a partial early payment upon arrival, payment at the time of assay, or payment at the metal outturn date. A Partner. Selling on assay or recovery helps to eliminate that problem because there is a test result that can be considered the basis for the sale. However, even with this method, working with a Partner you can trust cannot be overstated. The Power of Education. We take a complex process and try to make it understandable and easy to use. We know that once you learn about your converters and your yard/company profile, you will increase your profits, and no one will ever be able to take advantage of you again. 

UCC Article Archive – 2020 – Becky Berube

You finally made the switch from selling your converters by the piece to selling them on assay. And you have found, like most of us have, that it is totally worth it. Your average cat sale is up 5-45% depending on how you were being treated by your buyer.  

Now you are in the real game, refining. Your selling your converters based on the actual value of the three metals contained inside your converters. It is exciting. You are hedging and selling metal into the market. Sure, you may have to wait a little longer for your money, but with an early payment and the balance in 30 – 45 days, you are ahead of the game with more money bottom line. You may even decide to hold metal on account like a brokerage account and delay a taxable sale or use the account as a savings for future planned expenditures.  

So, with assay, what could possibly go wrong when you are selling on science and getting paid on actual metal markets? 

For nearly 30 years we have been processing scrap catalytic converters for refining at United Catalyst Corporation, let me explain what can and does go wrong. And, more importantly, how you can fix it.    

Count and Weights: How many units or pounds lost is acceptable?  

In converter processing, everything begins and ends with weights and counts. The weight of your entire lot, converters, pallets, shrink wrap, and all. We begin with the end in mind. BOL weights must match. Unit counts must match what you sent in. We are a disassembly facility which means your load comes in and we destroy it. We completely take it apart. Our goal is to tell you exactly how many converters you sent in and the average value of each unit. So, at our plant we balance all weights in and out of processing to one half of one percent (0.5%). That is our internal tolerance. And we do not mind telling you. Since we are becoming ISO certified, all our workflow aligns to this measure and all nonconformities must be investigated and resolved before refining. Is this happening where you are processing converters?  

Dust: If you are missing weight your missing money. 

If you are missing weight your missing money. But if you are missing dust, you are missing significantly more money. It is the coating of the ceramic or metallic substrate that contains the precious metals. So, the dust has the highest concentration of the platinum group metals or PGMs. The dust may be 1-3% of the weight of the load while being 10-20% of the value. Therefore, we suggest you let us de-can for you.  After the count being right, the de-canning system is paramount to getting paid the correct amount. At our plant, every shear has its own, very high-end, dust collector. Your dust is weighed and added back to your broken honeycomb or catalyst before being milled and sampled. We do not have one dust collector going to multiple shears which would break the chain of custody and leave questions as to where your dust is and who keeps it. Is this true of where you are processing converters?  

Sampling: In-house XRF, a guide, not a basis for final payment. 

Did you know that when you sell on assay and refining terms that you are settling on the results of a sample of your load? It is true. After de-canning the converters, the catalyst must be milled into a powder and a representative sample must be taken to be tested. That sample is only 5-10% of your material so it had better represent all your converters. Sampling is science in and of itself. Every particle in your load must have an equal chance of being sampled and that means it must be blended properly and for enough time before it comes through the sampler and goes into the sample preparation lab. There the primary sample becomes smaller and finer and must be blended or homogenized again, and the moisture must be determined, before it is analyzed. This is just for the first analysis or XRF and it is only plus or minus 10% accurate. We do not pay you based on XRF. We have this lab and get this reading for quality control. So, we know how many ounces to expect within reason and can make an early payment determination. Do you know if you are getting paid on XRF?  

Assaying: There is no short cut to getting paid accurately. 

A properly collected sample that is representative of all your converters in your load then goes through two more advanced scientific processes called pyro- and hydro- metallurgy or fire assay with chemical dissolution and an atomic absorption (AA) with an Inductively coupled plasma mass spectrometry(ICP-MS). Your sample is split 8 ways (some of these are held in reserve) and is tested this way by more than one chemist at different times. The results of multiple assays are sent to the lab manager and he or she removes the outliers and reports the median or mean as the official assay for settlement purposes. Now your processor may have fire assay and an ICP lab in-house and pay you quickly based on the assay result they get; however, this is not the same as being paid on the assay result from the refiner or a third party independent lab. If I pay you based solely on the assay result that I get without a witness or a third-party verification, there is no control. I am also not paying you on the same assay that I, the processor, am getting paid on. Processing and refining take time. There are no short cuts to getting paid accurately. Are you getting paid on assay very quickly from your processor’s in-house lab?  

Metal Prices: Do you understand the spread between spot price and the discounted metal price? 

Finally, another area that can be a problem with selling on assay is metal prices. First, let me say that this is a problem for all of us in the business of selling metal. It is an opaque market which means it is hard to clearly see the price. Until a full block chain solution eliminates trade desk quotes, the problem will exist. Your metal does not come out of refining for about 100 days. This means to lock in a price for you we must sell metal forward on a futures contract. Since you are recycling scrap catalytic converters that means we are selling a product called sponge to coat new catalyst and make industrial products. We are not selling bars, ingot, or bullion to the investment market. So, there is a discount on the metal price. There is a discount and a lease rate. Both come off the spot or physical price you see published online. Both can be calculated, but they are not readily disclosed to us. This can be confusing when you get a metal price that is different than the price you see online. This can also be an area of ambiguity. The question is can and will your processor explain the spread to you?  

Selling converters on assay is the way to go. In my mind, it is the only way to ensure that you get paid the most from your converters with a process you can trust. I believe this so much that it is my company’s brand promise to you. But notice the word trust. You still must trust that I, or any processor, is doing what they say they are doing, and following the rules of assay. It is for this reason that I write these articles. I want you to sell on assay. In truth, I want you to sell to United Catalyst Corporation. But more than anything, I want you to get the most and avoid being cheated. You buy the car. You own the converter. The lion’s share of its value is yours.  

If you have questions about this article or any issue pertaining to catalytic converter recycling, I or any member of my team at United Catalyst am here to help you. Recycling converters on assay is a journey. We hope you will rely on us at United Catalyst as your guide. 

UCC Article Archive – 2020 – Becky Berube

The precious metals markets are up and so are the incidences of stolen converters. It is all over the news. The BBC recently reported that catalytic converter thefts have doubled in England as metal prices have risen. If you are a recycler this is not news to you. At United Catalyst Corporation, we are seeing recyclers send smaller lots more frequently to reduce the risk of theft and move the converters quickly.  

What can be done to stop stolen converter laundering? 

If you have been the victim of stolen converters, there is nothing worse than finding your converters sold down the road to a converter collector or processor. The problem needs a solution from both sides: the recycler and the processor.  

 Recyclers, do your job. 

Being from Massachusetts it easy to quote Bill Belichick, “Do your job,” but since so many of you are not fans, let me throw a few other quotes at you. Ben Franklin said, “an ounce of prevention is worth a pound of cure,” with regards to fire safety. In Full Metal Jacket, Gunnery Sergeant Hartman says in the security scene to Private Gomer Pyle about theft from his unlocked footlocker, “if it wasn’t for (expletive) people like you, there wouldn’t be any thievery in this world.” To be honest, you must hate the idea of people stealing from you and do everything in your power to stop it. In short, you need to think like a thief. 

Over the past thirty years we have seen some creative converter storage solutions in yards. The most original may have been in Vermont. A recycler took an empty 2,000-gallon tank and dropped the converters in the top like a piggy bank. He dug a moat around it. When it was time to get the converters out, he took the loader and dumped them out. Sound crazy? It was effective.  

A more common solution is buying an ocean freight container. One recycler we recall had an alarm and video surveillance on it. One weekend he broke into it himself, like the show Prison Break, to see how long it would take the police to get there. If it had been a real robbery, the converters would have likely been gone. If the police do not care if a car is stolen, do you think they will care if a catalytic converter gets stolen? At least you would have the video. A deer cam does not cut it either. That will snap a pic every time someone walks by. You need a good surveillance system. Remember, nothing beats you and an employee that you trust walking the perimeter or the property looking for oddities like tall grass in a section or a hole in the fence. 

Another way to safeguard against theft is knowing your count and secretly marking your cats. If your cat count is consistently short when you sell, start marking them in a way that is unknown. Pick a color each week or month and spray inside the cat. If someone takes your converter and tries to come back and sell it to you, you’ve got them.  

If you are selling by the piece, never say to the converter company, “you know where they are.” That is license to steal. Never let the company put the halves on the truck until you inspect them. If a converter is worth $300 and its 3/4 full, why would you take half price when the guy is going to sell it as full? If you have an employee overseeing the sale, make sure to show up at the beginning and towards the end of the sale. Stay until the transaction is complete and the payment is made to you to avoid a kickback to your employee. If you introduce a new converter company to your yard and your employee objects or is hostile towards them, it is possible he or she is getting paid. As William Shakespeare writes in Hamlet, “the lady doth protest too much, me thinks.” Many people who work for you do not consider this stealing, but rather getting their piece of the pie.  

Bottom line. Be meticulous about safeguarding your valuables: locks, video, counts, personnel. Time and money – whatever it takes. The primary responsibility lies with you. 

Collectors and Processors need to be held accountable. 

Unfortunately, physical theft is not the only form of theft when it comes to scrap catalytic converters. Whether you sell by the piece or on assay, you could be being robbed. We have mentioned a few ways to avoid thievery when selling by the piece above. When it comes to buying stolen converters, collectors and processors need to do their part to research and know their customers. Bad actors must be eliminated from this industry. Companies and associations must refuse to do business with criminals. Like President Truman, we all need signs on our desks that says, “The Buck Stops Here.” If the good players in the supply chain would scrutinize the suppliers and refuse to purchase conflict material, we could stop the underground movement of stolen material into refining.  

How to stop losses with assay-based selling. 

If you finally made the switch from selling your converters by the piece to selling them on assay. And you have found, like most of us have, that it is totally worth it. Your average cat sale is up 5-45% depending on how you were being treated by your buyer.  

Now you are in the real game, refining. Your selling your converters based on the actual value of the three metals contained inside your converters. It is exciting. You are hedging and selling metal into the market. Sure, you may have to wait a little longer for your money, but with an early payment and the balance in 30 – 45 days, you are ahead of the game. And with more money in your bottom line. 

So, with assay, what could possibly go wrong when you are selling on science and getting paid on actual metal markets? 

For nearly 30 years we have been processing scrap catalytic converters for refining at United Catalyst Corporation, let me explain what can and does go wrong. And, more importantly, how you can fix it.    

Count and Weights: How many units or pounds lost is acceptable?  

In converter processing, everything begins and ends with weights and counts. The weight of your entire lot, converters, pallets, shrink wrap, and all. We begin with the end in mind. BOL weights must match. Unit counts must match what you sent in. All weights in and out of the converter processing facility should be accounted for and balanced. 

Dust: If you are missing weight your missing money. 

If you are missing weight your missing money. But if you are missing dust, you are missing significantly more money. The dust has the highest concentration of the platinum group metals or PGMs. The dust may be 1-3% of the weight of the load while being 10-20% of the value. Therefore, we suggest letting those with expert systems de-can for you.  After the count being right, the de-canning system is paramount to getting paid the correct amount. 

Sampling: In-house XRF, a guide, not a basis for final payment. 

Did you know that when you sell on assay and refining terms that you are settling on the results of a sample of your load? It is true. After de-canning the converters, the catalyst must be milled into a powder and a representative sample must be taken to be tested. That sample is only 5-10% of your material so it had better represent all your converters. Sampling is science in and of itself. The first analysis or XRF and it is only plus or minus 10% accurate. That could be a 20% swing in price! The final analysis is another scientific process. You do not want to get paid on XRF. Do you know if you are getting paid on XRF?  

Assaying: There is no short cut to getting paid accurately. 

A properly collected sample that is representative of all your converters in your load then goes through two more advanced scientific processes called pyro- and hydro- metallurgy or fire assay with chemical dissolution and an atomic absorption (AA) with an Inductively coupled plasma mass spectrometry (ICP-MS). Now your processor may have fire assay and an ICP lab in-house and pay you quickly based on the assay result they get; however, this is not the same as being paid on the assay result from the refiner or a third party independent lab. Processing and refining take time. There are no short cuts to getting paid accurately. Are you getting paid on assay very quickly from your processor’s in-house lab?  

Metal Prices: How to understand the price you get. 

Finally, another area that can be a problem with selling on assay is metal prices. First, let me say that this is a problem for all of us in the business of selling metal. It is an opaque market which means it is hard to clearly see the price. Your metal does not come out of refining for about 100 days. This means to lock in a price for you we must sell metal forward on a futures contract. Since you are recycling scrap catalytic converters that means we are selling a product called sponge to coat new catalyst and make industrial products. We are not selling bars, ingot, or bullion to the investment market. So, there is a discount on the metal price. There is a discount and a lease rate. Both come off the spot or physical price you see published online. Both can be calculated, but they are not readily disclosed to us. This can be confusing when you get a metal price that is different than the price you see online. This can also be an area of ambiguity. The question is can and will your processor explain the spread to you?  

Selling converters on assay is the way to go. It is the only way to ensure that you get paid the most from your converters with a process you can trust. However, it is still your responsibility to educate yourself and make sure the processor you choose is doing what they say they are doing and following the rules of assay. This is why we write these articles. We want you to sell on assay. We want you to work with United Catalyst. But more than anything, we want you to get the most and avoid being cheated. You buy the car. You own the converter. The lion’s share of its value is yours.  

If you have questions about this article or any issue pertaining to catalytic converter recycling, our team is here to assist you. Recycling converters on assay is a journey. We hope you will rely on us at United Catalyst as your guide. 

UCC Article Archive – 2020 – Becky Berube 

The Experts Weigh In 

Recently, I had the privilege of moderating and participating in a global webinar regarding the auto catalyst value chain. Some of the analysts, refiners, and fellow processors that I respect most were on the panel. Dr. Jonathan Butler, Head of Business Development for Mitsubishi Corporation, kicked off the webinar with an excellent presentation on the entire auto catalyst value chain followed by a Q&A session from the panel. The webinar can be viewed in its entirety on YouTube by searching the title of this article. I want to share some of the take-aways that I think most recyclers will want to hear as it pertains to the availability of cars and the value of their scrap catalytic converters.   

The Impact of the Pandemic on Economic Growth 

Jon Butler made a powerful statement by saying that the COVID-19 pandemic represented “the steepest and the deepest economic contraction in living memory, perhaps ever. With unprecedented simultaneous collapse in both the supply side and demand side of the economy.” The recovery shape of the world’s three largest markets, China, the US, and Europe, is still unknown. Whether a v-shaped, w-shaped, u-shaped or L-shaped is still to be determined. Governments are stepping in with stimulus incentives trying to kick-start economies. Unemployment is at an all-time high. Interest rates will continue to be held down. The likelihood of future inflation is high. All these macroeconomic factors bode well for precious metal investing.  

Supply and Demand 

In March, the mining supply due to COVID-19 caused the major South African mining companies to declare force majeure, or an inability to meet contracts and obligations due to unforeseen circumstances. This disruption will most definitely affect the supply of Platinum (Pt) and Rhodium (Rh). Nearly 80% of the world supply of the Platinum Group Metals (PGMs) comes from mining, primarily in South Africa, Russia, Canada, and the United States. Wilma Swarts, Head of PGMs for Metals Focus, stated that the likely permanent restriction of supply will most definitely have a tightening effect on the market. South Africa producing the lions share of Pt and Rh and the fall in supply has actually helped to support prices. 

Demand for the PGMs will be mixed. Sixty-five percent of the world’s demand for these metals comes from automotive. Butler stated that global cars sales are expected to fall by 15 – 25 % in 2020 but demand across the major three markets of China, US, and Europe will differ. China has a pent-up demand for car buying and is already experiencing higher sales pushing demand up. China 6 emissions standards that requires the use of more PGMs, and which were due to go into effect, have been delayed due to the pandemic and thereby reducing demand. “On the light duty side, China and India are also moving to Euro6 equivalent legislation which generally means tighter control of oxides of nitrogen or NOX and the other regulated pollutants– especially unburnt hydrocarbons, which means more Pd used in oxidation. Since Rhodium is a superior catalyst for the chemical reduction of NOX, this move is likely to mean significantly higher Rh loadings per vehicle,” Butler said. The US could experience a rebound in car sales with credit being cheap, positive for demand, but the record unemployment levels may discourage the purchase of large-ticket items like vehicles. Light vehicle sales were up in the US in May. Car sales across Europe have been abysmal so there the outlook is not bright. As Europe has moved away from diesel vehicles which use mostly Pt to greener vehicles which also uses Pt, the net effect on the metals will be neutral. Mark Caffarey, President of Umicore USA, stated that the impact of COVID-19 and the lower oil prices has little impact on the introduction of the electrification of vehicles into the market. Furthermore, Caffrey said that government incentives are likely to push the OEMs even more toward battery and electric vehicles.  

Metal Thrifting 

Since Platinum is now 40% of the cost of Palladium, there has been a keen interest from the OEMs in substituting the majority of precious metals from Pd back to Pt in auto catalyst as it was in the 1990s. Craig Ostroff, Global Sales Manager for BASF Corporation, stated that in March South Africa’s Sibanye-Stillwater along with Impala Platinum (Implats) had partnered with the chemical company BASF to develop a new tri-metal auto catalyst allowing the partial substitution of palladium with platinum. It was noted that this move could requires some re-engineering of exhaust systems to move the Pt-rich cats back away from the manifold to prevent sintering. The current Pd-rich converters can withstand much higher temperatures. Given the economic downturn, OEMs may not want or be able to pursue the substitution given the cost of redesign at this time. Long term it is thought that the substitution will take place.  

For the past few years both Palladium and Rhodium have been in a deficit while Platinum has been in a surplus. Lower demand and lower supply of Pd, coupled with the increased long-term use of Pt for newer technologies and substitution, and increased demand for Rh to control NOX emission, does have the ability to bring the metals into a closer equilibrium than before COVID-19.  

Scrappage Rates 

As this audience knows all too well the volume of scrapped vehicles has fallen with fewer people buying new cars to replace the old. Butler says he expects auto catalyst recycling to fall by a fifth or 20% due to the general auto market slowdown, disruption to collection networks, disruption to logistics, disruption to some refineries due to workforce shortages, transport, and financing issues. Oliver Krestin, Managing Director of Hensel Recycling, stated that closed dealerships, closed steel mills, lockdowns across borders in Europe, less accidents due to driving, have hit the automotive recycling community especially hard in the short term. Caffarey also noted that in the financial crisis of 2008, governments pushed car scrappage schemes, such as Cash for Clunkers, which is highly likely to happen again in order to stimulate recycling rates. Krestin added that the incentives will likely push battery and electric vehicles increasing the recycling stream but would not be good for PGM demand, hybrids would be neutral if not slightly positive due to the loadings and electric vehicles have no catalytic converter at all. 

PGM Prices 

Dr. Jon Butler summarized his thoughts on the PGM prices. Platinum has lost 40% of its value this year and fallen to 20-year lows on demand concerns – closure of South African mining operations has brought limited upside so far. Palladium has been on a downtrend since the global COVID crisis intensified in March, as its main demand area (auto catalysts) has been damaged. Rhodium prices have been extremely volatile, shooting up on supply tightness and then falling rapidly on demand destruction. That being said, in an environment of negative real rates, this makes precious metals look more attractive as an asset class  – and we have seen record levels of investment into gold exchange traded funds so far this year, platinum was also at a record high but fell in the general fire sale in March of this year. Overall, the two analysts were bullish on Rh, and fairly optimistic on Pt and Pd, citing the 800s for Pt, 1900s-2000s for Pd, and 8000s-possibly 9000 for Rh.  

One Way. Assay.  

I will say it until I am blue in the face, assay-based selling with a process, a program, and a partner you can trust (and verify) is the only way to maximize the money you get for your cats with any certainty.  

In life there is more than one way to do most things. This is not true with converter recycling. There is a specific amount of precious metals in each converter. There is a cost to recycle it. There is a price for each metal that is sold. You’re either in the real game or you are not. You are either getting treated fairly or you are not. Remember, keep selling into the market on assay. Don’t take unnecessary risks. Play the long game.  

UCC Article Archive – 2020 – Becky Berube

Shell games and other shenanigans 

Cat recycling circa 1990s: Small. Medium. Large. $5. $10. $15.  

Have you been in the business long enough to remember it? When all you cared about was the price of a large GM? Eventually you learned the game. That the large GM and the exotic converter were the lost leaders. If you got the prices you wanted for those two units, the rest of the lot was a fire sale. Selling like this has gone on for years. It is evolutionary. You have come a long way, baby. 

No more easy access to the cats.  

You count or inventory them.  

You may have a dedicated point person handling them.  

You follow the markets.  

You sell on assay, auction, or an app.   

So why do you still wonder if you are selling them right and getting all the money you can? Let’s look at the converter recycling landscape today and discuss what may or may not have changed. 

Auction: Physical bidding 

We know you are rock stars. This ain’t your granddaddy’s junkyard no mo’. Your converter recycling program is not the only thing that has evolved. Your facility or facilities are neat and well managed. Your yard management system is sophisticated. The key metrics of your business are on point. When it comes to selling your scrap catalytic converters, you bring two or three companies in, have them count, grade, and bid on them. Highest bid wins. You compare averages with other recyclers in your owners’ group and feel good about your converter sales.     

App: Electronic bidding or selling by number 

Now some of you really love taking pics to inventory your converters and sell them via an electronic auction. And others of you are looking up numbers on converter apps like it’s going out of style. You can get a real rush from electronic sales. It might even feel like you’re seeing all 7’s or 3 cherries come up on the slots. Comparing averages with similar yards also feels like a win. 

Assay: The scientific method 

In 2012, we at United Catalyst Corporation brought small lot assaying of scrap catalytic converters to individual recyclers. Other companies followed suit. Today many of you have tried or are now selling on assay or the scientific method. Your testimonies of increased value to your peers and to us resound loud and clear.  

But what if none of these processes produces top dollar, how would you know? 

Selling by the piece. Subjective. 

Selling by physical or electronic bid. Not verifiable. Lost leaders. 

Selling by serial number or app. Not transparent. Lost leaders.  

Selling on assay. Could be manipulated. 

Mass balanced and verified assay the way to go 

Selling on assay with refining terms is the best way to recycle scrap catalytic converters. In fact, it is the only way to recycle a converter. It happens once it leaves your facility whether you sell it this way or not. The trick to selling on assay is fourfold: Knowing the actual count including halves so that you can know your true average. Mass balancing all weights including shipping materials, scrap, catalyst, and dust. Scientifically accurate sampling collection to produce the sample of record from the refiner or a third-party lab. Verified assay results from the end refiner or third-party lab. Make sure you get paid on the “official assay of record” and make sure the assay results can be verified by a third party. Without one of these four aspects being true and accurate, you are sure to be leaving money on the table even when selling on assay, never mind when selling by the piece or on auction or with an app.  

Not all collectors, processors, smelters, or refiners are the same. Not all operate on the same principles.  

Learning the way assay and refining works and how to avoid unethical trading practices takes time, but if done properly with a reliable recycling partner, yields much greater value. Get the most from your converters with a process you can trust.  

If you have questions about this article or any issue pertaining to catalytic converter recycling, we, at United Catalyst, are here to help you. Recycling converters on assay is a journey. We hope you will rely on us at United Catalyst to be your guide. 

UCC Article Archive – 2019 – Matelyn Harris

The automotive recycling industry has become one of the most crucial market-driven industry’s in the US. An estimated $32 billion in annual sales. Employing more than 140,000 people at over 9,000 locations across the country. The opportunity for growth is exponential. But so is the temptation for bribery, fraud, money laundering, and other unethical behaviors. Especially when dealing specifically with scrap catalytic converters. How do you continue to grow as a business within an industry where corruption can at times come easier than taking a principled stand? You simply improve your customer relationships.  

So what are your customers saying? 

‘Talk is cheap’ can have an entirely different meaning in this scenario because word-of-mouth advertising is priceless. It cost you absolutely nothing as a company and can build a positive brand reputation quicker than any other form of marketing.  Research shows that on average, one happy customer can lead up to nine referrals. I think it is safe to say that the automotive recycling industry relies heavily on referrals when deciding who to partner with so understanding this concept is crucial. Recently a very reputable recycler said to us, “Good people need to do business with good people.” Before a customer decides to make initial contact with you, they will take into consideration and even research what other people have said before moving forward. If you do not take care of your customers, your competitors will.  Good customer service can be the difference between a potential customer becoming a long-term partner or a current customer leaving to do business elsewhere. I encourage you to focus on four things when considering how to develop strong, consistent customer service in your business. 

1. Communication. In the world of scrap catalytic converters trust is huge. Which means clear, consistent communication is one of the most important traits that a business will look for when deciding who to partner with. 
2. Accessibility.  This goes alongside trust and communication. Your customers need to know that they can easily contact you. And more importantly, receive a response in a timely manner. 
3. Educate them. Share your knowledge. The more they grow, the more you grow. Be generous. At United Catalyst Corporation we believe that an educated recycler is our best customer. In fact, we give you an education in auto catalyst processing and precious metals refining. We take a complex process and try to make it understandable and easy to use. We know that once you learn about your converters and your yard profile, you will increase your profits, and no one will ever be able to take advantage of you again.
4. Acknowledge them as an individual, not just as a customer doing business with you. Invest in them. Show appreciation. They choose you as a partner, what an honor!

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” -Warren Buffet