Secondary Supply

Secondary or scrap materials appear at all stages in the industrial process and in a bewildering variety of forms, grades, and values. It is useful to begin analyzing them by dividing the broad concept of "Secondary Supply" into three parts First, the concept must encompass the stock, or pool, of secondary materials. In the process of satisfying his wants, man produces desired products from the materials and natural resources found around him. As long as the rate of production is greater than the rate of obsolescence of a given product, the total stock or pool of materials embodied in that product will increase in size This stock concept relating to secondary materials is directly analogous to the "resource" concept used for primary raw materials in the preceding chapter, and includes all materials embodied in existing products (Obviously, this excludes those materials which are destroyed in the consumption process, viz , fuel oil burned to provide heat.) Consumption of a primary material in a productive process tends to reduce the resource base of that primary material In direct contrast, however, the production or use of products increases the resource base of the secondary material. Thus, we find that a country which has no resource of a primary material can, by importing products that contain the material, build up a large enough stock to provide a basis for secondary recovery. The estimated growth of the pool of copper in use in the United States through 1967 is shown in Table 5.B.1.a The estimate of 39 3 million tons at the end of 1967 includes only technologically recoverable copper and is, therefore, somewhat less than the stock concept described previously, which does not distinguish between recoverable and unrecoverable material. Nevertheless, Table 5 B.1 does give an idea of how a nation's secondary resource of a material can grow over the years. A second aspect of the concept of secondary supply is the generation of secondary materials. This includes materials generated as scrap in production as well as the movement of a material out of the stock of existing products via wear, damage, or obsolescence The quantity of materials generated is usually either nearly or completely independent of the technologic capabilities and economic forces which prevail in the secondary recovery market.b The justifications for and the qualifications to this statement are considered later. The final aspect of the concept of secondary supply consists in the secondary recovery process It is at this point that the technologic and economic forces of the secondary recovery market become the controlling fac-