Secondary raw material (SRM) is recycled waste that acts as a replacement for primary raw materials in the production of goods. Many secondary raw materials such as waste paper and waste plastic are tradeable commodities that play an important role in the circular economy by extending the lifecycle of natural resources and limiting carbon emissions.
What are the main categories of SRM?
Secondary raw materials are usually classified as either metallic – such as recovered aluminium, zinc, iron, gold, silver and brass – or non-metallic. Examples of non-metallic secondary raw materials include waste paper, glass, natural and synthetic rubber, and certain plastics such as polyamide (nylon), PP-polypropylene, PVC, PE-polyethylene and PS-polystyrene. All SRMs undergo some sort of processing or quality assessment to ensure they are suitable for use within production processes.
Is secondary raw material the same as a by-product?
No. SRM should not be confused with by-product raw materials, which are generated in the production of primary raw materials and are re-used without being discarded first. Material that is not intended for disposal – such as a by-product – does not qualify as waste. Primary raw materials (PRM) are different from SRMs because they derive from an extraction process. In other words, they come directly from a natural source, such as a mine, whereas secondary raw materials derive from reuse of material.
What are secondary raw materials used for?
Semi-finished products such as shopping bags, insulation and kitchen foil often have secondary raw materials in them. Waste paper is usually a component of packaging and kitchen paper. Glass aggregate and rPET (recycled polyethylene terephthalate) find their way into glass and plastic bottles. Recovered metals meanwhile can be reprocessed to make cans, electrical wires and structural parts for vehicles. The global trade in secondary raw materials is estimated to be worth over $315b a year, and is growing faster than the wider trade in physical commodities.
What are the benefits of secondary raw materials?
Using secondary raw materials instead of primary raw materials can increase security of supply for industry because SRMs are renewable and available from multiple sources that are often closer to home. This can reduce the risks associated with fragile global supply chains, especially when using CTRM software. Growing the SRM component in manufacturing processes also reduces the use of primary material and energy, which lowers costs and carbon emissions, along with other environmental impacts.
SRMs in products can provide a valuable differentiator in consumer markets. For example, buyers of fashion are increasingly concerned about the sustainability of the products they buy, and some are prepared to pay a premium for it, thereby increasing profit margins on what is already likely to be a cheaper input than virgin material.
Compliance is another benefit for businesses. Governments and regulatory authorities including the UK, E.U. and the U.S. State of California already mandate a minimum recycled component in certain plastic goods, or provide incentives to do so.
