Many materials can only be recycled a limited number of times because of physical
degradation (paper and board), chemical degradation (plastics), or impurities (several
metals). Management of the quality of materials is a key to high long-term recycling rates
and, hence, to the sustainable future. This key includes several elements, such as:
retaining the quality of materials in the production and use of products; retaining the
quality of materials in the recycling processes; and using high-quality materials only
when it is required. Pinch analysis is a set of methods to optimize physical flows by
taking the quality into account. It was originally developed for minimizing the energy
demand in process industries. It has been adapted for optimization also of water and
solvents flows. A Japanese research group applied part of the method on flows of steel
within Japan and globally. We present a pilot study that illustrates how all the elements
of the basic pinch approach can be applied to global systems of material flows. Our
material pinch analysis (MPA) distinguishes between three categories of steel
applications, each with its own requirements on the material quality: rolled steel,
sections and re-bar. Copper in wiring etc. increases the copper content of steel recycled
from machinery and eventually restricts the recyclability of the steel in a global system
where steel use does not increase. This is important because an MPA is mainly relevant
when impurities or other quality aspects restrict the recycling rate. Our quantitative
results should not be considered accurate reflections of the reality, because the pilot
study is to a large extent based on assumptions and crude data. However, the model gives a
first indication that the maximum recycling rate of steel is approximately 80% in a
potential future when steel use does not increase, unless technology is improved. A full
MPA with more thorough data collection would more accurately define the maximum long-term
recycling rate and the minimum quantity of ore-based material. In addition, a full MPA
would give information on for what applications ore-based material should be used, and
what scrap flows should be discarded rather than recycled. Such information can be
important for policy-making aiming at increased resource efficiency. If it is important
for policy-making it is also likely to be important to industrial companies that can be
affected by policies.