Local AZ newspaper, Glendale-Peoria Today had article in their "vents" column on 11/13/09 saying the DOD notified a ammunition factory they would no longer sell used cases to be reprocessed as mil practice ammo. Instead they will shread the cases and sell the shredded material to the ammo factory. The factory has no use for shredded brass. The DOD will incur the cost of shredding and sell to China for less than they would get foe servicable spent brass. As a result the ammo factory will lay off 50 percent of staff of 60 people in 90 days.
Since this is local to the Phx area I suspect the factory is Thunderbird Cartridge Co., who does / did business primarily in 50 cal ammo, and sold powder for reloading components.