ECONOMIC AND TECHNOLOGICAL IMPEDIMENTS TO RECYCLING
OBSOLETE FERROUS SOLID WASTE
NATIONAL ENVIRONMENTAL RESEARCH CENTER
OCTOBER 1973
DISTRIBUTED BY:
National Technical Information Service
U. S. DEPARTMENT OF COMMERCE
-------
PB 223 034
EPA-670/5-73-021
October 1973
ECONOMIC AND TECHNOLOGICAL IMPEDIMENTS TO
RECYCLING OBSOLETE FERROUS SOLID WASTE
by
Oscar W. Albrecht and Richard G. P'fcDermott
Solid and Hazardous Waste Research Laboratory
Program Element 1D1312
NATIONAL ENVIRONMENTAL RESEARCH CENTER
Office of Research and Development
U.S. Environmental Protection Agency
Cincinnati, Ohio 45268
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BIBLIOGRAPHIC DATA
SHEET
1. Kc-port No.
EPA-670/5-73-021
3. Recipient's Accession No.
4. Tide and Subtitle
Economic And Technological Impediments to Recycling
Obsolete Ferrous Solid Waste
5. Report Date (
October 1973
6.
7. Author(s)
Oscar W. Albrecht and Richard G. McDermott
8- Performing Organization Kept.
No.
9. Performing Organization Name and Address Solid & HaZ3rdOUS Waste
Laboratory, U.S. Environmental Protection Agency
National Environmental Research Center
Office of Research & Development
Cincinnati. Ohio 45268
10. Project/Task/Work Unit No.
11. Contract/Grant No.
12. Sponsoring Organization Name and Address
SAME AS ABOVE
13. Type of Report & Period
Covered
14.
15. Supplementary Notes
16. Abstracts
Current technological impediments to recycling ferrous solid waste resulted to
a large extent from earlier economic decisions concerning steel-making processes
and plant locations. These prior long-run investment decisions are now contributing
factors in the increasing accumulation of ferrous solid waste. The amount of
obsolete ferrous scrap hot recycled averaged nearly 22 million tons annually
during the first half of the 1960 decade. During the late 1960's the amount not
recycled increased to 29 million tons per year. Indications are that this trend
will continue and possibly accelerate unless substantial changes in economic and
technological conditions occur. The study suggests that even if public programs
are implemented, the recycling of ferrous solid waste will be constrained until
the late 1970's by existing technological impediments in the steel industry.
17. Key Words and Document Analysis. 17a. Descriptors
17b. Idcntifiers/Open-linded Terms
Scrap, Ferrous Scrap, Ferrous Solid Waste, Tin Can Scrap, Can Scrap, Recycling Scrap,
Recycling Ferrous Scrap, Recycling Ferrous Solid Waste, Recycling Tin Can Scrap,
Incinerator Residue, Recycling Incinerator Residue, "White Goods" Consumer-type
ferrous scrap, Recycling consumer-type ferrous scrap, recycling automobiles, Scrap
utilization by the steel industry, Raw steel industry
17c. COSATI Fie Id/Group
18. Availability Statement
Release to public
19. Security Class (This
Report)
UNCLASSIFIED
20. Security Class (This
Page
UNCLASSIFIED
21. No. of Pages
27. Price
FORM NTIS-35 (REV. 3-72)
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REVIEW NOTICE
The National Environmental Research Center, Cincinnati,
U.S. Environmental Protection Agency, has reviewed this
report and approved its publication. Mention of trade
names or commercial products does not constitute endorse-
ment or recommendation for use.
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FOREWORD
Man and his environment must be protected from the adverse effects
of pesticides, radiation, noise and other forms of pollution, and the
unwise management of solid waste. Efforts to protect the environment
require a focus that recognizes the interplay between the components of
our physical environment--air, water, and land. The National Environ-
mental Research Centers provide this multidisciplinary focus through
programs engaged in
studies on the effects of environmental contaminants
on man and the biosphere, and
a search for ways to prevent contamination and to
recycle valuable resources.
This in-house study was part of a comprehensive effort at the National
Environmental Research Center, Cincinnati, to examine the feasibility for
reclaiming and recycling selected noncombustible materials from the solid
waste stream. The particular emphasis in this report is on the non-recycled
obsolete ferrous solid wastes, and their potential as substitutes for vir-
gin materials in the production of raw steel. The results contained herein
will be of interest to everyone concerned with the mounting solid waste
problem and the rapid depletion of our natural resources.
A. W. Breidenbach, Ph.D.
Director
National Environmental
Research Center, Cincinnati
111
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ACKNOWLEDGMENTS
The authors wish to thank those persons in the domestic raw
steel, foundry, and scrap processing industries who generously
contributed of their time and provided helpful information and
suggestions.
IV
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ABSTRACT
Ferrous solid waste is one component of the total problem
relating to solid waste management. In addition to the costs of
collecting and transporting, these wastes will occupy landfill space
for a long time as they are extremely slow to degrade. Also, from
a conservation viewpoint, ferrous wastes are the residuals of a scarce
nonrenewable natural resource. And aesthetically, the piles of
scrap are considered by many to be a blight on the landscape.
The study reported here focused attention primarily on the problems
associated with recycling of obsolete ferrous scrap. The major steel
companies use large quantities of in-house and prompt industrial scrap
in the production of raw steel. But difficulties are being encountered
in recycling obsolete ferrous scrap, particularly from certain dis-
carded industrial and consumer type products. The emphasis was on
the factors influencing the recycling of can scrap, automobile scrap,
obsolete consumer durables, and incinerator residue.
The total amount of obsolete ferrous scrap not utilized continues
to increase annually. Annual amounts of obsolete ferrous scrap not
recycled averaged nearly 22 million tons during the first half of the
1960's. During the last half, about 29 million tons per year were not
recycled. The indications are that this trend will continue and
possibly accelerate during the decade of the 1970fs unless significant
changes in economic or technical conditions occur. And even if public
programs with incentives are implemented, the analysis suggests that
recycling of ferrous solid waste would not increase markedly until the
latter half of the present decade.
v
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TABLE OF CONTENTS
Page No.
I. Summary .. 1
A. The Solid Waste Problem 1
B. Utilization of Ferrous Solid Waste 1
C. Impediments to Increased Utilization of Ferrous Scraps 3
D. Conclusion and Implications for Public Policy 4
E. Environmental Implications 6
F. Need for Further Research 6
II. Introduction 11
III. Ferrous Solid Waste 12
IV. Industrial Use of Ferrous Solid Waste 12
A. The Basic Steel Industry 14
B. Technology 17
Open-Hearth Process 18
Basic Oxygen Process .- 19
Electric Furnace Process 23
V. Economic and Technological Impediments 25
A. Ferrous Scrap Prices 30
VI. Obsolete Ferrous Scrap 32
A. Can Scrap „ 33
B. Automobile Scrap 35
C„ Consumer Durables 37
D. Incinerator Scrap 39
E. Contaminant Buildup 40
F. Transportation Costs . 40
VI
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TABLE OF CONTENTS
(continued)
VII. The Role of Foundries in Recycling Ferrous Scrap 42
VIII. References 44
VI1
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APPENDIX TABLES
Table
1.--Domestic and Export Purchases of Ferrous Scrap, 1946 to 1970--— 46
2.--Projections of Total Obsolete Scrap Available 47
3.--Amounts of1 Obsolete Scrap Recycled and Not Recycled, by Five Year
Periods from 1956 to 1985 48
4.--Imports and Exports of Steel Mill Products and Ferrous Scrap 49
5.--Generation and Utilization of Selected Ferrous Scrap Grades by
Raw Steel Producers and Steel Foundries 50
6.--Changes in Gross National Product and Raw Steel Production 51
7.--Available Obsolete Scrap Supply from Steel Mill Products, 1970--- 52
Vlll
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ECONOMIC AND TECHNOLOGICAL IMPEDIMENTS TO RECYCLING
OBSOLETE FERROUS SOLID WASTE
Oscar W. Albrecht and Richard G. KcDermott
SUMMARY
The Solid Waste Problem
Public concern over environmental degradation and exhaustion of nat-
ural resources is reflected in the enactment of the Resource Recovery Act
of 1970. The national objective of reclaiming valuable components from
i
solid waste is made explicit in the Act.
Although ferrous solid waste comprises only a small fraction of the
total, the problem it presents to waste management are its slow rate of
degradation in landfills and its accumulation on landscapes. It is also
the residual of a non-renewable natural resource.
A portion of ferrous solid waste is readily recycled. This is the
waste generated in-house by the steelmaking processes (revert scrap) and
by fabricating operations (purchased prompt industrial scrap). It is the
obsolete ferrous solid waste, especially the worn-out and discarded types
from consumer use, that presents an increasing problem in solid waste
management.
Utilization of Ferrous Solid Waste
The steel industry has been a basic industry in the U.S. economy
for a long time. Five of the major steel corporations are among the 100
largest U.S. industrial corporations in terms of volume of sales and
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2
number of employees. Steel shipments of primary products by the industry
amounted to nearly $18 billion in 1967, or about two percent of the $793.5
3 t
billion gross national product that year.
In recent years, the basic steel industry has been increasingly sub-
jected to rising labor costs and competition from foreign imports of raw
steel. Importations of steel mill products have also had an adverse ef-
fect. Domestic raw steel companies have had difficulty competing with
foreign steel, perhaps because teclino logical research and innovation by
the domestic steel companies have not been as rapid as that of the foreign
5
companies.
The annual amount of obsolete scrap not recycled (that accumulating
in open areas, landfills, backyards, etc.) has averaged over 34 million
tons for the past five years. It increased from 23 million at the start
of the 1960 decade to over 37 million in 1970. The proportion not recy-
cled increased from 48 percent during the first half to nearly 52 percent
in the last half of the past decade (Table 1).
The volume of obsolete scrap recycled has remained relatively constant
over the past 20 years while the percentage of obsolete ferrous scrap re-
cycled actually decreased (Figure 1). This trend is expected to continue.
The projections of obsolete ferrous scrap indicate that by 1985 more than
90 million tons will be available each year for recycling as compared with
about 60 million in 1972. The projections are based on steel shipments
in preceding years and market uses of it.
The total amount of non-recycled scrap is expected to increase each
year until about 1973. There may then be a leveling off or slight
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reversal in the trend for several years. By 1980 or before, the
obsolete ferrous scrap not recycled is expected to accumulate at an
increasing rate. These projections assume that net exports of obso-
lete ferrous scrap will hold at about the mid-1960 level.
Impediments to Increased Utilization of Ferrous Scrap
It has been suggested that the technical limits of using ferrous
solid waste (scrap) in proportion to total metallics in steelmaking
6
could be as high as 80 to 100 percent. A distinction must be made,
however, between the short-run and long-run time periods in comparing
the practical limits with the theoretical possibilities. In the long-
run perspective, impediments that appear to be technologically related
are often really economic considerations. In the short-run, existing
capital investments in natural resources and facilities, including
iron ore and coal mines, blast and steelmaking furnaces, commit the
industry to certain technological processes of steelmaking. These
commitments define the technical range of substitution of scrap iron
for iron ore. In the long-run time period, however, steel companies
are able to modify their processes and plant facilities to reflect
trends in costs of inputs, including scrap iron.
Transportation costs are influential in decisions on the recycling
of ferrous scrap. Consumer types of obsolete (discarded) ferrous scrap
are particularly vulnerable to transportation costs since they are
relatively more dispersed than virgin raw materials. Steelmaking firms
are mostly located near the sources of natural materials and along
strategic transportation routes.
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Conclusions and Implications for Public Policy
It appears likely that there will be very little increase in the
proportion of ferrous solid waste recovered during the decade of the
1970's under existing economic and technological conditions. Rather,
it is likely that even smaller proportions of the total available scrap
will be utilized in the near future. From a strictly technological
viewpoint, percentages are not likely to shaw.much increase before the
mid 1970's under any conditions. By the latter part of the current
decade, steelmaking processes could be sufficiently modified to utilize
more ferrous scrap if economic conditions are favorable.
The implication for public policy is that there is apparently a need
to create a more favorable economic climate if there is to be greater
utilization of ferrous solid waste. Public action could take several
forms. Government could enact legislation to discourage the use of
virgin materials, such as iron ore, and the use of contaminants that
lower the utility of discarded ferrous products for recycling. There
could be increased restrictions on imports to reduce competition with
domestic steel products. Every ton of steel mill products imported
into the country reduces the net utilization of ferrous scrap by about
0.3 ton.
The Federal Government could require specific percentages of, obsolete
post consumer scrap in finished steel products; legislation could be en-
acted to force manufacturers to reclaim the product after the consumer
is finished with it. This might have the effect of encouraging producers
to design their products for longer life and high recycling value.
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Other measures available to the government include taxes on the use
of virgin material and excise taxes on products containing less than
minimum percentages of obsolete ferrous scrap. Elimination of the
current tax privileges to owners and developers of natural raw materials
is another strategy.
Economic incentives to accomplish national objectives are generally
more socially acceptable than direct government controls or punitive
legislation. Incentives can take a variety of forms. Purchased scrap
can be subsidized through rebates or by outright government purchases
and resale to firms at less than market cost. Incentives can be in the
form of investment tax credits or accelerated depreciation allowances
for capital equipment used in processes related to scrap utilization,
similar to the credits allowed for pollution abatement equipment. Funds
could be provided or interest rates subsidized to promote expansion of
capital investments in recycling equipment.
Exports are an important outlet for domestic ferrous scrap. Exports
of ferrous scrap have been averaging 5 to 6 million tons annually,
although some decrease appears likely as foreign steelmakers become
committed to processes that favor the use of iron ore rather than scrap.
The expansion of exports could be encouraged, however, through export
subsidies and trade agreements. It should be noted, however, that
exports do nothing towards conserving the nonrenewable iron ore reserves.
The social benefits to be gained from promoting the growth of electric
furnaces need to be evaluated. These furnaces are the major users of
obsolete ferrous scrap. Increased use of these furnaces could substan-
tially increase the volume of obsolete ferrous solid waste recycled
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each year. Growth of electric furnaces may depend heavily on nuclear
energy since this source has lower market costs; but here the tradeoffs
from increased recycling of obsolete ferrous scrap need to be compared
with the social costs of managing increased amounts of nuclear wastes.
Environmental Implications
As the total solid waste problem becomes more visible, the need for
utilizing the ferrous scrap fraction will become even more apparent.
But the economic and technological merits of recycling must be viewed
in terms of the total environmental system. Demands on the environment
from activities related to recycling obsolete ferrous scrap must be
compared with those using natural iron ore. The total environmental
tradeoffs resulting from industry decisions about steelmaking processes,
choice of fuels, and levels of recycling need to be fully examined. If,
as a result of pollution abatement requirements, costs for one source
of energy increase relative to costs of another, the result could be a
substantial shift to the source having lower costs but greater pollution.
It, therefore, becomes necessary to assess the various alternatives in
resource use and associated environmental impacts within the framework
of a total environmental impact model before recommendations can be made
for policy decisions.
Need for Further Research
Very little is known about the sensitivity of the steel industry to
various kinds of action available to the Federal Government. The steel
industry is typical of most industries in the private sector in adhering
to a well-known tradition of secrecy about their production costs.
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The possibility of adverse effects on existing industries is
frequently cited as the reason why the Federal Government should
refrain from public programs designed to encourage recycling.
Undoubtedly, some adjustments in existing industries would be required.
But, the short-run adverse impacts need to be compared to the potential
for long-run benefits society might gain from public programs designed
to encourage recycling. On the other hand, increased recycling of
obsolete ferrous solid waste may displace other ferrous scrap presently
being recycled. Thus, total tradeoff effects need to be evaluated.
Research is needed to determine more precisely the role of trans-
portation in recycling. It has been suggested that current transpor^
tation rates discourage the recycling of obsolete ferrous scrap,
particularly the lower grades of scrap. The extent to which restruc-
turing of rates would encourage recycling needs to be investigated.
Any proposal for reallocation of the Nation's resources, either
through the price mechanism or through direct government regulation
and control, requires an examination of costs and benefits stemming
from the reallocation. Proposed programs need to be examined for their
net benefits, including the distributive effects--that is, who benefits
from the result of adopting proposed public programs.
Further technological research is also needed in areas of collection,
processing and utilization of ferrous solid waste. Improved methods of
collecting and processing ferrous scrap for utilization might increase
its value to steelmakers. More research is needed on techniques for
detecting and separating out contaminants. The potential for contam-
inant buildup in furnaces resulting from continuous recycling also
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requires further investigation. Standardization and redesign of products
are other opportune areas for further study.
A new process, direct ore-reduction (metallized, pre-reduced pellets),
reduces iron ore to an intermediate iron stage (sponge iron) for subse-
quent melting and refining into steel in the steelmaking furnaces. The
likely impact of this process needs to be investigated. It could have a
significant effect on the future use of scrap. Its importance is espe-
cially significant because the metallized pellets are applicable to the
electric furnace, currently a heavy user of scrap.
The trend towards continuous casting by the steel industry has further
implications. Continuous casting has grown significantly in the last
five years (from 1 million to 17 million tons). Opinions in the industry
vary as to how rapidly the conversion to continuous casting capacity will
7
occur, but there is general agreement that the trend will continue.
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80'
80
10
I * j
50
40
30
20
EACH YEAR
NOT
PLUS NET
I
J_t_L
IS58 1962 1386 1970 1914 I97B 1S82 1986
YEAR
1. of
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TABLE 1
TOTAL OBSOLETE SCRAP AVAILABLE
Amount (thousand tons)
Year
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
Total scrap
available*
27,687
32,285
46,156
45,336
46,752
48,613
43,814
37,214
47,728
52,172
45,325
59,603
65,930
54,975
66,658
51,665§
Recycled scrap plus
net exports t
30,780
26,181
16,999
22,726
23,087
24,256
19,182
23,671
25,881
25,887
27,023
25,664
23,470
29,978
29,300
19,96s11
Nonrecycled ,.
obsolete scrapr
(3,093)
6,104
29,157
22,610
23,665
24,357
24,632
13,543
21,847
26,285
18,302
33,939
42,460
24,997
37,358
31,700
Percent
nonrecycled scrap
—
18.9
63.2
49.9
50.6
50.1
56.2
36.4
45.8
50.4
40.4
56.9
64.4
45.5
56.0
61.4
*Based on estimating techniques developed by Battelle Memorial
Laboratories as revised by the Business and Defense Service Adminis-
tration using data from the annual issues of American Iron § Steel
Institute's Annual Statistical Yearbook.
Derived by substracting prompt industrial scrap from total
purchased scrap and adding net exports. Total purchased scrap and
net exports taken from the Institute of Scrap Iron and Steel's Facts
1970.
rDerived as the difference between total available scrap and
recycled scrap.
§
Preliminary data by Battelle.
^Estimated.
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INTRODUCTION
The problem facing society today is how to cope with degradation
of the environmental media--air, land, and water. Our earth is being
subjected to ever-increasing environmental stress from wastes. It
has been estimated that each year in the United States more than 250
million tons of solid wastes result from residential, commercial, and
institutional sources. Additional wastes are generated by agricultural,
industrial, and mining activities. The total solid wastes from all ec-
8
onomic activities in 1969 has been estimated at over 4 billion tons.
Solutions to the total waste problem are extremely complicated.
Frequently, control techniques merely shift the problem from one medium
of the environment to another. Much of it eventually accumulates as
solid waste. Furthermore, the capacity of the environment to assimi-
late waste residuals is not infinite.
Opinions differ as to the seriousness of the solid waste problem.
People in densely populated areas tend to view the situation differ-
ently from those in less concentrated areas. Variations in cultural
and income levels also affect an individual's concern for the environ-
9
ment.
Our knowledge of public attitudes toward environmental quality is
quite inadequate. Even though individual preferences for environmental
quality can be characterized and measured to a degree, we still have the
problem of not knowing how to aggregate them, and market indicators of
these preferences are practically non-existent. Despite some differences
of opinion as to the seriousness of the problem, it is quite apparent
that many people believe the solid waste problem is of sufficient magni-
tude to warrant national efforts for solution.
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FERROUS SOLID WASTE
Solid wastes in the municipal waste stream consist of a number
of components. The relative importance of these in the total solid
waste management problem can vary in localities according to the
nature of economic activities. Climate can also be a factor. The
proportions also depend on whether they are in terms of a collected
(wet), dry, or volume basis.
The metals component of municipal solid waste has been estimated
10, 11
to range between 6.85 and 9.1 percent. The exact percentage, of
ferrous solid waste has not been determined. It consists mainly of
tin cans and discarded consumer durables such as appliances, lawnmowers,
vacuum sweepers, steel furniture, and many other worn out post-consumer
items (Table 2).
The generation of ferrous scrap actually begins with the steel and
iron-making processes, including the finishing and fabrication opera-
tions. The in-house scrap from these activities, however, does not
constitute a problem compared to the worn out and obsolete ferrous
products discarded by consumers.
INDUSTRIAL USE OF FERROUS SCRAP*
There are three major industrial users of domestic ferrous scrap:
1) the domestic raw steel industry, 2) the domestic iron and steel
*
foundry industry, and 3) the export market. There are also a few minor
*Scrap in the steelmaking industry refers to iron and steel scrap.
An industry may be defined in several ways. It may describe a group
of products that are close substitutes for each other and relatively
distant substitutes for all products not included in the industry. An
industry from the selling side of the market refers to the sellers of a
particular product.
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TABLE 2
COMPOSITION OF SOLID WASTES IN 21 U. S. CITIES*
Percent of
Component total
Food waste 18
Garden waste 8
Paper products 44
Plastics, rubber, and leather 3
Textiles 3
Wood 2
Metals P
Glass and ceramics 9
Rock, dirt, wash, etc. 4
*SOURCE: US Department of Health, Education, and Welfare,
Incinerator Guidelines 1969 Washington, U.S., Government Printing
Office, 1969, p. 6.
Percent of composition is based on wet (as collected) weight.
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-14-
uses, such as for copper precipitating. In this study, the industrial
utilization of ferrous scrap refers principally to the raw steelmaking
companies and the iron and steel foundries. Raw steelmaking companies
account for about 80 percent of the total domestic utilization of
ferrous scrap and therefore received the major attention in this
study (Table 3).
The Basic Steel Industry
There are 107 producers of basic steel in the United States. These
include the large, fully-integrated producers that operate coke ovens,
blast furnaces, and steelmaking furnaces. The small specialized producers
12
have only steelmaking (usually electric) furnaces. The top three
producers account for nearly half of the industry's shipments and the ,
10 largest producers account for 80 percent of the total output (Table
4).
Integration by the major raw steel producers has been mostly back-
ward to sources of raw material, with very little forward vertical
integration.* The major companies are fully integrated backward to the
point where they own or have equity in basic raw material supplies
including coal mines, limestone quarries, and iron ore deposits. They
also own their own intermediate iron-making processes, including blast
furnaces and coke ovens. For the purpose of expediting the study, it
was assumed that raw steel products from the three different production
processes (basic oxygen, open hearth, electric furnace) were all
*A vertically integrated firm is one that performs more than one pro-
duction process in the chain of processes beginning with extraction of
raw materials to production of finished goods.
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TABLE 3
FERROUS SCRAP UTILIZATION IN DOMESTIC STEELMAKING
FURNACES, STEEL CASTING, AND IRON FOUNDRIES*
[In Millions of Tons]
Process
Raw steel industry
Open hearth furnace
Basic oxygen furnace
Electric arc furnace
Blast furnace
Cupola
Other
Total
Foundaries
Electric
Cupola
Air
Open hearth
Other
Miscellaneous
Total scrap utilization
* SOURCE: American Iron and
Report and American Iron and Steel
Mineral Yearbook.
1965
43.0
7.8
14.0
5.1
1.5
0.0
71.4
2.7
13.2
1.5
0.7
0.6
19.0
90.4
1967
32.4
13.9
15.0
4.7
1.0
0.1
67.2
3.1
12.8
1.1
0.6
0.6
18.2
85.4
Steel Institute
Institute and
1969
30.3
19.8
19.6
4.8
1.8
0.4
76.7
4.2
13.1
0.2
0.5
0.2
18.1
94.8
, Annual
US Bureau
1970
21.9
21.2
18.8
5.3
1.7
0.4
69.3
4.1
11.3
0.2
0.1
0.1
15.9
85.2
Statistical
of Mines ,
Figures have been rounded.
-------
-16-
TABLE 4
RAW STEEL PRODUCTION IN TIE UNITED STATES IN 1967*
(TEN LARGEST STEEL PRODUCING COMPANIES AND U. S. TOTAL)
Company
Top 10 steel producing companies:
U.S. Steel
Bethlehem
Republic
National
Armco
Jones § Laughlin
Inland
Youngs town
Wheeling-Pittsburgh
Kaiser
Total
Total Industry
Product iont
30,900.0
20,525.0
9,303.0
8,496.4
7,455.0
6,892.0
6,778.0
5,633.5
3,151.0
2,864.8
101,998.7
127,213.0
Percent of
total
24.3
16.1
7.3
6.7
5.9
5.4
5.3
4.4
2.5
.2.3
80.2
*Source: Annual Reports of the companies. Industry total was
taken from American Iron and Steel Institute's Annual Statistical
Report 1970, p.40.
tin thousands of tons.
-------
-17-
identical, recognizing though that some variation in composition does
exist because of the different processes.*
Technology
In the iron ore - scrap route, iron ore is converted to pig iron
in the blast furnace and then refined to raw steel in the basic oxygen or
the open hearth furnace. The modern blast furnace consists of an elon-
gated pear-shaped vertical shaft rising about 100 ft high, lined through-
out with special refractory brick. The hearth diameter is about 28 ft
wide. Iron-bearing materials (iron ore, sinter, pellets, mill scale,
scrap, etc.), fuel (coke), and flux (limestone and/or dolomite) are
charged in at the top of the furnace.^ Blasts of heated air and some
fuel are blown in at the bottom. The flow of air is countercurrent to
the descending burden (iron ore, coke and limestone). The blast
burns part of the fuel to produce heat for the chemical reactions in-
volved and for melting the iron. The balance of the fuel and part of
the gas from the combustion are used to reduce the oxide of iron.
Molten pig iron and molten slag are tapped near the bottom levels below
points where air is blown into the blast furnace. The off-gases collec-
ting at the top of the furnace are either burned or recycled for fuel.
*For a detailed discussion on the various processes of steelmaking, see
The Making, Shaping, and Treating of Steel, U.S. Steel Corporation,
Pittsburgh, Pennsylvania, 1964, 1300p.
''"Coke is produced in coke ovens by the distillation of coal in closed
retort ovens. The volatile matter is collected and processed to gas
and coal chemicals, and the remaining material (coke) is quenched
(cooled) and sized for use as fuel for the blast furnace.
Much of the iron ore is beneficiated before charging to the blast
furnace. Beneficiation is a charge process whereby the concentration
of iron is increased. Two commonly-used processes for beneficiation are
sintering and pelletizing.
-------
-18-
The last step in raw steelmaking by the iron -- scrap route takes
place in the steelmaking furnaces, usually the open hearth, or the basic
oxygen furnace. Higher operational costs normally exclude charging the
electric furnace with molten metal.
Open Hearth Process
The open hearth furnace resembles a large, enclosed bath-type con-
tainer. Up to 12 furnaces may be housed under one roof. Fuel input ports
are located on both sides of the furnace, with the regenerative chambers
located beneath the furnace. Scrap and hot metal are charged through doors
in the front. Fuel is burned over the bath, alternating from one side
to the other. After 6 to 8 hours, the molten steel is tapped out the back
side of the furnace.
The importance of the open hearth furnace has been steadily declining
and is expected to continue to decline, and very little is being done to
improve the process (Table 5). The open hearth requires a larger capital
outlay and a longer production interval than the basic oxygen furnace.
There do not appear to be any technical breakthroughs on the horizon that
would bring about new growth in the use of open hearth furnaces.
The open hearth furnaces accounted for slightly more than a third
of the total domestic raw steel production in 1970. Ey 1975 they will
probably produce 21 percent, and by 1980, only 9 percent of the total.
Production capacity of open hearth furnaces h;is been largely replaced
by the basic oxygen furnaces. The consensus is that the use of open
hearths for steelmaking will become less important. There is some
disagreement as to how rapidly their importance will decline. A
-------
-19-
middle-of-the-road projection would suggest their output at 30 million
*
tons of raw steel in 1975 and about half that amount in 1980 (Table 5).
Comparing these forecasts to current production, the 1975 level would
be two-thirds the 1970 production and the 1980 production about one-third.
Basic Oxygen Process
The basic oxygen furnace is relatively new. In 1960, only 3 percent
of the total raw steel production was refined in the basic oxygen
furnace. By 1970, the percentage had increased to 48 percent and 63
million tons, compared with 48 million tons in the open hearth.
The basic oxygen process is more efficient in terms of cost per unit
of output. It also requires a substantial capital outlay, however, as
these furnaces are sizable units. The furnaces are also likely to be
integrated with blast furnace operations since they are dependent upon
them for the molten metal.
The basic oxygen furnace resembles a large bottle-type vessel with
a closed bottom and open top. The cylinder is lined with refractory
material. Hot metal (pig iron), scrap, and flux are charged in at the
top. An oxygen lance in the furnace directs a jet of high purity
oxygen at high speed onto the molten iron to oxidize the impurities. The
vessel can be turned 180 degrees from vertical, in both directions, to
facilitate charging and pouring. Modern basic oxygen furnaces can produce
from 200 to 300 tons of raw steel per cycle in about 1 hr, thus, its proc-
ess takes only about one-sixth as long as that on the open hearth. Two
*
A maximum forecast of raw steel from the hearth in,1980 would
probably be the 25 million tons estimated by Battelle. There are
some in the industry who predict no production rather than the 25
million tons.
-------
TABLE 5
PROJECTIONS OF RAW STEEL PRODUCTION
FOUNDRY SHIPMENTS, AND FERROUS SCRAP UTILIZATION
(In thousands of tons)
Item
Electric furnaces:
Production, raw steel
Inputs, pig iron and scrap
Yield (production as percent of inputs)
Pig iron inputs
Scrap input (total)
Home
Purchased
Basic oxygen furnace:
Production, raw steel
Pig iron and scrap inputs
Pig iron inputs
Scrap input (total)
Home
Purchased
Yield (production as percent of inputs)
1969
20,132
19,788
101.7
213
19,575
6,6'30
12,945
60,236
66,236
46,408
19,828
20,350
-522
90.0
1970*
20,162
21,300
94.7
2,466
18,834
6,702
12,132
63,330
69,977
48,853
21,124
21,627
-503
90.5
1975
32,000
33,000
97.0
700
32,300
11,400
20,900
82,000
90,500
63,200
27,300
28,300
-1,000
90.6
1980
45,000
46,500
96.7
900
45,600
16,600
29,000
N>
0
105,000
116,000
81,200
34,800
36,100
••1,300
90.5
Source: American Iron and Steel Institute, Annual Statistical Report 1970; Battelle Columbus
Laboratories, "Identification of Opportunities for Increased Recycling of Ferrous Solid
, Waste" (a report to the Institute of Scrap Iron and Steel): and Institute of Scrap Iron
and Steel, Facts 1970.
*1970 scrap utilization data are preliminary estimates. Projections are based on historical trends.
"Because of changes in inventory, purchased scrap consumed does not necessarily equal scrap purchased,
as shown in Table 6.
-------
TABLE 5
PROJECTIONS OF RAW STEEL PRODUCTION
FOUNDRY SHIPMENTS, AND FERROUS SCRAP UTILIZATION
(Continued)
(In thousands of tons)
Item
Open hearth furnace:
Production, raw steel
Pig iron and scrap inputs
Pig iron inputs
Scrap inputs (total)
Home
Purchased
Yield (production as percent inputs)
Blast furnace:
Production
Inputs
Scrap (total)
Home
Purchased
Other types (cupola, air, etc.):
Inputs
Scrap (total)
Home
Purchased
Total raw steel production
Total scrap used by raw steel industry
1969
60,894
67,649
37,397
30,252
21,340
8,912
90.0
95,017
4,779
873
3,906
2,207
- - -
2,207
141,262
76,641
1970*
48,022
52,771
30,836
21,935
17,144
4,791
91.0
91,435
5,302
886
4,416
2,128
- - -
2,128
131,514
69,323
1975
30,000
33,300
18,300
15,000
10,700
4,300
90.1
- - -
4,800
1,100
3,700
2,600
- - • -
2,600
144,000
82,000
1980
15,000
16,700
9,200
7,500
5,800
1,700
89.8 a
- - -
5,500
1,600
3,900
2,800
— — —
2,800
165,000
96,149
-------
TABLE 5
PROJECTIONS OF RAW STEEL PRODUCTION
FOUNDRY SHIPMENTS, AND FERROUS SCRAP UTILIZATION
(Continued)
(In thousands of tons)
Item 1969 1970* 1975 1980
Foundries :
Shipments
Inputs
Pig iron
Scrap (total)
Home
Purchased
Total scrap usage
Home
Purchased
Prompt industrial
Obsolete
18,984
_ •_ _
_ _ _
18,175
7,030
11,145
94,816
56,223
38,593
15,640
22,953
16,529
- - -
...
15,895
6,105
9,790
85,218
52,464
32,754
14,796
17,958
19,000
...
...
18,200
7,100
11,100
100,200
58,600
41,600
18,300
23,300
21,000
...
...
20,200
8,000
12,200
116,400
68,100
48,300
22,000
26,300
-------
-23-
or three vessels are usually housed together in one shop, with
supporting equipment such as cranes, rails, and ingot molds.
Various means of increasing the ferrous scrap charge to a basic
oxygen furnace have been tried. Among these, the most important are:
(1) scrap preheating in the vessel, (2) scrap preheating external to
the vessel, (3) additions of chemicals to the steel bath, and (4) use
of a bottom blown process (Q-BOP). The associated economics are such
that considering fuel costs and scrap prices, it appears doubtful that
any of the above will be readily adopted to increase the scrap charge
in the near future.
Although adverse to scrap utilization, the basic oxygen furnace
is forecasted to account for 105 million tons in 1980. This forecast
may actually be conservative. The relative economics of the process
assures the continued growth of the basic oxygen furnace.
Electric Furnace Process
In the scrap route, scrap is refined in an electric furnace, or
to a minor extent in a cupola. In the early period before World War
II, electric furnaces confined their production to mostly quality steels
such as stainless, heat-resisting, or tool and die steels. The electric
furnaces did not compete economically with open hearths in the production
of carbon grade steels until about 1946.
Production from electric furnaces has been steadily increasing. A
part of the growth has been due to the "mini" mills that require lower
ft
Ninety percent of all raw steel production is carbon steel. By 1970,
about 70 percent of electric furnace production had shifted to carbon
steel.
-------
-24-
capital investment compared with 1:he other processes. Not all electric
furnaces are "mini" units, however. And while the electric furnace
process incorporates certain advantages that are unique to steelmaking,
its operating costs for auxiliary equipment, labor, power, electrodes,
and refractories are relatively higher than for other processes.
The charge to an electric furnace is essentially scrap with electric-
ity providing the heat to melt it. The circular steel shell furnace
resembles a huge tea kettle. It is mounted on rockers so that it can be
tilted to pour off the molten steel and slag. The side walls are lined
with refractory brick and generally contain two openings. The clay-
lined spout is used for tapping off the molten steel and slag. Modern
electric furnaces have moveable roofs to facilitate charging. The
atmosphere in the furnace can be controlled to reduce undesirable
nonmetallic inclusions. An electric furnace can rapidly generate
extremely high temperatures (up to 3500°C).
Electric furnace production can be expected to account for a greater
proportion of the total domestic output during the 1970 decade. Of the
144 million tons of domestic raw steel production projected for the
middle of the decade, electric furnaces are expected to account for
about 22 percent. This compares with 15 percent of the total production
in 1970. By 1980, the electric furnace proportion is expected to rise to
27 percent. An increase in production by electric furnaces would provide
a stronger market outlet for ferrous scrap in general, and thus enhance
the possibilities for recycling some of the obsolete ferrous scrap that
is accumulating.
-------
-25-
ECONOMIC AND TECHNOLOGICAL IMPEDIMENTS
The domestic raw steel producers normally use home-generated
(revert) scrap before purchasing scrap. The decrease in scrap
utilization resulting from less open hearth production would be offset
by increased production from electric furnaces, if it were not for the
lower scrap input required by basic oxygen furnaces. The open hearth
furnace uses about 45 percent scrap and 55 percent pig iron in the
production process, while the basic oxygen furnace consumes only about
30 percent scrap in its charge. The electric furnace consumes about
98 percent scrap in its metallic input. If the operating costs of
electric furnaces could be reduced, this process would very likely
expand at the expense of the basic oxygen process, thereby increasing
total scrap consumption. For every additional ton of steel refined
in the electric furnace instead of the basic oxygen furnace, 0.7 ton
more of scrap is consumed.
Electric furnaces are more likely to be situated where ferrous
scrap accumulates; consequently transportation costs are lower. Addi-
tional advantages of the electric furnaces include: (1) flexibility
in product output and operation, (2) production economics favorable
for relatively low volume output, and (3) independence from heavy
capital investment in blast furnace facilities.
The electric furnace has definite advantages for producers who .
want to install additional facilities in small incremental amounts
beyond the capacity of the blast furnace to provide hot metal. If,
however, there is a need to expand an existing steelmaking facility
and sufficient or excess blast furnace capacity is available (i.e.,
-------
-26-
capacity is greater than necessary for the present), it is usually
not economical to add increments in the form of an electric furnace
because of its higher operating costs. It appears that the domestic
steel producers have the necessary blast furnace capacity to meet their
production needs at least until 1980. Thus, it is unlikely that they
will be installing many electric furnaces unless it is to meet air
quality standards.
Another major factor influencing the decision to add an electric
furnace is the cost of electricity as compared with coal. If elec-
tricity costs are relatively low, the electric furnace enjoys a cost
advantage, perhaps even with some excess blast furnace capacity.
Electricity costs, however, are also related to the price of coal;
and it is quite possible that costs for electricity will increase as
additional costs for air pollution control equipment are incurred.
Depending upon the extent to which this happens, the forecast of 125
percent increase in output by electric furnaces in the current decade
(from 20 million tons in 1970 to 45 million in 1980) may possibly be
overly optimistic.
Management also looks at the relative prices involved for pig iron
and scrap. The major steel companies have heavy commitments in the
natural resources and they have the facilities for making pig iron;
therefore this limits the economic feasibility of their substituting
purchased scrap for pig iron in the short-run. The capital invested in
such facilities constitutes "sunk costs" that are mostly overlooked
when comparing costs for pig iron with scrap. From an economic viewpoint,
therefore, the elasticity of substitution of scrap for pig iron is limited
-------
•27-
in the short-run. In the long-run, however, considerations involving
capital costs and associated furnace processes are also variable.
From an operational standpoint, the competition for metallic input
to the furnace is between ferrous scrap and the molten metal (pig iron).
The economic advantage of one over the other is difficult to ascertain,
however, as the published prices for pig iron prices are not considered
representative of actual conditions. The published prices for pig iron
reflect unusual stability as compared to scrap prices. Actually, rela-
tively small amounts of pig iron move through the market channels. It
is quite likely that costs for pig iron are substantially below the pub-
lished prices. A study by Midwest Research Institute estimated production
16
costs for pig iron production were $37.50 per ton.
There are perhaps three major factors influencing management to
select either the basic oxygen or the electric steelmaking process:
(1) existing investments or commitments related to the basic oxygen
process; (2) expectations of future prices for ferrous raw materials
(iron ore and ferrous scrap); and (3) projections of costs for alterna-
tive fuels (coal or electricity). A fourth factor that can be included
is the individual steel producer's tendency to prefer one steelmaking
process over another because of personal choice.
As mentioned earlier, the process selected by a company for increasing
production capacity depends heavily on the current and foreseeable capacity
of blast furnaces. If excess blast furnace capacity already exists, the
economic advantage favors adding new basic oxygen units rather than new
electric units by a ratio of 2 to 3. If excess blast furnace capacity
-------
TABLE 6
INGOT PRODUCTION AND SELECTED GRADES OF FERROUS SCRAP UTILIZED
BY STEEL PRODUCERS AND STEEL FOUNDRIES '
Amount (in millions
Year Steel
ingot *
production
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
99,281
98,015
98,328
109,261
127,075
131,185
134,072
127,213
131,098
141,069
131,514
Purchased
scrap +
receipts '
26,095
25,305
25,284
29,432
31,831
35,804
36.671
32,654
33,587
36,929
33,889
of tons)
Purchased
prompt j
industrial'!
10,868
10,217
11,033
11,912
13,540
15,879
15,068
14,265
16,388
15,640
14,796
Purchased
L obsolete
[• scrap §
15,227
15,088
14,251
17,520
18,291
19,925
21,603
18,389
17,199
21,289
19,093
Percent change from previous year
Steel
Ingot
98.7
100.3
111.1
116.3
103.2
102.2
94.9
103.1
107.6."
93.2
Total
receipts
97.0
99.9
116.4
108.2
112.5
102.4
89.0
102.9
110.0
91.8
Prompt
industrial
94.0
108.0
108.0
113.7
117.3
94.9
94.7
114.9
95.4
94.6
Obsolete
Scrap
99.1
94.5
122.9
104.4
108.9
108.4
85.1
93.5
123.8
89.7
I
N)
CO
1
Source: Institute of Scrap Iron and Steel, Facts 1970, p. 34, and American Iron and Steel Institute,
Annual Statistical Report. 1970, p. 40.
Battelle Memorial Institute, Identification of Opportunities for Increased Recycling of Ferrous
Solid Waste, August 1971, p. 77.
j. •...,.-,-... .. •..•..-.- .
.tCalculated as a percent of total steel shipments (raw steel production plus imports minus exports)•
Based on historical trends shown by U.S. Department of Commerce, Business and Defense Service Adminis-
tration, Iron and Steel Scrap Consumption Problems, 1966, p. 48.
Calculated as the residuals of purchased scrap receipts after deducting prompt industrial scrap from
total purchased scrap receipts.
-------
TABLE 7
ANNUAL AVERAGE PRICES FOR
GRADES OF FERROUS SCRAP AND PIG IRON, 1960 TO 1970
IQfiO
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
Ave.
Annual average i
No. 1. heavy melting
$/ton Percent change
from previous year
77 7fl
36.37 109.5
28.34 77.9
26.89 94.9
36.50 135.7
34.27 93.9
30.66 89.5
27.63 90.1
25.94 93.9
30.54 117.7
41.15 134.7
- — - - - -
)rice
No. 2,
$/ton
from
77 1 c
24.72
20.44
19.85
22.69
22.83
21.80
20.42
20.11
24.09
28.65
_ — —
. bundle
Percent change
previous year
111.6
82.7
97.1
114.3
100.6
95.5
93.7
98.5
119.8
118.9
— — —
Pig iron
composite
price
($/ton)
f>^ Q^
65.95
65.46
62.87
62.75
62.75
62.75
62.70
62.70
63.78
—
— — _
Scrap prices a«
percent of pig
composite price
No. 1 heavy
melting
t;n ^
55.1
43.3
42.8
58.2
54.6
48.9
44.1
41.4
47.9
--
48.7
iron
j*
No. 2
bundle
T>1, f\
37.5
31.2
31.6
36.2
36.4
34.7
32.6
32.1
37.8
--
34.4
Source: Institute of Scrap Iron and Steel, Facts 1970, pp. 52-53.
Scrap prices for 1970 by telephone communication with the Institute of Scrap Iron and
. Steel. Pig Iron prices from Midwest Research Institute, "Economic and Environmental
Analysis of Steel Recycling," draft report, 1971, p. 13
NJ
-------
-30-
is not available, the economics favor adding incremental units of the
i u
electric furnace by a ratio of about 1 to 14.
Investment decisions-are ordinarily made 4 to 5 years ahead of
actual installation. Thus, usage of scrap has already been largely
determined up to 1.976 or 1977, except as actual utilization is affected
by variations in the levels of demand for steel.
Ferrous Scrap Prices
The relationship between production of raw steel and scrap utiliza-
tion is shown in Table 6. In 6 of the 7 years when steel ingot produc-
tion increased, the receipts of purchased ferrous scrap also increased.
This suggests that the use of ferrous scrap is mainly a function of steel
production. The steel industry's demand for purchased scrap could be ex-
pected to shift with changes in raw steel production. Scrap prices would
also normally be expected to reflect these shifts. Price changes, however,
do not clearly reflect this relationship. Prices of No. 1 heavy melting
scrap (a prompt industrial scrap when sold) actually move in opposite di-
rections to quantities utilized in 7 of the last 10 years (Tables 6 and 7).
This suggests more accurately, movement on the same demand curve. In 6
years of the 10-year period, however. No. 2 bundle price changes coin-
cided with the changes in direction for obsolete scrap. The No. 2 bundle
15
grade consists to a considerable extent of discarded automobiles.
Yearly price averages show considerable fluctuations. Variations of
as much as one-third occurred for No. 1 heavy melting scrap and prices
sometimes varied nearly 20 percent from preceding years for Mo. 2 bun-
dle scrap. These large variations underscore the degree of instability
and uncertainty in scrap prices in the industry.
-------
-31
TABLE 8
EXPORTS OF FERROUS SCRAP BY SELECTED GRADES, 1960 TO 1970*
(In thousands of tons)
Year
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
No. 1 and 2
heavy melting
3,623
4,989
2,683
4,386
3,639
3,091
3,175
3,913
3,265
4,461
No. 1 heavy
melting
2,376
3,439
1,715
3,137
2,470
2,148
2,210
2,762
2,482
3,452
3,657f
No. 2
bundles
1,082
1,498
1,105
1,642
1,248
1,450
1,283
1,509
969
1,038
Total
exported
8,040
9,714
5,112
6,364
7,886
6,249
6,356
7,669
6,692
9,036f
Source: Iron and Steel Institute, Facts 1970, p. 46.
Preliminary
-------
-32-
To some extent, in-house scrap data from intra-company shipments
are included in the purchased scrap data. This reduces the validity
of the prices, since the in-house scrap does not move through market
channels. It has been estimated that this inclusion may involve up
16
to five million tons annually.
Price fluctuations for No. 1 heavy melting scrap and No. 2 bundles
rather closely resemble the yearly changes in quantities exported
(Table 8). These two grades constituted about half of the total scrap
exported in the past decade. Total exports of ferrous scrap ranged
between 5 and 10 million tons during the 1960's.
There is much that has to be learned about the supply industry in
ferrous scrap. Both the role of the processors and the role of the
scavengers in the supply chain is not fully understood. A general,
although somewhat outdated, overview of the iron scrap industry is pre-
1 7
sented in Barringer's The Story of Scrap. A more recent discussion
on the salvage industry for materials from solid waste is provided by
1 18
Midwest Research Institute.
The scrap supply is probably inelastic in the short-run. The im-
mediate supply, is, of course, influenced by the scrap supply industry's
expectations about forthcoming demand and price conditions. These spec-
ulations contribute to the short-run inventor)' and price changes. In
the long-run, the supply function is more responsive to changes in tech-
nology and production costs.
OBSOLETE FERROUS SCRAP
Scrap prices must be differentiated with respect to the qualities of
scrap. The more desirable scrap, such as No. 1 heavy melting, is readily
-------
-33-
consumed by the raw steel industry. The less desirable grades, on the
other hand, such as machine shop borings, burnings, shovelings, and punch-
ings, sometimes accumulate in dealers' yards or at shops when overall
demand for scrap is slack. During slack demand, the less desirable grades
of prompt industrial scrap may transfer to the processor without compen-
sation to the shop owner. In extreme instances, he even has to pay to
have the scrap removed from his premises.
With the exception of automobiles, utilization or recycling of obso-
lete consumer type ferrous scrap is less frequently compared with the
prompt industrial scrap. For one reason, chemical elements such as
chrome, nickel, copper, aluminum, and tin are often added in the making
of steel products. The use of obsolete scrap presents the risk that these
elements may be included in undesirable proportions. For example, an ex-
cess of tin and copper in raw steel can cause brittleness and bad surface
conditions in steel. Detinners have more difficulty detinning can scrap
when aluminum is present.* The amount and kind of contaminant that can
be tolerated depends to a large extent on the end products for the raw
steel. Structural steel, for example, can tolerate higher proportions
of contaminants then deep-drawing steels.
Can Scrap
The recent introduction of tin-free steel (TFS) will eventually
reduce the problem of tin in can scrap. The use of TFS in can steel
is progressing rather slowly, however. A complete shift to TFS will
*Some steel companies send their in-house tin scrap to the detinners who
retain the tin for the service of detinning. The incremental value of the
detinned scrap then equals the value of the tin recycled.
-------
-34-
probably never occur, because some food products are too corrosive
for the chrome plating in tin-freo steel. The changeover requires
additional capital that will only be invested when a steel company
believes there is sufficient demand to make it economically feasible.
In recent years, about 8 percent (7 million tons) of the total raw
steel product shipments consisted of tin plate and tin-free steels for
19
can making. About 85 percent of this tonnage, or 6 million tons, is
used for the manufacture of cans. The average life of a steel can is
about 1 year, thus about 6 million tons of can scrap becomes available
20 21
each year. Another source estimates 7 million tons a year.
The recycling of tin cans attracts considerable publicity. A recent
newspaper article quotes the American Iron and Steel Institute as saying
that steelmakers are taking back all the discarded cans they can. get
and turning them into new steel. Moreover, it suggests that steel-
22
makers can use up to 60 billion cans. This is equivalent to about
*
3 million tons or 50 percent of the can scrap available annually. It
is interesting to note that only about 5 percent of all metal cans pro-
23
duced annually are presently being recycled.
Recent discussions with representatives of the steel industry indicate
that the major steel companies differ in their attitudes.towards
recycling of can scrap. An individual steel company may accept only
bundled or baled can scrap, or it may not actually use the tin cans it
purchases. In most cases the price is for can scrap delivered to the
steel plant. If the scrap has to be moved a considerable distance,
*
There was no indication as to the time period required for this.
-------
-35-
freight charges are more than the price received for the scrap.
The optimum use for can scrap has apparently not yet been determined.
In discussions with metallurgists and other personnel at the major raw
steel companies, some ranked tin can scrap as the least desirable of the
market categories of obsolete steel products. One company had just
begun to accept tin can scrap but was undecided on how it was going
to use it. A recent study by the National Steel Corporation suggests
that the steel industry's use of can scrap will be in "quantities
24
limited to meet process and product chemistry requirements."
It should be pointed out that increased recycling of tin can scrap
by the raw steel industry may mean that less ferrous scrap of other
kinds will be recycled. If this occurs, the emphasis on tin can
recycling will only change the ferrous scrap mix. It will not reverse
the total scrap utilization.
Automobile Scrap
It may be a popular misconception that the discarded automobile is
difficult to recycle. In actuality, it is one of the more readily-
recycled consumer types of obsolete ferrous scrap. About 85 percent
of the automobiles going out of service each year are eventually
scrapped and recycled. The number of vehicles scrapped has been esti-
mated at about 8 million units annually. These vehicles furnish about 10
25
million tons of ferrous scrap to the raw steel industry annually.
Automobile recycling has been enhanced by the development of
improved auto shredders. Mobile car crushers (bashers) are facilitating
the collection of discarded autos, particularly in the less populated
areas of the country.
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-36-
Automobile scrap is preferred to most other kinds of obsolete
ferrous scrap by the steel producers. It is the only consumer type
of obsolete ferrous scrap utilized to any extent by the companies.
2 6
This scrap makes up a substantial proportion of the No. 2 bundle.
Although usually purchased as a No. 2 bundle, shredded auto scrap by
itself is actually preferred to the composite No. 2 bundle because it
contains less contaminants. As such, it commands a somewhat higher
price that discourages its use by steel producers.
In the salvage industry, the trend is toward greater use of shredders.
This facilitates the removal of ferrous metals by magnetic separation
and a reduction in the proportions of contaminating copper, tin, and
nickel. The price of shredded auto scrap may become more competitive
with the No. 2 bundle as more shredders become available and the com-
petition for material inputs intensifies.
The usual practice in the salvage industry is to remove certain parts
from discarded automobiles before sending them to the shredder. These
parts include the radiator, gas tank, seats, batter)', transmission,
generator, starter, ignition harness, and sometimes the engine. The over-
riding incentive for removing most of these is the salvage market value
for the individual parts rather than the contaminants they contain. Cop-
per is a contaminant in steelmaking and steelmakers are eager to' have it
removed. The parts with a high copper content (such as the generator,
starter, and radiator) also have a high salvage value and are removed for
that reason. The copper may be reclaimed or the entire component resold
as a used part if it is still in operational condition. As much as 80 to
90 percent of the recoverable copper is being reclaimed according to one
-------
-37-
27
source. Some copper in body wirings and motor windings is still escap-
ing separation and recovery, however.
The maximum copper content that is technically allowable in raw steel,
28
based on the quality level for specific end products, it shown below.
Quality of steel Maximum copper content (%)
Low 0.5
Average 0.3
High 0.1
Deep Drawing 0.05
The copper contained in the average No. 2 bundle scrap averages
2 9
0.48 percent. This is close to the product category for low quality
steels. Thus, the amount of copper contaminant severely limits the eco-
nomic value for much of the ferrous scrap.
Consumer Durables
Among the consumer durables, the so-called "white goods" make up
one of the more difficult types of scrap to recycle. "White goods"
are household appliances with a porcelain coating. It has been esti-
mated that discards of the nine major appliances add 1.7 million tons
annually to ferrous solid waste stream (Table 9). In addition to these,
many other kinds of consumer durables containing ferrous material are dis-
carded annually. The total ferrous scrap from all discarded consumer
30
durables has been estimated to amount to 4 million tons annually.
The total residential solid waste includes the bulky consumer
durables listed in Table 9. The larger items, such as refrigerators,
hot water heaters, and the like are not always included in the routine
pickups. In some areas, a special charge is made for these items.
-------
38-
TABLE 9
CONSUMER TYPE OBSOLETE FERROUS WASTE FROM MAJOR
APPLIANCES DISCARDED DURING 1971*
Appliance
Refrigerators
Washers
Ranges
Freezers
Hot water heaters
Dryers
Room air
conditioners
Dishwashers
Disposals
Total weight
Number of
units
{in millions)
4.08
3.99
3.76
1.05
3.52
1.61
1.50
0.62
0.80
Ferrous material
(pounds
per unit)
260
207
178
1951"
68*
132
62
120
12f
Total
ferrous scrap
{mil. of pounds)
1,060.80
825.93
669.28
204.75
239.36
212.52
93.00
74.40
9.60
3,389.64§
Source: National Industrial Pollution Control Council, "The Disposal
of Major Appliances," a report to Department of Commerce (Washington,
D.C.: Government Printing Office, 1971), p. 10.
Personal communication with Mr. Samuel Jordon, National Industrial
Pollution Control Council.
•f-Based on inquiries to local appliance repair shops.
g
Equivalent to 1.7 million tons.
-------
-39-
Having essentially a negative value then, they tend to accumulate in
household basements or backyards. Eventually, however, most of the
consumer durables (with the exception of automobiles) are finally
deposited at the public dumps or landfills, as the major steel producers
make little use of consumer durables such as refrigerators, freezers,
and ranges. In addition to the risk of contamination by tin, nickel,
chrome,and copper, the insulation in refrigerators, freezers, and
ranges present problems. The "white goods" are not desirable at all as
ferrous scrap unless they have first gone through a shredder. Shredder
operators, however are not overly eager to accept this material as it
takes about 10 refrigerators to equal one automobile. The productivity
of the shredder is substantially lower when refrigerators or similar
31
household items constitute the input. There is also some variation in
the efficiency with which shredders can handle these wastes.
Incinerator Scrap
Incinerator scrap should be distinguished from "incinerator bundles"-
32
an industry term for a specific grade of ferrous scrap. The Bureau of
Mines has developed a process for separating incinerator residue into
definable metallic iron concentrates, nonferrous composites, glass
fractions, and carbonaceous ash. The National Steel Corporation has
conducted tests on the chemical composition of incinerator residue to
determine its usefulness for steelmaking. It found that the residue is
relatively high in certain critical contaminating elements. The conclusion
was that the ferrous scrap in incinerator residue could be recycled into
useable products. However, the residuals included contaminants such as
-------
-40-
copper, tin,and nickel; and this would limit the usefulness of
33
this type scrap in steeMaking.
Contaminant Buildup
Contaminant buildup is likely to occur with repeated recycling,
unless diluted by iron ore. Whether this is a potentially serious
problem has not been determined. Ostrowski makes reference to an increase
33
in tin residual from the use of tin can scrap. Whether there will be
lead accumulation on blast furnace linings also seems uncertain. Midwest
Research Institute projected tin contaminant buildup to the 19th year of
recycling and concluded that at that time it would still be well below
34
the maximum tolerance of 0.06 percent. Their projection, however,
erroneously assumed that tin can scrap was uniformly distributed among
the steel and iron producing companies. It should also be noted that
recycled tin can scrap is generally used in the manufacture of products
having a service life of more than 19 years. Thus, any substantial
contaminant buildup would very likely appear after that time.
Transportation Costs
Scrap is heavily dependent upon railroads for transportation. About
75 percent of all ferrous scrap moves by rail as compared with 58 per-
35
cent of the iron ore. Rail transportation costs therefore influence
market values and the utilization of ferrous scrap. Freight rates are
essentially the same regardless of grade or quality, thus the lower
quality and low-volume grades are less economical to ship to distant
steelmaking plants or foundries.
The railroads have been charged with discrimination in the trans-
porting of ferrous scrap. The Institute of Scrap Iron and Steel believes
-------
-41-
that rail transportation rates should reflect the metallurgical comparison
between scrap and pig iron components, and on that basis ferrous scrap
would be able to compete more favorably with pig iron. The Interstate
Commerce Commission (ICC), on the other hand, asserts that decisions
on freight rates must conform to the national transportation policy
36
that requires a sound and economically viable transportation system.
A comparison of rail freight charges for virgin and secondary
materials was recently made by the Resource Planning Institute, Cambridge,
37
Massachusetts. Their comparison was based on actual revenues and ton
miles hauled by a major carrier of secondary and virgin materials in the
Eastern United States. The study showed that on a cent-per-ton-mile
basis, the argument that secondary materials are penalized in terms of
transportation costs is unfounded. In the case of iron scrap, however,
they found that the virgin material (components of pig iron) was being
hauled at a lower charge than the secondary material.
The goals of society influenced the freight rates in this country in
the past. In the early period of freight rates, the Nation was intent
upon settling and developing the country's vast natural resources.
Favorable rates for this purpose were therefore reflected in ICC decisions.
In a later period of history, there was concern for the plight of agricul-
ture. A restructuring of rates was then considered desirable to promote
38
the movement of the agricultural products. It remains to be seen whether
the current national concern for the environment will bring about a re-
structuring of transportation rates to promote the recycling of waste
materials.
-------
-42-
THE ROLE OF FOUNDRIES IN RECYCLING FERROUS SCRAP
Foundries account for about one-fifth of the total domestic
utilization of ferrous scrap (Table 3). There are three general types
of foundries: (1) those that produce castings (these account for 84
percent of the total casting shipments); (2) those that produce steel
castings (accounting for 11 percent of the total); and (3) foundries
producing malleable iron castings (these account for 5 percent of the
39
total).
The foundry industry uses mainly three types of furnaces: the
cupola, the electric furnace, and the open hearth. There are very few
basic oxygen furnaces in the foundry industry.
There are approximately 2,000 foundries in the United States. Of
these, the captive foundries (those owned by automotive firms, farm
machinery companies, heating and plumbing fixture companies, and steel
producers) comprise about 20 percent of the total number and account for
over 40 percent of the tonnage. The pattern of growth in the foundry
industry has been similar to that in the steel industry during the past
decade. In 1970, foundry industry shipments totaled 16.5 million tons.
The industry purchased 9.9 million tons of ferrous scrap.
The estimate is based on total receipts of purchased scrap of 33,889,000
tons. The raw steel industry had net receipts of 24,012 tons, leaving
9,877,000 tons for foundries. (Battelle Columbus Laboratories, Recycling
of Ferrous Solid Waste, August 1971, p. 77, and American Iron and Steel
Institute, Annual Statistical Report 1970, p. 53).
-------
-43-
Since foundries are not dependent upon either the ingot or roll
process, it would appear they may provide a potential for utilizing the
more contaminated types of obsolete ferrous scrap that cause problems
in the raw steel industry. This study was limited mainly to the raw
steel industry. However, the opportunities for increasing the recycling
of ferrous scrap in the foundry industry should not be overlooked. Time
and resources precluded a fuller evaluation of their potential in this
study.
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-44-
REFERENCES
1. Resource Recovery Act of 1970. U.S. Code, Vol. XLII, S. 3251.
2. Burck, C. G., The fortune directory. Fortune, May 1971,
pp. 172-174.
3. U.S. Department of Commerce, Bureau of Census. 1967 Census of
Manufacture. 2(33)A-5.
4. Joint Economics Committee. Economic Indicators, Washington,
U.S. Government Printing Office, 1971, p. 2.
5. Ault, David, "The Continued Deterioration Of the Competitive*
Ability Of The U.S. Steel Industry: The Development Of
Continuous Casting," Western Economic Journal, XI, 1
(1973), p. 90. ~ '
6. Battelle Columbus Laboratories, Identification of opportunities
for increased recycling of ferrous solid waste. Unpublished
report to the Institute of Scrap Iron and Steel, August 31,
1971, p. 288.
7. Ibid., p. 136.
8. Council on Environmental Quality. Environmental Quality: First
annual report. Washington, U.S. Government Printing Office,
1970, p. 107.
9. Jarett, H., ed. Environmental quality in a growing economy.-
Baltimore, The John Hopkins Press, 1966', p. 16.
10. Midwest Research Institute. Composition and analysis of composite
municipal refuse. Unpublished report to U.S. Department of Health,
Education, and Welfare, 1966.
11. U.S. Department of Health, Education, and Welfare. Incinerator
Guidelines. PHS Pub. No. 2012, Washington, U.S. Government
Printing Office, 1969. p. 6.
12. American Iron and Steel Institute. Directory of iron and steel
works of the United States and Canada. New York, The Institute,
1967. pp. 384-387.
13. Battelle Columbus Laboratories, op. cit., p. 170.
-------
-45-
14. Bovarnick, B., Steelmaking technology--its impact on the industry
and the suppliers. Unpublished notes from an industry discussion
meeting at Chicago, 111., sponsored by A.D. Little, Inc., March,
1969.
15. Koros, P. J., L. R. Shoenberger, and J. Silver, Sr., The utilization
of bundled auto scrap and its relation to sheet steel quality.
Unpublished paper presented to the Pittsburgh Regional Technical
Meeting of the American Iron and Steel Institute, November 12,
1969, p. 1.
16. Midwest Research Institute. Economic and environmental analysis of
steel recycling. Draft report to the Council on Environmental
Quality, 1971, p. 15.
17. Barringer, Edwin C. The story of scrap. Washington, B.C. , Institute
of Scrap Iron and Steel, 1954, p. 152.
18. Midwest Research Institute. Economic study of salvage markets for
commodities entering the solid wastes stream. Unpublished report
to the U.S. Department of Health, Education, and Welfare, Bureau
of Solid Waste Management, December 1970, Four volumes.
19. American Iron and Steel Institute. Annual statistical report,
1970, p. 28.
20. Battelle Columbus Laboratories, op. cit., pp. 91-93.
21. Kenahan, C. B., Current bureau of mines research on junk car and
related scrap. Unpublished paper presented to the Industry
Advisory Committee on Iron and Steel Scrap Problems, Department
of Commerce, June 22, 1971, p. 1.
22. Cincinnati Enquirer. Steel recycling held vital. October 27, 1971.
p. 14.
23. Cannon, H. Recycling of metallic containers. Unpublished paper
presented to the American Chemical Society's 7th Summer-State-of-
the-Art Symposium, Carnegie Institution, Washington, D.C.,
June 7-9, 1971.
24. Ostrowski, E. J. Recycling of tin free steel, tin cans and scrap
from municipal incinerator residue. Pittsburgh, National Steel
Corporation, 1971, p. 32.
25. Battelle Columbus Laboratories, op. cit., p. 81.
-------
-46-
26. Koros, P. J., et al., op. cit., pp. 1-3.
27. Mighdoll, M. J., Metals recycling--prioriti.es and potentials.
Unpublished paper presented to the American Chemical Society's
7th Summer-State-of-the Art Symposium, Carnegie Institutions,
Washington, D. C., June 7-9, 1971.
28. Battelle Columbus Laboratories, op. cit., p. 89.
29. Koros, P. J. et al., op. cit., p. 4.
30. Battelle Columbus Laboratories, op. cit., p. 114.
31. Personal communication, W. Cohen, Cohen Bros., Inc., November, 1971.
32. Institute of Scrap Iron and Steel. Facts Washington, the Institute,
1970, p. 62.
33. Ostrowski, E. J., op. cit., p. 32.
34. Midwest Research Institute, op. cit., Vol. 5, p. 33.
35. Cutler, H. Role of transportation in recycling of obsolete metallic
waste, Waste Age, July/August 1971, pp. 20-23.
36. Brewer, W. D. Commissioner to the Interstate Commerce Commission.
Unpublished paper presented to Institute of Scrap Iron and Steel's
annual conference. January 17, 1972.
37. Written communication with Resource Planning Institute. February 4,
1972.
38. Hoch-Smith Resolution Act. IT.S. Code, Title 49, Chapter 2, s 55,
1925.
39. Battelle Columbus Laboratories, op. cit., pp. 146-155.
-------
-47-
APPENDIX TABLE I
DOMESTIC AND EXPORT PURCHASES OF FERROUS SCRAP, 1946 TO 1970*
(In thousands of tons) .
Domestic scrap purchases
Year
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
Prompt .
industrial
6,671
8,555
9,351
8,124
10,684
11,817
9,858
11,948
9,261
12,368
12,150
11,432
8,887
10,947
10,868
10,217
11,033
11,912
13,540
15,879
15,068
14,265
16,388
15,640
14,796
Obsolete!
16,679
20,731
23,193
17,048
22,246
26,064
24,326
23,491
14,133
23,367
24,695
19,654
14,404
18,096
15,227
15,088
14,251
17,520
18,291
19,925
21,603
18,389
17,199
21,289
19,093
Total
purchased
scrap §
23,350
29,286
32,544
25,172
32,930
37,881
34,184 ,
35,439
23,394
35,735
36,845
31,086
23,291
29,043
26,095
25,305
25,284
29,432
31,831
35,804
36,671
32,654
33,587
36,929
33,889
Net
scrap
exports
84
100
(268)
(853)
(568)
(171)
198
136
1,440 •
4,901
6,085
6,527
2,595
4,630
7,860
9,168
4,931
6,161
7,590
5,962
5,420
7,275
6,271
8,689
Total
domestic scrap
plus net exports
23,434
29,386
32,276
24,319
32,362
37,710
34,382
35,575
24,834
40,636
42,930
37,613
25,886
33,673
33,955
34,473
30,215
35,583
39,421
41,766
42,091
39,929
39,858
45,618
Source: Institute of Scrap Iron and Steel, Facts 1970, p. 33.
Based on estimating techniques developed by Battelle Columbus Laboratories
(see Identification of opportunities for Increased Recycling of Ferrous
Solid Waste, 1971, p.2). [Obsolete scrap is that ferrous solid waste
material resulting from discarded industrial and consumer products.]
tDerived by substracting prompt industrial scrap from purchased scrap.
Purchased scrap is that scrap sold by scrap dealers and purchased by the
consuming industries from outside the basic steel and the iron and steel
foundry industries. Purchased scrap consumed does not necessarily equal
scrap purchased because of changes in inventory.
-------
APPENDIX TABLE 2
PROJECTIONS OF TOTAL OBSOLETE SCRAP AVAILABLE
(In thousands of tons)
Year
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Total
scrap
available*
69,000
67,800
63,800
49,600
61,100
60,600
57,000
61,600
66,700
74,600
84,700
84,100
79.600
91,400
Recycled obsolete scrap
Minimum
forecast
25,000
24,900
24,800
24,700
24,600
24,500
24,400
24,300
24,200
24,100
24,000
23,900
23,800
23,700
Maximum
forecast
26,000
26,600
27,200
27,900
28,700
29,500
30,300
31,100
32,000
33,100
34,200
35,400 -
36.700
38,000
Maximum
forecast
44,000
42,900
39,000
24,900
36,500
36,100
32,600
37,300
42,500
50,500
60,700
60,200
65,800
67,700
Nonrecycled obsolete scrap!
As percent of
total available
63.8
63.3
61.1
50.2
59.7
59.6
57.2
60.6
63.7
67.7
71.7
71.6
70.1
74.1
Minimum
forecast
43,000
41,200
36,600
21,700
32,400
31,100
26.700
30.500
34.700
41,500
50,500
48.700
42,900
53,400
As percent of
total available
62.3
60.8
57.4
43.8
53.0
51.3 ^
46.8 *
49.5
52.0
55.6
59.6
57.9
53.9
58.4
Source:* Based on estimating techniques developed by Battelle Memorial Laboratories as revised by
the Business and Defense Service Administration.
t
Based, on calculations of maximum and minimum purchased scrap requirements of the steel and
foundry industries, assuming continuation of current trends (including net exports).
T Derived as the difference between total scrap available and recycled scrap.
-------
APPENDIX TABLE 3
AMOUNTS OF OBSOLETE SCRAP RECYCLED AND NOT RECYCLED, BY FIVE YEAR PERIODS FROM 1956 TO 1985.
(In million of tons)
Obsolete Scrap recycled
Period
1956-60
1961-65
1966-70
1971-75§.
1976-805
1981-855
*
Source :
Total Minimum
available estimate
scrap*
198.2
229.6
292.5
301.9
307.0
414.3
Obsolete scrap not recycled!
As percent Maximum As percent Maximum As percent Minimum As
of total estimate of total estimate of total estimate of
available
scrap
119.8
118.9
35.4
119.4
122.0
119.5
60.4
51.8
46.3
39.6
39.7
28.8
119.8
118.9
35.4
127.7
151.6
177.4
available
scrap
60.4
51.8
46.3
42.3
49.4
42.8
available
scrap
78.4
110.7
157.1
182.5
185.0
294.8
39.6
48.2
53.7
60.4
60.3
71.2
Based on estimating techniques developed by Battelle Memorial Laboratories
and Defense Service Administration using data from American Iron and Steel
Statistical Yearbook 1970. Data for the projected years are the authors.
78.
110.
167.
174.
155.
236.
as revised
Institute's
4
7
1
2
4
9
percent
total
available
scrap
39
48
. 53
57
50
57
.6
.2
.7
.7 f
.6
.2
by Business
Annual
'Derived by substracting prompt industrial scrap from total purchased scrap and adding net exports from
the Institute of Scrap Iron and Steel's/Facts 1970, p. 33. Data for prompt industrial scrap was estimated
by the technique shown above.
tDerived by taking the difference between total available and recycled scrap.
§
Projected.
-------
-50-
APPENDIX TABLE 4
IMPORTS AND EXPORTS OF STEEL MILL PRODUCTS AND FERROUS SCRAP
(In thousands of tons)
Steel mill products Ferrous scrap
Year Exports Imports Exports Imports
1940 7,640 18 3,159 21
1945 4,354 54 . 96 66
1950 2,639 1,014 217 ' 785
1951 3,137 2,177 231 417
1952 4,005 1,201 342' 154
1953 2,991 1,703 304"- 174
1954 2,792 771 1,683" 239
1955 4,061 973 5,155" 229
1956 4,348 1,341 6,422 , 256
1957 5,348 1,155 6,744 239
1958 2,823 1,707 2,924' 333
1959 1,677 4,396 4,937 309
1960 2,977 3,359 7,181 178
1961 1,990 3,163 9,714 268
1962 2,013 4,100 5,113 262
1963 2,224 5,446 6,364. 222
1964 3,435 6,440 7,881 299
1965 2,496 10,383 6,170, 235
1966 1,724 10,753 5,857; 464
1967 1,685 11,455 7,504 229
1968 2,170 17,960 6,565 294
1969 5,229 14,034 9,036 345
1970 7,053 13,364
Source: Data for 1940-66 were taken from U.S. Department of Commerce,
Business Statistics, 1967, p. 157. Data for 1967-70 were taken
from the American Iron and Steel Institute's Annual Statistical
Report. 1970; and from the Institute of Scrap Iron and Steel's
Facts, 19707"
-------
-51-
APPENDIX TABLE 5
GENERATION AND UTILIZATION OF SELECTED FERROUS SCRAP
GRADES BY RAW STEEL PRODUCERS AND STEEL FOUNDRIES*
(In thousands of tons)
Generation Utilization
No. 1
heavy
melting
Year scrap
1960 16,503
1961 15,383
1962 16,258
1 Qfi^
iyoo
-I Qfi/1
j.yo4
IQAC
_i_yo D ~ —
-1 Qf.£.
-Lyoo
1Qfi7
±yo / - •
1QAO
1969 20,442
1Q7fl - --
j.y /u
No. 2 No. 1
bundle heavy
scrap melting
scrap
223 21,490
546 20,517
692 20,901
25,181
29,127
30,355
30,751
28,049
27,0181
384 27,195
26,544
No. 2 $
all other
bundles
scrap
3,984
3,569
3,484
5,897
6,486
5,735
5,939
5,354
4,0561
4,270
3,918
Purchased Scrap
No. 1
heavy
melting
4,987
5,134
4,643
5,950
6,870
7,763
8,688
7,167
7,589§
6,753
8,175
No. 2 §
all other
bundles
scrap
3,751
3,023
2,792
4,708
5,252
5,128
5,319
4,694
. 3,770§
3,886
3,607
* Source: U.S. Bureau of Mines, Mineral Yearbooks,1960-70.
Derived. No. 2. and all other bundles are not strictly comparable
with No. 2. Bundle but in-house generation of No. 2 Bundle is
minor. Data are for total receipts and may contain some outshipments.
^Battelle Memorial Laboratories, Identification of Opportunities for
Increased Recycling of Ferrous Solid Waste, August 1971, p. 204.
Obtained from Bureau of Mines by telephone.
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-52-
APPENDIX TABLE 6
CHANGES IN GROSS NATIONAL PRODUCT AND RAW STEEL PRODUCTION*
Gross national Change from Raw steel Change from
product previous year production previous year
(in billions of (percent)t (in millions (percent)T
dollars)'' of tons)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969 :
1970
487.7
497.2
529.8
551.0
581.1
617.8
658.1
675.2
706.6
724.7
720.0
1.95
6.60
4.00
5.46
6.32
6.52
2.60
4.65
2.56
-0.65
99.3
98.0
98.3
109.3
127.1
131.5
134.1
127.2
131.5
141.3
131.5
-1.31
0.31
11.19
16.28
3.46
1.98
-5.15
3.38
7.45
-6.94
*Source: Gross national product data are from Joint Economic Committee
of U.S. Congress, "Economic Indicators"; November 1971. Steel production
data are from the American Iron and Steel Institute's Annual Statistical
Report 1970, p. 40.
tBased on 1958 prices.
iThe average change for the 10-year period 1961-70 was 4.00 percent for
gross"national product and 3.07 percent for raw steel production.
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APPENDIX TABLE 7
AVAILABLE OBSOLETE SCRAP SUPPLY FROM STEEL MILL PRODUCTS, 1970*
Market source
Agriculture
Automotive
Consumer Durables
Containers
Machinery
All Others .
(excluding exports)
Total
*
Source: Battelle Columbus
Production-
scrap lag
(years)
15
10.
15
1
20
20
Laboratories ,
Production
years
1954-56
1959-61
1954-56
1969-70
1949-51
1949-51
Identification
Current (1970) scrap Percent
supply of total
(in millions of tons)
1.2
1.7
4.0
6.3
5.2
22.2
40.6
of Opportunities for
3.0
4..2f
9.8
15. sJ
1
12.8 w
54.7
100.0
Increased Recycling
of Ferrous Solid Waste. August 1971, p. 114. (Unpublished Report)
Assumes that about 88 percent of the automobiles are recycled.
tAssumes that 15 percent are returned and reused.
§
Consists of forgings, nuts and bolts, steel service centers, contractors' products, ordanance
and military, and nonclassified.
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