United States
   Environmental Protection
   Agency
Office of Air Quality
Planning and Standards
Research Triangle Park, NC 27711
November 2002
FINAL REPORT
   Air
        Economic Impact Analysis of
Proposed Iron and Steel Foundries NESHAP
                  Final Report

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                                                    EPA452/R-02-011
                                                       November 2002
          Economic Impact Analysis of
    Proposed Iron and Steel Foundries NESHAP
                      By:
               Michael P. Gallaher
                Brooks M. Depro
Center for Regulatory Economics and Policy Research
                      RTI
        Research Triangle Park, NC  27709
                  Prepared for:
                  Tyler J. Fox
       U.S. Environmental Protection Agency
    Office of Air Quality Planning and Standards
    Innovative Strategies and Economics Group
                 (MD-C339-01)
        Research Triangle Park, NC  27711
          EPA Contract No. 68-D-99-024
          RTI Project No. 7647.004.390
               Steve Page, Director
       U.S. Environmental Protection Agency
    Office of Air Quality Planning and Standards
            Office of Air and Radiation
        Research Triangle Park, NC  27711

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This report contains portions of the economic impact analysis report that are related to the industry
                                          profile.

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                                          SECTION 2

                                     INDUSTRY PROFILE
       This section provides a summary profile of the iron and steel castings industry in the United
States. The profile provides background on the technical and economic aspects of the industry used to
support the EIA. The manufacture of iron and steel castings is included under Standard Industrial
Classification (SIC) codes 3321—Gray and Ductile Iron Foundries; 3322—Malleable Iron Foundries;
3324—Steel Investment Foundries; and 3325—Steel Foundries, Not Elsewhere Classified.1 Iron and
steel castings are used in the production of over 90 percent of all manufactured durable goods and
almost all industrial equipment (DOE, 1996). Therefore, the demand for iron and steel castings is a
derived demand that depends on a diverse base of consumer products. In 1997, the United States
produced  12 million short tons of iron and steel castings.

       Section 2.1 provides an overview of the production processes and the resulting types of castings.
Section 2.2 summarizes the organization of the U.S. iron and steel castings industry, including a
description of the U.S. iron and steel foundries, the companies that own these facilities, and the markets
for foundry products. Lastly, Section 2.3 presents historical data and future projections of the iron and
steel foundry industry, including U.S. production and shipments.

2.1    Overview of Production  Process

       A casting is a "metal object obtained by allowing molten metal to solidify in a mold" (SFSA,
1998). Foundries manufacture castings by pouring metal melted in a furnace into a mold of a desired,
and potentially intricate, shape.  Achieving the same detail of form as a casting would require extensive
tooling and shaping of metal from a mill. Creating some very small and precise castings is impossible
by other means than casting.
   'These SICs correspond to the following North American Industrial Classification System (NAICS) codes:
      331511-Iron Foundries; 331512-Steel Investment Foundries; and 331513-Steel Foundries, except
      Investment.

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                                 Mold and Core Materials
                                (Sand, Metal, Plaster, etc.)
                                  Mold and Core Making
         Scrap Metal
              Ingots
               Flux
                                             Molds and Cores
Metal Melting
->Slag
 Sand
Metal
                                             Molten Metal
                                  Pouring and Shakeout
                               Mold Material
                            ->• Plaster, etc.
                               Sand
                                             Casting
Finishing and Cleaning
>
1
w /-n. -i
r Chemicals
                                     Finished Casting
Figure 2-1.  Overview of the Foundry Casting Processes
       The production of castings at foundries involves four distinct processes (see Figure 2-1).  The
first process is to make the molds and cores that will shape the casting.  Foundries use many types of
molds, depending on the type, quality, and quantity of castings required. The two most common mold
types are the sand mold and the permanent mold.  Once the mold has been made, the second process
involves melting the iron or steel, which is done almost exclusively by cupolas, electric arc furnaces,
and electric induction furnaces. Once the steel is melted, the third process is pouring the steel into the
mold.  After sufficient cooling time, the casting and mold are separated. The fourth process  is finishing
the casting, which requires smoothing, mechanical cleaning, and, in some cases, coating with a
protective material such as paint or varnish.
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2.1.1   Mold and Core Making

       Iron and steel castings can range in size from ounces to tons, but all molds possess a few
important features. All molds have a vertical channel, called a sprue, through which the molten metal is
poured. Molten metal might flow to many sprues if the mold is designed to make multiple castings at a
time.  From the bottom of the sprue, channels direct the metal into points at the bottom of the mold so
that the mold is filled from the bottom up. At the top of the mold, vertical channels called risers collect
excess metal, gases that do not escape through the mold, and loose sand and other debris that is picked
by the molten metal (SFSA, 1998).  As the metal cools, it shrinks somewhat.  For every foot, aluminum
alloys shrink 5/32 inch, cast iron shrinks 4/32 inch, and stainless steel shrinks 8/32 inch (LaRue, 1989).
Mold makers must take this shrinkage into account and make the mold slightly oversized. The risers
also serve to compensate for shrinkage by serving as reservoirs of extra molten metal that can flow back
into the mold when the metal begins to shrink.

2.1.1.1 Sand Casting Process

       Most iron foundries pour metal into molds that are made primarily out of sand.  The outer shapes
of sand molds are typically made by forming sand into two halves that are subsequently joined together.
The inner shapes of the mold that cannot be directly configured into the mold halves are created by
inserting separately made components called cores, which are also made of sand. Sand  cores are also
required in many permanent mold and centrifugal casting  operations.
       Silica sand is the most commonly used granular refractory material in sand molding. Other
more  expensive granular refractory  materials are used for  specialized applications.  Some of these
materials are zircon, olivine, chromite, mullite, and carbon sands (Schleg and Kanicki, 1998).  Olivine,
for example, is more resistant to fracture than silica  sand and exhibits less thermal expansion than silica
sand (LaRue, 1989).  Sand can be molded to very precise  specifications, and, after solidification by
compaction or chemical reaction, sand molds have sufficient strength to contain a significant volume of
molten metal.

       Ninety percent of all castings are done with green  sand (EPA,  1998a). Green sand is a
combination of roughly 85 to 95 percent sand, 4 to 10 percent bentonite clay, 2 to 10 percent
carbonaceous materials, and 2 to 5 percent water. The composition of green sand is chosen so that the
sand will form a stable shape when  compacted under pressure, maintain that shape when heated by the
molten metal poured, and separate easily from the solidified metal casting.  The clay and water bind the
sand together.  The carbonaceous materials partially volatilize when molten metal is poured into the
mold, which serves to create a reducing atmosphere  that prevents the surface of the casting from
oxidizing while it solidifies.  Addition of these materials also helps to control expansion of the mold.
Commonly used materials are powdered coal (commonly  called sea coal), petroleum products, corn
starch, wood flour, and cereal (LaRue,  1989; EPA, 1998a).

       Once the green sand is formed around the pattern, the pattern can either be removed, or
additional steps can be taken to improve the quality  of the mold.  In the skin drying technique, the outer
layer of the mold is dried and coated with  a fine layer of crushed refractory material such as silica,
zircon, chromite, or mullite.  This coating provides resistance to the high  temperatures of the hot metal
and easier separation of the casting  from the mold.  In  dry sand molding, foundries bake the green sand
mold. A petroleum binder may be added to the mold before baking to increase the strength of the baked
mold. Baked molds are stronger than standard green sand molds, and they also produce a smoother
finish.
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       Chemical binder systems are used when the shape of the mold or core cannot be made from
green sand or when strength and dimensional stability requirements are too stringent for green sand to
provide.  Chemically bonded sand moldings are stronger than green sand moldings.  The traditional
method is to mix sand with a resin or oil and then to bake the mold. In the shell process, foundry
workers coat sand with a plastic resin and then blow the sand onto a metal pattern that has been heated
to at least 450°F. The shell process can be time intensive because the mold or core sometimes must be
slowly heated progressively from one end to the other. After curing, the chemically bonded molds are
often coated with a finely ground refractory material to provide a smoother surface finish on the casting.


       Other less often used methods include forming molds by combining sand with expendable
polystyrene (EPS) beads, and vacuum molding by shaping unbonded sand around a pattern with a
vacuum,  which holds the mold in the desired shape.

2.1.1.2 Permanent Mold Casting Process

       Permanent molds must themselves be cast, tooled, and machined, but once the initial time and
expense are invested, foundries can use the mold thousands of times.  The most common metal
fashioned into permanent molds is gray iron. Other materials, such as steel, copper, and  aluminum, can
also be used. Permanent molds can be made out of graphite, which has a chilling effect that enhances
particular characteristics of the casting.  Molds are typically hinged to open.  Permanent molds may also
have water cooling channels and ejector pins. The molds do wear out over time and must eventually be
replaced.  Permanent molds are most appropriate for large quantities of uniform castings as well as
smooth surface finish and intricate details.

2.1.1.3 Investment Casting Process

       A third, less common casting process is investment casting. In this process, workers dip wax or
plastic molds into a vat of liquid ceramic. Foundries use wax or plastic so that the entire pattern can be
melted away from the finished mold. The plaster that workers use is typically gypsum (calcium sulfate)
mixed with fibrous talcs, finely ground silica, pumice stone, clay, and/or graphite. Plaster can be 50
percent sand (EPA, 1998a). Foundries cover the coated pattern with a layer of refractory material.
Workers  may repeat this process several times to achieve a mold of desired thickness. The foundry then
heats the mold to about 1,800°F to harden the mold and burn out the pattern.  These molds are best
suited for metals containing titanium and other super-alloys that do not react well with green sand.

2.7.2   Metal Melting

       The primary source of iron and steel for foundries is scrap. Workers must sort scrap, cut it to fit
the  furnaces, and clean it.  Scrap cannot have any rust and is cleaned by using solvents or a
precombustion step to burn off residues (EPA, 1998a). Metal ingot is a secondary source of iron and
steel for foundries. Foundry returns consisting of sprues, runners, and risers separated from previous
castings may contribute a significant share of input metal. Foundries can also purchase directly reduced
iron (DRI) to employ as an iron source.  Pig  iron and DRI dilute the alloy content of the scrap metal.
Foundries add flux material, typically chloride or fluoride salts, to the furnace to combine with the
impurities in molten metal in the furnace, forming a dross or slag. This dross or slag separates from the
molten metal and is removed from the metal before workers tap the furnace.

       Foundries use various alloy metals, such as aluminum, magnesium, nickel, chromium, zinc, and
lead, to alter the metallurgical properties of the resulting  product. Foundries add graphite for carbon
content in the production of ductile iron. Twenty percent of the carbon in ductile iron must come from
                                              2-7

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graphite (Ductile Iron Society, 1998).  These materials may then be melted in furnaces ranging from
cupolas to electric induction.


Table 2-1. Distribution of Iron and Steel Foundry Furnaces by Type:  1997

            Furnace Type                        Number                 Share (%)
 Cupola                                             155                      9.8%
 Electric arc                                          131                      8.2%
 Electric induction                                   1,292                     81.3%
 Other                                               12                      0.8%
 Total	1,590	100.0%	

Source: U.S. Environmental Protection Agency (EPA). 1998b. Foundry Industry Responses to Information Collection
       Request (ICR) Survey. Database prepared for EPA's Office of Air Quality Planning and Standards.  Research
       Triangle Park, NC.
       Table 2-1 provides the number and share of the primary furnaces used by iron and steel
foundries in 1997. As shown, over 80 percent of furnaces in the industry are electric induction. Electric
arc and electric induction furnaces use electrical energy to create heat that melts the metal.  Cupola
furnaces use foundry coke as fuel to melt the metal. Coke is made from metallurgical coal and is
purchased by the foundries from merchant coke producers.  The burning coke removes some
contaminants and also raises the carbon content of the metal. Other furnaces include reverbertory and
crucible types that represent less than 1 percent of furnaces in use during 1997.

2.1.2.1 Cupola Furnace

       As Figure 2-2 illustrates, the cupola furnace is a hollow vertical cylinder that is lined with
refractory material and has doors at the bottom.  The charging process begins by laying sand in the
bottom of the furnace and topping the sand with coke, which is ignited. Next, workers add carefully
measured alternating layers of metal, flux, and coke until the furnace is full to the charging door. Air is
forced through tuyeres, which are the holes at the base of the furnace. The metal melts and drips to the
base of the furnace. A tap hole near the top of the sand layer allows workers to remove the molten
metal. Foundries remove slag either through a slightly higher slag spout or through the tap spout with
the metal and separated by a specially designed spout (LaRue,  1989).  As the metal and slag are
removed, additional layers of charge can be added to the furnace to maintain continuous production.
When the furnace needs to be cleaned and emptied, the doors at the bottom swing open and drop the
contents on a bed of sand.

2.1.2.2 Electric Arc Furnace (EAF)

       EAFs have a rounded, shorter shape than cupola furnaces.  Workers charge the furnace with
metal, and carbon electrodes create an arc of electric current. If the arc passes through the metal, it is
considered a direct arc furnace. If the arc passes  above the metal, it is
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                  Spark
                arrester
                    Lining
                    Shell
                 Coke
              charges


                 Metal
              charges
                Lining
                 shelf

                 Coke
                  bed

                 Slag
                spout

               Bottom
               door in
              dropped
              position
        Tapping spout
   Bottom plate

Sand bottom
Figure 2-2.  The Cupola Furnace

Source: LaRue, James P.  1989. Basic Metalcasting. Des Pkiiges, IL: American Foundrymen's Society.

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considered an indirect arc furnace. The two models are shown in Figure 2-3. The electric arc creates
heat, which melts the metal. As the metal melts, workers adjust the electrodes to maintain their relative
position to the top of the charge.  Once the metal has melted, workers insert flux to combine with the
impurities, and the metal can be supplemented with alloy materials. Doors opposite the spout where the
metal is poured out allow workers to remove the slag. Workers remove the metal by tipping the furnace
to pour the liquid.
Indirect
Direct
                        Electrodes
                                                                                leads
                                                                Spout
                                                                                         — 3k- Door
                                                                        V	-
                                                                     Furnace tilted to pour
                                                                                           Slag
                                                                                          Metal
                              Rammed
                               hearth
                                                                   Ladle
Figure 2-3. Indirect and Direct Electric Arc Furnaces

Source: LaRue, James P. 1989. Basic Metalcasting. Des Plaines, IL: American Foundrymen's Society.


2.1.2.3 Induction Furnace

       Induction furnaces, or electric induction furnaces as they are sometimes called, generate heat by
passing an electric current through a coil either around or below the hearth. Furnaces with the coil
around the hearth are called coreless induction furnaces, and those with the coil below the hearth are
called channel induction furnaces. Both types are shown in Figure 2-4. The electric current generates a
magnetic field. The  magnetic field creates voltage, which moves across the hearth and through the
charged metal.  As the electric current attempts to pass through the metal, it meets resistance, which
produces heat to melt the metal. Typically, the coils carrying the electric current are cooled with water.
Induction furnaces are designed in various shapes and sizes so the tapping and slag removal varies.
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Coreless
 Special cement
Metal bath
                         Asbestos liner

                         Water-cooled copper coil

                         Protective coil liner

                         Monolithic lining

                         Asbestos liner

                         Fire brick base
Channel
  Pouring
   spout
                                                            Air-cooled
                                                             inductor
                                                                            Melting
                                                                            channels
                                                                         Circulation
                                                                         of melt
                                                                         . Blower
                                                                          motor

                                                                      Clean-out
                                                                      plug
Figure 2-4. Coreless and Channel Electric Induction Furnaces

Source: LaRue, James P. 1989. Basic Metalcasting.  Des Plaines, IL: American Foundrymen's Society.
Induction furnaces require cleaner scrap input than EAFs, but induction furnaces make possible more
precise adjustments to the metallurgical properties of the metal (EPA, 1998a).

2.1.3  Pouring and Shakeout

       Workers transport liquid iron and steel directly from the foundry furnaces to the molds to
maintain the liquid state. Some molds, particularly green sand and vacuum molds, cannot be stored long
before they are used.  Typically, foundries start the process of melting before the molds are finished.
Permanent molds and chemical molds with strong binders can be stored for a considerable period
without losing their shape.  Carbonaceous material in the mold burns, creating a reducing atmosphere
and prevents the oxidation of the hot metal.  In the vacuum process, a vacuum inside the mold sucks the
molten metal up into the mold.  The vacuum pressure is maintained until the casting has solidified. In
the lost foam process, the foam pattern is still inside the mold. As the metal is poured into the mold, the
foam vaporizes and leaves the mold. Certain molds, particularly intricate designs, require pressure to
force the molten metal into all areas of the mold.  Some techniques used with permanent molds require
centrifugal casting machines to spin the mold at high speeds.  The pressure holds refractory material  on
the walls of the mold and forces the metal into the mold to eliminate empty spaces.

       Spills of molten metal are called runouts.  Workers must be ready to cover runouts with sand and
to use sand to block the  flow of metal if the mold begins to overflow, because fires can result. No
molten metal should be  allowed to solidify in the crucible or ladle, so a standby container such as ingot
molds must be ready to  receive any excess metal. The crucible must be quickly cleaned to prevent
build-up.

       After pouring, castings are allowed to cool within the mold. Rapid cooling increases casting
hardness.  Workers can  manually separate castings from the mold, although some large foundries have
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vibrating grids to shake the sand off the casting. Certain permanent molds have ejector pins to push the
casting out of the mold.

2.1.4  Finishing and Cleaning

       When castings emerge from the mold, they are typically hard and brittle. To improve the
metallurgical properties of castings, they are frequently put through heat treatment.  Heat treatment
refines the grain of the metal and relieves internal stresses in addition to improving the metal's
properties (Lankford et al., 1985). Heat treatment must be done with care, because it can potentially
warp or crack the casting.  The standard heat treatment is annealing. For annealing, foundries place the
casting in a furnace and raise the temperature slowly, with the target temperature depending on the
metal type. For carbon steel, the temperature is about 1,650°F.  Operators can manipulate  the properties
of a particular area or  part of a casting by directly applying a flame to the casting.

       New castings require processing after removal from the mold; sometimes the processing is
extensive and is used to modify the basic shape. Workers remove unwanted structures with hammers,
saws, flame devices such as oxyacetylene torches, and grinders. Workers can also add structures to the
casting at this point, typically by welding. In any case, the surface may be rough and contain unwanted
substances such as rust, oxides, oil, grease, and dust. Foundries typically clean and  smooth the casting
surface by sand or steel shot blasting.

       Workers cool and rinse castings with water. The water may contain chemical additives to
prevent oxidation of the casting.  Chemical cleaning of the casting can be done with organic solvents
such as chlorinated solvents, naphtha, methanol, and toluene. Emulsifiers, pressurized water, abrasives,
and alkaline agents such as caustic soda, soda ash, alkaline silicates, and phosphates are also used for
cleaning. Castings may also  undergo acid pickling using hydrochloric, sulfuric, or nitric acid (EPA,
1998a).

       Coatings are used to inhibit oxidation and corrosion, to alter mechanical and metallurgical
properties, and to improve surface finish and appearance.  Some coating processes include painting,
electroplating, electroless nickel plating, hard facing, hot dipping, thermal spraying, diffusion,
conversion, porcelain  enameling, and organic or fused dry-resin coating (EPA,  1998a).

       Foundries can typically reuse sand from molds numerous times, although a portion must be
disposed of each time  to eliminate the sand that has been worn very fine.  Some sand can be used in
construction as  filler and for the production of portland cement, concrete,  and asphalt. Much sand from
foundries contains chemical binders, and about 2 percent of foundry waste sand is considered hazardous
waste, which requires  expensive disposal (EPA, 1998a). Core sand is the most likely sand to be
disposed of because it requires the strongest binders. To reuse sand, it must be cleaned. Metal
particulates must be separated from the sand. Various machines are used  to break apart sand clumps
and grind the binder off the sand. Heat can also be used to break down the resins on sand.

2.7.5  Residuals and By-products

       Resins and binders are left in spills, containers, and outdated materials. Other residuals include
gaseous emissions such as carbon monoxide, volatile organic compounds (VOCs), and other HAPs.
HAP emissions can occur during mold and core making, melting, pouring, cooling,  and shakeout (PCS)
(EPA, 1998a).  Foundries scrub offgases from core-making processes that use triethylamine gas as a
catalyst with acidic solution.   Scrubbing gases generate sludges or liquors, which must be adjusted for
pH so that they  can be released as nonhazardous waste. Sulfur dioxide can be controlled with amine
scrubbers that convert the sulfur dioxide to hydrogen sulfide. Cleaning solvents such as methanol,
trichloroethylene, and xylenes are also toxic residuals (EPA, 1998a).  The making of expendable

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polystyrene patterns leaves chemicals, and the use of lost foam casting generates organic vapors that
may contain HAPs.

       All furnaces emit hydrocarbons, while cupolas and EAFs also emit sulfur dioxide, nitrogen
oxides, chlorides, and fluorides, and cupolas emit carbon monoxide (EPA, 1998a). Melting furnaces
also emit metallic fumes. The composition of fumes emitted depends on the type  of scrap used as input.
Galvanized steel leads to high zinc emissions, and stainless steel produces greater nickel and chromium
emissions than standard carbon steel.  Whenever the furnace is open, such as for tapping or charging,
emissions are highest. Hoods over the doors and spouts of the furnaces and near pouring areas capture
emissions.

       The water used to cool and rinse the castings picks up lubricants, cleansers, mill scale, mold
coatings, and acids.  Water used to cool chemically bonded molds can pick up chemicals. A sludge may
form that contains metals such as cadmium, chromium, and lead. Foundries are able to recover acids to
be used again. Iron chloride, when removed from the acids, is a saleable product.  The water in the
acids is recovered by evaporation and condensation to be re-used for rinsing and cooling. This
procedure is less expensive than transporting and disposing of the acid.  Some foundries  are also
recovering fluoride from spent pickling acids in the form of calcium fluoride, which can  be used as a
flux material that is more effective than purchased fluorspar (EPA, 1998a).

2.1.5.1 Paniculate Matter

       Particulates are emitted by cupolas and EAFs and to a lesser extent by induction furnaces. The
emissions of foundry furnaces typically are cleaned with fabric filters (baghouses), which collect
particulates, or wet scrubbers, which produce waste water and sludge.

       EAFs release 1  to 2 percent of their charge as dust or fumes.  Lead and cadmium can be
reclaimed if their contents are significantly high. Some techniques send the dust back through the
furnace after the metal has melted so that the dust captures more metal particulates such as zinc to
increase the  zinc content above 15 percent. On site, foundries can pelletize EAF dust to be reused in the
furnace. This method is not frequently cost-effective at the foundry and may be more efficient off site.
Some techniques recycle EAF dust directly back into the furnace, but this approach requires low
impurity content for the dust.

       The vigorous shakeout operations generate metal and other types of dust.  In addition, as
permanent molds gradually wear out they produce metallic particles. The dust requires air filtering by
using electrostatic precipitators, baghouses, or wet scrubbers.  Dust from sand systems can be used by
cement companies and  can potentially supply 5 to 10 percent of the raw material used by cement
manufacturers (EPA, 1998a).

2.7.5.2 Slag
       Slag can have a complex composition at foundries. Foundry slag may contain metal oxides,
melted refractory materials, sand, coke ash, and other impurities. If the slag contains enough toxic
metals such as lead, cadmium, or chromium, the slag will be classified as a hazardous material. Some
foundries making ductile iron use calcium carbide as a flux for desulfurization, resulting in slag that is
classified as a reactive waste because it is potentially explosive (EPA, 1998a). Metal can be reclaimed
by allowing the slag to solidify and then crushing it. Metal can be extracted from  crushed slag by hand
or with magnets. Reusing slag in different iron production lines can sometimes reduce the hazardous
content of the slag.
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2.1.6  Production Costs
       Table 2-2 shows production costs for foundries by type.  Total costs are greatest for gray and
ductile iron foundries across all categories due to higher production volume. Table 2-2 also shows the
average variable cost and average total cost by type of foundry. Gray and ductile iron foundries have
the lowest costs per short ton, while the per-ton cost of steel castings is more than three times that of
gray and ductile iron.

Table 2-2. Summary of Production Costs by Foundry Type (1996)

Cost Element
Variable inputs ($106)
Production labor
Materials
Fuels and electricity
General and administrative costs ($106)
Capital expenditures ($106)
Total costs ($106)
AVC ($/short ton)
ATC ($/short ton)
Gray and Ductile Iron
Foundries
$7,857.8
$2,261.1
$5,040.6
$556.1
$1,677.1
$515.7
$10,050.6
$747.65
$956.29
Malleable
Foundries
$230.6
$92.2
$115.3
$23.1
$65.7
$15.8
$312.1
$876.81
$1,186.69
Steel
Foundries
$2,911.2
$956.2
$1,757.1
$197.9
$789.3
$151.4
$3,851.9
$2,290.48
$3,030.61
AVC = average variable cost
ATC = average total cost
Source: U.S. Department of Commerce. February 1998. 1996 Annual Survey of Manufactures: Statistics for Industry
       Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government Printing Office.


       Table 2-3 displays costs of materials and their shares by type of casting. Gray and ductile iron
foundries use scrap as a greater share of their input costs compared to malleable iron and steel. The
ability to use large amounts of low-cost scrap contributes to the low price of gray and ductile iron
castings.

       Table 2-4 shows employees and earnings for iron and steel foundries. The number of employees
and production workers decreased until the early 1990s as shipments decreased. The number of
employees, including production workers, has increased from the lows of the 1980s, but not to the highs
of the early 1980s.  Hourly earnings have consistently increased every year since 1980.

2.7.7  Metal Types

       The most basic variation in castings stems from manipulating the charge material.  Four basic
types of metal are melted in foundry furnaces:  gray iron, ductile iron, malleable iron, and steel. Each
type of iron and steel has a general range of characteristics.  Further variation in mechanical properties
of the casting can be achieved during cooling and finishing operations. Table 2-5 shows the volume of
the iron and steel castings in 1997 by casting type. The majority of all ferrous castings in 1997 was gray
iron, followed by ductile iron.

       Because gray iron was the first cast iron, some people use the term cast iron to refer to gray iron.
Gray iron received its name from the color of the graphite flakes dispersed throughout the silicon iron
matrix of the metal. The graphite flakes do not contribute strength or hardness, but they can have some
positive benefits such as dimensional stability under differential heating and high vibration  damping.
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Gray iron has the greatest damping capacity, followed by ductile iron, then malleable, and finally steel
(Foti et al., 1998).  Foundries can add alloys to gray iron to increase the hardness and employ heat
treatments to soften gray iron, making it easier to form but decreasing its strength.

       Ductile iron was invented in the 1940s. It is similar to gray iron, although the graphite is in
spheroids or spherulites rather than flakes. Because of the spheres, ductile iron is sometimes called
nodular iron. The spheroids are created by adding a controlled amount of magnesium to the molten
iron, which alters the way the graphite is formed. The formation of graphite prevents ductile iron from
shrinking when it solidifies, as occurs in malleable iron and cast steel.  Ductile iron is known for being
capable of a wide range of yield strengths, high ductility, and ease  of being shaped.
                                              2-15

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Table 2-3. Distribution of Material Costs by Foundry Type (1992)
Gray and Ductile
Iron Foundries


Material
Ferrous and nonferrous shapes and forms
Purchased scrap
Steel, clay, glass, and concrete products
Industrial patterns, dies, molds, and other
machinery and equipment
Sand
All other materials
Total3
Delivered
Cost
($106)
$314.7
$785.1
$86.7
$76.2

$110.2
$1,258.5
$2,637.4

Share
(%)
11.9
29.8
3.3
2.9

4.2
47.7
100.0
Malleable Foundries
Delivered
Cost
($106)
$2.2
$13.9
$0.3
NA

$0.5
$53.1
$72.6

Share
(%)
3.0
19.1
0.4
NA

0.7
73.1
100.0
Steel Foundries
Delivered
Cost
($106)
$260.9
$137.0
$71.0
$37.4

$34.3
$521.6
$1,062.4

Share
(%)
24.6
12.9
6.7
3.5

3.2
49.1
100.0
NA = not available
a Totals may not sum due to undisclosed costs for some categories.
Source:  U.S. Department of Commerce. 1995. 7992 Census of Manufactures: Industry Series—Blast Furnaces, Steel Works, and Rolling and Finishing Mills
        Industry. Washington, DC: U.S. Government Printing Office.

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Table 2-4. Summary of Labor Statistics for SIC Code 332, Iron and Steel Foundries:  1980-1997
Production Workers
All
Year Employees (103)
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
208.8
200.8
158.6
139.0
148.6
141.4
130.9
129.8
136.4
137.3
132.4
125.8
120.2
119.0
125.1
131.1
128.5
130.0
Production
Workers
(io3)
167.3
159.9
121.8
106.3
117.5
111.6
102.9
102.4
109.4
109.7
105.3
99.5
96.1
94.8
101.4
107.1
105.2
106.7
Average
Weekly Average Weekly
Earnings Hours
328.00
354.99
353.98
397.79
421.45
427.76
438.01
460.53
477.86
475.42
486.26
491.71
522.09
555.89
608.72
597.19
604.78
636.64
40.00
39.4
37.3
40.1
41.4
40.7
41.4
42.8
43.6
42.6
42.1
41.6
42.9
44.4
45.7
44.5
44.6
46.1
Average
Hourly
Earnings ($)
8.20
9.01
9.49
9.92
10.18
10.51
10.58
10.76
10.96
11.16
11.55
11.82
12.17
12.52
13.32
13.42
13.56
13.81
Source: U.S. Department of Labor, Bureau of Labor Statistics.  BLS LABSTAT Database: Employment and Earnings, SIC
       33. .  Obtained in March 2002.
       Malleable iron is the result of heat treating iron over an extended period. Similar to ductile iron,
the majority of the carbon content in malleable iron is in nodules. As suggested by the name, malleable
iron is soft and can be bent without immediately breaking.
                                              2-17

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Table 2-5.  Shipments of Iron and Steel Castings by Type (1997)

Iron
Ductile iron
Gray iron
Malleable iron
Steel
Total
Volume
(103 short tons)
10,790
4,333
6,186
271
1,217
12,007
Share
(%)
89.9%
36.1%
51.5%
2.3%
10.1%
100.0%
Source: U.S. Environmental Protection Agency (EPA). 1998b.  Foundry Industry Responses to Information Collection
       Request (ICR) Survey. Database prepared for EPA's Office of Air Quality Planning and Standards. Research
       Triangle Park, NC.
                                                  2-18

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   Figure 2-5. Number of U.S. Iron and Steel Foundries by State:  1997
       Steel products made by casting processes have mechanical properties inferior to those of steel
products manufactured by steel mills. The advantage of using the casting process to make steel products
is that casting is the most direct method for making products of a specific shape.
2.2    Industry Organization

       This section presents information on the manufacturing plants within this source category and
the companies that own and operate these foundries.

2.2.1   Manufacturing Plants

       Figure 2-5 identifies the number of U.S. iron and steel foundries by state. Iron and steel
foundries are located in nearly every state, and Ohio has the most for a single state, with 79 iron and
steel foundries. The remainder of this section characterizes these foundries using facility responses to
EPA's industry survey and industry data sources.

       Tables 2-6 and 2-7 present summary data by type of producer, merchant or captive. Merchant
producers are foundries that purchase their inputs and sell their products on the open market.  Captive
foundries are vertically integrated with iron and steel and/or coke producers.  As of 1997, the United
States had 860 reported iron-making furnaces and 730 reported steel-making furnaces. In U.S.
foundries, iron melting capacity is nearly ten  times the steel melting capacity. Most furnaces for iron
and steel making are electric induction.  For the 545 iron and  steel foundries that reported the relevant
information of the total 798 affected iron and steel foundries,  total hourly capacity in 1997 for iron
melting was 41,298 tons and for steel melting was 4,737 tons.
                                              2-19

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2.2.2   Companies

       The proposed National Emission Standard for Hazardous Air Pollutants (NESHAP) will
potentially affect business entities that own iron and steel foundry facilities.  Facilities comprise a site of
land with plant and equipment that combine inputs (raw materials, energy, labor) to produce outputs
(castings).  Companies that own these facilities are legal business entities that have capacity to conduct
business transactions and make business decisions that affect the facility. The terms facility,
establishment, plant, and mill are synonymous in this analysis and refer to the physical location where
products are manufactured. Likewise, the terms company and firm are synonymous and refer to the
legal business entity that owns one or more facilities.  Figure 2-6 shows the possible chains of foundry
ownership.
 Table 2-6. Iron and Steel Foundry Data by Type of Producer:  Iron-Making Furnaces (1997)

Iron-making furnaces
Number (#)
Cupola
Electric arc
Electric induction
Other
Total
Capacity (short tons/hour)
Cupola
Electric arc
Electric induction
Other
Total
Merchant
Foundries


35
0
170
0
205

1,139
0
2,154
0
3.293
Captive
Foundries


107
2
493
5
607

10,132
48
27,433
206
37.819
Alla
Foundries


155
2
698
5
860

11,307
48
29,737
206
41.298
   Not all survey respondents identified their production by type. Therefore, merchant and captive foundries data do add to
   totals shown for all foundries.
                                              2-20

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Table 2-7. Iron and Steel Foundry Data by Type of Producer:  Steel-Making Furnaces (1997)

Steel-making furnaces
Number (#)
Electric arc
Electric induction
Other
Total
Capacity (short tons/hour)
Electric arc
Electric induction
Other
Total
Merchant
Foundries


69
341
5
415

772
1,078
4
1.854
Captive
Foundries


31
176
2
209

269
1,830
1
2.100
Alla
Foundries


129
594
7
730

1,342
3,390
5
4.737
  Not all survey respondents identified their production by type. Therefore, merchant and captive foundries data do add to
  totals shown for all foundries.
                                                2-21

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                     Parent Company
                     (Direct Owner)
Parent Company
Parent Company
                       Large
                       22.1%
                                                                 Small
                                                                 77.9%
Figure 2-7. Distribution of Affected U.j. Companies 4y Siz^: 1997a
  Reflects distribution for only those 584 companies owning U.S. iron and steel founories with data allowing identification as
  small or large business.
    Figure 2-6. Possible Ownership Configurations for U.S. Iron and Steel Foundries
       The Small Business Administration (SBA) defines small businesses based on size standards
developed for North American Industrial Classification System (NAICS). The SBA defines firms
owning iron and/or steel foundries as small if they have 500 or fewer employees. As shown in Figure 2-
7, 78 percent of affected U.S. companies with available data meet the small business definition.  Table
2-8 shows the distribution of companies by the number of foundries owned: 6 percent of small
companies own more than one foundry, while 34 percent of large companies own more than one
foundry.  Table 2-9 summarizes foundry operations by firm size. Even though there are nearly three
times as many reporting small companies as there are large companies, the number of iron-making and
steel-making furnaces is near the number owned by small companies.  The mean number of furnaces for
large companies versus small reflects the distribution of furnaces between the two groups.
                                             2-22

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Table 2-8. Distribution of Companies by Number of Foundries:  1997a

Company Size
Category
Small
Large
All companies
Number of Foundries Owned per Company

1
299
74
373

2
17
19
36

3
3
7
10

4
0
4
4

5 or more
0
8
8

Total
319
112
431
  Data reported for only those foundries with complete responses to EPA industry survey.
                                              2-23

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      Table 2-9.  Summary of Iron and Steel Foundry Operations by Firm Size Category:  1997a
to
to
Company
Size
Category
Number of
Companies

Total
Foundries
Iron
Making
(#)b
Steel
Making
Iron-Making Furnaces
Number
Capacity
(short
tons/hour)
Annual
Production
(103 short
tons)
Steel-Making Furnaces
Number
Capacity
(short
tons/hour)
Annual
Production
(103 short
tons)
Sample Totals
Small
Large
Total
319
112
431
342
215
557
245
146
391
152
79
231
447
408
855
31,132
10,163
41,295
2,268.4
12,351.6
14,620.0
399
329
728
1,794
2,924
4,718
380.7
1,371.2
1,751.9
Sample Means
Small
Large
Total
319
112
431
1.05
1.81
1.20
0.54
1.13
0.59
0.33
0.61
0.35
0.98
3.16
1.29
68.42
78.78
62.10
5.0
95.7
22.0
0.88
2.55
1.10
3.94
22.67
7.12
0.8
10.6
2.7
      a  Data reported for only those foundries with complete responses to U.S. EPA industry survey.
      b  Foundries that produce iron and steel shown once in each column.
      Source:  U.S. Environmental Protection Agency (EPA).  1998b. Foundry Industry Responses to Information Collection Request (ICR) Survey. Database prepared for EPA's
              Office of Air Quality Planning and Standards. Research Triangle Park, NC.

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2.2.3   Industry Trends

       The number of metal casting foundries in the United States has dropped by nearly half since
1955 (Heil and Peck, 1998).  During the 1970s, orders for foundry castings exceeded annual capacity.
Profit margins were high, and shipments were often late due to the excess demand. In the presence of
excess demand, the foundry industry did not experience pressure to improve casting quality. Foreign
producers gained a foothold during the recession of the 1980s and 1990s.  In addition to lower prices,
foreign producers had more modern equipment than U.S. producers, which allowed foreign producers to
have higher quality castings. The number of U.S. foundries steadily dropped and capacity utilization
was below 50 percent in the mid-1980s. Even though the number of foundries has not increased to the
highs of the 1970s and 1980s, output per producer has risen (Heil and Peck, 1998).

       U.S. iron and steel foundry production has increased since the lows at the beginning of the
1990s. Gray iron castings production has increased with the health of the economy, while ductile iron
saw greater gains because in some applications  it replaced steel castings and forgings, as well as
malleable iron castings.  Malleable iron castings production has decreased, because more than one-third
of malleable iron foundries in the United States have closed since the 1980s; this trend is expected to
continue.  Malleable iron castings production has declined to mostly small custom orders and captive
operations (Heil and Peck, 1998).

       Similar to gray and ductile iron, steel castings production has increased since the lows of the
early 1990s. The primary issue of concern in the 1990s for steel castings has been the cleanliness of the
steel (Tardiff, 1998). Steel with low impurities has superior mechanical properties, improving the
position of steel against possible substitutes such as aluminum and reinforced plastics.  A general trend
among ferrous castings is demand for low-weight parts, particularly among the transportation industry
as it seeks greater fuel efficiency.  New casting  techniques allow metals to be cast with thinner
dimensions, reducing overall weight.

2.2.4   Markets

       The markets for the various types of iron and steel castings overlap but are not identical, because
the properties and costs of each type vary. During the 1970s and 1980s, many iron and steel foundries
were captively owned. As end product production dropped, many captive foundries were left with
excess capacity.  To avoid the fixed costs of idle foundries, companies shut down captive foundries or
sold them to produce for sale directly to the market. Of those foundries that are still captive, the
majority are iron-producing.  Nineteen percent of 1997 iron casting shipments were captive, while only
3.5 percent of 1997 steel castings were captive (DOC, 1997).  Table 2-10 shows the market and captive
shares for iron and steel castings.
                                              2-25

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Table 2-10. U.S. Shipments of Iron and Steel Castings by Market and Captive: 1997 (103 short
tons)
Market

Casting
Gray
Ductile
Malleable
Steel

Volume
4,693
3,925
121
1,174
Share
(%)
75.9%
90.6%
44.6%
96.5%
Captive

Volume
1,493
408
150
43
Share
(%)
24.1%
9.4%
55.4%
3.5%
Total
Volume
6,186
4,333
271
1,217
Sources:  U.S. Department of Commerce, Bureau of the Census.  1988-1997. Current Industrial Reports. Washington, DC:
        U.S. Government Printing Office.
        U.S. Department of Energy. 1996.  "Trends Effecting [sic] R&D in the Metalcasting Industry." Prepared by BCS
        Incorporated for Office of Industrial Technologies, Washington, DC.
       Automotive and aerospace have traditionally been the largest consumers of gray and ductile iron
castings. Substitutes such as composites and aluminum have gained share in these markets due to
reduced weight and corrosion resistance.  Pipes and pipe fittings are another major market for gray and
ductile iron castings. Improvements in ductile iron that increased strength and durability have allowed it
to be a reduced-cost substitute for forged and cast steel in some applications.

       Appliances, hardware, aerospace, and automotive components have been the major uses for
malleable iron castings. Plastics, nonferrous metals, as well as other types of iron and steel castings
have displaced malleable iron from many applications (Heil and Peck, 1998). Ductile iron castings are
responsible for the majority of malleable iron castings displacement, particularly in plumbing and
electrical.

       Steel castings are used in many of the same markets as iron castings, including automotive,
aerospace,  and construction. Steel castings are also extensively used in the railroad industry (BTA,
1996). In addition, steel investment castings are used in a diverse range of industries employing small
or very thin castings, including jewelry.

2.3    Historical Industry Data

       This section presents domestic production, imports, exports, and apparent consumption. We
also present historic market price. Finally, this section shows past iron and steel castings shipments by
end-user market and discusses various projections for the future  of the shipments in the next decade.

2.3.1  Domestic Production

       Table 2-11 shows iron and steel castings shipments. Shipments were at their lowest over the 10-
year period in 1991 for all types except malleable iron. Shipments for gray and ductile iron, as well as
steel castings, have increased over 25 percent since the lows of 1991.  Malleable iron castings shipments
were lowest in 1992, and although shipments increased in the mid-1990s along with the other types of
iron and  steel castings, malleable iron castings shipments have declined.  Gray iron castings shipments
have also declined slightly, while ductile iron castings shipments have consistently increased every year
since 1991.
                                              2-26

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2.3.2   Foreign Trade and Apparent Consumption

       The only year for which import and export data are available for iron and steel castings is 1994.
We used the import and export data to derive apparent consumption by subtracting exports and adding
imports to production. Table 2-12 presents these data.  Table 2-13 provides the export and import
concentration ratios for the types of iron and steel castings.  Export and import concentration ratios
represent the share of U.S. production expected and the share of apparent consumption imported.
Concentration ratios for iron and steel castings are typically around 7 percent. Foreign producers of iron
and steel castings gained a foothold in the 1980s and early 1990s when foreign prices were lower than
those of U.S. castings, and foreign quality was equal  or better (Heil and Peck, 1998).

2.3.3   Market Prices

       We derived prices for iron and steel castings by dividing the quantity of shipments by the value
of shipments, generating an average price. Table 2-14 shows the prices from 1987 through 1997. Gray
iron castings are consistently the lowest priced, which explains the steady share of castings maintained
by gray iron.  Ductile iron castings are consistently lower priced than malleable iron castings. Ductile
iron castings are displacing malleable iron castings for many applications because of their lower price,
strength, and durability.
                                              2-27

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Table 2-11.  U.S. Shipments of Iron and Steel Castings:  1987-1997 (103 short tons)
Iron Castings
Year
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997

1987-1997
1987-1992
1992-1997
Ductile
3,044
3,210
3,321
3,186
2,789
3,051
3,267
3,709
4,304
4,312
4,333

4.2%
0.0%
8.4%
Gray
5,701
5,941
5,638
5,073
4,609
4,800
5,215
6,401
6,260
6,198
6,186
Average
0.9%
-3.2%
5.8%
Malleable
321
323
299
290
262
253
278
300
293
263
271
Annual Growth
-1.6%
-4.2%
1.4%
Total
9,066
9,474
9,258
8,549
7,660
8,104
8,760
10,410
10,857
10,773
10,790
Rates
1.9%
-2.1%
6.6%
Steel
Castings
1,013
1,187
1,184
1,133
957
986
1,021
1,039
1,160
1,271
1,217

2.0%
-0.5%
4.7%
Total
10,079
10,661
10,442
9,682
8,617
9,090
9,781
11,449
12,017
12,044
12,007

1.9%
-2.0%
6.4%
Source: U.S. Department of Commerce, Bureau of the Census. 1988-1997. Current Industrial Reports. Washington, DC:
       U.S. Government Printing Office.

2.4    Market Shipments and Future Projections

       Future projections for iron and steel castings take into account the strength of the economy, the
strength of the U.S. dollar, interest rates, end-user product markets, input supply, and development of
substitutes. The American Foundrymen's Society (AFS) projects that the metal casting industry in
general will experience declines until 2002 and then increases until 2004, which AFS expects could
possibly be the strongest year for castings in the past two decades (AFS, 1998). AFS expects gray and
ductile iron castings shipments to do well early in the next decade because it will be the peak period for
baby boomers to purchase vehicles, although the share of gray iron per vehicle will continue to drop.  A
short-term downturn in the strength of the economy, followed by an expansion from 2002 through 2008,
should maintain gray and ductile iron castings shipments for farm and construction equipment and tools.
AFS projects that malleable iron castings shipments will continue a rapid decline.
                                              2-28

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Table 2-12. U.S. Production, Foreign Trade, and Apparent Consumption of Iron and Steel
Castings:  1994 (103 short tons)
Type
Iron castings
Ductile iron
Gray iron
Malleable iron
Steel castings
Steel investment
Steel castings, n.e.c.
Iron and steel castings
U.S. Production
10,411
3,710
6,401
300
1,129
91
1,038
11,540
Exports
741
276
442
23
96
NA
NA
837
Imports
831
213
579
39
113
NA
NA
944
Apparent
Consumption3
10,501
3,647
6,538
314
1,146
NA
NA
11,647
NA = not available
a Apparent consumption is equal to U.S. production minus exports plus imports.
Sources:  U.S. Department of Commerce, Bureau of the Census.  1988-1997. Current Industrial Reports. Washington, DC:
         U.S. Government Printing Office.
         U.S. Department of Energy. 1996.  "Trends Effecting [sic] R&D in the Metalcasting Industry." Prepared by BCS
         Incorporated for Office of Industrial Technologies, Washington, DC.
Table 2-13. Foreign Trade Concentration Ratios for Iron and Steel Castings by Type:  1994

                                   Export Concentration Ratioa     Import Concentration Ratiob
	Type	(%)	(%)	
Iron castings                                   7.1%                           7.9%
    Ductile iron                                 7.4%                           5.8%
    Gray iron                                  6.9%                           8.9%
    Malleable iron                              7.7%                          12.3%
Steel castings                                  8.5%                           9.9%
Iron and steel castings (combined)                  7.3%                           8.1%

NA = not available
a  Measured as export share of U.S. production.
b  Measured as import share of U.S. apparent consumption.
Source:  U.S. Department of Energy.  1996. "Trends Effecting [sic] R&D in the Metalcasting Industry."  Prepared by BCS
        Incorporated for Office of Industrial Technologies, Washington, DC.
                                                  2-29

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Table 2-14.  Market Prices for Iron and Steel Castings by Type:  1987-1997
Iron Castings
Year

1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997

1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Ductile

$624.05
$640.22
$681.51
$725.46
$751.31
$700.26
$777.39
$800.22
$851.43
$921.04
$957.81

3,044
3,210
3,321
3,186
2,789
3,051
3,749
3,709
4,304
4,312
4,333
Gray

$529.92
$567.26
$602.31
$641.59
$641.96
$662.77
$669.35
$600.00
$719.33
$720.06
$759.87

5,701
5,941
5,638
5,073
4,609
4,800
9,128
6,401
6,260
6,198
6,186
Malleable
Prices ($/short ton)
$885.05
$1,040.56
$947.16
$1,057.59
$1,062.21
$869.96
$923.81
$923.42
$924.59
$1,011.72
$1,006.33
Quantities (103 short tons)
321
323
299
290
262
253
292
300
293
263
271
Steel

$5,311.45
$5,192.42
$2,793.67
$2,863.64
$3,125.71
$2,780.22
$3,990.01
$5,816.15
$5,472.04
$5,253.90
$5,159.39

1,013
1,187
1,184
1,133
957
986
1,461
1,039
1,160
1,271
1,217
All Castings

$1,050.23
$1,118.53
$885.85
$941.68
$965.97
$910.80
$1,033.73
$1,146.70
$1,230.43
$1,276.84
$1,282.79

10,079
10,661
10,442
9,682
8,617
9,090
14,630
11,449
12,017
12,044
12,007
Source: U.S. Department of Commerce, Bureau of the Census. 1988-1997. Current Industrial Reports. Washington, DC:
       U.S. Government Printing Office.
                                                 2-30

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       Table 2-15 provides projections for castings shipments from a different group, Business Trend
Analysts (BTA). BTA expects shipments to increase consistently until 2005 for all types except
malleable iron.

Table 2-15. Projected U.S. Shipments of Iron and Steel Castings by Type: 1997, 2000, and 2005
(103 short tons)

Year
1997
2000
2005

1997-2005
1997-2000
2000-2005

Ductile
3,289.6
3,395.6
3,505.6

0.8%
1.1%
0.6%
Iron
Gray
5,420.5
5,577.7
5,614.6

0.4%
1.0%
0.1%
Castings
Steel Castings
Malleable Total Investment
203.5 8
232.4 9
194.0 9
Average Annual
-0.6%
4.7%
-3.3%
,913.6
,205.7
,314.2
Growth Rates
0.6%
1.1%
0.2%
40.3
41.6
45.2

1.5%
1.1%
1.7%
All Other
1,557.8
1,784.9
1,945.0

3.1%
4.9%
1.8%
Total
1,598.1
1,826.5
1,990.2

3.1%
4.8%
1.8%
Source: Business Trend Analysts. 1996. "Foundry Products and Markets in the U.S.—Company Profiles and Ferrous
       Castings."
       BTA separates projected castings shipments by market, as displayed for iron in Table 2-16. The
greatest decreases in shipments have been for soil pipe (shown on continued page), and BTA expects
these decreases to accelerate as iron pipe is replaced by PVC pipe.  Displacement by PVC will reduce
the annual growth rate for iron pressure pipe, but the growth rate is expected to stay positive. From
1987 to 1997, machinery was a strong and growing area for iron castings, and BTA expects this trend to
continue. BTA projects that the relatively small market of railroad equipment will have the strongest
growth rate as ductile iron replaces some steel castings.

       Table 2-17 shows historical shipments and BTA projections for steel castings.  BTA expects
growth rates for nearly all markets to decrease over the next decade from the growth rates of the  1990s.
Motor vehicles, defense, and aerospace are exceptions, which BTA projects will climb back to positive
growth rates.  Railroad equipment has been and will continue to be the largest and fastest growing
market for steel castings, although BTA projects the growth rate to decrease, as ductile iron replaces
steel castings.
                                             2-31

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     Table 2-16. Iron Castings Shipments by Market: 1987-2005 (103 short tons)
to

Year
1987
1990
1992
1995
1996
1997"
2000a
2005a

1987-2005
1987-1997
1997-2005



Motor Valves and Construction
Vehicles Fittings Machinery
2,623.8
2,323.7
2,180.8
2,629.2
2,381.5
2,325.5
2,386.1
2,294.0

-0.7%
-1.1%
-0.2%
337.8
402.4
403.6
452.7
458.9
460.2
511.7
536.1

3.3%
3.6%
2.1%
425.0
479.7
418.9
534.4
582.8
568.5
607.8
625.0

2.6%
3.4%
1.2%

Railroad
Equipment
14.0
21.8
22.6
27.2
23.3
24.9
29.6
32.0
Average Annual
7.1%
7.8%
3.6%


Mining
Engines Equipment
542.4
464.1
516.4
584.3
484.7
504.2
533.9
557.0
Growth Rates
0.1%
-0.7%
1.3%
8.0
8.3
6.9
8.2
8.4
8.7
9.6
9.9

1.3%
0.9%
1.7%

Hardware
9.0
9.4
8.9
9.4
9.5
9.7
9.9
10.0

0.6%
0.8%
0.4%

Pressure
Pipe
1,200.0
1,565.0
1,449.1
1,487.0
1,516.7
1,586.0
1,606.9
1,650.6

2.1%
3.2%
0.5%
Farm
Machinery
and
Equipment
546.8
695.0
801.1
815.5
774.8
783.2
855.1
917.4

3.8%
4.3%
2.1%
                                                                                                                   (continued)

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      Table 2-16. Iron Castings Shipments by Market: 1987-2005 (103 short tons) (Continued)
to
Metalworking
and Industrial
Year Machinery
1987
1990
1992
1995
1996
1997"
2000a
2005a

1987-2005
1987-1997
1997-2005
485.4
575.9
533.7
618.0
647.6
668.4
716.1
774.9

3.3%
3.8%
2.0%
Ingot Mold
476.0
330.0
310.0
219.4
172.9
151.0
147.0
139.4

-3.9%
-6.8%
-1.0%
Soil
Pipe
378.0
325.7
273.4
234.4
222.7
211.6
145.6
106.9

^.0%
-4.4%
-6.2%
Municipal
550.0
552.2
523.2
553.8
560.5
567.6
570.0
575.0
Average Annual
0.3%
0.3%
0.2%
Power
HVAC Compressors Transmission
142.0
154.9
138.3
137.0
133.7
134.0
145.5
146.8
Growth Rates
0.2%
-0.6%
1.2%
192.0
228.7
230.2
245.7
250.3
251.6
258.2
265.3

2.1%
3.1%
0.7%
108.0
109.6
115.2
115.8
117.5
119.3
121.1
122.9

0.8%
1.0%
0.4%
Other
427.0
441.6
421.0
430.0
431.5
437.8
436.8
435.8

0.1%
0.3%
-0.1%
Total
8,465.2
8,688.0
8,353.3
9,102.0
8,777.3
8,812.2
9,090.9
9,199.0

0.5%
0.4%
0.5%
      a Forecasts
      Source: Business Trend Analysts. 1996. "Foundry Products and Markets in the U.S.—Company Profiles and Ferrous Castings."

-------
     Table 2-17.  Steel Castings Shipments by Market:  1987-2005 (103 short tons)
K>
General and
Railroad Construction
Year Equipment Equipment
1987
1990
1992
1995
1996
1997a
2000a
2005a

1987-2005
1987-1997
1997-2005
630.0
956.0
811.0
1,102.5
1,050.0
952.0
1,130.5
1,260.0

5.6%
5.1%
4.0%
59.2
69.6
58.4
91.2
85.4
83.7
99.1
106.6

4.4%
4.1%
3.4%
Valves Special
Mining Motor and Industrial Metalworking
Machinery Vehicles Fittings Machinery Machinery
149.0
154.2
128.9
152.3
157.2
162.2
178.3
184.0

1.3%
0.9%
1.7%
88.8
91.9
76.8
90.8
72.6
75.7
86.2
89.6
Average
0.1%
-1.5%
2.3%
72.6
86.5
87.1
100.4
102.2
102.7
105.1
111.7
Annual Growth
3.0%
4.1%
1.1%
64.0
76.2
76.7
88.5
90.1
90.5
92.7
98.5
Rates
3.0%
4.1%
1.1%
34.0
44.3
41.1
42.1
43.4
44.3
46.3
48.6

2.4%
3.0%
1.2%
Defense
and
Aerospace
20.7
25.0
15.0
12.9
13.0
13.2
14.2
16.7

-1.1%
-3.6%
3.3%
Other
68.1
71.8
68.4
71.2
72.4
73.8
74.1
74.5

0.5%
0.8%
0.1%
Total
1,186.4
1,575.5
1,363.4
1,751.9
1,686.3
1,598.1
1,826.5
1,990.2

3.8%
3.5%
3.1%
     a  Forecasts
     Source: Business Trend Analysts.  1996. "Foundry Products and Markets in the U.S.-
Company Profiles and Ferrous Castings."

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