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Bureau of Mines / Minerals yearbook: Metals and minerals 1978-79
Year 1978-79, Volume 1 (1978-1979)

Palmer, K.W.
Iron and steel scrap,   pp. 485-501 ff. PDF (1.2 MB)


Page 485

Table 1.—Salient iron and steel scrap and pig iron statistics in
the
United States 
(Thousand short tons and thousand dollars) 
1978 
1979 
Stocks Dec. 31: 
Scrap at consumer plants                                         Pigironatconsumerandsupplierplants
Total                                                     
Consumption: 
Scrap                                                      
Pig iron                                                     
8,277 
889 
8,724 
881 
9,166 
9,605 
99,224 
88,420 
98,901 
87,458 
Exports: 
 Scrap (excludes rerolling material and ships, boats, and 
othervesselsforscrapping)                                      
 Value                                                     Imports for consumption:
 Scrap (includes tinplate and terneplate scrap) 
 Value                                                      
9,039 
$698,237 
 794 
$50,220 
 11,054 
$1,142,406 
. 
760 
$70,804 
  485Iron and Steel Scrap 
By K. W. Palmer1 
 U.S. monthly scrap consumption and pro- Reported consumption of direct-reduced
duction in 1978 followed the pattern of 1976 iron (DRI), which fell to 387,000
tons in and 1977 but at a slightly higher level. 1978, increased 79% to 693,000
tons in 1979. Thus, while total consumption in 1977 was Some of the DRI consumed
in 1979 was only 92 million tons,2 in both 1978 and 1979 imported. 
consumption was 99 million tons. 
 Legislation and Government Programs.—The Institute of Scrap Iron
and
Steel (ISIS) and the National Association of Recycling Industries (NARI)
continued their efforts to obtain lower freight rates on scrap to equalize
these rates with those on iron ore or agglomerates. On August 2, 1978, the
Court of Appeals for the District of Columbia vacated the Interstate Commerce
Commission (ICC) decision of November 1977, which awarded a 5% increase in
freight rates on scrap, and substituted a 3% increase retroactive to the
date of the original increase. The refunds ordered by the Court of Appeals
were under Ex Parte 319 (sub.-No. 1) and the court imposed a deadline of
6 months from October 16, 1978, for 
the issuance of a new decision. The ICC reopened the record on December 18,
1978, to permit the parties (the carriers, shippers, NARI, and ISIS) to submit
new evidence. 
 The ICC decision announced on April 16, 1979, agreed that scrap iron and
iron ore compete and that freight rates have an effect on the movement of
recyclables. As the intent of Congress had been to encourage recycling, freight
rates on iron ore in the South and West were raised 35%, but this was opposed
by four Southern and Western consumers of iron ore. The increase was then
reduced to 11% effective September 24, 1979, and only applied to shipments
of iron ore in the South and from the South to the West. 


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