An economic model of the scrap market could play an important role in decisions affecting the future course of the steel industry. The difference between simulated scrap prices indicates that direct reduction would have had a steadily increasing downward impact on prices. The greatest impact occurs in the last two years with the advent of the merchant sponge iron market which causes the price decrease to accelerate from 4.3% of actual price in 1970 to 20.9% in 1972. Although the comparisons cannot be translated directly into an analysis of future price impacts of direct reduction, they do indicate that as the merchant sponge iron market grows, direct reduction growth will be an increasingly important factor in the determination of future U.S. scrap prices.

  • Authors:
    • Wise, K T
  • Publication Date: 1975-5

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00127625
  • Record Type: Publication
  • Source Agency: Engineering Index
  • Files: TRIS
  • Created Date: Dec 16 1975 12:00AM