IC 8289 Iron And Steel Scrap In Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, And Texas (e79374e4-82c3-4b21-80b2-ff9548ee56cc)

A study was made of scrap iron and steel in the South Central States in order to determine trends in processing, shipment, and consumption if this important commodity. These data were derived in part from statistical sources and in part by visits to scrap yards and steel mills. Trends in the industry were reviewed. Dealers in 1963 supplied 1.8 million tons of iron and steel scrap to steel mills and foundries in the south-central area, compared with 2.1 mill ion tons in 1955. Most of the scrap was processed and shipped within 200 to 300 miles of consuming centers. Exports provide a principal outlet for dealers along the gulf coast. Most of the scrap that fills these orders is loaded onto freight cars at yards in Texas and Louisiana and is shipped to ports for direct transfer from railroad car to ship. The tonnage exported varies greatly from year to year. The largest scrap operations are in or near large cities which are heavy scrap generating areas, steel mill sites, or port cities for export of scrap. A tentative analysis indicates that the short-run supply of prepared scrap is inelastic to price changes; therefore, buyers probably are in a strong bargaining position at times of declining demand. One technological development in the iron and steel scrap industry is the use of large presses which can take complete automobiles with frames, wheels, springs, and other heavy parts still intact and reduce them to bundles. At Houston, Tex., and Kansas City, Mo., shredding plants are in operation that reduce car bodies and other light scrap into flat pieces 4 to 6 inches in size.