Mills and brokers can pay dealers up-front on ScrapSite by a type of credit card, the Virtual Procurement Card. Since the Big Three auto-stamping plants stopped selling significant tonnages of scrap on the open market, the scrap and steel industries have been searching for a reliable bellwether of where the market is headed each month. The several thousand tons coming out of Ford's Maumee, Ohio, stamping plant are a poor excuse for a market indicator, everybody agrees. This month, Iron Age goes on-line . It will squeeze profit margins.
Transparency is the death knell of the industry.
Private companies should remain private. Philip urged ISRI to consider forming a task force to address e-commerce issues. At the meeting of the Steel Manufacturers Assn. the month before, Philip urged minimill executives to consider forming a group to study buying raw materials over the Internet. Philip's nervousness is understandable. Anyone who regards private deals and control of local markets as key competitive strengths should feel threatened by scrap e-commerce.