Evening star., 1936-11-22
Scrap Iron Export Enigma
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BY PAUL COHEN.

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amounts OF scrap iron and steel leav-
ing the country. As these exports
continued their spectacular gains while
other businesses were still In the dol
drums, scrap became front-page
news. Protests arose from the steel
industry and from military circles.
Congress became interested. investi-
gated, dropped the matter. The Italo-
Ethiopian dispute fiared up. and
war-scared world became more keenly
aware of the military importance OF
this rusty. humble commodity. The
domestic steel industry began to revive
in earnest.
But scrap exports continued to
climb until, in 1885, they reached the
nprecedented-and, in view Of past
years, amazing-total of 2,250,0
tons. This year the exports are running
somewhat below 1885 levels. but scrap
is still in the headlines, although for
slightly different reasons than before.
The price of scrap has been acting
like one of Prof. Goddard's rockets.
For the first time in many years scrap
iron dealers will admit, when pressed.
that business Is good"-and for a
scrap-iron dealer that Is remarkable
confession. The record-breaking low
was reached in 1892. Today prices
are only $1.58 below the peak value
of $l7.58 per ton of No. / steel, reached
in 1929 What is more, steel mills
claim that they are facing a shortage
of this valuable raw material, and that
this shortage arises directly from the
export trade.
In the last four years, 7,500, 900 tons
Of scrap iron and steel have left this
country. That amount is the eQuiva-
lent Of from 35.OOO.000 to 10000 900
tons of natural resources-for one
ton of scrap can replace about 1000
pounds of iron ore, 1900 pounds Of
coal or coke, and 1.200 pounds of
limestone. Even where such materials
are plentiful. as in the United States,
mills find 1t desirable for technical
and economic reasons to use about
so per cent of scrap in steel manu-
featuring processes. In fact, one OF
the main reasons for the introduction
OF the open hearth furnace was its
ability to use high percentages OF
scrap. In Japan. poor in coal and
iron ore. the average charge Is about
70 per cent scrap and the remainder
pig iron. Thus each year many mil
lions of tons of scrap are dumped into
this nations steel furnaces.
ImpOrtance to Nations
II these dull statistics can indicate
how necessary scrap is to the proper
functioning of the American steel in
dustry. it requires little imagination
to picture the utter dependence OF
such nations as Japan. Italy and
Poland on scrap ferrous materials.
Japan's position, even with Manchu-
rian raw materials. is not favorable to
a large self-contained steel industry.
Italy is almost entirely lacking in coal
and iron ore deposits of good quality.
Poland can export coal, but lacks iron
ore. Even England and other coun-
tries with adequate raw materials find
it desirable for economic reasons to
import scrap. In fact. the United
in 1885, and, in the case OF Japan,
supplied her with 95 Per cent OF her
needs.
The great markets for American
scrap are Japan. Poland. Italy and
Great Britain. Before the war, the
first three had negligible steel indus
tries, but during the war production
was stepped up enormously. Then
during the postwar period Of rampant
nationalism, with government insis-
tence on economic self-sufhciency and
with industrialization advancing fast
er in the backward" nations than in
the great western powers. there were
continual increases in activity.
Both Japan and Italy produced
more steel in 1885 than in any other
year Of their history, and-this Is i'm
portant-the rate of advance Is great
er than in the older steel-producing
countries The bulk of that produc-
ton is absorbed into purely peaceful
channels, particularly in the case OF
Japan; but world suspicion is aroused
by the vigor with which these two ma
tions are applying the policy that
trade follows the flag" Italy's ad-
venture In Ethiopia and Japan's pres
sure on North and South China are
not designed to convince the world OF
their good intentions.
There is reason, therefore, for the
investigations, charges and indignant
rebuttals that arise over the export
trade. Scrap iron dealers answer the
steel manufacturers claims that ex-
ports are causing a scrap shortage by
pointing to the truly colossal, virtually
inexhaustible supply on which they
draw. That mine is made up OF all
the automobiles, railroads, machinery,
buildings, bridges and other equip
ment and structures made of steel and
iron that are in use In the United
States today.
Estimates place the total weight OF
all these products at the almost in
conceivable figure of 1000 ,00o, 900 tons.
The component parts Of this huge
mass of metal wear out and are re-
newed in cycles, the length Of which
depend on the way they are construct
ed and on the purpose for which they
are used.
Extent Of Waste.
In the case OF automobiles, the cycle
from manufacturing plant to scrap
iron yard takes about seven years: for
relatively permanent structures such
as buildings and bridges, the cycle
takes 40 years or more. Rust will con-
sumo but small percentage Of this
total. Containers, however, consume
10 per cent of all raw steel manufac-
tured, and much Of that goes to waste
because it costs too much to recover.
Blame for the export trades pres
ent dimensions falls to some extent
on the steel mills, say scrap brokers,
for when the entire industry faced
bankruptcy in 1882 and 1888. the steel
mills made not the slightest effort to
aid q service that is essential to their
well being. For q time mills refused
to buy scrap at any. price, and the
price fell so low that No. steel could