Evening star., 1949-02-20
Scrap Plentiful
In Steel Mills
Good Weather, Imports
Help Overcome
Shortage
By Lawrence N. EIdred

CHICAGO.-For the first time
since 1898 or 1899. the Nation s
steel mills have more scrap than
they need, and they're taking full
advantage Of it.
They hope to clean up a num-
ber of war-born evils in scrap
marketing while they have the
opportunity.
Curiously, it is the weather
which has made the big differ.
ence In supplies.
This is the analysis made BY
Marcus e. Borinstein, vice presi-
dent in charge of metals for the
James Flett Organization Of Chi
cago, principal commission sales
agent in the complex, billion-d
lar scrap industry.
THE open winter, which lasted
we'll into the new year from Chi
cago eastward, has been the big
gest factSr in the scrap situation" !"
Mr.. Borinstein said. Normally,
there is a marked cutback in scrap
supplies starting in November and
by January the market is starved.
Mills need the scrap but you just
can't move the stuff when it's
showed in and frozen together in
dealers yards.
Contributing Factors
Because of good transporta-
ton conditions this winter, the
scrap gray market has been
knocked in the head. There is a
buyers market instead Of a SELL
er's. Prices have nosedived.
And, what is more. the mills
which have been staying out of
the market probably will continue
to do so until they can restore
|prewar grade and price relation
ships, which were not possible
during the tight wartime and
postwar markets"
Contributing factors, he added
are imports of European SCRAP
and, in fact, that foundries which
were taking better grade Stee.
scrap now are more able to get
pig and cast iron. Overseas scrap
has helped supply Eastern mills
and diminished demand for in
terror supplies which then could
flow to Midwestern mills.
Scrap steel is important. Pig
iron is high in carbon, phosphorus
and sulphur. Its melting time is
four times as long as scrap and
pig mixed, because the melting
scrap releases iron oxide. which b
helps to melt the pig. !
Also, he added. scrap is cheaper
than pig. normally. and since II
is refined and already has had
impurities removed, it is easier to
work with.
Many Mills Close
In 1910 through 1948 mills took
scrap as they found it, even though
overpriced. upgraded, top-dressed
or contaminated with alloys OF
other metals. Mr.. Borinstein re-
called. Second and third grade
material was sold as No. !;
"dogs'-that is, alloys, turnings
even tin cans-were included in
hydraulic bundles, "and SCRAP
users had to take it and like it II
they wanted to keep supplied"
But lately as the scrap market
continued to flow at its customary
autumn rate right on into winter
supplies backed up in mill stock
piles. The first mill stepped out
of the scrap market in October
Others soon followed, until by De-
cember and January demand was
less than a tenth of what it was
last winter. even though mills are
continuing to run close to ca
pacity."
"Typically," Mr.. Borinstein said
"a manufacturer will spend thou
sands Of dollars in an effort to
reduce the cost of making his
product, while he may be unaware
of staggering losses in the disposal
of the waste materials resulting
from his operations"
Distributed by the Associated Press)