Up from the Ashes: The Rise of the Steel Minimill in the United States

By Donald F. Barnett; Robert W. Crandall | Go to book overview

Table 1-7. Ratios of Domestic to Import Prices and of Imports to Domestic Shipments in U.S. Steel Market, Various Years, 1971-84
Sector and
product
Ratio of domestic price
to delivered import price
Ratio of imports
to domestic shipments
1971-75 1976-80 1981-84
1971-75 1976-80 1981-84
Integrated firms
Hot-rolled sheets 0.91 1.04 1.04 0.14 0.14 0.16
Cold-rolled sheets 0.94 1.05 1.06 0.19 0.17 0.19
Plates 1.02 1.24 1.30 0.23 0.35 0.53
Structural shapes 1.00 1.17 1.12 0.25 0.42 0.60
Minimills
Hot-rolled bars 1.02 1.11 1.00 0.10 0.08 0.08
Wire rods 1.10 1.07 0.98 0.72 0.38 0.37
Sources: U.S. Bureau of the Census, U.S. Imports for Consumption and General Imports, TSUSA Commodity by Country, FT 246, various years; Bureau of the Census, Current Industrial Reports: Steel Mill Products, MA-33B, various years.

the result of intense competition among domestic minimills, whose numbers have been growing rapidly since 1970. Note the sharp decline in the relative domestic price and the import share for wire rods in the late 1970s and 1980s after the entry of Georgetown Steel Corporation and Raritan River.14.


Summary

It may seem ironic that so many small steel companies are flourishing in a declining U.S. steel market that has witnessed the closing of more than 35 million tons of capacity. Minimills have made sizable inroads into the market and now account for 20 percent of the U.S. steel industry's output. These small companies have provided an alternative to traditional integrated production in a number of lines and have offered the first major challenge to imports.

Clearly, minimills must enjoy substantial advantages over their larger, integrated brethren. Otherwise, they could not have expanded rapidly in a declining market. Among the most important advantages are their higher productivity, lower wages, product specialization, and geographic specialization, their use of cheap scrap, and their lower capital costs. How minimills attained these advantages is the subject of the next chapter. Chapter 3 explores the problems of the integrated firms in competing with the minimills, and chapter 4 examines the prospects of

____________________
14.
For further discussion of recent price behavior, see chap. 2.

-16-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Up from the Ashes: The Rise of the Steel Minimill in the United States
Table of contents

Table of contents

  • Title Page iii
  • Board of Trustees v
  • Foreword vii
  • Contents ix
  • I- Two Distinct Industries 1
  • Summary 16
  • II- The Competitive Position of Minimills 18
  • Summary 35
  • III- The Decline of the Integrated Sector 36
  • Summary 55
  • IV- Changing Technology and the Minimills 56
  • Summary 70
  • V- Future Scrap and Electricity Supplies 71
  • Summary 94
  • VI- Industrial Policy- The Lessons from Steel 96
  • Appendix A- Tables 115
  • Appendix B- A Simulation Exercise- Scrap Availability for Electric Furnaces 126
  • Appendix C- A Model of the U.S. Iron and Steel Scrap Market 129
  • Index 133
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 138

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.