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

16 percent. Much of this increase was in response to rising energy costs caused by the second oil-price shock. Since 1982, electricity prices have moderated substantially, and industrial rates have actually fallen. Unless demand begins to grow so rapidly that utilities begin to operate with reserve margins very near 20 percent once again, utility commissions will not be under pressure to increase rates to allow utilities to raise capital for expansion. Even if rates are not generally high enough to cover the costs of developing new power sources, they may not rise appreciably in the foreseeable future.

In a 1983 study assessing future demand, the Department of Energy first assumed an annual real growth rate of utility prices of 1.67 percent through 2000, but later revised this assumption downward to 0.5 percent.10. The 1983 CRS report assumes a 2.0 percent real growth rate.11. And a detailed analysis submitted to the Department of Energy predicts a growth rate of 0.3 to 1.4 percent per year, depending on the strength of the economy, inflation, regulatory policies, world oil prices, and utility investment strategies.12. Obviously, forecasting energy prices is a hazardous specialty, but the consensus until recently has been that rates will rise more rapidly than the general price level, though the difference will not be large. The 1986 drop in oil prices may change this consensus.

The only disquieting aspect of the electricity market is the possibility that regulatory recalcitrance in response to strong growth could place substantial strains on generating capacity in the Southwest. This would make it difficult to assure future sources of power for large new industries in the region, unless utilities can import electricity from adjacent regions. The rapidly growing Southwest should be a major market for minimill producers, given their specialization in construction products.


Summary

At this point in the history of minimills, there is no reason why either scrap supply or electricity rates or supply should pose a barrier to their

____________________
10.
Need for New Powerplants, Hearings before the Subcommittee on Energy Conservation and Power of the House Committee on Energy and Commerce, 98 Cong. 2 sess. ( GPO, 1984), pp. 22-33, 34-68.
11.
CRS, Perspective on Electric Utility Capacity, p. 7.
12.
ICF, Inc., An Analysis of the Electric Utility Industry in the U.S.: An Overview of Selected Analyses Assessing the Financial Health of the Utility Industry, prepared for the Department of Energy, Office of Policy, Planning and Analysis, Electric Utility Division (The Division, 1983), p. 18.

-94-

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.