SCRAP PRICES AND VALUES
This appendix sets out first some data on the ratio between pig iron and scrap prices since 1909 in relatively free market conditions, then examines the statistics on supply of various types of scrap in the United Kingdom, and finally sets out what seem the likely relations of price, supply and demand at various stages of a trade cycle in competitive conditions.
The price movements themselves are not familiar. A German study of the relations between pig iron and scrap prices in five years before the First World War1 showed that scrap prices were on an average more than 80 per cent of the pig iron prices in each country --that is, above the upper limit of the Federation's range--and showed marked variations, though the lower figure was only in one instance below the Federation's minimum.
The relations of these figures to changes of steel output is uneven.
|aBased on hamatite pig-iron prices, North-east Coast, and heavy melting scrap|
prices in the same region. The ratio would be higher if basic iron prices were used.
|bPittsburg prices of heavy scrap and Bessemer iron.|
|cPrices of heavy scrap delivered at Rhineland West works; price of stahleisen|
(which was much above the price of Thomas iron). For some years the price was
F.O.T. Siegen; but clearly this price would be based on production which would
be more costly than Ruhr production.