In recent years, new electric steel mills have been built and total electric steel mill production has increased substantially in the south- eastern United States. For several years, the Southeast has been an excess producer of ferrous scrap—the basic raw material used in electric steel mill production. (1) Ferrous scrap, particularly scrap steel, can be used in varying quantities in all types of steel-making furnaces: the open-hearth, electric, basic oxygen (BOF), and Bessemer. Only electric- arc steel-making furnaces, however, are currently used in the area con- sidered by this paper, and they are charged almost exclusively with steel scrap. Electric furnace steel producers depend almost exclusively on the scrap industry for their basic raw material. Purchased scrap con- sumption for electric mills ranges from 75 to 100 percent of the total scrap consumed, depending on whether or not mill-revert scrap is con- sidered as a separate source. Cast iron is not purchased or consumed by steel mills. For the most part, it is bought and used by large foundries located in the Birmingham-Anniston, Alabama, area. STUDY AREA. This paper focuses on the functional components of the ferrous scrap industry currently providing essential raw materials for five electric steel mills located in three Southeastern states. These five steel producers are located in a relatively compact geographical area within Georgia, South Carolina, and North Carolina. Since all five mills are electric, they are dependent on ferrous scrap as a raw material. The outer boundary of their collective raw materials supply area thus serves
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