Abstract
The U.S. regional ferrous scrap model developed at the University of Pittsburgh is capable of simulating price interactions at a significant degree of geographic detail. In this model, estimates of the supply and demand for ferrous scrap in hundreds of local markets are used to estimate a set of equilibrium prices. The model can be used to simulate the impact of market changes such as new plant locations or transport rate adjustments on regional scrap prices. The analysis involved is based on realistic modeling of regional price interactions as well as careful attention to metallurgical relationships. The capability of the model provides a linkage between basic supply and demand conditions and an extensive network of regional scrap prices. Modeling simulations can be used to map price gradients across the United States based on very small county-based regions, providing useful information on spatial price differences.
This research is supported by the Alfred P. Sloan Foundation through the Alfred P. Sloan Steel Industry Center (http://steel.ucsur.pitt.edu/steel/index.htm), which is organized jointly by faculty members at the University of Pittsburgh and Carnegie Mellon University. Craig Richmond developed the prototype for this model as his doctoral dissertation at the University of Pittsburgh. Dilek Aykut, Carey Treado and Yulonda Woods have served as graduate student research assistants on this project.
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Giarratani, F., Gruver, G., Richmond, C. (2002). The US Regional Ferrous Scrap Model. In: Hewings, G.J.D., Sonis, M., Boyce, D. (eds) Trade, Networks and Hierarchies. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-04786-6_9
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DOI: https://doi.org/10.1007/978-3-662-04786-6_9
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