For Japan, quantity data for non-coking coal were available
from the JISF (12J only through 1970. By that year, non-coking
coal consumption had decreased to an insignificant cost component
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in the Japanese steel industry. Consumption was assumed to
be zero in subsequent years. No price data for non-coking
coal were available for Japan. It was assumed for this study
that the Japanese price bore the same relation to the U.S.
price that Japanese coking coal price bore to the U.S. coking
coal price.
Fuel Oil. The quantity used to represent steel industry
fuel oil consumption for the U.S. was that reported by the AISI
. ~;;- .
(1). The price used was the arithmetic average of the annual
Chicago and Pittsburgn "refinery" and "terminal" prices of #6
fuel oil reported in Platt's Oil Price HandboOk (2B).
For Japan, the steel industry consumption of heavy fuel
oil was taken from the JISF (12).
The price used was the
annual average cost of "grade C heavy oil" imported to Japan,
as reported also by the JISF (15).
Electric Power. As with the scrap, only purchased
electr ic power was counted as a cost factor. 21 If electr ic
power generated by the steel mill were included, there would
be double counting since the cost of energy and labor used to
generate electr icity internally are included in other series. ~I
51 Data on the total consumption of electr ic power are
shown in appendix 3A.
61 As an illustration of the complex substitution of
Inputs which can occur, note the following. Blast furnace
gas can be used to generate electricity internally--thus
reducing the cost of purchased electr icity, or it can be
used to preheat blast furnace air--thus reducing the need
for coking coal or fuel oil fed to the blast furnace. To
some extent, therefore, purchased electricity can be substituted for coking coal.
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The quantity of electric power purchased by the U.S.
steel industry was obtained from the AISI (1). The price
series used for U.S. electric power purchases was constructed.
in the following manner. For the years 1971 through 1976, the
Bureau of Labor Statistics (44) has presented regional price
series for industrial electric power. The price for the East
North Central region for each of the six available years was
useà. For earlier years, the 1971 East .North Central price was
carr ied back in time using the BLS pr ice index for residential
electr ic power. Electr ic power rates vary even among industr ial
users, depending upon the users' requirements and supplier,
but no data were available specifically for steel producers.
For Japan, the total electr ic power consumption by the
steel industry was taken from the JISF (12). The percent purchased for each of the years 1970-76 was obtained from the
Steel Newspaper Corporation (32) 2/ and for the years 1959-63,
from the JISF (14).
The remaining years were estimated by
interpolation and projection of the available figures. The
pr ices used were the "national average" "steel industry electr ic
fees" shown in Tekko Nenkan for 1964-76 and from Tekko Sangyo
K ihon Toke i for 1959-63. The pr ice in 1956-58 was ass urred to
be at the 1959 level.
Natural Gas. Steel industry consumption of natural gas
. in the U.S. was obtained from the AISI (1). The price series
.j
2/ Does not include co~peratively produced power.
-106-
used for natural gas was the average value of natural gas sold
to industrial consumers in the East North Central region.
These data were computed from Depar tment of the Inter ior data
in (42). ~/ Even more so than in the case of electr ic power,
natural gas rates vary among industr ial users, depending upon
the timing and nature of their contracts as well as their
specific locations. No data specific to the steel industry
were available, however. ,..,,- .
There were no data discovered indicating usage of natural
gas by the Japanese steel industry and no usage was assumed. ~/
Steel Output. Total input quantities and steelmaking
costs, with the exception of those for labor, were normalized
using the annual physical quantity of output for each country.
For the U.S., steel output was obtained by adding changes in
inventories to net shipments of steel products. Net shipments
of steel products were obtained from AISI (1). Changes in
mill inventories for the years 1962-76 were obtained from U.S.
Department of Commerce (35). Inventory changes for the years
pr ior to 1962 were estimated based on raw steel production.
Japanese production of ordinary and special steel products was
obtained from JISF (15)
