Iron-ore Concentration and the Lake Erie Price

THE mysterious Lake Erie price for iron ore, established each spring, determines the maximum price that will be paid during the following season for ore of Mesabi Non-Bessemer base grade. This price is impor-tant to the ore producers, but since most of the ore in the Lake Superior district is owned or controlled by consuming inter-ests, the really important question to them is not the price of ore but how much it will cost them to mine and transport their season's requirements to their furnace plants. However, a few million tons are actually sold each year, and considerable quantities are traded for mixing purposes, and the negotiations for these sales and trades usually begin with some reference to the Lake Erie price. There is no difficulty with the Lake Erie price itself or with the manner in which it is established, but the system prescribed for determining the values of ores that are not exactly base grade is incomplete. The Lake Erie price takes into consideration only the iron and phosphorus contained in the ore, but when the ore producer is negotiating a sale or trade, he is confronted by the fact that his ore must be studied and the price adjusted, not only on the basis of the iron and phosphorus analyses, as specified by the Lake Erie price, but also on the basis of silica, alumina, man-ganese, structure, etc. The vague and unsatisfactory methods used in making these adjustments bear some relation to the manner in which the ore is supposed to act in the blast furnace. The ore producer may not understand all of the idiosyncrasies of the blast furnace, but if the smelting-plant operators have a system more accu-rate than the Lake Erie price method for determining the relative values of different ores, why not pass this information on to the ore producers, so that they can make use of it and perhaps modify their practice in such a manner as to benefit both them-selves and their customers? There is a lack of understanding and appreciation between these two groups that may, to some extent, be unavoidable, but in the interests of efficiency and conservation rules that are more accurate and complete than the Lake Erie price method in use at the present time should be established for the guidance of the ore producers.