The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1897-03-17
THE IRON TRADE.
Negotiations Stin Pending Regarding the
Ore Pool.
From Iron Trade Review.l

ing of BesSemer ore producers until
next Tuesday is taken to indicate
progress in the negotiations between
the Lake Superior Consolidated Iron
Mines and the Minnesota Iron Co.
The latter's Vermilion range product
would be included in an old-range
agreement, in any event, but the
question now up relates entirely to
the Mesabi and is more one OF ton
mage than of price, though price is an
element, too. 1t was the high price
put on it by the pool agreement that
practically shut one Mesabi mine out
of the market last year. Some con-
cessions in output to mines reached
by the Duluth & Iron Range is ex-
pected to be made, that will harmon
ize the two interests before the meet
ing OF next week. The question Of a
reduction in freights from mines to
docks, by railroads hauling ore from
the three Oldest ranges, is having
serious consideration. Something is
likely to be done in this direction, but
the extent of the reduction is not de-
termined. With view to giving a
larger market for certain non-Besse-
mers of the Menominee range, through
the displacement of Southern irons in
districts tributary to Pittsburg,
Ohio fnrnaaoc fhara iS
some agitation fer the putting OF
mines in the Crystal Falls and Iron
River districts on the same freight
basis as those at Iron Mountain. At
present the differential is 5 cents.
The railroads appear to appreciate
the situation brought about by
Mesabi developments and some action
is probable.
A weaker market for Bessemer pig,
with falling off of Is cents, valley
and Pittsburg, is the chief feature Of
the week. At valley furnace $3.50 to
$40 is the basis named in connection
with pending negotiations, but sales
are rare, the only important trans
action being a, three-cornered coke
and iron deal, involving Pittsburg
firm handling by-product coke, and a
furnace and steel works in Northern
Ohio. The wait seems to be on the
Bessemer ore producers, the post
ponement of whose meeting for an
other week argues still more strongly
for agreement. Judging from the
course of the market in the early
months of 1896, however, the price of
ore has no great bearing on that of
Bessemer pig iron. Furnacemen in
sisted last year that with the higher
price for coke and the advance to a
81 basis for Gcgebic Bessemer ores,
more money must be had for iron.
Yet the 81 price for ore never figured
in the price of Bessemer iron the
whole year through. In the first half
of the year the cheap ores carried over
from 1895 depressed the market and
in the second half the utter democrat
ization of all business, and with it
the general anticipation that 1897
ores would GO much below the figure
for 1896. Demond, rather than exist
ing or prospective cost of materials,
decided the price, and that is the sit
uation to-day. The stronger feeling
in billets, apparent in the past two
weeks. continues in spite OF the
decline in Bessemer. With the large
current production of rails and the
heavy engagements of steel mills
generally. on steel sold at the first of
the year, new business ia billets
encounters advancing quotations, and
the market promises to be steady and
strong Wire and wire nails grow in
strength. and sl.30 and S1.40 respec-
lively represent the Cleveland mar
ket Eastern reports show sales OF
billets at sls, Philadelphia, and fur
Their business in plates and shapes,
but bars and sheets are sluggish and
unpremising. Car-buying is far from
pronounced, but railroad and track
supplies are increasingly active. In
the East architectural wants are be-
ing canvassed, with a fair prospect
for the structural mills, and in the
West viaduct and bridge work is the
chief factor i'm current structural
demand. The great foundry interest
is hedged up with persistently small
demand, on the one hand, and on the
other with discouraging prices on
whatever there is to do. Some time
must elapse before it can count large
ly az buying factor. Concessions
continue to be made from recent
Southern quotations, but with the
leading Birmingham interest 81 at
=