The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1905-12-01
KEEPING DOWN PRICES
Can it be Done is the Question at
Present.

Whether the prices of finished iron
and steel material can be kept down
to what are called the "officiaP levels
is one Of the important phases Of the
present market, say the Iron Ore.
Advances over these quotations are
becoming more general. Consumers
in need of promptly delivered material
are offering premiums. Some produc-
ers who are importuned for prices
name an advance with the hope of
diverting the efforts of the buyer to
some other quarter. Other pro-
ducers, to whom present profits seem
a wiser choice than a possible pro-
longation Of activity are either ad-
vancing quotations or counseling that
action. the natural effect of present
conditions is buoyancy of values.
TO hold the market down to the
present levers can therefore hardly be
said to be IA popular course, even with
the consuming trade. The user who
has Il contract for future shipments,
receives his material, at the lower
level and might not be averse to the
payment of higher prices by his less
protected competitor. And the con-
sumner, who is now. looking eagerly
for the material often himself takes
the initial action looking to higher
quotations. The holding down of
values by main force on the part of
Of larger producers does not therefore
evoke enthusiasm even among those
who are directly benefited, or who are
supposed to be benefited. In other
words it takes nerve of high order to
hold in leash the tugging market, and
with neither bouquets nor common
datorY resolution for the action.
And another question, particularly
interesting just now, is what the eff
feet will be if steel products are held
down, as recent: efforts have indicated,
and pig iron SCARS in one Of it's accus-
toned aerial flights. For it is recog-
nized that makers cannot we'll hold
down pig iron prices. There is less
cohesion among prducers decidedly
tmorc- frdfvtduaffty and varfance or
view and action. 1t is not assured
that pig iron prices will soar, for the
present rate of production, the great
est on record, may give enough relief
to hold prices IN check, but are the
iron and steel industries so closely
interviewed that the maintenance of
moderate prices in steel will keep un-
interrupted the splendid volume of
business in that product, even if pig
iron does mountup into dizzy heights.
1t can readily be seen that this I'M
even development of pig iron and steel
will benefit some producers and dis
cOmmod Others. Thesteel maker who
produces his own ore, coke and pig
iron has the advantage while to the
steel producer who buys his Bessemer
iron the future does not look so en-
ticing. He prefers to sell his product
at premiums or to witness a general
advance in prices for manufactured
steel. 1t is therefore almost newt
able that urgent business will be ne
gotiated at premiums. II the ad-
vances make too sharp "a contrast with
nominal quotations the effect will be
to induce delay on the part Of the
buyer and to that extent reduce the
pressure upon the overburdened mar
ket
AS the distance increases from tile
maker Of the crude metal, the mer-
chant or small manufactures is legs in
terested inquestions of conserving flu
ture markets. Billet makers are few
but the users of small steel bars are
numbered by the thousands, and the
uses of the metal assume hundreds of
forms, consumption radiating In all di-
rections. Thesma user, whose trade
is excellent, naturally disadvantage
of increased cost of production to adj
vance his own products and it is only
when the ultimate consumers rebels
at the high prices that the ebb comes
20 the demand. If the market is to
be perpetuated or prolonged by the
J maintenance of moderate prices il
can be done only by the makers OF
crude steel.
Steel production equals about 81
; per cent of the total output of pig
iron, though percentage of it comes
from scrap. At least 25 per cent OF the
. pig iron produced consists of foundry
grades and is consumed by foundry
men. Their trade would therefore
bear the first brunt of any possible
reaction, In so far as the users were
divorced from the use of steel products