The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-25
Pic IRON MARKET
NOW VERY ACTIVE
Buyers Are Paying SIG for
Prompt Delivery
CONDITIONS FAVOR SELLER
Notwithstanding Domestic Demand and
High Prices There Is No Chance
for Foreign Competition
at This Time.

The scarcity of foundry iron and the de-
mand for 1t is sending the price up. The
market has been Arm for the past two or
three days at $3.50 to SIG on No. 2
basis. The latter price is being paid for
prompt delivery iron.
Rogers Brown & Co.'S Cincinnati re-
port for the current week follows;
Another week of activity and record
breaking tendencies must be credited to
the already remarkable year The ton
mage placed in all markets is believed to
have set high mark for the same length
of time and has been limited as to 1906
delivery only by the inability of furnaces
to take no more business for this year
Buying freely for 1907 is now the feat
ure and prices for the first quarter and
first half are held firmly in many cases
at a sharp advance over week ago.
There is still hesitation on the part of
many furnaces to consider now large tom
mage for the early part OF next year, and
when 1t becomes necessary to make prices
they are such that makers can safely fig
ure a profit even in case of a sharp adj
vance in raw material. Market condt-
tons undoubtedly favor the seller and
prospects point to continuation of this
state of affairs. The consumption which
has kept up during midsummer shows
no signs of abatement, and It Is daily
becoming more apparent that many con-
sumers have quite seriously underesti-
mated their requirements. In addition to
these are the ones who habitually look
for lower prices, no matter at what level
prices are then being held and now find
themselves with yards bare, contracts
expired and shops running full. 1t is not
surprising that there is willingness to
pay premiums demanded by furnaces hav-
ing any kind of iron available for i'm
mediate delivery.
In spite of domestic demands and the
repeated advance at home. there Is still
considerable margin between figures here
and abroad at which foreign iron of sat
isfactory character may be imported AS
foreign markets. English especially. show
at such periods as the present desire to
act in sympathy with us. 1t will take a
marked increase in values to demand any
active Importation.
The year is repeating the buying move
ment of 1904 and 1905. The pressure coming
at practically the same time, but with
conditions stronger now for eontinu-
ance than in either of the previous years.
1t is only to be expected that next week
will see something of a .et-up In heavy
buying. as supply for this year is ex-
hausted, all that remains being odd lots
and Off material which always come IN
for attention under these conditions.
Again the large tonnage recently booked
for next year takes majority OF that
percentage which furnaces generally ilg-
ure on as good policy to sell from four
to six months ahead. All this Will create
a stronger tendency on the part OF fur-
mace men to hold back until prices can
be more accurately gagged The strong
est pressure Is now for malleable and Bes-
semer and In the west particularly these
are scarce, with inquiries for large tom
mage for delivery from now to July,
1907.
There is slight response on the part OF
sellers. Every effort is being made by
conservatives to prevent undue excite
ment and runaway market, or that ten
dency which Is so liable to crop out I'M
der present conditions, or over buying be-
yond legitimate requirements. Present
prices are satisfactory TO those interested,
and any lack of foresight or evidence or
manic on the part of buyers Will most
assuredlv result in unsafe and false val
ues, which can only prove most harmful
and much to be deplored.
Coke in all districts Is stronger the
output while slightly Increased, Is much
hampered by lack of labor and shortage
of cars, the latter proving of more serious
character than ever before, with Likelihood
of so continuing, as the railroads are
making strenuous. but at the best made
ouate efforts to move the mountaineering
crops. The more popular brands Of foun-
dry coke are very scarce for this year,
several leading producers having with
drawn from the market with full order
hooks. Inferior fuel Is commanding good
prices and every pound OF furnace coke
is going direct into furnaces whose man.
ayers are losing sleep and weight over
the problem of keeping running with
Transportation OF raw material in such
unfortunate shape.
Matthew Addy g. Co.'s Cincinnati report
says:
Animated is q mild adjective In which
to convey an idea of the state of the iron
market 1t is excited and active, and de-
mand is steadily growing. Apparently
every other consumer Is In the market
tn buy iron. There are inquiries from all
directions and for all kinds of deliveries
from prompt up 10 the first half of next
wear, At this season there never mas be-
fore been seen such a tremendous buy
ing movement and 1t has already devel-
onend a shortage of foundry Irons for
shipment over the balance OF this year.
There can be no question but that both
northern and southern irons are In short
supply today and Will be in much shorter
supply thirty and sixty days hence. There
are many heavy meters who have had up
TO the present no confidence In the per-
NANCY of the advance in prices, and they
have been caught with heavy orders for
finished material and no corresponding Or
ders for pig iron to cover. Furnaces are
absolutely without stocks of iron on hand.
and everywhere shipments are being made
hot from the cast house. We believe that
there are few furnaces In the country
that are up to date on orders. They are
all behind hand on shipments, and In
many instances consumers are being hard
pushed to get enough iron to keep 60
ing.
Consumers are also without accumu-
ted reserve stocks, and without excep-
ton they are all more than busy. Foun-
dryman after foundryman has told us
that for the past four months he has been
doing a record breaking business. and that
he has large orders booked ahead Con-
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