New Britain herald., 1916-11-02
HIGHER PRICES ARE EXPECTED FOR STEEL
Pig Iron Also Goes u Output Of
 Factories Sold

New York Nov. 2.-The Iron Age says today:
 The big-iron market of the past two weeks is pra actically without a parallel in the experience of present-day pro- ducers Following advances of $1 to s2 a ton recorded a week ago, prices in all northern selling centers have gone up S2 to $3 more with every in dication that higher levels will be reached.
 The advances are unprecedented in Icing due, not to a clamorous demand fer iron for quick shipment as in all previous excited markets. but to a simultaneous effort of buyers to cover for forward requirem ents-in many cases through the second half of 1917.
 The situation is, in a word, that the pig-iron market, after months of lag ging, has cut loose and is now for the first time showing likeness to the war market for steel
 Merchant furnaces in all sections made heavy sales last week and many have now only a fraction of their 1917 output to offer. The movement was sudden. Less than two weeks ago foundries refused to consider iron for the second half of next year. A few days later they found the output for that period being rapidly taken up. At Buffalo the announcement that the I.ackawanna Steel company had con- tracted for the output of two SusQue- hanna furnaces for the second half of next year frightened that market ap- preciab1y
 Iron Excitement. Tn Southern iron excitement was caused by the report, now known to be incorrect, that in addition to the 200, ,000 tons recently bought from two companies for shipment to Great Brit ain and it's allies, new order had Teen received for an equal amount. From SIG last week Alabama No. iron has advanced to $17, and sales have been made in the past few days st this figure, for both first and last half of next year. Virginia producers sold heavily at s1S.50 at furnace for Mo- 2 X through all of next year, then advanced to s19.5O and early this week the leading interest there with drew from the market
 No. Northern foundry iron has ad- vanced to $23 at Ohio and western Pennsylvania furnaces, to $24 at Chi cago furnace and to S25 at Buffalo, A good many furnaces are now re- fusing to quote, expecting to get moro money for the fraction of their 1917 output that is unsold.
 Steel-making irons have advanced $2 ton, Bessemer now selling at $26 at Valley furnace and basic at s22, these prices being established by 10, O,000-ton sale in each case. A 50, 900 ton transaction in basic, shipments through all of 1917, involves monthly settlements at market prices. The great demand for Bessemer iron from abroad is felt as a factor in the Lake Superior situation, Bessemer ores being rapidly taken up for next year. Even more than s1 a ton advance for such ores is now talked of
 Ore Reservations.
 Lake ore reservations of a leading Eastern steel company are now fully 100000 tons.
 Export business declined by domes- tic steel manufacturers continues to mount up. For a time such offerings lave been at the rate of nearly half our total steel output. While war steel contracts for the second half of 1917 have not been signed, the amount figured on is very large and 4c to 1-2 will be paid on much of it, though a leading seller is asking less.
 An interesting inquiry just received Is, for 27OOO tons of Sin. Yin. and Sin. beams and 1000 tons of 34-in. to 2-in. angles
 Advances announced by the. Carne- gie Steel company and Illinois Steel company put plates for delivery at the convenience of the mill at 3:25c., Pittsburgh. shapes at 2.S0c, and bars at 2.70c., Pittsburgh.
 Effective November i new discounts on lay-weld iron and steel pipe, in cluding line pipe, represent an ad- vance of $2 @ ton for black and gal vanized Iron and steel boiled tubes were advanced s4 a ton. 6
 In woven wire fencing a shortened discount became effective this week. 5S per cent. as against 59 per cent. previously.
 A marked expansion in the export trade in cast iron pipe is indicated by the contract for 66,000 net tons just taken in Argentina by the United States Cast Iron Pipe and Foundry company Pipe foundries have ad- vanced price $1 and expect to do more in this direction as pig iron moves further.
 October outputs have been the largest the industry has known. But car shortages are now a serious men, ace. Fuel and other costs are running up and delivery troubles promise to be worse as winter comes on. Spot coke prices have relaxed a trife. Thus far $375 has been the basis of contract