New Britain herald., 1916-04-27
STEEL MARKET lS
 HEAVILY OVERSOLD
New Buying Falls Of as Sellers
 Are Not Encouraging
The Iron Age says today:

steel producers and the tightening of 1 the steel market so far as concerns deliveries this year are more plainly indicated by the developments of the past week. Leaving out rails, new buying has fallen off, but mainly be- cause of the definite efforts of sellers to repress demand, particularly in bars billets, plates and shapes. Europe is seeking round lots of war steel for this year, and the situation has now gone beyond the point of fencing over the price; few large makers are in position to consider it at all. New capacity is under cOnstruc- ton, but it's expected output has been sold, perhaps in some cases more than once. The Duluth plant of the Steel corporation is sold to the end of the year. New capacity in the central west is also well pre-empted.
 Scarcity of Steel.
 Without regard to the demand for particular finished products, the sit uation is still one of a scarcity of steel as steel and indications are that prices for some months will be deter mined accordingly. In general the attitude of sellers both toward do- mestic and foreign buyers is that of letting the demand fix the price, and the week has brought a new crop of advances.
 With rerolling billets at $45, or about two cents per pound, sellers of steel rounds for shells are rather dis posed to ask four cents than 3.5O cents. But considerable amounts of steel are involved in options at lower prices, which certain domestic makers J1,1x
 The rail advance of $5 has been se- cured on 5000 tons sold by one mill. Some railroads scaled up their re- quirements beyond the average of re- cent years in trying to cover at the old price, with the result that offers of 100000 tons were declined by Chi cago mills and of 100000 tons by the mill at Pueblo.
 It is estimated that SOO,OOO tons of rails for next year has been booked in the past six weeks. Latest contracts include 24 1000 tons additional for the Southern Railway, 2O,00O tons for the Chicago & Eastern Illinois, 10000 tons for the Burlington in addition to a large lot placed in Colorado, 25,OOO tons each for the Chesa peake & Ohio and the Reading, 5000 tons each for the Seaboard Air Line and the Chicago Great Western, 5000 tons for the Vir- ginian railway. The Stele corpora tion's mail orders for the week were 10000 tons and 35,0O0 tons was placed by frog and switch works for delivery this year.
 Other Advances.
 Bolts and nuts and rivets are the leaders in the weeks advances. In cutting off 10 per cent. from bolt dis counts actual advances have been from 5 to 25 per cent. on former prices Implement makers contracts are pending and automobile demand has been unprecedented. RlVets are up s1O a ton. Shafting has advanced s5. Iron an dsteel pipe is $4 higher and on some sizes the advance reaches SIP.
 The long-projected $2 advance in wire products may turn out to be S4; at all events, a new level is looked for early in May.
 Western car works are operating at 50 to 75 per cent. of capacity, and car buying falls off as prices rise. Today railroads are asked 100 per cent. ad- vance over the low price of last year. There is no sign of any relaxing Tn plate prices. Contract plates for sec
  cents Two eastern mills now ask l four cents. Shipyard work is pi1ing l up Seven vessels were placed last l week, requiring 10000 to 25,00O tons 1 of steel three for Norwegian owners. 1
 With no further rise in prices pig 1 iron has shown good activity in spots. l A radiator interest has bought upward ! of 5O,O0O tons, chiefly at Buffalo. St. 1 Louis transactions include 50,O00 tons ! of southern basic, and eastern malie- l able interests have taken 20, 900 tons, 1 while a steel works contract for hot l metal represents 25,000 tons An east | ern steel company which ordinarily l sells basic iron has been a buyer. Re 1 ports of the inquiry for Bessemer iron ! from France have been exaggerated. l About 60,00U tons is wanted, dis ] tributed over the year On portions of 1 this and of 10000 tons for Italy bids l of S22 to SPA at Valley furnace have l been made. A Pittsburgh buyer has l taken 10000 tons of Bessemer at $21 l at Valley furnace.