New Britain herald., 1917-05-10
Steel and Pig
 Iron Markets
The Iron Age says:


 an American merchant fleet, the diversion to government uses of the products of every steel mill in the country" and the cancellation of exis,- ing contracts between the mills and private buyers have given some con- cern to manufacturing consumers. The fact Is that no such drastic action has been determined upon and 1t is not improbable that the needs of the Ship ping Board will be met by the vol untary action of the steel trade.
 It Is certain that under the now Shipping Board program for meeting the submarine peril as quickly as po.- sible, plate and structural mills muss furnish in the next year more than the 610,000 tons already arranged for by the government; but that would not mean of necessity a wholesale can- cellation of present orders even in those two lines. At the same time 1t is becoming plainer that the enlarged merchant vessel program the needs of the army and navy, and the much greater demands of this country's al- Hes will cause more or less readjust- ment of output and a greater concen> tration on war material
 Indications increase that the mis- take of forcing contracts on steel manufacturers at prices so low as se- riously to disturb the industry will not be repeated in the large buying yet to be done by the joint action of the government and it's allies.
 One of these is the placing of over 25,O00,000 ID. of spelter by the go>-. ernment at much smaller concessions from the market than were made on steel. On prime western spelter tue government paid Sc, as against a mar ket of g 1-sc to 1-4c today. Muc1, large spelter orders are to be placed and on these higher prices are ex- pected.
 Tho steel trade. has been putting forth every effort to meet government requirements as fast as these have oe- veloped, but the uncertainties are many and are not being cleared up, hence steel mills, particularly those rolling plates. shapes and bars, can entertain new business in only a lin.- ited way.
 A contract for 10000 tons of tank plate closed by well-known domes- tic customer at 7hc, Pittsburgh basis, shows the fear of large pre-emption of mill capacity for government needs. In line with this, Is the refusal of a mill to consider 5000 tons of hult plates for which 10c per lb. was of- fered.
 Some building work is held up in which 1t is undetermined whether the government or the manufacturing consumer is to buy the steel from the mill. The result is confusion as to a h} let inquiry has appeared. said to be for government work. but producers will not seriously consider it until it actually has a Washington origin.
 An unusual inquiry for the allies is for $12.000 tons of wire nails. Two sets of prices prevail in the wire trade, as the leading producer is still selling to it's customers at $6 less than the level established by the last ad- vance.
 In exports a 10.0O0-ton sale of oil- country pipe and supplies to Burmah. India, is of interest, the order going to the National Tube company. France is again in the market for rails. this time for 10000 tons.
 The government has taken bids on 2.000 tons of structural steel for Flor. ida hangars. Ultimate buying for similar structures. according to a Washington estimate, may exceed 100. 900 tons. At 30 tons per hangar this represents an ambitious program. The governments inquiries for a ma chine shop and foundry at Norfolk navy yard amount to $500 tons.
 Pig iron holds steadily to it's up- ward march. On Southern foundry iron the advance for this years de- livery is $1 or to $3S, Birmingham, for No. ?, and in the Chicago market iron for first half of 1918 is $2 higher. or $40, closing half the gap that has ex- isted between 1917 and 1918 prices. The leading maker of agricultural ma- of 25,000 tons for this year. Foundries keep up the buying for 1918, with no signs yet of a halt in the course of prices.
 In the Central West 35.000 to 40,r 900 tons of basic iron has been taken by an Ohio steel company at $40, Valley furnace. and a later 5,O00-ton- sale on an inquiry for 10000 tons from southern Ohio has established, a price of SAP, Cleveland, representing an advance of $2. Bessemer iron is $1 higher, sales having been made at $44 at furnace.
 Coke contracting is not encouraged by the fact that it gives no guaranty of supply, yet about 50,000 tons of furnace coke for the last half Is be- fore the market. Producers are will- ing to close at $S but furnaces are not duck to tie up on that basis.
 The late opening of the vessel season has been a serious handicap to Lake Superior iron-ore shippers. To- day movement is probably 3,000,0O0 tons behind last years to May 10, 1,- 100000 tons of this shortage belong ing to April. By June 1, from the present outlook, the total may be B. OOO.O 900 tons behind that of 1916--