New Britain herald., 1917-12-01

Steel and Pig
Iron Markets
The Iron Age SAYS:

Ao iron age says:
The week has seen an increasing
| demand for steel products both from
the government and from manufacture
Ing consumers. Many Of the latter
are buying for requirements not di-
rectly growing out OF the war. Steel
absorbed by the government and by
war contracts is a. growing factor and
IS made to seem still larger as output
Is cut down by coal and coke shortage
Blast furnace and steel works oper-
atoms are no better. At Youngstown
steel Is being produced at SO to rs per
cent. Of capacity. Pittsburgh is SUI
fering in less degree, but Is to 20
blast furnaces there have been banked
for part Of the week.
With the approach Of January l, the
date named in connection with pres
ent prices. some agitation OF a lower
basis for iron and steel products has
started at Washington; but the trade
itself calls for stability and it is point
ed out that as only a beginning has
been made in working under the new
schedules they should not now be dis
turbed.
The larger producers have been
practically unit in carrying out the
spirit of their agreement with the gov
eminent Here and there higher
prices have been charged and those
who have thus prof1ted have simply
helped to head the industry into gov
eminent control.
In the Chicago district one pro-
,ducer is turning IS per cent. of it's
ingot output into war steel. In Penn
sylvania large company with plants
at three points is supplying from so
to 70 per cent. of it's output to the
government and government con-
tractors.
While priority decisions are limiting
the amount of steel going to some con-
sumers, there is as yet no shutting
down Of plants, even in on-essential
lines. though such steps may not be
far off,
New inquiry for billets and sheet
bars is larger than in months and
some producers are finding difficulty in
covering for their first quarters sup
ply. Steel mills are securing the mar
ket for ingots or billets to make up
their own shortages. A large tom
mage of slabs for the Sparrows Point
plate mill is sought in the Eastern
market. In northern Ohio a quota
ton has appeared on slabs consider
ably above the Governments price.
While in the end the Government is
expected to take nearly the full out
put of sheared plates, the supply for
the general market Is still consider
able. The premium over the Govern
ment price is shrinking and in the
Middle West mills are less able to get
SC. For the SO vessels the American
Shipbuilding Co. is to build for the
Emergency Fleet Corporation $4,000
tons of plates and shapes will be re-
quired. At Chicago $500 tons has
FL, No SJ1h q rln
Boat Corporation and 500 tons for
local shipyard. Italy has been
buyer of plates to the extent of 49,
900 tons.
The identical Pittsburgh Chicago
hasing called for by the Government
price schedules is causing some fric
ton: for example, Eastern mills have
been called on to send plates to Chi
cago and to accept 3.25c, Chicago.
Eastern bar iron producers seek to
establish $500, Pittsburgh, as the
market price and have not vet made
this quotation at mill. Some smaller
iron rolling mills are asking &C and
over. In the Eastern jobbing trade
the outcome of the collision between
higher jobbers extras on bars, as long
maintained, and the mill extras an
nounced by the Steel Committee Is be-
ing watched with some interest.
That the Russian debacle will re-
lease locomotive capacity for domes-
tic orders Is of no little significance to
railroads and shippers. Domestic car
orders also may be more of factor.
The Union Pacific has just placed
$500 all steel cars with four builders.
Foundries having Government con-
tracts may find it necessary to appeal
to the Government to get them enough
coke to keep running. The probable
ity is also that some steel producers
will call on the Government to FUR
nish coke to operate their blast fur
naces, If they are to carry out their
ship and she'll steel contracts.
Fear Of even a greater shortage IN
pig iron has caused an active market
for delivery in the first half of 1918.
Some makers are withdrawing from
the market for the first half. having
sold all that they can deliver IT FUEL
conditions get no better. In Illinois
10000 tons of basic iron has been
bought, three fourths to come from
Chicag go and the remainder from
Southern furnaces. The 81 more that
must be paid for Southern iron Is
causing a greater pressure on North
ern furnaces to take care of Central
Western foundries. The whole pig
iron situation is growing more acute,
and Government intervention to Sc
cure prompt iron for castings needed
for war machinery is very common.
Lake Superior iron ore prices for
settled tendency In either direction.