The sun., 1919-04-20
STEELPRODUCERS
LACK CONFIDENCE
Want of Faith in Demand Of
the Near Future Holds
Back Trade.
WAITING FOR PRICE CUTS
Automobile Needs Keep Mills
Manufacturing Sheet
Fairly Busy.
Special DcspatcA TO TIE suS.

PIrTsBuRd, April 19.-Iron and steel
men expect an open market pretty soon,
although they are not taking any steps
to bring it about. even when It is well
known that two or three producers can
start the ball rolling by cutting prices.
This would quickly spread all over the
industrial field and the example would
De followed Immediately by other trad
ers. IL seems to be the general belief
that the only way to get the buying
public to take hold is for prices to be
cut. But men on the inside say that
cut Will not be made before June.
The main difficulty at present seems to
be the lack OF confidence In the imme-
diate future OF business on the part Of
steel producers. who do not seem to be-
Iieve that conditions in the very near
future predicate wide demand for steel
or they would reduce prices to tho re-
CURED level hurriedly in order TO get
business Then II prices were entitled to
advancement the demand would bring It
ABOUT With the industrial etagnation
existing. mills are operating at 20 per
cent. Thus, with revival I'm business
the mills would be operating at fun
capacity very soon and even get behind
In filling orders.
The automobile trade Just now is the
backbone of the sheet trade, the mills
making specially OF the sheets required
Tor automobile purposes being kept fairly
busy. Iron and steel men are looking
TOT an opening UP OF railroad buying
which is negligible very soon, but which
must brighten up II the railroads are
TO render good transportation service to
the country. 1t Is not likely that any
thing definite will be done until Con-
sress decides on conditions under which
roads shall operate.
Finished steel IL Dull.
The finished steel market shows no
increase in activity and can be described
as very dull. And yet considerable
amount OF business IL being booked
With steel production at a 10 per cent.
rate OF capacity, current bookings are
far under that quantity. but a great deal
OF the production Is against old orders,
combined with little stocking of ma
terial OF certain descriptions of finishing
mills. There Is no great prospect of any
sTeat Improvement in steel demand. or
at least until prices are reduced further
Ihe mills are adhering to their old prices
put with quiet shading in some lines that
does not amount to much In dollars a
ton.
outside Of automobile buying the
sheet market Is dull and mill operations
are somewhat lighter than they were
Two weeks ago. averaging about so per
cent. of capacity this week II is DIM
cult to estimate mill operations in the
sheet trade. as the mills are doing a
hand to mouth business, and sometimes
start the week running full and finish II
WIN two idle days. Sheet prices are
SAID 10 be firmly maintained. There. is
considerable shading In formed prod,cts
whereby the shop without mill connec-
uon is at a disadvantage when paying
full market prices for fiat sheets
Tin Plate Operations Heavy.
Operations in tin plate are heavy,
which comes as n surprise to the trade,
which predicted thirty days ago that
they would fall off. Consumers are not
masking the usual provision for the flu
ture. but rather are buying In strictly
hand to mouth ia shion, and for that rea-
son light production was predicted
so FAR as can be sscertained prices arc
being maintained. which does not seem
to instil confidence in buyers
The independent mills. which for quite
whiie early In the year were running
only 40 to SO per cent. Of capacity. are
doing better. and may be averaging as
hish as 60 per cent. Their operations
are quite irregular. One large plant
this week operated at 10 per cent, which
Is better than 1t did last week. AS to
the leading interest 1t operated at about
80 per cent of capacity this week Even
with the present market sluggishness
there may be easily q distinct shortage
or tin plate In July or August Full
production at that time might not take
care OF the canning requirements. when
no provision II being made for the rush
except is is involved In the carrying
over OF stocks left at the close of the
war In the hands of a number of pack
ing can makers. Export inquiry for tin
plate is heavy. while actual booking Is
very light. One producer estimates
bookings at u per cent of the inquiry.
As an index OF what is going on by
way OF steel production the manufac-
ture OF ingot molds constitutes a good
barometer. indicating what Is coming
When steel mills expect heavier opera
lions they stock up on molda When
they see decreasing operations ahead
they run more on their spare molds. and
buy fewer a week than they wear out
A canvass OF the ingot mold manufac-
turers indicates that they are operating
Mt an average rate OF 20 per cent. of ca
pacity.