The sun., 1919-01-09
STEEL BUYERS ARE
STILL HOLDING OFF
Incoming Business Continues
Below Normal Awaiting
Price Fixing.
FOUNDRIES NOT ACTIVE
Consumers and Producers Are
Engaged in Contest to Tire
Other Side.

The volume of business during the
last week In the iron and steel trade
has shown a slight increase, according
to the weekly trade publications. which
ind that the incoming business is still
greatly below normal and that buyers
continue to hold of. awaiting a further
readjustment OF price schedules. A few
companies are operating at SIS per cent.
OF capacity, but the general average Is
nearer So per cent. at which rate the
production Is equivalent to about 90 per
cent of the capacity OF four years ago.
The Iron Age will say:
Consumer and producer are each set
Ting down to contest to tire out the
other. The one is convinced at present
that prices will go lower. The other
claims 1t would be disastrous II they
did unless wages arc reduced. But labor
reimbursement. except through the long
Grawn out process of men bidding
against one another, is not as yet con-
sdered. The increasing needs must be
shored up by the buying element Of the
market and an answering adherence to
present price schedules will have to DOM
mate the selling element to maintain the
deadlock
"Revisions of steel contracts to pres
ent levels have been made, even on ma
terial for specific projects, but gener-
aiS uioJ represent COHCtsslOnb III return
for greatly delayed deliveries last year
and to jobbers and fabricators for re-
sale. Reductions of sheet contract prices
on sales under the presumably ironclad
contr1 cts peculiar to that trade weaken
the chances Of wide introduction OF the
recently approved form Of the general
iron and steel contract.
Some Pig Iron Reduction.
I'm the pig iron market the tendency to
reduce prices on undel!vered tonnages is
noted in some districts. as In Cleveland.
where one company Is freely revising
contracts. but many large sellers have
not yet decided TO follow this policy ex-
cept in rare cases. and a compromise
frequently adopted is TO extend deliveries
Instead OF granting cancellations or price
revis!ons. Many foundries have little
business on hand and are not confident
as to prospects.
Export business Is developing slowly.
due to questions OF price and also to the
scarcity OF ships and high freight rates.
The United States Shipping Board has
begun to release ships for commercial
trade. but II Will be some months before
the number will be sufficient. What Is
regarded as essential is some interna
tional pooling Of shipping so that ships
leaving here may be assured OF cargoes
on continuing voyages. In no other way
is explained the making OF ocean rates
from United States ports two and three
times those from British ports, a condl-
ton which puts our exports at a decided
disadvantage. A reduction of rs or 80
per cent in vessel freight charges has
certainly not stimulated an export move
ment
The pig iron production OF 1918 was
3S.506.249 tons. The December output
was s,433.6l7 tons. or 110.76a tons daily.
and thus at an annual rate of 40.42S.0 900
tons. but there were Ave months OF last
year in which a higher rate was main
tanned. The momentum of war effort is
responsible In part, for December. 1918.
exceeded the existing December record,
that OF 1915, by 1929 tons a day. The
severe winter of l917-l9lS cut down the
years total. The November daily aver
age make was SOC tons.