The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-13
SAY OPEN STEEL
MARKET IN SIGHT
Trade Opinions Now Coincide
With Those of Observers
Of Conditions.
REDUCTION LOSES EFFECT
Announcement Of Price Cuts
Caused Burst Of Sheet and
Tin Plate Buying.
Special DespatcA TO Tn SUE.


PrTTsBuRo. April 12-Iron and steel
men profess their belief that thers will
be an open market on steel products in
q very short time. Talk OF that kind
formerly came mostly from market OBJ
servers who were not connected with the
production Of finished steel. but now
they are Joined in their opinions by the
producers.
1t has been remarked here that the
refusal of the Railroad Administration
to buy at the prices recommended by
the Industrial Board has had an un-
expected influence. because at the best
the administration could hardly place
any large orders The reductions of
March 81 were expected to have a d.
rect influence on public buying, which
the small volume of orders since then
shows they did not have. Buying by the
administration. irrespective Of tonnage
placed, was expected to have a good eff
feet. The sentimental effect Of the re-
auctions Is lost. As to influence on the
public by administration buying, there
has been so much talk about the re-
fusal and reasons for 1t that IL by any
chance the administration should buy
now the public would consider the buy
Ing done under duress and would not
follow suit.
The Steel Corporations unified obli-
cations decreased 5s0.215 tons during
March. against decreases averaging 700.-
900 tons a month during the three pre-
ceding months. Shipments in March can
be estfmat ted at So per cent. of capacity.
against Sc per cent. in February and 81
in January. They are materially lower
than estimated production, as the cor
poration has been restoring stocks in
various lines. including heavy rolled
products carried In deta ched warehouses
and stocks Of tubular goods carried at
pipe mills.
sheet and Tin Plate Gain Small.
The Increase in stocks of sheets and
tin plates is reported to be small. The
March decrease in untitled obligations
represented about As per cent. of the
months capacity, and with shipments
at 81 per cent the bookings appear to
have been about 81 per cent While
that percentage seems small, It Is really
large. considering how stagnant business
was during the month. There was hardly
anything apparently in the first three
weeks. When the price reductions were
announced as effective on March 81
there was a burst of buying. but 1t was
distinctly mild In character and gen.
orally regarded as not having made up
for the almost complete cessation Of
buying in the three preceding weeks.
1t has become almost impossible to
trade In scrap. The recent furry, In
which few customers OF heavy melting
steel bought at advancing prices up to
a possible S17, caused holders all along
the line to get exalted views as to the
prospective value OF scrap. while the
failure of the Industrial Board to in
duce the administration to buy steel
Mt the slightly reduced prices of March
FL has caused consumers to withdraw
entirely as buyers. The result Is no
bids, except very low ones. and high
asking prices. One can sell scrap at
about 81 less than he is asked to sell
Il for. Scrap prices will descend with
demand for steel rather than with steel
prices.
Pig Iron Producers Not Pleased.
Sheet mills can be said to be operat-
ing at about SIS per cent. of capacity
and there Is hardly any difference in
that respect between the big corporation
and the Independents. Present opera
tons are sustained in part by current
bookings and in part by old business.
on which regular deliveries are being
made, and unless buying increases there
will be some decrease In operations as
old orders play out. Mills that have had
a fair rate OF operation since the sign
ing OF the armistice have no objection
to a period of light operation, since they
have important repairs to make, but
mills that have been short of orders
for some time past have made all the
repairs they care to make at this time
and are eager to book more tonnage
Merchant pig iron producers are dis
satisfied at the various turns Of the
fms he ~ 70 IT, M
the open market for pig iron. mentioned
previously as a distinct possibility for
the near future, is looming larger on the
horizon. The complaints OF the blast
furnaces are Of a varied character, some
furnace men maintaining that prices
are too low. others that prices are too
high. There is no unanimity in the feel
ing regarding regulation. particularly
as to the fixed bases between districts.
some saying 1t regulates too much by
fastening artificial conditions on the pig
iron market, while others claim that II
does not regulate enough, by failing to
provide flow of orders.