The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-29
ALL STEEL LINES
| HAVE IMPROVED
Developments in Domestic and
Export Trades Show In
creased Demand.
CONFIDENCE RETURNING
Automobile Companies Close
Big Orders-Rail Inquiries
Are Coming In.

authorities on the steel market in
their reviews Of the weeks business.
published to-day. disclose interesting
and important developments in the do
nestle as we'll as in the export business.
Ihey agree that the demand for steel of
all kinds has improved during the
week and cite heavy orders closed by
automobile companies and large inQuir-
les for rails for export as proof
The Iron Trade Revie,o says: "Anoth-
er week of revived buying and inquiry
on a broadening scale points to the sub
stantial character Of the change in the
tenor or the iron and steel market. In
some products the tonnage closed with
the mills during the past week has been
the heaviest since the armistice. The
disposition OF buyers to place contracts
Tor three to six months ahead continues
TO grow. further demonstrating the re-
turning confidence in the stability of
present prices and standing out as the
paramount development In virtually
every finished product the quickened
demand has been plainly displayed.
I'm wire products the past weeks
buying has been the best In several
months, and new business at present
Is estimated at the ratio OF SIS per cent.
OF capacity. More steel bar consumers
have covered their estimated needs to
October I. and a large tonnage Is under
negotiation. The bar market now leads
all others in point Of breadth and ton
mage.
Placing OF the 100000 tons of rails
by the Railroad Administration IL taken
to indicate the imperative cha raoter of the
demand. It develops that the Railroad
Administration also recently placed 5000
tons of plates with the Steel Corporation
Co AL
2.65 cents. Pittsburg. The Railroad Ad-
ministrat Ia expected to place ad-
ditional orders shortly for locomotives
and Is expected to mako other pur-
chases.
Inquiry for pig iron from the gray
iron and malleable foundry industry
has undergone considerable increase.
moro liberal tonnage also has been
converted into orders. A large tonnage
of pig iron has been sold for export
during the past week, but the sellers
are not ready to have the details an
nounced.
Export rail inquiries are quite nu-
merous. including 10000 tons for India,
10000 tons for Scotland. 10000 to
10000 tons additional for Japan, 5000
tons for Italy and 5000 tons for Bel
gium. The speculative end of the
steel industry. namely, the scrap iron
and steel trade, feels bullish. and deal
ers In scrap although not enjoying very
heavy sales at present. regard present
prices as low and are accumuls ting
stocks Of scrap IN the expectation Of tax
ing profits later
The Iron Age says: Demand for
steel has improved measurabiy and SEN
timent throughout the trade has turned
for the better. Some of the change ia
due to the failure Of the Railroad Ad-
ministration to break the price OF rails
and to the belief that the 100000 tons
grudgingly placed must be followed by
n much larger amount. Here and there
slight reductions are made from the
March Fl schedule on finished steel. but
manufacturers generally have been firm
er than buyers expected them to be.
Predictions OF lower prices are now
less frequent and less confident. Yet
there Is thus far no distinct improvement
in the scale OF mill operations. The
business of the past week is thought
much of because the trade has got on so
long on so little.
Significant contracts are those Just
closed by two large automobile COM
panies, one amounting to more than S00,-
600 tons of billets. sheets, wire and
tubes, on which deliveries extend into
1920. A third motor car builder IL now
in the market for q large tonnage. While
no formal guarantee of prices was made
on these contracts they are considered
to be subject TO revision on undelivered
portions II the market declines.
More buyers have come into the
market IN the past ten days seeking to
make contracts for sixty to ninety days,
whereas hand to mouth buying has been
their rule for six months. A 5000 ton
sheet bar contract Is an example.
THE Railroad Administration has
bought under protest the 400. 900 tons OF
steel rails on which bids were taken
May II, paying SAT for open hearth
rails. the price named by the Bethle-
hem. Lackawanna. Colorado. Carnegie,
lllirois and Tennessee companies. The
M!dvale bid was S57 for open hearth
and s55 for Bessemer rails. The Lacka-
wanna and Bethlehem awards were 40
900 tons, while the Colorado mill re-
ceived 10000 tons and the three Steel
Col operation subsidiaries 1905 tons.
1T Is evident that urgent needs of
the railroads have been ignored while
the Director-General has been fighting
to break the steel market, since delivery
of all the 100000 tons in sixty days Is
called for and more than fifty lines will
share in the order. an average OF 1000
tors each. Further buying Is looked for.
as legitimate needs are put at u million
tons more"