The sun., 1919-02-02
Producers Of Unfinished and
Finished Metal Are Acting
With Caution.
LITTLE BUYING REPORTED
Steel Corporation Said to Be
Operating at 80 Per Cent.
of Capacity.

pear TO be holding with absolute firmness
tll along the line in unfinished and nm
she'd steel. Producers are careful, and
4 is clear that they recognise that the
market is not to be tempered with. The
mills are not Indifferent to the POSSIBLE
tiles OF the case. and are watching 1t
closely. While they do not expect
cutting they want to be absolutely
sure that, II by any possibility there
should be cutting, they will become ac-
quainted with II Immediately.
II is considered that II there should
be cutting II would establish at once
uew market basis or precipitate series
o; declines. While there has been very
little buying. particularly OF size to off n
temptation to sellers. buyers have been
somewhat surprised at the stiffness of
he market. They find It impossible
10 bulge producers from quoting the
iull recognized prices all along the line
While some steel mills are operating at
much higher rates than others, II does
not mean that there Is shading OF prices
The mills are in different circumstances
rs to character OF business on books.
All discussion Of the new form of steel
contract has conveyed doubt as to
whether II would be put In force In the
steel trade and what has occurred con-
firms the stand taken by experts. that
mills were !ndisposed 10 adopt the con-
tract Steel sales managers are becom-
ing convinced OF that fact In many
quarters Is expressed the view that. while
10 radical change In the form OF con-
tract is to be made, there Is likely to be
a great reform In selling methods where
by mills will not sell for such long pc
riods ahead as formerly and will make
more effort TO contine their sales TO ton
mage which they can produce ana their
customers can use, The business gong
is In the form of shipping orders and
purchases are only OF material 10 De
shipped and used at once.
It is reported that the United States
Steel Corporation subsidiaries are put
ting large quantities OF numerous de-
scriptions OF finished steel into the
Corporation warehouses. which until
lately have been bare OF stocks. II II Is
true to the extent reported. it would
go far 10 explain the reported discrep-
ancy between mill operations by the Steel
Corporation and the independents
Operates at 90 p. c. OF Capacity.
It IL said that the Steel Corporation
as a whole is operating at about 30 per
cent OF capacity. whereas the average
II operation Of the independents Is only
so or 65 per cent. OF capacities.
Some independents are running at DO
Der cent less. particularly those In the
East. while few, II any. are operating
at more than 20 per cent The Steel
Corporations policy Is regarded as dis
-ir,ctly economical. 1t Is urged that. as
costs are { n5 down. 1t Is expensive
20 stock stu,., but costs are hkeiy 10
cine down very slowly and steel would
Nm
operation Of SIS or 80 per cent is much
more economical than one at 50 or 80
per cent Very few of the independents
lave any warehouse capacity that Wouid
count in such an operation.
There Is very little business in scrap
hut some talk has sfted through 'hA
channels OF publicity that definite idea
II values can be formed In heavy melt
ing steel scrap. for Instance, II has been
made quite clear that dealers would sell
nj least In a limited way, at SIS, while
he highest idea to which consumers
AVE committed themselves Is SIS. II
appears that a fair tonnage would be
sold II SIS were bid, while consider
able tonnage would be absorbed II deal
ers would quote SIS.
There were reports Of sales being
made at s17. delivered Youngstown
which might suggest that occasionally
BUYERS and sellers can get together al
no half way point. Possibly the mar
ket might be fairly quoted ct s16 to SIS,
on the basis Of bid and asked figures
Nut consumers evince such indifference
NJ the moment that sls may not be the
highest bid they would make II really
Interested. hence the market can be
quoted al ST. TO SIS.
Reports have been going out Of Pitts
burg that nearly 200 coal mines In the
district are closed for lack Of orders
Nut Investigation proves this to refer
mostly to wagon mines. many Of which
closed long ago. They never do expect
70 exist in normal times, except for To-
al trade. The Government price OF
sass net tone for run Of mine means
that few mines can run at anything be-
Qw Government limit
One feature OF the situation Is that
'he coal mining companies are in good
financial condition, and do not have to
operate In order to make showing to
he banks or to keep their accounts
moving They can close and stay closed
without Inconvenience. The miners are
comfortably fixed with savings and with
5000 credit, so that operators 'r''
. is no hardship to close foy a :. y
weeks The opening of the lake ship
ping season. which Is not far away, I'M
doubtedly will improve thu situation
materially.
Wire Products Demand Grows.
The demand for wire products is
growing and nails even are referred to
iA some quarters Is scarce. due not so
much to heavy demand as to there be-
ing practically no stocks and the cur
INT rate OF production being relatively
AsN-
operating at more than GO per cent. OF
capacity. while some are operating at n
much lower rate, and the average opera
lion OF all wire mills Is hardly more
than so per cent Of capacity.
The leading interest Is understood 20
20 building up its warehouse stocks
'rhch had reached very low ebb Ions
before the war ended. and Its warehouse
capacity IL, OF course, very large, Re-
cent reports that the United States
Government had a surplus OF 100000
regs Of nails which might he dumped
On the barket, IL denied by a state
inent sent out by the Chamber OF Com
rnerce OF the United States. showing
s22 kegs as the Governments pres
ent stock.
The pig iron market continues frn
at 90 reduction from Government prices
There are no cut price quotations, but
there 10 practically no inquiry to temp,
producers to make special prices. Ship
ments are fairly heavy against con.
tracts. but OF course not % heavy as ir
November or December. Here and
there a furnace may be pilins a littls
iron. but In general such Accommodations
will be avoided, furnaces blowing Out
II they cannot ship their product.
The Connellsville coke region hal
NJ AaA no - IA.