The sun., 1919-05-15
FEELING IN STEEL
TRADE IMPROVING
Open Market Resulting From
Exit Of Industrial Board
Has Salutary Effect.
FREES BUSINESS HELD UP
Administration Not Expected
to Buy Rails for Less Than
Boards Figures.

The dissolution Of the Industrial
Board and the resultant open market for
steel and steel products have brought
about an unmistakable better feeling
In the industry and the steel market.
according to weekly reviews Of the steel
trade. The calling by the Railroad
Administration for bids on steel rails
has added to the interest In the market,
and the general expectation Is that its
purchases will not be made at lower
prices than those approved by the In
dustrial Board and which were rejected
by the administration.
There Is no installing the better
FEELING in the market" says the Iron
Age, following the dissolution of the
Industrial Board and the freeing of the
price situation from Government mud
ding. As at the original announcement
OF the March 81 price, this last develop
ment has brought the release of some
business held up for several weeks
In view OF the formal inquiry of the
railroad Administration for 200, 900 tons
OF eighty to 1870 pound rails, bids to be
IN by May II, much interest is taken
In the prices that will be named. There
Is little expectation OF lower than SAT
at mill for open hearth rails, which has
been the stabilized price, and the fact
that 800 FOR bessemer rails and $50 for
open hearth has been named on a
domestic inquiry for ALSO tons In the
past week points to the possibility of
at least one equally high quotation on
Government business
That railroad buying before the end
OF the year will be on a considerable
scale Is more confidently looked for. as
largely Increased appropriations are dis
cussed.
Price Cutting Not Looked For.
The steel manufacturers, having told
the Administration that no further re-
duction could be made on railroad steel
unless wages were reduced, are not ex-
pected to go out and signalize the new
situation by price cutting. While ad-
vances would be surprising, with opera
tons still as slack as for several weeks
an Eastern maker OF wide plates has an
nounced a price Of s2,75, or 50 a ton ad-
vance. There is also a quotation of
1880 ton higher on light rails. for
which considerable export inquiries have
come UP lately.
ION the other hand. some price cutting
has gone on here and there. Line pipe
has been irregular. though on oil country
goods the market has been active, with
prices generally maintained. A leading
pipe mill has shipped but slightly less
product this year than in the frst four
months Of 1918.
AN increased demand on the mills for
ship steel Is foreshadowed by the Presi-
dents cabled permission to the shipyards
or the country to accept contracts for
foreign account as far as this can be
done without interfering with building
the American merchant marine. British
yards have taken some large orders
lately for Norway"
The Iron Trade Revteto also takes the
position that the removal of stabilized
prices and tho return to- open market
conditions has been received by industry
generally as very favorable develop
ment AS the iron and steel market
takes its bearings under openly competi-
tive conditions" the review states, little
has occurred to modify the situation
which existed during the last six weeks
under the so-called stabilized prize
regime, New business still runs light
and mill and furnace operations are at
low ebb. However, sentiment has bright
ened in practically all quarters.
New Conditions Meet Approval.
THE abandonment of the stabilized
y
faction because II terminates every form
of Government regulation and removes
the long drawn out Washingtontc ontro-
versy as a conspicuous factor OF dis
turbance and uncertainty There is
general feeling that the industry is much
closer to recovery and sound business
than II could have been had the Govern
ment price plan prevailed.
Authoritative advices on the export
situation accent the probability that the
bes. trade for this country In iron and
steel is to come from neutral markets.
The extent to which continental Europe
will compete against or buy steel from
the United States Is complicated by high
costs of production. British steel max
ers are very receptive to suggestions of
closer alliances with American produc-
ers in the worlds trade.
THE market has brought forth no
signs of fresh price shading in steel
products and makers insist that the erst-
while agreed schedule Is minimum. One
important Eastern platemaker has ad-
vanoed Its base price to 2.75c. Pitts
burg and takes the attitude that It does
not want large tonnages at this price as
II expects to advance further. On the
whole, steelmakers generally. while will
ing to book forward requirements from
such customers as normally are in the
habit of buying ahead. due to the nature
of their business. are averse TO booking
large tonnage for forward delivery at
present prices. Some makers have taken
the stand that they will not book deliv-
cries for more than three months ahead.
Sales OF pig iron, which had dropped
almost to the vanishing point, have
been slightly better during the past
week and particularly in the East. The
market has better tone. In proper
ton to the tonnage OF merchant pig iron
capacity in blast April bookings were
probably as low as ever known"
COFFEE MARKET.