The sun., 1919-03-10
'RUMOR SAYS STEEL
PRICES IN FOR DROP
Question Is Whether Producer
Will Fix Price or Wait
for New Board.
DECLINE BOUND TO COME
British Would Confer With U.
s. Manufacturers on Export
Trade Regulation.

PTrTsBURG, March e.-The past week
began with a new steel price rumor to
the effect that there Will be a consider
able general decline in steel prices In
few days. The point. no doubt, is
whether the producers wish TO have
price reductions under tho auspices OF
the not fully organized Industrial Board
Of the Department of Commerce or bring
about declines purely upon their own
initiative. Price declines must come
and the chief question Is the circum-
stances In which they occur, It appears
that those who expect declines have
something IN mind between IS and $40
net ton. possibly heavier in some com-
modities than in others. II reductions
are not to be horizontal It Is probable
that they will be heaviest in the COM
modtie that OF late have been least ac-
tive and lightest in those in which mills
have a fair operation.
Inactivity has characterized tho iron
and steel scrap market during the past
week, and while moderate volume of
trading might havo resulted in material
change in prices. as it was little change
occurred In auotable values from those
given a week ago. Consumers continue
to show practically no interest in the
market. and IL they are operating on
stocks It Ia remarkable that IN view OF
the widely reported scarcity OF scrap dur
ing the war they have such stocks, 1t
Is known. OF course, that some works sc-
accumulated more scrap than others by
paying what amounted to premium
through accepting heavy melting steel
under the designation OF unguaranteed
low phosphorus.
Such mills experience A very oonsid-
cradle loss, but even dealers who partic-
!pated so generally in the transa ctions
DO not express much sympathy for them.
According TO some reports machine shop
turninge are stronger and the upper limit
on this grade Is raised so cents a ton.
Scrap May Go Higher.
Generally speaking the list as a whole
appears to be weaker. but prices are so
low, particularly compared with pig iron.
that an early upturn easily may happen.
One should not be surprised II prices go
higher two or three weeks hence, nor
unprepared to find a lower Level.
In finished steel products small lot
buyers are beginning 10 wonder how
long the jobbers will be able TO maintain
the wartime differential for shipment
from stock over regular mill prices. Thus
far tho majority OF the jobbers have
maintained the full dlfferential. which Ii
one cent a pound on most products, with
cent and a quarter on galvanized
sheets, light gauge black sheets and
shafting.
The position OF the jobbers Ia made
somewhat difficult by the fact that mills
can ship very promptly. Not a few OF
them are willing TO make less than car
load shipment.
Some OF the sheet mills have been go
ing after that small trade. Others re-
fuse to do 80. There are extreme cases
OF jobbers reducing former margins. one
Instance Of which Is that some Pittshurg
tobbers have made less than carload lot
sales OF merchant bars at Sc, which
Is IS. instead OF $40, ton above the
recognized mill price, 2.70c., a remark
able divergence. but there Is adequate
Information that such transactions have
occurred.
II is remarkable that we have 10 get
Information about our own iron and
steel affairs from foreign journals. Brit
ish trade papers declare that their iron
and steel makers have extended an in
vitaton 10 American manufacturers 10
Join in conference looking toward regu-
lation OF export trade. 1t Is believed
that Mr.. Farrell and Mr.. Clarke and
one or two others OF the American iron
and steel export trades are anxious for
an interchange OF opinion leading tow
dIu an uTneTSlAldlTl&.
Mr.. Clarke is mentioned, no doubt, be-
cause he is president Of the Independent
steel EXPORT organization, the Console
dated Steel Company.
Largely between Britain and U. 9.
l. is remarked that at tho time of
the Brussels conference on July and 6,
1911, there were many questions to con-
slider. Now II is almost wholly a ques-
tton OF agreement between Britain and
the United States. Germany and Rus
sfa are more or less out OF II France
and Belgium are going TO be busy with
their reconstruction work
The meeting OF iron and steel pro-
duCers and others deeply interested in
iron and steel prices held in New York
on Thursday showed nothing new TO
traders IN this district, who all along
have believed that tho producers show
OF opposition to the Redneld plan was
only for prudential reasons and that
they were really in favor OF the views
OF the Secretary OF Commerce relating
10 the fixing of iron and steel prices. II
must be remembered that tho Industrial
board OF the Department OF Commerce.
which will represent the Government in
the matter. will not Ak either minimum
or maximum prices. The War Indus
tries Board prices were maximum. The
coming prices will not be maximum nor
will they he minimum. in that no rule
will he laid down for sellers.
Iron and steel men here profess to see
serious dangers in the Redfeld plan, one
danger being given that the plan might
be operated 70 maintain wages II cir
cunlstRnces and particularly the cost Of
living. should warrant a decrease An
other danger is continuing the operation
too long or into the period in which tho
market will be able to stand by itself.
As temporary expedient it is regarded
here rs n good thing on the surface. but
traders will not enthuse until results are
noted.