The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-27
STEEL HAS SIGNS
OF REAWAKENING
Initial Response of Buyers to
Reduced Prices Is Cause
Of Encouragement.
OPERATIONS DECREASING
Producers and Manufacturers
Show Willingness to Work
for Stable Market.

~ "
while there has not been any great
anfiux OF orders for steel and steel prod.
ucts as a result OF the recent out ir
prices what new business has come In
following this reduction 10 looked upon
IS q very favorable development In the
steel trade. Tho only question. accord.
ing to the IRON Trade Revto,o, Is "tus,
what part OF this business represents
the requirements held back in recent
weeks by the announcement OF the Gov
ernments establishing plan and what part
actually is stimulated new enterprise
That the Government itself will accept
the new prices for Its huge needs in it,
various departments Is considered likely,
considerable encourayeme Gays
the Iron Trade Reieto, lis being derived
from the initial response of buyers 70
the reduced prices in iron and steel
While the market scarcely has squared
itself to the new basis and secondary
price adjustments still are running their
course a very noticeable tonnage in fin
ished steel is being released to the mills.
At the same time 1t remains to be shown
lust what part of this business repre-
sents the requirements held back in re-
cent weeks by the announcement Of the
Governments stabilizing plan and what
part actually Is stimulated now enter
prise.
Structural steel supplies the clearest
example OF reawakening activity, as
various projects which have been DOR
1nant and some new undertakings are
being brought out for figures To the
very vital question whether the Govern
ment Itself will accept the new prices
Tor its large needs, especially for those
of the Railroad Administration and the
Fleet Corporation. indications point to a
favorable answer.
A cooperating committee representing
the different Governmental departments,
which Is working with the Industrial
Board. has recommended the adoption
OF the new prices by the various pur-
CHASING officers of the Government
Abolish Common Iron Bars"
Eastern makers OF bar iron have de-
cided TO abolish the term common iron
bars which heretofore has been the
base grade Hereafter the base quota
tons will be on refined iron bars. The
new price on refined iron bars is 2.85
cents Pittsburg a pound. which repre-
sents the total reduction Of $3s a ton on
iron bars since December 81. Certain
important changes In extras also have
Since the reduction OF $<.25 in Dig
iron prices was in line with expectations
the only protest heard from pig from
makers Is that with respect to the pres
ent basing system As result Of the
announcement OF last Friday tho basins
OF Eastern iron at Pittsburg and South
ern and Virginia iron at Birmingham
continues, while other makers sell on n
furnace basis. This situation carries
with 1t certain peculiar Inequalities. For
instance, the furnaces In the Alleshany
MountainA which are quoting on q fur
mace basis, take a $3.50 freight rate to
philadelphia, as against $3.50 from
Ptttsburs to Philadelphia so that the
Allegheny Mountain makers can sell the
base grade Of foundry at S2s55 delivered
Philadelphia, where the Philadelphia de-
aivered price on eastern Pennsylvania
iron 10 S30.65 In the same way. Vir-
ginia makers, whose freight rate to
Philadelphia is s4.10, must quote s33. rs
delivered Philadelphia on the present
schedule because the freight rate from
Birmingham TO Philadelphia is $3.50.
A moderate amount of new business Is
expected to be produced by the price cut,
In the opinion OF the Iron Age, which
says in its weekly review of the iron
and steel situation: THE opinion Is gen.
cral in the steel trade that the reduced
prices announced by the Industrial
Board at Washington on March 20 will
bring out In the near future a moderate
amount of new business. most of which
buyers have held up since the stabilizins
movement doomed up six weeks ago.
VIII Cooperate with Government,
The reductions range from s425 a
ton on pig iron and IS on billets to SO
on standard rails. and amount to 81 per
net ton on plates, shap bars, wrought
pipe, sheets and tin plate and TO IS on
wire. wire nails, hoops and light rails
Eastern bar iron makers have met the
reduction on steel bar. dropping their
price from 2.90c- to 1850. Pittsburg.
Willingness to cooperate with the
Government to secure a stable market
and the largest possible operation OF
iron and steel works Is shown both by
producers and manufacturing consumers
IL Is yet to be developed how far the re-
auctions will go !n stimulating a de-
mand over and above what has accumu-
lated and whether the new prices can be
maintained as minimum through the
year as proposed in the Washington
programme.
e The chance OF political interference
with the new movement has been IN the
minds OF some leaders In the trade. Al.
ready a threat OF the Sherman act and
of COMPRESSION investigation has ap-
peared on the horizon.
Operations at steel works have fallen
off In the last week. The Steel Corpora
tons Chicago district plants. which ran
exceptionally we'll In February. are now
on an so per cent basis. In general in
dependent steel coR'paniAaaN averaging
80 per cent. At Cleveland a large open
hearth steel plant closed down last week.
THE pig iron trade Is In confusion
over the reduction OF s4.25. Contrary "a
long established practice in that trade
contracts were revised to the December
basis OF $50, but in some cases with the
proviso that that reduction was final. One
producer at least has announced this
week that the new price will apply to al
future shipments.
cleveland district blast furnaces have
decided to sell their iron on a Valley
basing. making the price OF No. foun-
dry iron $2s.15 delivered
"A strange feature of the Washington
announcement is that II iron ore for
1919 Is lowered there shall be a further
reduction in pig iron. Yet more fur
naces are going out because s25T5, the
new price, Is below their cost"
EARNINGS STATEMENTS.