Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-04
PURCHASES OF STEEL
SOMEWHAT SMALLER
Lull Is Likely to Continue for
Several Weeks-COntract
Form Changed

View York. Jan. buying Of steel
products in the past week has been
somewhat smaller, but leading trade au-
thorities state that this was expected.
due to the holiday spirit and inventory
time, The lull is likely TO continue for
several weeks. some interests believe
although change in the policy of the
consumers might come about rather
quickly when sentiment changes
one of the important developments Of
the week was the announcement Of the
change in contract forms agreed to by
the committee on contract obi cations Of
the American Iron and Steel institute
This change puts lquidating damage
on both the buyer and seller in the
future and eliminates the unfairness
which existed in the past and which
gave th" consumer all the better of the
situation.
Reports have been in circulation that
some of the big independent steel COM
panies are about 10 make readiustments
on prices on old contracts. one PITS
burgh concern is aid to have virtually
arrived at decision to make an aver
age on all orders now on the books
Where this average falls below the new
established prices for products, the con-
tracts will stand as taken, but where
the average is above the present level
the new quotations will prevail.
This should work out satisfactorily
for many consumers. especially those
who have had contracts on the books
of makers for a long time Some OF
these contracts were placed at unusually
low figures. while others were AT the
highest on record, and an average to
ahcut present quotations would work out
TO the satisfaction of the user.
Another independent steel company is
reported 10 have quietly notified it's Gus
toners that the new prices Will prevail
on all shipments made in the first three
months OF this year, regardless OF the
price prevailing at the time the orders
were taken.
On the other hand. a number of the
small high-cost companies are planning
to try to hold their customers TO their
contracts, but whether they Will sue
coed will depend entirely upon Just how
urgent the requirements of the con
Sumers might be- or on how far tho
policy of averaging prices win spread.
Not all the steel companies are max
ing any changes in old contracts. ON
good orders it is likely that the new.
b established reductions will be named
hut on all other business there is likely
to be some controversy as to the price
These matters will be- worked out in the
future.
Some increase in the business iu scrap
material has been noted, but al the
expense of prices. Heavy melting steel
scrap has sold In the east AT $l9 to S.o
per ton delivered against So TO $23
per ton "a week ago. and $50 per ton
the Government fixed price up TO the
end OF the year. The market Is weak
4 number Of the leading scrap dealers
are predicting still lower quotations. be-
cause they can only see many prOuucts
coming to the market as a result Of
the shutting down of manufacturing war
products However. in other quarters
there is better feeling and these inter
ests are looking for a much quicker re-
adjustment than will take place IN fin
ished steel products.
Principal producers Of ferro-man
ganese met here during the past week.
and expressed the opinion that Sg25 pei
ton would be "A fair level for ferrO-m
ganese at present. although no agree
ment was reached that could he con
sidered as price fixing. The new nom
inal quotation is S25 per ton under m
Government fixed price which has been
quoted right along.
Resales of ferro- o-mauganese are re-
ported to have been made in the last
DAY or two at S2l5 to S22U per ton. and
the actual market must be considered al
about that figure Domestic mdnganes.
ore is quoted nominally at 81 cents per
unit, a proporti ionate reduction. but no
business is being done.
Eastern bar iron makers held meet.
ing during the past week and decided "a
hold prices unchanged at present because
of the high cost Of manufacturing and
ha In fFt1ss for. l.ar