New-York tribune., 1920-11-07
Steel Makers
Hope for Early
BuyingbyRails
Manufacturers Also Expect
Construction Work To Be
Stimulated by Confidence
lnstil1ed by the Election
Squirt Seen Next Spring
Further Price Cuts in PIG
Iron, Plates and Sheets
Are Reported
Specia, Dispatch to The Tr,b,,r.


PITTSBURGH, Nov. 6.-prices in
the Independent steel industry con-
tinue to fiuctuate slightly up and down
above the prices of the Steel Corpora
ton. an occasional order being taken
close to the level of the corporation,
but in the main remaining nearer the
premium level established during the
last eighteen months.
There is no sign of slashing prices
or OF any competitive market which
would lower prices to or under the
corporation level. The confidence in
the business future of the trade estab-
lished by the result of the election
tends to strengthen the market and
encourage hopes among the independ-
ent manufacturers Of an early move
ment being started in railroad and con-
struction buying. One leading sales
manager here remarked to-day that the
most that could be expected might be
reversion to the Gary dinners to
stabilize the market and restore prices
to a steady level. Operation is re-
ported generally at between 70 and 80
per cent.
Election Restores Confidence
Shenango Valley steel manufacturers
are confident that the election of Sena-
tor Harding will minimize the depres-
sion in the steel business which has
affected many of the plants. They,
however, do not anticipate any reopen
ing of mills now closed or specifying
against contracts now on the books
before next spring. One of the leading
manufacturers SAID: There is no
doubt but that the return of the Re
publican party to power will have a
beneficial effect on business and re-
store confidence. There are many com
panies contemplating great extensions,
and firmly believe that had Governor
Cox been elected this work would have
been abandoned."
Some readJustIlent from high prices
Of iron and steel products which have
prevailed, especially with the independ-
ents. and temporary let-down from
the high rate of production are to be
expected, but cannot be long continued,
as IN other industries like rubber and
automomiles," says A. +. Adams, presi-
dent of the First National Bank of
Youngstown, Ohio.
Iron and steel products are basic re-
quirements, he points out Of nearly
every form Of activity; there is little
accumulation of finished product, and
both domestic and foreign deferred re-
quirements are large. in addition to
heavy current needs. In view of these
conditions, he believes readjustment in
the industry should not be Of an espe-
clally serious nature.
Strong Financial Position
Strong financial position of all the
leading units of these industries is
another conspicuous factor in averting
possible serious read jUstmert cOnSe-
quences, he adds. Rubber companies in
some cases have been obliged to 60 to
extreme lengths in sacrificing manu-
factured product, plant equipment and
supplies in order to secure funds. No
such thing can happen to any of the
big steel companies, particularly in
this territory, he maintains, because
their officials have always kept in mind
readjustment possibilities and have
managed their affairs accordingly
Further recessions in prices of pig
iron, plates sheets and semi-tinished
material were recorded this week from
the Youngstown district. Iron is down
largely because of the sharp sag in
fuel prices, and basic is quoted from
$38 to $42, furnace. While the inflow
Of new business is small, some plate
tonnage has been placed at 2.S5c, which
tation for the past months. Blue an
nealed sheets are soft, with a range
from 450c to &c. Black, galvanized
and full finished are obtainable from
some of the newer markets on prompt
delivery. varying from ten to twenty
five days. The more esta blished sheet
makers, however, have their rolling
sche dulles more fully occupied, and one
interest is engaged for four months.