The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-28
PRICE CUT FEATURE
OF WEEK IN STEEL
Bic Independent Slashes Bar,
Shape and Plate Values to
Boards Levels.
EXPECT MORE REVISION
Little Business is Offered and
General Demand Awaits
Trade REIMBURSEMENT.
EXPECT MORE REVISION

Special Despatch 10 THE NEW York fiERALr
PiTTsBURG. Nov. 27.--The feature OF
the iron ard steel market this week was
the announcement yesterday by the
Jones & Laughlir steel Company. one
of the largest OF the Independent group,
that they had adopted new low sell
ing price on bars. structural shapes and
plates, coming down to the industrial
board level, which had been adhered to
by the United States Steel Corporation
since their induction by the board in
March, 1919. Those prices are: Bars,
$2.35; structural shapes, $2.45, and
plates. $2.65, base Pittsburg. They
have gone into effect, and It is said that
other price adjustments will be an
nounced later. The Jones & Laughlin
company has been slightly under the
high prices of most of the Independents
during all of this year, and the further
reduction in their schedule, although not
expected in the trade. has not caused
much of a surprise, and certainly no
furry in the market.
1t has been known for considerable
time that the independents were grad
ually running short of business and
that production has been decreasing
sharply week by week. The leading in
terest's business holds up very well on
account of their prices having been ia
vorable to buyers, but even the Steel
Corporation has received some cancel
lations. Predictions are that by the end
of the year the Independents will be
operating at very low rates and that
some plants will be closed entirely. So
little business is being offered In the
open market that the independents, ex-
cept the Jones & Laughlin Company, are
not getting down to the United States
Steel Corporations prices very rapidly,
idleness being acceptable as inevita BILE
because price cutting would not fill any
mill at this time
With the announcement last week by
the United States Steel Corporation that
no change would be forthcoming in it's
price schedule there was no chance OF a
compromise between that corporation
and the independents. The most favor
able item for an advance was rails, but
1t is made now clear that that corpora
ton will place prices of S45 for besse-
mer and S47 for open hearth rails
against various reservations that it mas
made in the last few weeks for 1921 roll
ing. It is understood that railroads had
expected to pay at least $50 for open
hearth rails.
Men in the industry feel that there
can be no general demand for steel un-
til Industrial and financial conditions
are thoroughly readjusted. Eventually.
with q sufficient reduction in the cost
of living, wages in the iron ard steel
industry may come down somewhat, but
what the steel industry particularly de-
sires is reduction I'm the cost or con-
suming steel, and especially reductions
in costs in the building trades.
Pig iron has been declining sharply
in the last two months and every one
expects that it will decline further, but
no one knows what the bottom price will
be or how much time will elapse before
1t will be reached Hence the average
price of pig iron during the first half of
the new year is in great doubt. In such
circumstances consumers and producers
prefer to deal on a ratio basis, aithougF
It is possible that within a few week,
the situation will be so clarified that
some fiat price contracts VIII be put
through. During the last week basic
pig iron. on which ratio contracts for
coke are usually based. has declined
s3.50 to S35, valley, at which figure there
have been free offerings and no sales Of
consequence Bessemer has been offered
down $3.50 without finding takers to any
extent. on a 500 ton sale foundry iron
dropped 81. The market is quotable as
follows: Bessemer, $3.50; basic. S35 ;
foundry, 500.
The spot coke market is being sus-
tanned by the coal market, which has
turned sitter In the last two weeks.
There has been no decline in furnace
coke in the last week and although there
has been a decline of so cents in foundry
coke that Is TO be regarded merely as a
narrowing OF the spread that was bound
C. occur and is perfectly natural
Foundry Coke Declines.
There has been a general decline in
foundry coke, which Is quotable at $3.50
TO $40. and furnace coke is quotable AZ
$3.50. There is little active negotiating
for furnace coke contracts for the first
half of the new year, but the subject
is very live one and is being discussed
with great interest by producers and
consumers There would be more nego-
tiating II the respective parties were not
in such great doubt as to what would
prove to be q fair price.
There remains an unusually light de-
mand i'm the market for universal and
sheared plates, which has caused n fall
ing off in working operations. The lead
lnk - Sdlu W bt ldhu6 buSillttS
from it's regular customers at It's price
OF 2.65 cents, base, Pittsburg. and indie
pendents were reported to be accepting
that figure outside Of this district. Fur
Their softening has developed In the mar
ket for structural shapes and Il has
been indicated that an attractive speci-
hcation would develop n quotation con-
slderably under 3 cents. base. Pittsburg
According to reports. fabricators now
are basing what few estimates they are
making on the 2.i5 cent level the Car
negie price Structural mills have n fair
sized amount OF backlog business on
their books and are able TO maintain
operations at about 75 per cent. of ca
racity. but the current market is so
duh that they are showing increased in
terest In taking new requirements.
wrought Iron Pipe Is Freer.
There has been a freer movement of
wrought iron pipe tonna GEES as a re-
- .