The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-04
JAPAN IMPORTING
| AMERICAN STEEL
Shipbuilding Cost Continues
High Because of Heavy I
Price Of Materials.

TOXIC, Sept 1.-While the financial
reaction in Japan has caused consider
able decline in the price of iron and steel.
shipbuiiders are depending for the most
part on America and Great Britain for
supplies OF the metals. The depression
of the iron and steel market is due partly
In this country to the present slump Pc
culiar to It, and prices of iron and steel
in Great Britain and America continue
quite high.
It is estimated that 1t Will cost about
$140 a ton to import steel plates from
America, including freight. insurance
and customs duties. When a ship is
built with this steel plate. the cost OIL
construction, including all accessories
amount to about s125 ton of ship. One
ton of steel is sufficient to build about
three tons of ship.
Except in the case of those who are
compelled to accept a very small margin
of profit. the builders cannot accept or
ders except over $3.50 a ton. The cost OF
building ships Is not lower In other
countries.
According to authentic information
British shipbuilders are now all busy
with the replenishing of the fleet depleted
during the war, and 1t will take two OF
even three years before a foreign order
can be executed. Moreover. according tc
the latest estimate, there Is no induce
ment in regard to price. The latest quo
tation is said to be $3.50 ton.
! Taking into consideration the cost o,
| building ships both in Japan and abroad
/ it may be said that the intrinsic value
| of ships Is not less than $3.50. How
I ever the quotation on the open marke
/ in this country is far lower than thai
! figure. The shipowners who are les'
I financially substantial are not only un
able to build any new ships, but they
are trying hard to change the ships nov
! In their possession into cash. Theil
| desire Is, of course, due to the depres
! sion of the shipping market. which
shows no sign Of any early improve.
ment. Under the circumstances prices
/ now quoted for merchantmen in this
T, country range from only 500 to Sis.
/ While orders for the construction Of
new merchantmen have almost entirely
disappeared, except those of some specia
! companies, repairs have also decreased
! This Is due to the fact that the present
oppression of the shipping market hal
! in some cases made 1t more profitable
( or less Improbable for the shipowners
F, to tie up their. ships and thus avoio
Z working expenses than operate theii
+. ships at very low freight rates which
( are scarcely sufficient to cover expenses
! If ships are to be tied up, It is no,
ecessary to make repairs. and for this
reason the repairing call on the dock
yards has fallen of.
Such being the case, the shipbuildine
industry Is generally depressed. Smaller
! concerns are involved In considerable
and increasing difficulties, but all the
| leading builders will be busy until the
middle or the end of next year. Per
laps the Mitsubishi Shipyard has the
largest orders in hand. having beer
entrusted with the construction of three
| freighters of 10000 tons each for Tho
| Nippon Yusen Kaisha; a freishter o.
| 5000 tons and two other freighters fol
| the Osaka Shosen Kaisha, and freight
er of 10000 tons for the Togo Kisrr
1 Kaisha. The Yokohama DoclSyard Is t.
build five steamers of 10000 tons eacE
and one of 5000 tons for the Nippor
| Yusen Kaisha. The Uraga Dockya-t
and the Osaka Iron Works, 1t is under
| stood, also have pretty large orders
hand. Another source of relief for thu
| reading shipbuilders Is the construction
of some war ships which will be en-
trusted to them by the naval authorities