New Britain herald., 1920-02-19
STEEL BUSINESS
 FALLS:OFF LITTLE
Care Needed in Handling of Mar
 ket-Temporary Setback Possible
Iron \ ge SANS:


 The hand of cautious finance has shown itself here and there in the iron trade. It is directed chiefly to the effect on general business, of eX- change conditions and the disturbed money market and only inferentially suggests that care needs to be e3- ercised in iron and steel commit 1nents. Specific happenings in this connection in respect to iron and steel are too few to form a basis for generalization. Some suspension Of steel shipments into Canada have been asked where it now takes 11Z Canadian dollars to pay $100 in American nancy bat eve these are not necessarily cancellations. A leading ! reason ascribed to softness in scrap material is the disposition to call in loans now held on such material. The outstanding facts in contrast are the continued insistent' pressure from buyers, together with small
 stocks in the hands of consumers and much yet to be done to make up for the enforced curtailment of the war period.
 The volume of business actually done has, tapered off, but solely as the result of the refusal of mills to enter future delivery orders. Some 1 further price advances have been 1 registered, but they are not general. They represent negotiations success | fully consummated by buyers. In a l word, the iron and steel trade is con- l vinced that even if setback should 1 occur, it will be of very short dura- l tion.t It will amount to d mere halt 1 to establish the healthy basis of l trading.
 l The January steel production, using 1 figures collected by the American I Iron and Steel Institute for S4 per 1 cent. of the productive capacity, in- l dicates that output was at the rate l of 40,796.652 gross tons a year, or IF per cent. of the best rate in | 1918 and probably S3A per cent. of l total capacity. The showing is bet | ter than was expected.
 February steel production will l show a decided falling off. The low 1 movement of fuel due to railroad ] troubles have affected Eastern plants | especially, one having half and an. | other only two out of 22 open hearth 1 furnaces in operation. In Pittsburgh ] ingot production is at about so per cent. of capacity and in Chicago be- l tween 70 and 75 per cent.
 ] The Chicago district stands out in l pig iron buying activity. Agricnll ] tura1 implement making companies l and companies connected indirectly l with railroads have been the con- | spfcuous buyers. A Michigan auto 1 mobile manufacturer has bought 1 3o,0O0 to 40,O0O tons of foundry l grades, some of which brought as | high as $42 Birmin gham. Foundry I iron is S2 higher at Cleveland. l Prices of Eastern iron ore have 1 been fixed in harmony with the recent | advance in Lake Superior ores of s1 1 per ton, the new Eastern price being l 14.1c. per unit compared with 12.54c. | the price which has prevailed for | three years
 r Railroad inquiries are beginning to develop. The Great Northern has
 ordered 750 ore cars, the Soo Line,
 500 box cars, the Grand Trunk is l seeking 5000 automobiles and 1000
 flat cars
 l In shipbuilding. material is yet to
 be bought. A New York yard. for
 l repairs. is in the market for 25,OOO
 ] tons for hulls and 12,000 tons for
 l boilers. In Philadelphia the needs of
 | two yards exceed 10000 tons of
 plates. Fabricated stel business in
 l January totaled 13o.000 tons against
 l an average in the last six months of
 l1919 of 13S,600 tons Large building g
 ] were there not shortage of other
 1 materials as well as steel, structural
 ] business would be overwhelming.
 In the light that exchange checks
 1 exports is the rejection of bids for
 22.000 tons of cast-iron pipe for
 South America. as well as d large
 | tonnage fOl. Cuba.