The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-19
WIDE VARIATION IN
STEEL OPERATIONS
@ivergent Price Policies Are
Responsible for Differences
in Activity.
MORE OUTPUT EXPECTED
Buying Revival Is Predicted
to Occur SoOn-COal and
Coke Supply Rises.

special Despatch to THE NEW YORK HrnALn
PTrrsBURG. December 1s.-With bet
ter coal and coke supply In the last week
or ten days. production by the United
States Steel Corporation has Increased
and It Is now operating at about 10 per
cent of capacity, measured by the out
put of ingots. The independents con-
tinue to fall off in operations, which
have dropped to so per cent or little
less In the last week or so. The differ
SAnce In activity is due, of course, to d.
vergent price policies followed during
The last year and a half. A so per cent.
production by the Steel Corporation and
"A 30 per cent operation by the indepen-
tents would mean steel ingot output
Nat the rate of about 32,5OO,OOO tons
year. or rs per cent. of the average rate
81 output during the first nine months
of this year Apparently the present
general business reaction would involve
steel consumption. hence it is difficult to
see what substantial basis there can be
for predictions that the general rate OF
steel production will increase soon.
A steel buying revival is another mat
ter. and is surely to be expected because
there Is no buying at present and. there
FORE Il Is bound to occur very soon. An
important happening of the Iron and
steel industry at this time is the liqui-
-sntion in costs in progress chiefly by
way Of elimination of bonus wage rates
sad fancy prices hitherto paid by some
oeeducers for raw or intermediate ma
lerials.
Consuming StiiI Cast Down.
The blast furnaces will not pay more
than a third as much for coke as was
being paid for spot and prompt lots for
many weeks last summer and pig iron
IN turn will he shaken out before steel
works take hold. OF even more inpor-
lance for the development OF a full de-
inand for steel Is reduction In consuming
steel cost. At some points that read
iuatment is blocked by wage agreements
n force with steel consuming interests.
The steel market in general is abso-
lutely stagnant and there Is very little
evidence that there is to be an early i'm
ptovement. IT has never been so de-
void OF activity. The reason for the
Ttagnancy-divergenc of price poll
cies--wil not exist so much in the flu
tnrc. which assures better conditions in
the market next year, although the Steel
Corporation books are well filed with
riders for next year, while those of the
Independents are very skinny II Is be-
l.eved that the railroads viii begin buy
ing soon. If they bought directly from
he steel mills, assuming that they could
make the finances. the mills would make
he right prices, but except for rails and
rack fastenings the railroads do not
buy much steel direct from the mills. In
he case of cars and locomotives the
steel prices only have to be shaken out.
"he process of getting prices down on
he various parts that must be assem-
Led Is very far from complete.
Public Aiding Railroads.
Only recently steel freight cars were
Icing quoted at about four times their
913 price. The public has gone into
partnership with the railroads and the
latter would be violating their trust IL
they paid four prices or three or even
two for freight cars.
Although several Of the foundry Il
furnaces still call S37, valley, the re-
glar market on foundry iron, il has been
made plain that orders for any fair sized
tonnage could be placed readily at $35.
q SO decline. Foundry iron has been in
n untenable position ut $37 for two or
three weeks for two rea sons, first. that
hessemer has been at $35 at the outside
and basic at 500. when buyers would
not pay such n spread; and, second that
sesale iron has been easily available at
sS5 and has not met takers equal to
offerings
AS far as spot furnace coke Is quota
Die It is for $3.50 to Sc. as what de-
mand exists could be covered within
mat range. Any considerable demand
would absorb the cheapest coke and
might necessitate paying prices up to
about $3.50. Foundry coke for spot or
prompt shipment can be picked up gen.
orally In pretty fair grades for 81 to
$50. The necessity of finding sale for
loaded coke. which has caused quota
tinns of Shh0 10 Sc 10 nnnear on fur