Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-16
STEEL TRADE LAGS
IN SAME OLD RUT
Latest Reductions Fail to
Change Situation to Any
Appreciable Extent

ApprecIabIe Extent
New York, July 18.---The latest re-
ductions in quotations for steel products
have not changed the situation in the
industry to any appreciable extent, and
the markets generally continue about
as they were before the beginning OF
last week, 80 far as new business IA
concerned.
About the only development follow
ing the last price cut was an increase
in specifications against old contracts,
but this continued for but a few days
when conditions drifted back to the
old rut. There was no squirt Of new
buying as many had anticipated, and II
Is admitted that the situation is not at
all encouraging.
Consumers Of steel continue to argue
that prices are still too much above
the pre- war level, but they fail to take
into consideration that costs are ma
terially higher, including labor, railroad
freight rates and what might be termed
steel plants.
In connection with labor, It Is known
that some OF the leading Independent
steel men are not as yet satisfied that
rates have come down sufficient to meet
the existing situation. An official Of
one of the leading independents told the
writer this week that common labor
before next spring should be down to
nineteen cents an hour.
However, not oil are agreed that such
radical further reduction will be
possible unless conditions get much
worse than they are at present. It Ia
management Is not anxious to make any
additional wage reductions unless such
action becomes absolutely imperative
because Of the situation being decidedly
unfavorable.
Even the new prices which were an
nounced only about ten days ago are
not holding. 1t is learned that on
small inquiries which came into the
market during the last week more than
one of the independents offered prices
below those which were announced pub.
licly.
Pig Iron Prices to Hold
The pig iron reports received here
during the last week were highly con-
flicting In Birmingham prices have
been reduced to the $50 base, or 81
ton under the quoted level week
ago. Advices from the South state that
makers expect prices to hold at the
present levels, because 1t would be un.
profitable to sell at O lower figure.
In the local district there has been
cially for the late third quarter and
the final three months of the year, but
the price situation Is still easy, and
the point is made that considerably
lower quotations would be possible II
attractive inquiries came into the mar
ket for prompt delivery.
Buying Of girder rails has increased
materially recently. The Lorain Steel
Co. has received an order for 1000 tons
from the Chicago Street Railways, and
contract for approximately 5000 tons
has been taken by the Bethlehem Steel
Co. from street car line in Toronto.
In addition, number of smaller Or
ders were given the makers during the
last week.
Leading makers Of girder rails point
out that this Is the season of the year
when the street railways make their
improvements, etc, and that activity
can be expected in this connection is
seen from the fact that there has been
quite demand for track material dur
ing the last ten days or two weeks.
Structural Steel Demand Better
structural steel material and, while
there has been no large individual order
placed with the makers, the aggregate
Of the smaller contracts Is encouraging
in view of the recent lack of buying.
Quite tonnage Is involved in con-
tracts which are expected to be placed
in the next six months in connection
with new building activities.
Quite few contracts for merchant
bars were placed following the reduc-
ton to 1.0O cents per pound, but after
q spurt of a day or two the demand fell
off again. Tin plate makers, not self
contained, are said to be inquiring for
merchant bars, but some are inclined to
wait for concessions.
Operations of some of the wire mills
have been increased recently, due to
releases on old contracts which had
been held up. These releases followed
the last reduction in prices. There also
old contracts which were long overdue,
and the situation in wire il slightly
better than heretofore.
An increased business is reported in
scrap, but most of the trading has been
between dealers who are buying one
grade and selling another. There has
been no outside buying thus far, and
the lower operations of steel mills, cou :
pied with the fact that consumers still
have supplies Of old materials on hand,
does not indicate any possibility of an
early increased demand from outsiders.
The market for ferro- alloys is dull.
Ferro- manganese Is quiet and easy, but
there has been no demand to actually
test prices. Ferro silicon has sold ut
$40, but lower prices are predicted.