The New York herald., 1921-12-18
STEEL OUTPUT NOW
92P. G. OF 1910 RATE
Estimate of First Half of 1922
Operation Between SIS and
20 p. C. of Capacity.

tspecidl Dispatch to TIE New YoRK HEaALn
PITTSBURGH, Dec. 17.-Steel ingot
production in the last ten weeks has been
at an average rate of 23,000,000 gross
tons year, or 92 per cent. of the rate
in 1910, in which there was full en-
ployment all around by producers and
consumers OF steer. On the basis of the
recently published preliminary g.ate-
ment of fully employed in connectfps,
with the census of 1920, the working
force Of the United States is about II
per cent. greater than it was in 1910.
A correspondingly greater output and
consumption of steel would represent
tonnage of about % per cent. greater
than that of the last ten weeks. The
rate. however. would not be more than
b5 per cent of the present productive
capacity, which Is double that existing
In 1910. Estimates as to the average
rate of steel mill operation during the
first half of 1922 are for rates between
b5 and 20 per cent of capacity. If the
country devotes its activities more
largely to consumption of steel mills
can be given fuller employment. One
of the new lines Of steel consumption
shipbuilding-ha played out. 1t was
not much In evidence prior to 1916
Operations at the steel mills are taper,
ing off a trifie from week to week. ex-
cept at pipe mills, which lead in point
of activity. Mills are anxious to give
employment to men at this time, and
only few Of them may shut down en-
tirely at the close of the year. Steel
prices are steady, there being scarcely
even sagging tendency Producers
now recognize that they have allowed
prices to go too low. They were basing
their quotations on lower costs than are
obta1nable except with a heavier OPERA
tlon than Is in prospect for the near fr-
ture--and some losses are likely to be
made in December, when profits were
expected. 1t Is improbable that steel
prices will decline noticeably from the
present level unless mills are encour-
aged by prospect Of a fairly full oper-
atlng rate. Sheets which recently ex-
hibited such price vagaries, are now
very steady--perhapS the steadiest item
In the whole list.
Stagnation has gotten to be the regu-
lar condition in the Connellsville coke
market, There is practically no in
quiry at all for spot or prompt furnace
coke. and there is little in foundry
coke, but inquiry for heating coke is
disappointing considering the season of
the year. Coke operators are soliciting
business in furnace coke more or less
put they are not peddling it by way OF
offering it at price intended to produce
interest on the part of consumers.
There is simply an asking price of
%. and the market is quotable soft at
that figure. The market for ordinary
brands of standard foundry coke has
declined from 81 to S3.75. Heating coke
of good quality is obtainable at s2.75,
and some sales are being made at
slightly less than this to wholesalers.
The continued inactivity In the mer-
chant pig iron market can no longer
be ascribed to buyers delaying pur-
chases on account of the approach of
the inventory date or the alleged ap-
proach of a reduction In freight rates.
The conclusion Is unavoidable that the
rate of consumption of merchant pig
iron has been decreasing, not on the
part of a few consumers. but In a gen.
eral sense---the iron foundries. the steel
foundries and the steel works that use
purchased pig iron. The market is ex-
tremely dull. Prices are not quotably
changed, remaining at SEQ for Bessemer.
s19 for basic and S20.50 for foundry,
|. o. b. valley furnaces, with Sl.98
freight to Pittsburgh.
Sheet demand continues to fau off "a
the month advances. which is usually
the case, accentuatei this year by the
firm resolve not to have any material
In inventory stocks on January l.