The Washington herald., 1921-08-07
Especial Correspondence Of The wsshingto
Herald and New York Evening Post.)

Especial Correspondence Of The Washington
Herald and New York Evening Post.)
PITTSBURGH, Pa, Aug. 6.-Open
and vigorous opposition in the steel
market has not proved as formid-
able in the matter of producing
price declines as was feared in many
quarters would be the case. On an
average, steel prices have hardly
been receding in the past few weeks
at as great a rate as 81 ton
week, and the rate of decline at
the present time may be less still.
There are no pronounced breaks, but
rather merely gradual sagging.
Yet the instructions to many sales
men-are, in substance: Try to get
the order and the price, but be sure
to get the order"
In one sense the. competition is
more conservative than it has been
at times in the past. The majority
of the producers are aiming to cut
prices only when an order Is acso-
ally secured. In some offices II is
considered an unpardonable sin TO
cut a price and not get the oroer.
Last February. on the other hand.
when some independents set out to
cut prices, the cut prices were pa
raded throughout the trade in the
hope that here and there an order
might occasionally be uncovered.
Turning Point Is Passed.
Among some buyers of steel pro-
ducts there is a more cheerful feel
ing, with a greater inclination to
take hold in the matter of pur-
chases. Among some other buyers
there is no better feeling in the an &.
stract. but there is heavier buying
on account of necessities arising
from the further depletion of stocks.
At no point does the condition make
an unsatisfactory comparison with
that existing at the middle of July,
when it is plain a turning point
occurred.
As to the business actually being
entered now by the steel mills In
the form of new orders ana specfn-
cations against contracts, the great
bulk of 1t does not rest. upon any
sentiment, but is due to the arising
of actual necessities. The buyer,
may or may not think that steel
prices will be lower in future, but
what they know is that they need
at once the material being ordered
and they are insisting upon ,rs
being shipped at once. One large
interest finds that outside of two
lines of trade substantially all its
incoming business is in single car
loads for as quick shipment as can
be made, and in many cases the
shipment is made within two days
of receipt Of the order.
Most Business I'm Light Goods.
The total volume of business has
experienced a further increase. al
though no large increase in point
of tonnage. The most pronounced
increases are in sheets and tubular
goods. which are relatively light.
The heaviest products. rails and
shapes, show little IL any increase,
and thus the tonnage of steel pro-
duction is marked for but little in
crease. The first half of August
may not show a steel ingot pro-
duction much above 20 per cent of
capacity. against a trife Under 20
per cent at the middle of August,
yet the demand for steel products
as a whole is decidedly broader.
both geographically and by classes
Of buyers
Steel producers are quite indis-
posed to make any definite predic-
tions as to the more distant future
of their market. What they see
now Is a gradual return of demand
for steel to a normal relation with
the general volume of business in
the country. In the past two or
three months this demand has been
below a normal relation, on account
of the existence of stocks Of steel
and manufactured goods.
Capacity Production Remote.
A return to a normal relation
might raise steel production from
the rate of 20 per cent Tor there
abouts of capacity that has OBJ
tanned in the past few weeks to a
rate Of 80 or 40 per cent. That
would represent a decided improve
ment, but would still show very
unsatisfactory condition. As busi-
ness in general now stands. q rate
Of above 40 per cent for the steel
mills could hardly be expected.
With the philosophy that pre-