The New York herald., 1921-05-23
LIGHTER DEMAND IN
STEEL Is EXPECTED
Production Since April | Has
Averaged About 30 Per
Cent. Of Capacity.
LESS OUTPUT PREDICTED
August Set as Time for Re-
yival Of Industry, With Ma
terial Gain by October.
LESS OUTPUT PREDICTED

speoioI Despatch 70 THE New YORK HERALD
PIrTsBURG, May 21.-The production
OF steel since April / has averaged about
30 per cent Of capacity. and production
in the next three months, or TO the mid
die Of August is considered likely 10 run
below that average. The common view
in the trade is that the demand for steel
will get much lighter before the turn for
the better comes. Most predictions call
for August as the earliest period for
revival in the steel industry, but 1t is
believed generally that demand will
have increased materially by October !.
An increase OF half. however. would not
bring the steel industry up to an aver
age OF 80 per cent. in operation. while
before the war so to so per cent. oper-
ating rate was regarded commonly as
the lowest for the worst conceivable
times.
The new prices in finished steel prod
ucts. developed six weeks ago. are being
held well. Reports OF cut prices being
made are not numerous, and. at best
they refer to exceptional cases which do
not make the common market The
really serious test of price stability.
however, is to come. Consumers of iron
and steel feel that safe prices for pig
iron and steel cannot be developed until
freight rates shall be down and also
further liotlidation in labor costs. At
the present time, however. the cost of
consuming steel is a greater deterrent
Influence on consumption than is the
mill price of the steel. Labor in the
building trades In particular needs a
radical readjustment.
The lake vessel rate on iron o-n is
likely to be developed to-day or Mon-
day with a reduction from the Sl..f
rate with which last season closed. o.
prices may be developed shortly after
ward. The seasons movement of lake
ore probably will be about 30,0oo,ooo
tons. or less than half the movement in
1916, 1917 or 1918.
The pig iron market continues to ex-
hibtt the dullest possible appearance
There is only very limited inquiry for
foundry iron and then only In very
small lots Quotations are unchanged,
but another so cent decline would not
surprise the trade. In Bessemer iron q
regular furnace quotation of S24, valley.
has followed the nominal quotation OF
SIS previously given. One carload lot
is reported sold this week at the 81
price In basic iron there is a straight
.
mace interest having sold 1000 tons for
May shipment at $22. valley Previous
sales by other interests had been for
considerable time at s22.5o. The mar
ket stands quotable as follows Besse-
mer S24 basic, S22 foundry. S23.5On
s24 These prices are I. o. b. valley
furnaces. freight TO Pittsburgh being
tle6.
Coke Market Little Changed.
There Is very little change I'm this
weeks coke market. Consumption is
extremely light. with production closely
adjusted to consumption. The greater
number OF 80 les of forty-eight hour coke
in the last few weeks have not been out
side the range OF So. so to Sc.75, except
for a sale reported at $40, 500 tons
day for thirty or sixty days. which may
be regarded as midway between a
prompt sale and a contract sale. Foun-
dry coke i still quotable at 50 TO $3.50,
although IL is BY no means as firm at
that range as 1t was a few weeks ago.
Ordinary selected foundry coke general
" brings SIS to the consumer. One
favorite brand is priced at S5.25 and
two others al $3.50. Those brands are
not selling freely, but they do sell to an
extent Thus the market as whole is
quotable as follows Spot and prompt
furnace. s3.50@s3.75: spot and prompt
foundry. s5QS5.50
Rail orders are coming into local mills
aai represent several carloads. ono East
ern maker entering on the average
a bout three carloads daily. Shipments
not only are going forward 10 coal min
ing districts. but also TO many indus
trial companies. On account OF the slight
increase in the demand for lake coal
mines are somewhat buster and are buy
inS few light rails for extension pur-
poses. The Carnegie Steel Company is
receiving fair sized inquiries from the
lumber trade as well az orders from
regular customers. The slightly in
creased activity in the coal fields is re-
suting also in a little spike business.
An order for 900 kegs was placed here
last week By q local Jobber and other
lots OF various sizes are being pur-
chased by jobbers in the West Virginia
coal region. The largest spike inquiry
or this week came from the Southern
Pacific Railroad. which IL seeking 10000
legs for delivery over several months.
Inquiries for standard spikes are before
makers, on whieh $40 cents a 200 pound
keE. base Pittsburgh. Is being quoted
II has now become known that wire
nails are obtainable on the same basis
ass is wire. namely, 3 cents base Pitts
burgh. That price applies only on
large lots, however and was developed
recently BY the Texas Company on
DO kegs. for which II recently in
duired. The nail market is quotabie at
z to 3.25 cents. base Pittsburgh. az sew
eral producers. including the American
steel and Wire Company. win not 20
below. the recently esta blished marlSet
price. a small amount OF carload bust
ness IL being done in barhed wire and
few small fence Specifications are
being received The market on the
whole however Is devoid on interest.
the fencing demand having fallen of
recently. a typical woven fencing speci-
fscation calls for 6s 90 pounds consid-
cred fairly large al this time.
Bar Market Inactive.
There Is no Improvement Ia demand
for concrete reinforcing bars, in spite OF
The reports or increasing building actiW-