The New York herald., 1921-04-17
EFFECT OF STEEL
PRICE CUT AWAITED
Trade Is Wondering How 1t
Will Affect Conditions of
General Business.
FURNACE COKE IS LOWER
Demand for Semi-Finished
Material Continues Low
Tin Plate Improves.

Special Despatch to THE NEW YORK HERALD.
PITTSBURGH, April 16.-During this
week the steel market underwent one of
those quick changes for which it is noted.
and now that 1t has come about the
men in the industry are wondering what
effect 1t will have on the business situa-
ton. At the end of last week the Re
public Iron and Steel Company advanced
Its prices on bars. shapes and plates 81
a ton and other independents showed
strong disposition to follow its lead.
Independent wire mills came In with
restoration of the S325 price on nails,
and then came the Steel Corporations
announcement on Tuesday night estab-
fishing those independent figures as its
quotable market. In the case OF tin
plate, however, there had been no def
mite Independent market and the Steel
Corporation made reduction OF IS cents
box to s6.25. As to the future. the
trade believes that the next cut OF prices
win come simultaneously with a wage
reduction, but, as usual. 1t is only guess
work trying to pick out the exact time
when 1t will occur.
The present lowering occurs when
there is no large latent demand TO be
made active by price reductions and
the next reduction probably will be so
timed. Some increase in buying of steel
products is, however. to be expected in
the next few weeks. Practically all es-
Inmates made in the last three months
as to the rate of operation by indepen-
dent steel producers have been too low.
They averaged an operation Of at least
30 per cent. during the first quarter of
the year and at present they are prob
ably several points better than that The
Steel Corporation did not get down to
40 per cent. operation this week, as
was predicted In some quarters, but 1t
may be down to that rate during the
coming week, and with releases that
probably will follow price revision its
operating rate should begin to increase
before the end of the week.
Furnace coke Is lower, the spot mar
ket being considered quotable at $3.50
TO $3.50 at ovens. Due to the fact that
the recent sale of 5000 to 10000 tons
of furnace coke for delivery during this
month to an Ohio consumer was booked
at $3.50 instead of at 1918 the spot
market has the range mentioned above.
Two or three Independent companies are
quoting 1915. Although 1t is possible
that no ovens would be started to sell
coke at such a figure, the $3.50 price
would prevail to-day on tonnage busi-
ness. Those quotations are conceded to
be below production cost, but are being
named to accumulate business, TO keep
organizations together and ovens OPP
erative. On the whole, however. condi-
tons are quieter and production con-
tnues to show a decline.
Pig Iron Prices Unchanged.
Although pig iron prices are not
changed. II is believed that an attractive
order would obtain a concession, as fur
naces are desirous OF getting rid OF ac-
cumulated stocks of iron. The basic
pig iron quotations of late have been
based on offerings by steel works In
terests, some OF which have rather large
stocks of pig iron in yards and ware
houses. They have sold at s23 valley.
and would sell more iron at that figure.
but no merchant furnace is willing TO go
into the regular business of making basic
iron at less than S25. The market re-
mains quotable as follows: Bessemer,
s25; basic, S2S foundry, s25; malleable,
s25. These prices are (. o. b. valley
furnaces. freight to Pittsburgh being
s1.9s.
Several independent steel companies
followed the lead of the Cambria Steel
Company In the effort to establish the
merchant steel bar market at 2.10 cents
base Pittsburgh and revision OF quo
tations has been followed by the booking
of several orders in small lots. On some
OF them the old quotations of 1.So. 100
and cents have applied, as. In a few
instances. they were guaranteed against
decline for certain period. Other small
lots have been booked at the new level.
which registers an advance of "a TO So
n ton over the minimum quotations re-
Gently named.
Common iron Is quoted at c.45 20 2.S6
cents. delivered Pittsburgh, with a low
demand. Eastern mills are quoting 2.i0
cents with a 35 cent freight rate and
Chicago mills 2,4S cents with 3S cent
freight rate. Operations among makers
OF refined iron bars are not regular and
they wait generally TIL they have an
accumulation OF orders before they be-
gin rolling operations. There is scar
city OF inquiries and orders placed are
small consequently some plants are
down several days a week. Refined iron
is quoted at 2.75 TO 3 cents base Pitts
burgh. with some makers asking cents
and s1o5 ton on low phosphorus melt
Ing bars.
There seems to be a we'll sustained
improvement In cold finished steel bars
most of II coming from automobile maxi
ers. releases usually representing a car
load at n time. Among them are men
toned the Ford Motor Company, the
Studebaker Corporation and the Hudson
Motor Car Company. 1t is said that
some attractive business was lost to
local concern because Il would not shade
3.25 10 cents. The former price rep
resents the general market, but cents
Is being quoted In several cases
Automobile Industry Ordering.
The sheet trade also Is profiting by
orders and releases from the automobile
industry, a fair number OF them being
received IN this district. Inquiries are
coming very generally TO a group OF
manufacturers. Another eection re-
ports a dearth OF new business The
leading interest continues TO receive a
large portion Of that business from the
Michigan automoive industries. Al
though releases on single carload lots or
material are the rule. tonnage UP TO
four carloads has been specified re-
Gently. Operations by the American
sheet and Tin Plate Company have de-
clined again with tho closing down for
an Indefinite period OF It's Mercer works
at Farrell Pa. An improvement is noted
In demand for building construction
sheets. Some Independent companies
are endeavoring TO hold TO higher levels
than minlmums recently reached and
are quoting 3.10c. on blue annealed, &C.
on No. 2s black and &C. on No, % gall
vanized.
Demand for semi-finished material Is
still low. few inquiries for sheet bars
in lots or from 500 TO 600 tons were