The New York herald., 1921-07-10

CONSUMPTION OF
STEEL INCREASES
Sales by Consumers to Reduce
Stocks Swell Volume of
Buying.
NOMINAL PRICES ARE CUT
Coke Market Stiffens a Trifle
for Spot Furnace-Pig
iron Is Dull.
NOMINAL PRICES ARE CUT

Special Despatch to THE NEW YORK. HERALD
PITTSBURGH, July 9.-The volume o.
business placed with steel mills appears
to have fallen to practically the FIRE.
ducible minimum by the middle OF
June. as there has been scarcely an,
further decrease since then. In the las,
two weeks steel production has been a
not more than 20 per cent. of capacit,
and has represented approximately tn,
rate of buying or specifying at mills
but the total purchases are greater, a.
many consumers are selling to each othe
in an effort to reduce stocks to zero
The actual consumption of iron ant
steel through sales Of its wares to ulti
mate users is greater still. That Is t
say. that liquidation of stocks of stee
and of manufactures of steel Is II
progress. Although predictions tina
there Will be no upturn in steel demand
IN August continue. In other quarter:
there Is no expectation that there will
be any really noticeable improvement
before October. Probably no one doubt
that the rate Of steel production at tn,
end of the year will be very much more
eltdA oV pef cent. Ol capacity
A reduction in nominal prices 70
steel products occurred this week under
the leadership Of the Bethlehem Stee
Company, which announced reduction
from the so-called April prices of 81 6
gross ton in semi-finished steel and $4
net ton on bars, shapes and plates. anC
reductions from the mid-June prices o.
81 ton on blue annealed sheets and ST
a ton on black and galvanized sheets
On certain products lower prices thar
those had been made for several week.
on particularly attractive orders. TIVE
days later the United States Steel Cor
poration made formal announcement Of
a like reduction In prices. conforming II
every particular to those of the Bethle
hem concern. and although other indie
pendents did not state publicly their in.
tentions, they did inform the trade tha
their prices would be the same as those
announced by the steel Corporation.
The chief object in formally announc
ing lower prices seems to be to relieve
the steel industry from the appearance
of obtaining higher prices than 1t is
really obtaining and to direct attention
more emphatically to the necessity Of
making further wage reductions Price
reductions have been announced In the
East and The Central West probably
weeks. Many mills In those sections
still are paying 81 cents an hour fol
common labor.
Pig Iron Demand still Light.
Demand for pig iron has continued ex-
tremely light as to fresh purchases and
instructions to ship against old con-
tracts and in consequence furnace piles
of iron have been decreasing at a very
slow rate. Hope of blowing in furnaces
rests on demand increasing, whereby the
stocks would go more rapidly, because
at the present rate of exhaustion 1,
would require many months indeed
Prices have continued to display d
weakening tendency. Bessemer is stu
quoted at s2250, valley. but that Seems
to be because there has been no inquiry
that would produce competition in prices
Basic is off 30 cents on a sale of a mod
crate sized lot. Foundry has slid off so
cents without any sales of consequence,
the market being quotable as follows
Bessemer. s22.50: basic. $40; foundry,
931. w. p. Snyder & Co. report average
prices in June, computed from actual
sales of iron reported In the market,
at $23 for Bessemer and 5000 for basic.
which are in contrast to May averages
of s24.25 and s21.s7 respectively.
fened in price trifle. in the face Of no
prospects of increase In consumptive re-
quirements soon. but rather signs of a
further decrease. Demand for foundry
coke has grown lighter and is extremely
small. At the same time prices have
weakened further and to the extent of
about 25 cents. Some standard coke.
although by no means of the best quail
ity, caa be had at "a, while $4.75 Is ap-
proximately the highest. even as an ask
ing price. The market is quotable as
follows: Spot furnace, $3@s3.25; con-
tract furnace. $3@s3.25. and spot foun-
dry. $4@s4.75
Buyers of plates have endeavored to
develop a 100 cent price, base Pitts
burgh. but so far 1t has not been pos
stble In this district. according to all ac-
counts. The cent price announced by
the Bethlehem Steel Company as we'll as
by the United States Steel Corporation
and the other independents has been
available for considerable time. Certain
independents, however. will name a 2
cent price only on attractive orders. 1t
Is understood that the Pittsburg- Des
Moines Steel Company, recently awarded
fourteen $4,000 barrel tanks by the
United states Shipping Board. Is nego-
tiating for the necessary plates, ap-
proxlmateiy Zo,UUO tons. Inc chesapeake
and Ohio Railroad Is in the market for
1000 cars, and that order may be fol-
lowed soon by the issuance of an in
quiry for steel by a car builder. The
plate market remains quotable at 2 cents
base Pittsburgh. but may drop at any
time.
Buying Continues Small.
Small lots of cold drawn bars continue
to be the limit Of buyers activity. Many
of them are less than carloads and are
a matter OF daily receipt. although oc-
casionally carload order. or what to-
day Is considered pleasing specification,
is received. Most business booked by
mills these days would have been con-
sidered strictly warehouse trade a year
or SO ago. The majority of bookings are
on cent price base, Pittsburgh, al
though II Is said that 2.75 cents is avail
able. and the market may be said to be
quotable on that basis. When a carload
IL purchased the sizes specified are more
numerous than was the case prior to
the slump In demand. The automotive
demand appears to be dwindling. al
though some business was booked re-
Gently from screw machine products in
terests and other large users.
Structural awards in the last week or
two have been relatively unimportant.
as only small tonnages are represented
by them large number of foundries.
machine shops and industrial plants
contemplate making additions of 100 to