The New York herald., 1921-08-21
+. STEEL TRADE GAINS
SLOWLY, STEADILY
Production at 25 Per Cent. of
Capacity, After Slump to
90 Per Cent.
FINISHED MARKET FIRM
Price Shading Less Common,
With Figures Relatively
at 1914 Level.
FINISHED MARKET FIRM

Special Despatch to THE New YORK HERALD.
PITTSBURGH, Aug. 2o.-The Increase in
demand upon the steel mills that began
a month ago still continues. although
the gains from week to week are small.
Steel production. which had dropped to
a trifle below 20 per cent. of capacity
by the middle of July, is now up to
about 25 per cent. If production in
creases by one or two points a week 1t
will be doing about all that can be ex-
pected in present conditions.
Happenings in the finished steel mar
ket indicate that price declines are al
most ended, until some important de-
crease occurs in fundamental items of
cost, such as a reduction in freight
rates. The finished steel market as a
whole is not quotable lower than two
weeks ago, and concessions offered 70
obtain particularly desirable orders are
not visibly larger. In some lines. such
as bars, concessions are perhaps not al
together SO great as a fortnight ago.
Thus the market has been reasonably
steady for two weeks, after long
period in which the declining tendency
was never entirely absent. All compari-
sons of fundamental items of cost indi-
cate that prices are relatively as low as
In December, 1914. when they were
virtually profitless.
Pig iron has definitely stiffened in the
Chicago market and other districts show
signs of a firming tendency. Many II
not all the sellers of basic pig iron
in western Pennsylvania and eastern
Ohio have expressed disnclination to
sell at less than $40, furnace. when
actual sales recently carried the market
down to SIS, or far below cost. Foundry
iron shows a much steadier tone, as two
or three sellers have withdrawn from
the open market, having reduced their
stocks so that they are content to hold
the remainder for regular customers.
The market is quotable as follows:
Bessemer, $40; basic, SIS to $40;
foundry, $3.50 t. o. b. Valley furnaces,
freight to Pittsburgh being $196. A 800
ton lot of Besemer iron was sold last
week at s21.44, delivered Pittsburgh, but
not by Valley producer, the seller hav-
ing lower freight to Pittsburgh.
The spot furnace coke market remains
inactive, while there Is the usual retail
buying by miscellaneous consumers, gen.
orally in single carload lots. Sales of
this sort show the market to be un-
changed. Foundry coke remains in
about the same small demand as in the
last few weeks, although above the first
two weeks of July. Off coke can be had
at 1915. The market remains quotable
as follows: Spot furnace. $2.90@$3;
contract furnace, $3@s3.25; spot foundry,
a@$450.
Wire and wire products show a slight
Improvement. Jobbers have reentered
the market for all grades. but principally
npi1g PrOdnrarC inrIit,ad n wo
another week or so to see IL the demand
will be sustained before adding to mill
equipment. Some jobbers apparently
have taken courage from the fact that
the larger mills have firm price policy.
Wire and wire nail prices generally
quoted are 2.50c. and 2.75c., base. Pitts
burgh, respectively. Cement coated
nails at 2.35c. are not moving, due to
the limited demand along with the cur
tailed number of packing cases being
made.
Some structural shape business has
been placel lately in small orders Fab
ricators report plenty of opportunity to
file estimates and bids, although the
larger awards continue to be held In
abeyance. Most structural shape maxi
ers are holding firmly to 1.S5c., one TAX
ing orders this week on this basis for
two lots aggregating 1900 tons among
~ NUMBER OF Slnaller ~ ana lUU ton
lots. However, concessions are still being
offered of as much as Sc a ton below
that figure.
Small orders OF cold drawn steel bars
are more numerous. Individual orders,
however, have not increased in tonnage
TO any marked extent but the aggregate
tonnage of orders on mill books shows
considerable Improvement. Stocks are
getting low, or in some cases out OF bal
ance. and while an order for 90 tons to-
day looks large, a few such are being
placed. Makers state that no real inn
provement can be expected until the
end OF September, and in the meantime
they are operating plants only as occa-
sion requires.
While 2.50c. base Pittsburgh may be
obtainable from small mills and jobbers
who still have stocks to liquidate, that
cannot be said to be the general price,
since it is not always possible to obtain
all sizes required. Virtually all legitimate
cold drawn mills hereabout are holding
firmly to 2.60c. base Pittsburgh, and
some are obtaining 2.s5c. for less than
carload lots.