The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-06-12
STEEL WORK UNDER
WAR LOW LEVEL,
Operations of Week Below %
Per Cent. Mark and Trend
ing Downward.
LOWER PRICES EXPECTED
End of Stagnation and Revi-
val of Demand Looked
for in August.
LOWER PRICES EXPECTED

Special Despatch 10 THE New YORK HERALD
PITTSBURGH, June 11.-Steel mill op-
erations went below the 25 per cent
mark this week. which Is just about half
the percentage that was considered be-
fore the war the minimum on the pres
emit basis of steel buying the trend in
mill operations VIII continue downward
The actual employment or use of steel
is not down to % per cent. by any means
because the amount of general business
activity, measured by bank clearings,
freight ton mileage moved or other
standards, is not down even 10 90 per
cent. but the rate of putting fresh steel
into employment is down to a very low
mark. It is not thought possible, how
ever, that that alignment can continue
much longer. Steel buyers generally
seem to be convinced that steel prices
will be lower in the not distant future
and sellers make no particular effort to
controvert that view. In the trade gen
orally discussion Is chiefly as to the
time. the manner and the extent OF the
expected decline. 1t Is asserted In some
quarters that the United States Steel
Corporation has adopted a policy to meet
any sizeable independent price cutting
The issue has not come up except in
wire products, in which line some COM
petition is being met by the corporation,
price of SO on nails having been met
a week or ten days ago. In other lines
the independents have little incentive to
cut prices and much to deter them from
doing SO.
The extreme stagnation promised for
tte next few weeks points plainly to a
mild revival in steel demand in August
aided by prices concessions. A fuN de-
mand for steel is not expected until ''0-
ditions in the United States and -s-
where shall have been adjusted to a
basis on which hard and efficient work
can be dope whereby buying power
can be built up. In the future the aver
age man will not find work as obiec-
tionable as il has been since the war.
1t is the universal belief in the steel
trade that some stocks of steel are still
being absorbed and that actual con-
sumption Is In excess of the production
and SHIPMENTS. but it is not regarded as
established that when the stocks shall
be exhausted there will be a correspond
ing increase in demand for shipments
from mills, merely probability that
such an increase will develop. 1t Is
thought that in certain cases stocks will
last for considerable time in view of the
low rate at which consumers are oper-
ating.
Little Foundry Iron Inquiry.
With very little inquiry for foundry
iron, S23, valley, seems to be still the
quotable figure, but it is believed that
IT can be lowered on an important in
uuiry. Another carload sale Of BESSIE
mer iron Is reported at S23. valley. and
nothing larger than carload lots seems
TO be moving. AS for basic, all sellers
are not naming S21.50. valley. as their
price, but enough has developed 10 show
that iron could be bought at that figure
without difficulty, as it is quoted at the
market, and is drop of 25 cents. With
nearly all the merchant furnaces out Of
blast. stocks or iron in furnace hands
are decreasing, although at n very slow
rate. as the buying is generally light and
shipments against old sales only occa-
sional.
The market for Connellsville coke for
spot or prompt shipment is not quotably
changed. being represented by a range OF
$3.25 to $3.50 for furnace coke and S4.75
to S5.25 for foundry coke. AS those
prices became quotable for furnace coke
It has been recognized that IL would be
practically impossible 10 obtain more
than 1925 from blast furnaces. but occa-
sionally an outside consumer wants a
few carloads of particular quality for
which something more than S3.25 might
be obtained. The supply OF standard
grade furnace coke for spot or prompt
shipment is limited as production has
been very light of late, and coke
that q considerable time ago got into
stock is now disposed of or has wealth
cred SO that it is no longer furnace
grade. The movement in foundry coke is
extremely limited. consumption evidently
being at a very low ebb.
The universal price on plain wire Is
2.75 cents. and on wire nails cents,
base Pittsburgh. but outside of a fair
amount of nail business. the condition in
wire products duplicates that in other
steel lines, only spasmodic purchases be-
ing made according TO needs. One large
independent producer here reports its or
ders for wire products average two car
loads daily, but states that outside Of n
little barbed wire business lately
has done practically nothing in fencing
Of any sort. Domestic business chiefly
is confined TO single carloads and eX-
port business is practically negligible. a
typical order for nails received recently
called for ten kegs for shipment to
Japan.
Very little interest Is shown IN the
semi inished steel market, the demand
for products having fallen very low No
Inquiries are out except for an occasional
small lot Of billets. forging or rerolllng
They are still quotable at S4Z, with
by 4 inch rerolling billets held at s3T
the smaller sizes being quoted at 500
base Pittsburgh. The quiet condition IN
the sheet and tin plate trade practically
Neffaces sheet bar buying and only oc-
casionally is small lot closed Al
though $40 is tho general price, S37 has
recently been done
slabs Not Moving.
Slabs are not moving even al s35. OF
% under the price held by certain pro-
ducers. Wife rods at s4s find no takers
even from regular customers. who are
supposed 70 specify weekly tonnages. A
producer which ordinarily utilities al
its wire rods. but which could sell some
n unable to Develop any business. Skelr
n quoted ut 2.10 20 2.20 cents. base
Pittsburgh, with no sales and no in
auiries
There IL hardly enough business IN
the iron and steel scrap trade 20 call
Il a market and prices continue 10 sag
Low phosphorus billet and bloom crops
are down 81 a ton. while bundled sheets
are quoted at 90 cents a ton lower than
they were a week ago. Prices are sil
TO SIS on billets and blooms and $3.50