The Washington herald., 1921-09-19
FURTHER GAINS
ARE RECORDED IN
STEEL INDUSTRY
Mills Now Operating at
33 Per Cent of Ca
pacity.
81. PER CENT IN JULY
Conditions Promise Mainte-
nance of Present Out
put.
21 PER CENT IN JULY

PITTSBURGH. Sept. Is.-The steel
Industry is now opening at a rate
Of nearly. IL not quite. 80 per cent OF
capacity. 1t Is definitely stated that
the Steel Corporation IL running at
this rate, while estimates based on
the recent report OF ingot production
in August indicated that in the month
the independents and the Steel Cor
poration operated at substantially the
same rate.
Production in August averaged 30
per cent Of capacity. this comparing
with about Il per cent as the average
in July. The low point in production
fell at about the middle OF July, be-
ing somewhere under 20 per cent The
gain in the rate since the low point
has been between two-thirds and
three-fourths. While the rate even now
eight weeks is certainly all tha. could
possibly bv expected for so short a
period
Will Maintain Present Rate.
The fundamental conditions in the
steel market do not promise a con-
tinued increase in demand and pro-
duction for an indefinite period.
but suggest rather that in the re-
mainder Of the year demand will
not be much greater than at pres
ent. From the present outlook a
fair guess for the fourth quarter is
an average production OF IS TO 40
per cent.
Recent increases in demand upon
the steel mills are attributable
chiefly TO two infiuences-buying hv
the farmers OF the South. ana licul-
dation of stocks in the hands Of
jobbers and manufacturing con-
sumers. The buying Of steel prod
ucts, particularly sheets ana pipe.
by jobbers throughout the South
mas been almost spectacular, but
presumably the heavy part OF the
movement will soon be over. As
TO the rest of the increase in de-
mand, due TO Liquidation Of stocks
this represents an equalization be-
tween actual consumption and de-
mand upon the mills, rather than
an increase in ultimate consume
tion.
improvement Not Consultative.
1t should be easy. therefore. to
expect too much from the improve
ment that has been under way in
the past sixty days. From its ma
ture the improvement cannot he
expected to be cumulative. IT is
true that some additional demand
may possibly come from buyers he
coming desirous Of restoring their
stocks. after = long period in which
they have been eager TO Nqujdate
to the last ton, and some members
of the steel trade expect some sucb
movement to start before long
Usually the building up of stocks
is undertaken by buyers when they
expect prices TO advance or mills
to fall behind in deliveries. and
neither Of these expectsSons "a
likely to be entertained
conditions.
One large steel consumif
try-the oil industry-is ST
heard from. For mosths
engaged in liquidating st<
tubular and other steel good
being many transactions ~
producers The liGuidatio ID
fairly complete. but nov
and laying Of pipe lines are g
begun in any large way.
Demand From RaiiroasIs.
As TO the railroads, the
makers are not looking fdr, ma
business in that quarter in, THE tel
future. They realize that thel
dition of the railroads has been
proving steadily, both as to
volume Of traffic and the esrhkl
but they do not conclude that rh(
railroads would necessarily buy
equipment as soon as they were
able. \ great deal depends upon
prices. and there has not been much
ot a test lately as to what prices
would be asked for cars. locomo-
uNes. and other things. Prices for
rolled steel are held to he low
enough. 1t must be remembered
that the steelmakers never admit
ted they were responsible for any
large part Of the fancy prices asked
for equipment some time ago, when,
f"r instance, standard steel freight
mrs W.ra nriral Eaa