The Washington herald., 1921-06-06
STEEL PRICES MAY
BE FURTHER SLICED,
GENERAL OPINION
New Quotations Are Ex-
pected About Au-
gust 1.
BUYERS RESERVED
Operators Would Make Cut
Sooner If Action Would
Bring Business.
Especial cerrsspsndsnos Of rhs wsshington
Herald and the New York Evenins Post.)

tspssssI cerrsspendsa,s Of rhs vsshingtou
Herald and the New York Evenins Pest.)
PITTSBURGH, June 5.-While no
definite predictions are made, 1t
seems to be quite a common view
in the steel market that prices will
experience another decline by about
August /. While buyers do not ex-
press any definite opinion, their in
creased reserve in the matter of
placing orders is interpreted by
steel sellers as indicating that they
expect another reduction so soon
that they can count on waiting
for it.
With operations so very light now
that production costs are particu-
larly high, the average steel pro-
ducer would be quite willing to re-
duce prices IL therehy>a a larger, and
tion could be secured. The COM
mon view is that just at the pres
ent time an increase in buying
could not be induced by this means,
but II is thought that in a couple
of months the chances inf this re-
spect might be decidedly Better.
Small Output Retards Price Cut.
II a full operation. or even a 20
or so per cent operation could be
attained. the mills would be quite
willing to reduce prices, and by
very considerable amount, but such
an operation is regarded as quite
unattainable this year in any cir
cumstances. As operations are like
ly to drop below a 25 per cent rate
in the near future, a doubling in
demand in August OF September
would represent a heavy relative in
crease. yet that would not produce
more than a so per cent rate. and in
the past the steel industry used to
consider a rate below so per cent as
impossibly low.
Production of steel ingots in May
was probably several points below
a so per cent rate, relative to ca
pacity. April production was be-
tween 30 and 81 per cent of ca
pacity. The rate at the present
time is undoubtedly lower than the
average Of May, as production is
rejecting the playing out of orders
that were placeo during the price
readjustment that occurred about
the middle of April. At that time
the independent mills were advanc-
ing their prices to the level to
which the Steel corporation reduced
its prices, and booked a consider
able volume of business at the old
prices before Withdrawing them en-
tirely. The question then was
whether. when these orders. which
were generally for delivery in April
or not later than May. were COM
pleted. the buyers would place fresh
tonnages. 1t now appears that the
buyers are indisposed to do so.
Meanwhile steel prices in the
main are steadily maintained,
though this reflects no inherent
strength in the steel situation. The
price maintenance could be attrib-
uted entirely to the fac that the or
ders going are for such scall tom
nages that il is not worth while 10
figure on concessions. In most cases
the time of delivery is the more i'm
portant item, and in this respect the
Steel Corporation usually has snI
advantage, as the corporation al
ways has mills running on which
fresh orders can be scheduled from
day to day. Frequently in the case
Of an independent there would be
delay until the department in
volved became ready for fresh
run.