The New York herald., 1921-04-10
STEEL OUTPUT Is
EXPECTED TO DROP
Estimated Ingot Production Is
16, 100000 Gross Tons
a Year.
MOST ORDERS ARE SMALL
Trade Speculates on Chances Of
Revival Before Midsummer
Dulness.
MOST ORDERS ARE SMALL

Special Despatch to THE New YORK HEsAlp.
PITTsBURGH, April 9.-The estimated
steel ingot production is at the rate of
about 100000 gross tons a year.
against about $4,000, 600 tons in the first
nine months of 1920 and a capacity Of
between $4,000, 900 and 55. 100000 tons.
The prospects are for further decline
IN production in the next few weeks.
with the United States Steel Corporation
completing its old orders The chief
question in the trade is whether or not
revival can occur before the usual dull
midsummer period. II is reasonable to
expect that rate between 2~,200, 900
and 80, GOO, 600 tons may be attained late
fn<the year, provided that two blockades
by labor be removed, one by the rail-
readers and the other by the men in
the building trades
There is not much further decline in
the Independent steel market, which
seems to be due to the fact that no
attractive business is in sight. The
orders offered are usually so small that
frequently raill cannot quote because
1t does not know when it will be operat-
be specified precisely, The automobile
factories are picking up and making
better progress in liquidating their ma
teriaA 1t is expected that in several
cases stocks will be iiquidated by the
beginning of June, and meanwhile small
orders for steel are being placed. AS
this is normally the active season for the
industry, 1t is a question at what rate
the factories will run during the summer
II. o.
ment business is slack, but in oil dis
tricts stocks Of steel are being liquidated
by oil producers selling to other pro-
ducerS. Consequently better demand for
steel is to be expected soon from that
quarter. The market for steel for build
ing hinges chiefly on adjustment of
wages and working conditions in the
building trades.
The pig iron market continues ex-
tremely sluggish although undoubtedly
1t is righting itself. A moderately large
quantity Of pig iron is in stock to be
liquidated. The foundries entered the
year with more stocks than they wanted,
but they are largely out of the way.
Stocks of basic pig iron are in the
hands OF steel works willing to sell
them even if they are paid only their
bare costs for them. Quotable market
prices are unchanged. although thew are
largely nominal as follows: Bessemer,
SIS; basic, s23; foundry, s25, and mai
leable, S25.
Coke Output Breaks Record.
BY dropping. to 5o,075 tons the pro-
duction OF coke made last week a new
record in the ConnelLsville region, which
serves to remind producers that they
are approaching the zero hour and are
ha{ laff xtvifla
escape going the full distance OF the
journey. The wage reductions will
serve the purpose of cutting production
costs as means of meeting buyers
views as to price. No furnace coke
business Of any consequence has been
done since the $3.75 sale reported a few
days ago and one Sale is not considered
sufficient to make a market The usual
quotations are $4 to $425. In foundry
coke the extreme price Is $3.50 and some
foundry coke is offered for less than
that, but It cannot be called standard
not being selected The market il
quotable as follows Spot furnace. S4
TO $4.25; contract furnace. 81 to s4.25.
spot foundry, s. to $3.50, and contract
foundry, $5 to $3.50
There continues to be a lack Of large
orders Tor tin plate, and manufacturers
feel That the heavy demand Is being
held up and will cause lam when
consumers enter the market together
and that the delivery period viii be
poor. A few releases are coming
through, with a limited number OF
specifications to bring about an average
operation of about 35 per cent. of
capacity among Independent mills.
New business is extremely light with
independents and the leading interest.
1T is believed that IL retail merchants
were to clear their shelves OF heavy
stocks of canned goods at prices near
replacement costs, packers would bs
more encouraged and can makers would
increase their tin plate stocks. There IS
no change Iii the regulation price Of 81
a base box. 100 pounds. The operations
of the leading interest run about SO
per cent. of capacity. Several tin plate
mills in the McKeesport district re-
sumed operations this week and I. .
expected that further additions will be
made very soon.
A feature OF the tubular goods mar
ket this week was the order by the
Ford Motor Company for 1000 tons OF
seamless tubes. Sellers of standard
merchant steel pipe note a gradual inn
provement due 70 increased building
operations, but II Is developing slowly
IT seems that jobbers aim to keep down
their stocks 10 n low notch but at
times they find It necessary to enter
the market for small tonnages. On
that business and line pipe sales re-
Gently consummated one OF the inde-
pendent companies in this district con-
tfnues 40 be able to operate four Of its
five pipe furnaces. The leading IN
terest-the National Tube Company-ls
operating at about Is per cent. Of ca
pacity and the Independents as a whole
at about half that amount.
Concessions in Line Pipe.
Concessions are being offered in lire
pipe on which fair sized inquiries are
noted from time to time. although good
business from that quarter Is not ex-
pccted until the oil i-2ustry becomes
more staple. Although most companies
are holding to 57IA per cent discount
on iron and steel pipe and some are
guaranteeing prices for sixty days. 1t
IS reported that an extra discount OF
2is 10 5 per cent has been made re-
Gently In an effort to book tonnage
A slight accumulation of orders has
improved operations In the sheet mills
in the last few days. They are mostly
releases on old orders. but new busi-
ness is very slow to come In. The lead
ing. interest is receiving fair amount
of releases every day from automobile
builders and its. mill operations have