The Washington herald., 1921-07-31
DECLINE IN STEEL R
PRICECONTINUES;M
ORDERS INCREASE
Independents Quote Bars
And Plates So a Ton
Lower.
TIE NDING TO SAG
Market Complexion Changes
From Day 10
Day.
TIE NDING TO SAG
Especial correspondenoe Of The washinrton
Herald and New York Evening POST =


Aerald and New York Evening Post.) =.
PITTSBURGH, July so.-Prices Of q
LIS cents on bars and 1856 cents on =.
plates and shapes have come to be
recognized as representing the or
dinary market among the independ-
ent steel producers. These prices
are SO a ten below those announced
July by the Bethlehem Steel Com
pany. and later by other producers,
Including the Steel Corporation on -
July 6, but IL cannot be said that a
's3 decline has occurred during the
week, there being rather a crystalli-
zation in a market in which there
was rather general cutting. The
Steel Corporations regular prices
remain at the old level. though COM
petition will be met as occasion may
require. Undoubtedly the higher
prices have been ignored lately in
the Western market by the Pitts
eurgh plus" system being departed
from.
In sheets the reduced prices an
nounced early in July have been
shaded by increasing amounts until
the decline in black and galvanized
now amounts to about IS ton,
s4.25 as open market quotations In
wire products and pipe the markets.
are fairly steady at the prices an
nounced some three weeks ago.
Prices Tend TO Sag. -
The complexion Of the steel mar
ket as a whole changes more or
less from day 70 day. but in general
it may be said that prices tend to
I. l. k.H
they have become steadier by there
being less divergence in quotations
made On orders Of different degrees
of attractiveness. There was a time
when a given mill would insist on
certain price for a carload, but.
would not hesits'~ TO cut several
dollars a ton for an order Of saw
I 900 tons. The former prices for
large lots have become common for
carloads, but large lots have not
CORES pondinEly declined.
Striking a weighted average Of all
important finished steel products
prices are now about 90 per cent
above the l6-year prrWar average
and about IS per cent above the low
,,oiat reached late in 1914. that low
point having been only a small per
cent above the historic low points
reached in 1897 and -IslS. when
common labor received Is cents an
hour and richer and more easily
mined iron ores were being used.
Volume increases.
Tho increase in the volume ~
demand upon the steel mills that
began approximately fortnight
ago has become more pronounced ia
the last few DAYS. and there can
be no doubt that the turn. though
it amounts TO little moro than a
turn, has been passed The first
marked Improvement was in sheets
This was followed by broadening
in the demand for bars. and pipe
is now added 20 the list, with a
distinct gain in mill books. shapes,
plates. wire products. and a f"w
minor commodities have proba bly,
had some Improvement. but not
enough to be worth mentioning.
A distinctly more cheerful tone
pervades steel producing circles.
The feeling rests upon the motives
OF buyers. or the causes that un-
derlie the improvement. rather than
upon the amount Of the increase in
volume Of business. for that Il
small. The trade regards IL as 2
particularly favorable factor thar
the increased call for steel seems
to be due entirely to a further de-
crease in stocks in the hands n
jobbers and manufacturing con
sumers. and not 10 an increase in
the volume OF general business IN
the country. or TO a change in
sentiment" on the part Of buyers.
Why Orders Increased.
The distinction is important. "
the increase in demand arose from
business generally having expert
enced an Improvement. then the de-
mand previously experienced. rep
resenting % per cent or less OF
productive capacity might have 90
be accepted as in normal relation
TO the state Of business. and a
climb from % per cent TO so. so
or 100 per cent would certainly be
very arduous. II the increase Is
due 70 further decrease in stocks.
then further increases can be eN-
pected as Liquidation in stocks
makes further progress. leaving In
crease in general business, railroad
buyinC and inception Of construc-
tion projects to furnish further in
creases.
Again. II the increased call for
steel were due to improved "sent'-
ment" among buyers the buyers
might change their minds acain
and the progress would stop.