New-York tribune., 1922-03-05
Steel Industry
Continues Its
Upward Turn
Manufacturers Are Encour-
aged by improvement in
Buying; Inquiries for All
Products More Plentiful

"rtN - improvement fU
Buying; Inquiries for All
Products More Plentiful
SDcciof Disootole 70 Thc 7r5bva>
PITTSBURGH. March 4.-The con.
tinued Improvement in the iron and
steel business in this district Is on.
cou1aging to manufacturers. Opera
tons have increased from \ low Of %
per cent in December to 30 per cent
n present. Orders that have been
on the books for months arc being
released and INQUIRIES for ali jroa ami
steel products are more plentiful.
Without exception steel makers 70
port moderate Improvement il. buv-
ing, as compared with condition.
existing the first part Of Februarv
Sheet tonnage arc coming through r.
somewhat ar"er volume. though buv
ing IS largely against current require
mcnts.
The industry enters March with
sheet prices firmly established and
with tendency ali along tho lina
does not necessarily mean price ad
vanccs, hut rather frming of the
market at current levels. a number
Of large makers, for instance, show.
less disposition now to take orders
below the market than they did
month ago.
Scrap Prices Move Upward
Another distinctive feature in the
current situation is the STRENGTHENING
in scrap pieces. which have moved un
An ayeage Of 81 to 81 per ton vitAia
the last ten days. Hydraulically CON-
pressed sheets at sl3. compares with
recent low Of $l1.75. Heayv melt
ing scrap is holding for the time bejng
at Si5.50 in Youngstown. Owing to
the scarcity Of the lighter grades Of
scrap, some open hearth interests are
using the heavier grades, Aggegate Of
recent scrap buying by Mahoning
Valley steel plants is sad to have been
in excess of $4,000 tons.
Prices are responsive 10 sny IN
prvvemcnt in demand. because scrap
production has beer curtalcd Dv low
industrial operating rates.
"The first chapter Of the new- wear
has caused Us to hesitate and consider
with some concern the future business
possibilities and the factors which gov
ern general commercial activity" reads
statement issued by the United En-
gineering and Foundry Compan-.
There has been slight upturn in
general business. and from present in
dcatlons the improvement viii con-
tinue slowly. A rapid recovery OF bus-
ness might result from unnatural or
artificial means, but this would be dan
gerous and might eventually lead to
another crash similar to that eXper-
enced in 1920.
Buying for Requirements
Considering the fact that the no
ticeable, but slight, industra! improve
ment since the middle of last year
represents to a large extent. purchases
for replacement or repair Of worn-
out equipment and buildings rather
than new construction4 may safc'y
look for very much larger volume q
business this year. For. in addition t.
great volume OF purchases for re-
placement, there will be a large de-
mand for needed construction which
has been pending for several years
Announcement has already been
made that contemplated construction
projects of public utility nature as
well as extensive improvements h.
large steel corporations and other bus
ness are to be prosecuted or started in
tho near future.
'LIcuidatior has progressed rapidly
as is indicated by the large number Of
commercial failures in 1921. 1t is wei
20 remember that too few failures dur
ing business depression is q bad sign.
A failure is like surgical operation
in that it IS disagreeable, but necessary
TO going business and sound business
policy generally.
Failures Too Few
Considering the fact that so msny
Ill conceived and inefficiently managed
concerns entered the field of business
during the period of the war. when the
unlimited demand and crying need
everywhere for materials, MADE IL pcs
siblc for almost anyone To produce and
market goods at profit. the period Of
depression has SO far been character
lied by too low q percentage of failures
TO make for healthy condition.
There still exists great deal Of un-
certainty as to whether the bottom has
been reached in all lines OF business.
1t is gratifying TO note, however, that
several indications now point to a slow
but steady and substantial business i'm
provement during the ensuing year, and
many business men are showing keen
foresight by making preparations &C
cordingly.'
Close observers of market conditions.
such as W. E. Manning. president
and general sales manager Of the
Young gstown Sheet ( Tube Company,
and Harry L. Rownd. vice president Of
the Republic iron & Steel CompanY,
look for continued Improvement IN
steel buying during March. affecting
range of products. With virtually al
interests, February proved Il bette
month from standpoint of shipments
than January, owing to pickup in the
last ten days. There has also been
tendency to increase releases against
contracts, particularly on sheet bars.
9 Sheet Sar in Demand
Open hearth operations of inde-
pendents are being upheld to some de
gree by the sheet bar demand, both for
their own rolling compliments and
to satisfy needs of non-integrsted
sheet and tinplate makers. Such
business IS being steadily released
Sheet bars arc quotable at s29, with
most Of the current business moving
at this price.
In finished lines, tinplate continues
to lead in production. Trumbuli
Steel. the principal independent in this
territory manufacturing tinplate, has
a backlog which will engage its mills
at normal through March. Tinplate IS
readily obtainable at $3.50 per base
box.