The New York herald., 1922-02-12
DEMAND FOR STEEL
INCREASES SLOWLY
Gain Steady and Call Nearly
Up to Last Autumn-Buy-
ing Hand to Mouth.
ING0T PRODUCTION GROWS
Competition Among Mills Is
Keen and Purchases Are
Made With Caution.

Special Dispatch to THE NEW YORK HERALD.
PITTSBURGH, Feb. 1I.-There has been
a slow and steady increase in the de-
mand for steel products since the last
week in December and the demand is
now almost equal to that of last autumn.
Market observers, who have taken their
cue from keenness of competition be-
tween mills in the last few weeks even
for relatively small orders. have rated
the volume of demand lower than have
those who have judged by production
and shipment of steel, which are excel
lent criterions when. as at present, all
buyers are making thei- purchases from
hand to mouth and require prompt ship
ment.
The rate Of steel ingot production is
now probably all of 22.000,000 tons a
year. In contrast with one of less than
1S,000.000 tons at the close of December
and rate OF 23.000,000 tons in Octo-
Der and November, the highest rate
since February, 1921
From one viewpoint the lleenness of
competition may be regarded as unfor-
tunate in that it tends TO make buyers
cautious, but buyers are certain to be
very cautious no matter what occurs,
and keenness of competition is really
proving in the most practical and con-
vncing manner that the dead line in
price actually has been reached in many
steel products. Mills the facilities OF
which are the very best are passing up
daily business that they could obtain by
making slight extra price concession.
The average selling price of certain
products may be lower than it was d
month or six months ago. but that is
not because the eXtram prices have
been lowered but because smaller orders
= s.x.A - ~
ing at full prices. Regular prices on the
leading products quoted six weeks ago
have not disappeared. There are still
many sales at those prices. but orders
of any size more commonly draw con-
cessionS.
Inquiry for coal is considerably
heavier and there is more buying of
foundry coke, the probable influence In
every case being the general expectation
that there will be a suspension at the
union bituminous coal mines on April /.
The non-union capacity may have diff
Guilty in meeting the requirements.
Pig Iron Market Inactive.
The pig iron market continues dull
and inactive. Its prices are not quot
ably lower. but they do not seem to be
more than firm, and there are sus-
picions that inquiries for round lots
might bulge the furnaces a trif1e from
their present asking prices. There is
also the factor OF competition from
other districts, such as the lake front
The market remains quotable as fol-
lows: Bessemer $3.50. basic SIS, foun-
dry SO. These prices are +. o. b val
ley furnaces. freight to Pittsburgh be-
ing $1.96.
The coke market Is influenced senti-
mentally by the increased call for coal
and also practically by withdrawal from
the coke market of operators who pre-
fer to have their hands freer to sell
coal in the next few weeks. Spot fur
mace coke is uuotable at $2.S5 to SO. in
contrast TO S2.75 to SO a week ago
Foundry coke is in much better demand
Merely quoting the market range or
spot foundry coke does not indicate the
decided increase in the markets
strength. as the price limits are prac-
tically those of the last several weeks
the range being 1915 to $4.25. No con-
tract market can be quoted on furnace
or foundry coke. Recently furnace coke