The New York herald., 1922-10-08
STEEL PRODUCTION
66 Esp. G. CAPACITY
Shortages in Coal and Car Sup
plies Retard Operations
and Shipments.
PIG IRON STILL SCARCE
Consumers Either Unable or
Unwilling to Pay Prices
Asked on Big Tonnages.
PIG IRON STILL SCARCE

Special Dispatch to THE New YORK HERALD.
PITTSBURGH, Oct 7.-While the opera
tion OF the steel industry has risen from
about one-half of capacity at the end
of August to about two-thirds capacity
al the present time the rate of May and
June has not been regAined. In general.
not much further increase in operations
is looked for on the part of the Carnegie
Steel Company, which is.- for instance,
about to resume work at the Farrell
plant, making sheet bars. At some
plants there is an easier fuel position,
with a little coal accommodating, as Is
desirable, since there may be interrupt
tions in supplies at any time.
Rail bookings in the recent movement
seem to total well above 100000
tons. railroads being expected to take all
the rails out by June 80 IL the mills can
roll them. There also has been heavy
buying OF joints, spikes and tie plates.
The rail buying movement was precipi-
tated by the rail- mills announcing an
advance from $40 to $43, effective at tho
beginning of this month.
In finished steel products In general
the turnoverffor late delivery has be-
come very small. There remains active
buying for early deliveries. Part of
this buying is attributed to deliveries
being delayed on the buyers regular
contracts. Prospects as to steel con-
sumption in 1923 are not defined.
Buyers are indisposed to consider their
requirements, taking their cue from the
fact that two-thirds operation Of steel
mill capacity seems to cover present
consumption fairly well. 1t is assumed
that prices are more likely to decline
than advance, although 1t is clear that
costs are so much higher than they
were early in the year that the prices
of that period cannot possibly be ap-
preached. The chief trend in the
market is contraction Of delivery
premiums.
Easier Tendency I'm Pig Iron.
The pig iron market shows an easing
off tendency because consumers have
been found unable or unwilling to pay
prices asked on large tonnages There
is scarcely any valley iron available,
and furnacemen are enGeavorfng to hold
what they have at something like former
asking prices, despite the lower selling
of the Cambria Steel Company for Pitts
burgh delivery. Johnstown and the val
leys are on even terms for Pittsburgh
delivery. freight being the same, $1.77.
West of Pittsburgh Joknstown Is at a
freight disadvantage. while east of Pitts
burgh 1t has the advantage. The market
is quotable OF the same figures as a week
ago. as follows: Bessemer, $3.50 (;
basic, 5000; foundry, $3.50; MALE
able. $32.
Sheet mills find themselves with heavy
orders, but are unable to make deliveries
because Of the order of the Interstate
Commerce Commission to use open top
cars only for the transportation OF coal
Sheet bars 80 feet long cannot be trucked
or transported in side door box cars and
fiat cars are practically obsolete. This
week a new factor was introduced in
the embargo order of the Pennsylvania
Railroad against all steel shipments
Some mills lost from 10 to Is per cent
last week from the operating levels of
the preceding week and suffered greater
losses in operation this week. Shipments
of sheets as we'll as other finished steel
products are making sorry showing so
far this month.
In several cases sheet consumers are
accepting the inevitable and are either
shutting down or curtailing operations.
Some efforts to purchase 1000 or 5000
tons of various grades are made, but
most mills are carrying large tonnages
over into the fourth quarter, and with
recent fairly heavy bookings are unable
to name attractive delivery dates. While
the American Sheet and Tin Plate Com
pany's prices are 2.40c.. 3.35c.. 1850. and
4.70c.. base Pittsburgh, on blue an
nealed, black, galvanized and automo-
bile sheets respectively these levels
cannot be considered open market quo
tations since that interest Is practically
out of the market.
The open market quotation on black
sheets appears to be 3.50c.. although up
to 3.75c. also is asked. More sales OF
galvanized at 4.75c. are reported than
black at the minimum of 3.75c.. there
being less opportunity for the booking
of galvanized orders. Blue annealed
sheets are quoted as high as 2.S5c, but
26Oc and 265c. also continue to appear
in the open market against the leading
interests figure of 2.50c.
Check on Tin Plate Shipments.
Car shortages and railroad embar-
goes are interrupting the shipments Of
tin plate. New business Is at low
ebb. as is usual at this time of year,
but occasionally a fair sized number of
base boxes is bought and several lots
lately nave been booked Tor nlling IN
purposes. Although the market gives
every sign of going higher soon the
price still is s4.75 per base box of 100
POUNDS. Occasionally an order is booked
for export, either as tin plate or cans.
Advances OF SO and s5 ton on hot
and cold rolled strip steel respectively
were put into effect by leading makers
here at the end of September. This
makes the new prices 2.eOc. and 4.5Oc..
base Pittsburgh, respectively. Recent
bookings have been heavy and practi-
cally no letup Is noted in connection
with automotive business, notwithstand-
ing the fact that strip buying by such
interests has usually passed by this
time OF year. Other consuming lines
too are active. The aggregate tonnage
on the books Of makers Is divided be-
tween hot and cold rolled On the mar
row sizes of hot rolled strip steel 3.e5c.
to $50 Is being quoted and one producer
Of cold rolled Is quoting 4.75c.. base
Pittsbureh.- The regular market. how
ever is 2.s0c. and 4.50c. respectively on
hot and cold rolled strips.
Tho