The New York herald., 1922-07-30
OUTLOOK FOR STEEL
OPERATIONS is POOR
Rate Is Bound to Fall Unless
Rail and Coal Conditions
Improve.
BIG ORDERS UNTITLED
BIG ORDERS UNTITLED
Consumers Clamor for Deliv-
eries-GOOd Call for Tin
Plate and Sheets.

eries-GOOd Call for Tin
Plate and Sheets.
Special Dispatch to THE New YORK HEnALn
PITTSBURGH. July ga great slowing
down in Industrial operations generally
seems to be unavoidable now. and this
belief is becoming more pronounced in
the iron and steel trade circles of this
district. Unless there Is great i'm
provement in transportation and coal
conditions the operating rate at the
mills throughout>the country is bound to
fall to g. low figure. fW
The producers in Pittsburgh do not
pretend to expect that production will
be greatly curtailed with consumers left
In position to continue operation in full,
which is the position that producers in
some lines occasionally take. The feel
ing here is that as the restriction in
transportation and the shortage of coal
develop the operations of consuming
steel will be retarded much the same as
the operation of producing steel. This
is the rational view. even II 1t Is mot
exemplified In the apparent attitude Of
buyers who clafnor for deliveries OF
steel without admitting that their ability
to consume steel is likely to he impaired.
This has been sellers market for
,ome time past, and az such a time
uyers overrate their ability to con-
ume, just as IN q buyers market they
lnderrate their prospective requirements
rhe, existing condition is considered very
nenacing to the business activity and
prosperity that developed so smoothly
and in such promising manner early in
the year.
While there is no talk of panic, it is
considered plain that the outlook for
the orderly and profitable conduct OF
business. with iron and steel as the
foundation. is distinctly less favorable
than two or three months ago.
Big Demand for sheets.
Sheet specifications are coming in to
mills every day far in excess of possi-
BILE mill operation. This is piling up a
tonnage backlog which may have to be
carried over into the fourth quarter,
when The coal and railroad situation
my be settled Widely diversified
lines of consumption are represented
among buyers. users, OF full finished au-
. tomob.le sheets and galvanized sheets
continuing in the lead. Makers see no
letup in demand for automobile sheets
for at leaSt TWO months. A few auto
mobile builders now cannot promise de-
livery of their cars before the end of
Septempe, and In many cases even then
deliveries are contingent upon their re-
ceivins the needed sheet material.
In poini or tonnage individual orders
for all kinds nf sheets are fair sized.
50e 10 co.. tors at a time being no
longer a ..iv- specification. The opera
tion iato y! DO n the leading mills and
the indercndentL has dropped to rs per
cent. because of railroad conditions.
Market prices Oh sheets continue ts
show variance. the American Sheet and
TIN Pnto Compan1ss prices being 2.4d
cents for blue annea.ed. 3.15 cents for
black, ~. GEMS for i. lvtirsud and SO
cents for automobile. sn.ots, while the
independents are quoting prices from 81
to 70 ton higher. The conversion mills
continue to have difficulty In booking
sheet bar business. although some. like
he Apollo Steel Company. have enough
IN hand or coming in to take care of
heir present needs.
y Whas was forecast about the dema nd
Sor Tin plato has occurred. and a fine
{ramble Tor deliveries IL on The Cali
rnia iruit a,.d vegctaoie crops exceed
- SNheoee'souSp ana one large can
fasker alone believes II will be 6O.OOO.-
70 cans short In It's requirements. The
tIi crop is Gazing more tin plate than
tbs originally scheduled; acreage in to-
ttoes promises q large Yield, and all
ms point TO ono or the biggest corn
sAcks IN hnnory. One order Tor tin plate
turned down hero rece.Ily involved
$4,000 base boxes. OtI,e.. orders in
volving an aggregate OF $4,000 to so. 900
base ooxos for August and early Septem-
fused.
The leading interest is operating only
20 per cent OF it's total hot mill capacity,
que TO combined shortage of steel men
and good order box cars. This has
been Its average in tin mill operation for
some time, when sheet mill operation
was At about 30 per cent, so that both
sneet ana tin mill operations have been
reduced. Tho regular price OF s4.75 per
pase box of 100 pounds prevails
Tuoular goods are In good demand.
and consumers are urging mills for bet
ter deliveries. and they are responding
with supplies that are most needed at
the moment. after careful scrutiny as to
the needs oil their customers. Mills are
guarding their sales. and will not take
on any further obligations, being well
sold up for what deliveries thev can
make In the near future under exist
Ing railroad conditions. Prices remain
firm az the published lists, and while
there Is some talk of an advance IL does
not appear that the Steer Corporate
Is contemplating~any such move.
Deliveries of buttweIu merchant nine
are so far behind that mills generally
require from eight to twelve weeks to
complete shipments. Once in a while n
carload Is brought from warehouse to
fill urgent needs. Operations at the pine
mills have slowed down with the other
parts of the steel industry. on account
OF reduced blast furnace operations.
semf-finished steel Market.
A crisis is approaching in the semi
finished steel market. Inquiries for re-
rolling biilets are numberless. and good
sized tonnages could be disposed of were
the steel available. The Cambria Steel
Company Is earnestly seeking forging
billets. which are quoted from s42.50 to
$45, base Pittsburgh. Rerolliig biIlets.
4x4 inch, aie SAIL quoted noninalIy at
$40, with 81 added for size on tho
smaller sized biilets. No new injuries
are noted for sheet bars, which likewise
are maintained at the $35 figure. Most
conversion mills are protected by con-
tracts, and while some are holding up
their specifications others are furnishing
them regularly.
Some wire rod business has been
turned down here recently on account