The Washington herald., 1922-10-09
STEEL PRICES
Hold Steady With Pre-
miums Showing
Declines.

PITTSBURGH, Oct. s-Ths posi-
tion rs to steel prices Is now plainly
defined. Basis prices, for late or in
definite delivery have ceased advsnc-
Ing and delivery premiums are de-
creasing. The last advances in basis
prices occurred no more than n fort
night ago. in the withdrawal of the
Steel Corporations 100 cents price
on merchant bars in favor of q
cent price, and in the corporations
advance OF 50 a ton In wire products,
making nails s270 a keg.
As to what should be regarded as
the regular market prices for steel
products there has. Of course, been \
reversal. The regular or basis
prices are those of the Steel Cor
poration. When independents ask
and secure higher prices those are
premium prices. on account of early
delivery. In the general advance,
March to August inclusive, indepen-
dents advanced prices first and the
corporation followed the advances
In longer or shorter intervals OF
time. In that period the indepen-
dent prices might be. and in many
quarters were. considered the reg
ular prices. the lower prices of the
corporation being merely temporary
and not interesting to many buyers
because the deliveries were too late.
Premiums Temporary.
The probability Is that within a
Few weeks all premium prices for
steel products will have disappeared
Early deliveries are now possible.
except on tubular goods. by paying
n r N III in, L.
plates, and sheets, and in other
products without paying premiums
As mills catch up prompt deliveries
will obtainsble without pre-
miums.
There are points Of simnarity
with 1920, though. of course. the de-
velopments this time are on a rela-
lively small scale. Independent
prices in 1920 advanced far above
the Steel Corporation level. BY
August of that year the general
position of steel had really grown
easier. but with the great decrease
In forward buying and the con-
tinGance OF prompt buying the aver
age price in all transactions seemed
to be advancing.
Late in September independent pro-
duction began decreasing, while the
steel Corporation. with full order
books and better car supplies. in
creased its production Late in No.
vember independent prices on bar
shapes came down to the corporation
level. being followed by sheets and
wire products, and. on the last day Of
the year, by pipe the last of the COM
modities to ,e equalized. Early in
1921 the corporation ran at a much
heavier rate than the independents.
At the beginning of February inde-
pendents began shading the Steel
| Corporation prices.
The steel market is showing one or
two points OF agreement with the
market history above recited, and
may show more in the next two or
three months.
Big Rail Orders.
1t seems to be well established now
that the volume OF rail business
closed in the recent movement, in
anticipation of the advance in price
| from $40 to $43, now effective, will
run well above 100000 tons. The
original offer to book tonnage up to
the end of September at the old
price. provided that shipments
should be completed by June 30, and
the rail mills intend to insist upon
this arrangement being carried out
except as they may find it incon-
vsnient to roll the tonnage. 1t il
unlikely that they will have any
diniculty. as steei demand from
other quarters does not promise to
be onerous. at least during the win
ter. The object Of the rail mills
maneuNer was to secure winter
roliings and the wisdom of their
plan IL now vindicated by the con-
dition of the steel market gen
orally.
In addition to the buying OF rails
there was heavy buying I'm the at
tendant track material. including
joints. bolts. spikes and tie plate.
! The tie-plate buying was notably
heavy. Some independents secured
$50 on some large orders for the
plates. the Steel Corporation price
being S47.
An interesting feature Of this
movement I'm rails is the confidence
/ shown by the stee, mills in railroad
credit. The steel producers have
been ready to sell railroads all the
steel the railroads would buy and
are confident that payment will b..
made in Keeping with deliveries. ,
year ago the condition was quite
I the reverse. Some Of the railroads
owed tho mills LARGE sums Of money
and there were not few cases In
which mills refused to make fur
their deliveries, although the roads
were quite ready to take the steel.