Evening star., 1927-03-10
STEEL FORECASTS
GOOD SPRING TRADE
Metal Production Expanding
and Other Lines Will Feel
the Improvement.
BY j. C. ROYLE.

NEW YORK, March 10.-The ten.
dency of steel plant operations con-
tinues upward in direct proportion
with the increase in the activity OF
business in general throughout the
country.
Some steel men are complaining
over the low prices at which much
of the new business has been booked.
Others, who have put low costs ahead
of high prices, are fully satisfied.
The significance of the statement by
President Campbell of the Youngs-
town Sheet e. Tube Co. that s. a
ton has been cut from the cost of
producing steel products in the last
five years, becomes evident in this
connection.
Ingot production in and around
Pittsburgh, is at better than so per
cent of capacity. 1t is true, how
ever. that aside from large pipe, tin
plate and large section plate. the de-
mand for immediate delivery is re-
sponsible for some of this speeding
up. There are definite indications of
increased demand from the automo-
bile industry, and structural steel fab
ricators figure on improved demand,
although it may come from more
widely scattered sections.
Only Slight Cut.
The best indication in the Pitts
burgh district is that so-called pref
erential customers" can secure but a
slight cut in the open market figure,
no matter what the tonnage involved
may be. The trend toward trans
portation of natural gas for industrial
purposes from the Arkansas, Louisiana
and Texas panhandle fields is having
it's effect in large manufacture OF 70
10 % inch pipe. The Texas company
still has large orders to place for the
larger sizes.
The planned expansion for Ameri-
can Sheet and Tin Plate has begun to
come into evidence and other tin
plate makers are obliged to maintain
high production rates in order to dis
charge their obligations to their Gus
toners. They plan practically full
schedules up to July l. The wire
mills are experiencing only fairly
good business.
There are still some weak spots in
rolled steel in the Mahoning Valley.
but the number of sheet and jobbing
units now under power is eXtraordi-
narily high. General Fireproofing
and Youngstown Boiler and Tank are
at capacity, and Truscon Steel expects
70 be on full time basis by March Is.
The demands of the tube mills con-
tinue to cause improvement in blast
furnace operations. Valley steel op-
orators are laying in reserve stocks
of coal and have so days reserves on
hand.
Pig Iron Prices Up.
Despite these reserves, the prospect
of a strike Is having some effect on
the rolled sheet market. Pig iron
prices are up to $40 a ton in the val
ley and $20.50 in the Chicago district.
The general valley rate of operation
is around so per cent. 1t is probable
the sheet and tin mill workers will
suffer a cut this week, since their
wages are based on production prices
In the Cleveland district shipments
of Otis Steel in the last month We're
valued at 50 ,677, 900, as compared with
81, Al, 900 for the previous month. Pig
iron production averaged 105,029 tons
a day during the last month for the
country as whole. while the number
of furnaces in operation was So per
cent OF the total, or ] per cent under
theoretical normal of so per cent.
Since blast furnace operation is re-
garded as business barometer, the
increase to near normal is taken in
the steel country to indicate that busi-
ness is about at normal.
The Lake Erie and Lake Michigan
ports are extremely active since
warm weather has given promise OF a
possible early opening of navigation
with coal shipments rushed upiake in
anticipation of a soft coal strike, and
ore shipments rushed down to meet
blast furnace demands. In February
2.020 cars of soft coal were dumped on
Lake Erie docks, as compared with
SS cars for February, 1926.