Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-16
RECOVERY IS SEEN
IN STEEL INDUSTRY
Iron Trade at Low Ebb, but
Signs Point to Renewal
Within Next Month.
BY the Associated Press.

BY the Associated Press.
NEW YORK, July 16.-Industrial
activity. influenced both by business
depression and by seasonal reaction, Is
at low ebb, but the iron and steel
trade sees signs of recovery, Iron Age
will say tomorrow in its weekly review
of the steel industry
Automobile makers" the review
states, ''as well as other important man
ufacturerS, have shut down for fort
night or more. Yet most of these SuS-
pensions are taking place this month
and resumption in August will of neceS-
sity result in renewed requirements III
materials
Even now the mills are commenting
to feel the effect of this rebound in de-
mand. The Ford Motor Co., which has
shut down until July %, has placed or
ders for a considerable tonnage OF
sheets, enabling certain producers to IN
crease operations. The Ford schedule
for the first 10 days of August is $500
cars daily, compared with recent out
put of $500 cars.
Scrap Improvement Seen.
"Other straws pointing to improve
ment in business are found in the scrap
and pig iron markets. While there con-
tinueS to be scattered declines in old
grade down 25 cents a ton at Cleveland,
the situation as a whole shows that lack
of definite trend which frequently pre-
cedeS a turn. 1t is possibly significant
that purchase of 10000 tons of heavy
melting grade at Pittsburgh failed to
bring out further break in prices and
that scrap brokers, notably i'll the Chi
cago district, are beginning to accumu-
late material in anticipation of a higher
market
Activity in pig iron centers in Chi
cago, where sales are the largest in
three months. Evidently convinced that
prices are Scraping bottom, Western
tonnage buyers have covered their re-
quirements for the third quarter and in
some instances for the entire half year.
Demands remain light in other markets,
particularly where price readjustment is
still under way. Eastern Pennsylvania
foundry iron is off so cents ton at
Philadelphia. and the Alabama product
has declined an equal amount for de-
livery in the st. Louis and Cincinnati
districts.
IS Per Cent of Capacity.
"The transitional character of bust
ness is reflected in steel plant opera
tons Slight increases by some pro-
ducers have been offset by further cur
duction at large continues to average
Sc per cent of capacity.
Construction work stands out as the
chief sustaining influence during the
July suspensions among manufacturing
users of iron and steel. The building of
great pipe line systems for natural gas,
oil and gasoline is a major transport
tation development reminiscent of the
period when our railroad network was
being created.
Plants making line pipe are fully
committed for three to four months
and, although they are reluctant to
take further business at present market
levels, and buyers in turn, hesitate to
place tonnage that might not be avail
able this year, large projects continue
to be planned. The latest to be an
nounced, a ,400-mile gasoline line from
Oklahoma to DeS Mo mes, Omaha, Chi
cago and Minneapolis, will require
1000 tons of steel"
Awards of fabricated structural steel
last week we're in excess of $4,000 tons,
the largest of any week this year. pass
ing the previous high mark of $4,000
tons in the last week of January.
The Iron Age composite prices have
made new lows for the year. That for
pig iron is now $17,09 gross ton, COM
pard with $17.25 last week, and that
for finished steel, 2.17l cents pound,
against 2.185 cents a week ago.