Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-26
DEMAND FOR STEEL.
RECEDES SLIGHTLY
Ingot Output Good, With No
Sharp Drop Likely, Says
Iron Age.
BY the Associated Press.

BY the Associated Press.
NEW YORK, February 26.-Steel de-
mand has tapered, mainly because OF
smaller specifications from the auto
mobile industry. but average ingot pro-
duction continues at good rate, with
no sharp recession in early prospect,
states Iron Age weekly summary.
Although steelmaRers specializing in
automobile SteelS have been forced TO
curtail operations, other producers are
holding their own or further expand
ing output" it adds.
1.-THE ingot rate at Chicago, influenced
BY releases of pipe steel, has risen from
90 to 95 per cent of capacity, and Ala
bama operations average "a per cent.
On the other hand, output in Pittsburgh
and the valleys has receded from so to
rs per cent. Raw-steel production for
the country at large is estimated at 30
per cent. compared with 80 per cent a
week ago, while the rate of Steel Cor
poration plants remains unchanged at
IS per cent.
Trade More Conservative.
"a more conservative viewpoint pre-
walls in the steel trade than month
ago. following the spectacular recovery
of buying in January. Certain estimates
now place automotive consumption OF
steel this year at only go per cent Of
that of 1929. but until the arrival of
open weather gives definite indications
of the volume of retail demand for cars
all calculations must be regarded as
mere coniectllres. Ultimate consumer
purchases are particularly difficult to
anticipate in view of the unsettled busi-
ness situation that has prevailed since
the stock market crash and, in adherlng
tc a cautious policy. motor car makers
are trying to avoid the danger OF over
production.
''rTo the uncertainties as to automo-
tive steel requirements have been
added contingencies that may anect
the flow of steel to the building indus
try and farm equipment plants. Pres
ioent HooVer's pleas to Congress Tor
economy, while understandable as a
check on pork barrel legislation, have
raised doubts as to the extent OF the
Governments public works program
which had been counted on to stinu-
late business activity later in the year.
The recent declines in wheat and cot
ton prices have also caused concern
for the future. although the manufac-
ture of agricultural machinery has not
yet been affected.
Prospects Held Good.
while the long view has become
more obscure. prospects for the next
month or two are regarded as good
The approach of Spring is bringing
out larger specifications in wire prod
ucts and tin plate and contracts for
outdoor work, such as pipe laying and
highway building. Road construction
work in Iowa calls for $4,000 tons of
reinforcing steel, of which 10000 tons
has been placed. Pipe line contracts
are commencing to draw steel from the
mills and are likely to result in much
heavier specifications in coming weeks.
Fully 5000 miles of pipe lines are
pending. including an oil line from the
Atlantic seaboard to Cleveland and
gas line from Texas to Chicago. The
contract for the latter was actually
placed last Fall, but specifications were
suspended over the Winter and 1t is
now proposed to lay two lines instead
of one, increasing the plate require
nents to 100000 tons.
THE Iron Age composite price for
finished steel has advanced from 2.305
cents to 2.312 cents pound. The pig
iron composite has declined from $18
to Sl7.92 a ton, the lowest figure since
1928"