Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-24
INCREASED STEEL
DEMAND REPORTED
Weekly Review Finds Grad
uaI Upturn in Orders.
Prices Stiffen.

By The Associated Press.
NEW YORK, September 24.-Im-
ptovement in iron and steel demand,
although not rapid is nevertheless sus-
tanned. Iron Age will say tomorrow In
its weekly review of the industry.
although much of the betterment is
represented by future commitments
rather than orders for current ship
raent," the review states, aggregate
specifications are averaging close to Is
per cent higher than in August and for
some steel sales Offices are running
ahead Of the volume of year ago. when
business was on the decline.
Ingot Output Gains.
"The full extent of the gain in steel
releases has been obscured by the tardy
response of ingot output to expanding
rolling mill schedules. Current steel in
got output at 81 per cent compares with
So per cent in the two previous weeks.
Earlier in the month, and probably also
in August, raw steel production was
step ahead of finishing requirements.
With this disparity removed further in
creases in finished steel business should
ind quicker reflection in steel furnace
operation.
The growing interest in forward
buying has mad the effect of stiffening
finished steel prices. Efforts of buyers
to cover their requirements through the
first quarter of the first half of next
year have met with little success, since
mills are disinclined to quote for deliv-
cry beyond January l. On fourth
quarter business, as well as orders for
immediate shipment, producers are in
Sisting on better prices than were re-
Gently current. This is particularly
true of black and blue annealed sheets,
on which price advances recently are
becoming established market levels.
Among the heavier rolled products, bars
are showing greater strength, with ]. IS
cents a pound, Pittsburgh, representing
an advance of 81 a ton, more commonly
quoted. In the East, structural shapes
are up 81 ton TO ITO cents pound,
Bethlehem.
A prediction of DR.. Joseph E. Pogue,
petroleum economist and consulting
engineer. a member of Secretary Will
bur's committee on petroleum supply
and demand, that the price of gasoline
will be down cents gallon if surplus
stocks are not eliminated before next
Spring is being given prominence in
the movement for curtailment of re-
fnery operations.
Statistics would indicate midconti-
nent refiners are making concerted
effort to reduce stocks. They show
that the daily average crude runs to
stills for September will be less than
for any month since June, 1928. The
present daily average for this month is
496,7l0 barrels, or approximately 1000
barrels under the figure for year ago
and 27,690 barrels under the average
for August.
The effect of shutting down several
scattered midcontinent reflneries has
been Offset to some extent by an in
crease in the number of small plants
operating and building in the Oklahoma
City field.
PROBATION Policies.
In the meantime there has been
tightening OF proration policies among
crude oil producers. Texas new cur
ailment program is beginning to make
,tself felt. Declines in the production
IT fields in the Lone Star State were
General last week. with the North, Gen.
raj and Western parts of the State
eading In the downward movement
california operators recently sliced 49,
700 barrels of the daily allowed output
4 their State, fixing the limit at $780,
700 barrels, the same as Oklahoma 8
resent permitted production
Arrangement of Oklshoma's proration
7rograln for the final quarter of the
ear has been delayed by a decision of
Nc MluGOuLlHeTt Ou cS NJdS ASSOclablOnS
'roration committee to await the State
1upreme Courts ruling on a suit of the
,. c. Julian Oil & Royalties Co. at
acking the conservation laws on which
sroration orders have been based.
"The gain In steel bookings has come
argely without the aid of the auto
Mobile industry and the railroads, two
Il the largest consumers. Considerable
IusinesS that had been deferred during
he Summer is now coming into the
market. Indications are that con-
umers' stocks. in many cases. had been
o badly depleted that repleniShment
as imperative Now that replacement
,uying has become general and the
one of prices is improving, the in
"entive to hold stocks to the minimum
disappearing.
1t is too early to estimate the
ctual gain in steel consumption. A
lumber of miscellaneous lines, no doubt
nder seasonal stimulus, are more
,ctive, among them the radio stove