The Washington times., 1931-06-13
DULL OUTLOOK
5. THIS SUMMER
FOR STEEL
Economist Cites Iron Age Sur
Vey As Authority for Pre-
dictiOn of Luggage Season
BY LEWIS HANEY,
Director New York University. Bureau
Of Business Research and Former
Economist Of Federal Trade
Commission.

Director New York University. Bureau
Of Business Research and Former
Economist Of Federal Trade
Commission.
We can often get good line
on the steel industry, and also on
other important industries which
use steel, If we take the trouble
to study the detailed reports in
the Iron Age.
Here are some points I get this
week: First, the steel industry
itself is making the final adjust
ments required to weather the
depression. The steel makers are
curtailing production. The pig
iron output has been somewhat
above requirements, so blast fur
naces are being blown out" in
order to get iron production in
line with steel requirements.
Producers Economic
The producers are economizing.
For example, we find them con.
centrating production at their
most efficient plants, and thus
reducing costs.
"There is a general feeling"
says a good report from Cleve-
land, chat the demand (fOr
steeb is dragging bottom, so
that the next change will be
for the better, although there
is little expectation of an i'm
vAHnr,aVnnnSak hnf0Po Fall
However, it is very clear that
steel buyers are in general show
ing no interest in orders for the
next quarter. And steel produc-
ers are not pushing for business.
They fear to test the market just
now, and hope things may look
better later on. 1t is waiting
game.
My opinion is that when steel
buyers do take hold, it will be at
lower prices for bars, plates and
shapes.
Orders Decline
Concerning automobiles, we
learn that there is a continued
falling off in orders ("specifica-
tionS") from the manufacturers.
The steel makers feel consider
able uncertainty about the steel
requirements of the motor car in
dustry for the next few weeks
The leading car manufacturers
have evidently not been able to
decide on the July production
schedules.
Tin plate has bearing on GER
tain steel companies and can
companies. Here we learn that
after a little decline, operations
are again holding up and promise
to continue at the present rate
1T least through June.
Moreover the indications are
that present tin plate prices will
continue throughout the year
Evidently container manufactur.
ers are holding to fair production
schedules.
Other Lines SpOtty
We also get a side light on re-
frigerators. 1t appears that al
though the refrigerator industry
is not maintaining its early
spring activity, a fair volume
of steel business is coming
through from that quarter.
"The pipe manufacturer al
Milwaukee CA. o. Smith Coz is
scheduling more steel shipments,
indicating that the present rate
of activity will maintained
through June. Recent awards Of
pipeline pipe have been en-
couraging. From Pittsburgh. how
ever, the report is that business
In large dimension pipe is quiet
Not much doing with the rail
ways Pittsburgh says: In many
cases third-quarter buying may bt
the operating difficulties Of the
railways" Chicago says: PLATE
orders for railroad shops are fal
below seasonal expectations" Tht
Western rail market is so dlll
that steel producers are pressing
the roads to take deliveries or
old contracts.
Although some rounding off !!
indicated, orders for reinforcing
bars and wire mesh for concrete
work Gncluding roads, and 10,
bridge material are rather vel
sustained"