Evening star., 1931-06-18
DECLINE IN STEEL
ACTIVITY PERSISTS
lngot Production is Now
Down to SO Per Cent,
Says Weekly Review.

NEW YORK, June 1S-The recession
9f activity in the iron and steel indus-
try is unchecked, with ingot production
down to 38 per cent, rs compared with
40 per cent q week ago, Iron Age says
In its weekly review.
Pittsburgh, Chicago, Cleveland and the
Wheeling district-all report reductions
of output" the review says. Barring
unforeseen developments, further de-
clines In operations now seem unavoid-
able, with the possibility that the low
levels Of last December will be reached
before the end Of July.
1.-THE steel trade has become recon-
ciled to the prospect Of q very dull
Summer, and Is now pinning its hopes
on o seasonal recovery in the Fall.
Some producers continue to carry out
the policy Of closing their higher cost
company says this program Of drastic re-
trenchment is dictated by costs. 1t as
counted on to cause further hquidation
Of already low stocks and thereby add
momentum to demand when business
revives.
Other Factors.
"Other factors that may contribute to
an Autumn rebound are the harvesting
of crops, which will give the agricul-
tural population cash for purchases.
however subnormal they may be, ana
tie plea of the railroads for an advance
in rates. Assurances Of relief TO the
carriers is believed to be essential 10
restore them to their positions as leaoC
ing consumers of iron and steel
"Declines in automobile steel Specin-
cations continue to have the strongest
influence on mill operations. June au-
tomobile output Is now expected 10 total
about 270,OOO cars, and July production
will be considerably lower, with the ex-
tent of curtailment depending on
whether contemplated shutdowns o.
certain motor car builders occur In that
month or in August.
steel demand is still noticeable In other
lines. Rail output at Chicago has de-
clined to 80 per cent Of capacity, but
has picked up slightly at Pittsburgh fol-
lowing the release of some OF the 152-
pound sections recently ordered by the
Pennsylvania. Tin plate output has eaSed
OF slightly to a IS per cent rate. Wire
mill operations now range from 20 to IS
per cent. Production Of line pipe, struc-
tural steel and reinforcing bars Is being
fairly well maintained at recent Levels.
Among individual consuming outlets, the
radio industry is conspicuous for IN
creasing its specifications, a few manu-
facturers of receiving sets having re-
leased tonnage prior to swinging into
seasonal production.
THE coal strike has thus far failed to
materialize as q major market inftu-
ence. In some cases prices OF coal and
coke are stronger at old levels, but no
advances are reported.
Scrap markets still show weakness,
with heavy melting steel of so cents
q ton at Cleveland and Is cents at
Detroit. However, prices Of the leading
grade are unchanged at Pittsburgh,
Chicago and st. Louis.
Interest in steel prices centers in
the efforts of sheet mills to establish
the new classification base prices for
third-quarter business. In the case OF
black sheets the new base involves an
advance of IS q ton and the increase on
galvanized Is So. The third-quarter
quotation on automobile body sheets is
$40 cents a pound, or 50 ton over
recent levels.
Price Structure Firm.
while resistance to these changes
may be encountered. the attitude of
producers is being strengthened by the
realization that price concessions are
unlikely to bring in any additional ten
mage in the next two months. Ex-
cept for sheets and hot-rolled strip
steel, which has been advanced 81
ton for third quarter, no price changes
of finished steel appear to be In pros
pect."
Fabricated structural steel awards, 1t
"a, 600 tons, compare with $4,000 tons
a week ago. New inquiry is $4,000
tons, compared with 1900 tons
week ago.
The Iron Age composite prices are
unchanged, with finished steel at 2.102
cents pound, pig iron at 1883
gross ton and steel scrap at $3.50 .
gross ton.