Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-11
COAL MIN STRIKE
MAY BFSTEEL AID
Effect of primer WaIk-0ut
in RaisD Prices Is Re-
called.

NEW YSh, June LINE auto
for a furer decline in raw steel pro-
dnction ON 40 to 40 per cent Of
canscitynd it will strongly influence
the coII Of ingot output in the next
two mos, Iron Age says in its weekly
review. the iron and steel industry.
pend for iron and steel from
other 5urces is holding fairly con-
slant The review says, suggesting that
tho educible minimum of require
men has been reached, but motor car
ma racture has been receding steadily
sinrthe premature contraction. Of re-
Ia isales in May, and seems to be
heed for a very low operating rate
inuly, with suspensions such as oc-
c|ed year ago possibility.
Effect of Strike Recalled.
IFThese expectations, however, fail To
IKE into account the sensitivity Of
1Otor GER demand TO changes in gen
Fal business sentiment. If the auto
'bobie trade is justified in the belief
That the recent stock market decline
checked its retail sales. the later re-
covery of securities prices should have
the opposite effect.
But regardless Of autonotive develop
mentS the steel industry sees nothing
that will bring about a revival of &C
tivity in the next two months unless
1t be the coal strike So far the strike
is limited to relatively few mines in
Western Pennsylvania and West Viz
ginia and is not regarded seriously. 1t
is interesting TO recall, however, that
a coal strike in the same region came
at the turning point of our last severe
depression nine years ago, driving up
prices Of coke pig iron and finished
steel For example, furnace coke,
which was quoted at 1925, Councils
vile. at the beginning Of April rose
to $3.50 before midyear was reached
Aside from possibly some narrowing
Of variations in Beehive coke prices the
present disturbance has had no visible
effect in any Of the markets. Mean
while. iron and steel producers are pre-
pairing for dull Summer by making
every possible effort 70 cut operating
expenses reductions in salaries and
operating personnels have been made
by some companies, and number OF
the larger interests which had previous
" attempted 10 prorate work among
their various plants have finally shut
down at certain points and are conccn-
tratlng at their loW-cost centers.
Present Prices.
Prices Of finished steel are being
given little test, since mills are not push
ing forward contracting Makers OF
sheets and strips Will accept second
quarter specifications until June 80 for
shipment until the last day Of July.
AS this means that many users will
have enough steel to carry them well
into August there is little interest IN
rd-quarter contracts. Spot orders are
still bringing out concessions in some
products, notably IN cold-rollcd strip and
galvanized sheets The present quota
ton on tin plate will be carried over
into the second half Of the var.
Tin plate is the most active among
finished steel products, with output
holding at 65 to 70 per cent. Producers
expect 1881 production to compare
favorably with the 1880 total. which
fell only 81 per cent below the 1929
peak Operations of seamless and cleo
trio weld line pipe plants are still be-
ing stepped up. and sales of standard
pipe from stock show an encouraging
increase
Fabricated structural steel awards
amounted to $4,000 tons. New projects
are only 1900 tons, the smallest total
of the year
Heavy melting steel scrap has de-
clined again at Pittsburgh. bringing the
scrap composite price Of the Iron Age
down to $3.50 from 1857 a week ago.
The present figure is the lowest since
December. 1914 The finished steel
and pig iron composite prices are I'M
changed a. 2.l02 cents pound for the
former and sl563 a gross ton for the
latter.