Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-24
STEEL PRODUCTION
Off DURING WEEK
Drop of One Per Cent Shown
in Output, Says Trade
Journal.

NEW YORK. September 2e.--Iron
Age, in Its weekly survey of the iron
and steel trade. today reported that
steel ingot production had subsidized
from 80 to 90 per cent of capacity and
said that major producers, in an
nouncing 10 per cent wage cut,
bowed to the inevitable after weather.
ing two years of slack operations.
I'm finally recognizing the necessity
of cutting the coat to fit the CLOTH,
the publication says. the steel pro-
ducers have set precedent which, it
is now believed, the railroads must fol-
low. whether they receive partial relief
through freight rate advances or not.
Railroad buying programs are extremely
slow in developing, and 1t seems I'M
likely that they can really get under
way until the rate and wage questions
are settled.
Iron and steel demand has subsidized
10 the August level and ingot produc-
ton has receded from 80 per cent to
29 per cent of capacity. Prospective
business in some directions, notably in
public construction work. is still fairly
promising but in other lines. and par
ticularly the automobile industry, the
outlook has become increasingly OBJ
scure.
Inventories Low.
Generally speaking, iron and steel
inventories in buyers hands are very
low, but they are. nevertheless. ample
under present conditions and will prob
ably remain so until there is revival
of demands based on expanding ulti-
mate consumption. It is clear that
Government undertakings and public
utility projects, helpful as they are in
supporting current iron and steel out
put. cannot fill the gap left by the
sharply curtailed purchases OF the coun-
try at large.
Sentiment has no doubt been over
stressed as business influence dur
ing the current depression. but it is the
belief OF the steel trade that the mental
attitude is today factor OF major i'm.
portance Abandonment of the gold
standard In England and reduction
In steel wage rates. mere have hslpeo 10
clear the atmosphere.
structural steel business is featured
BY the Imminent award of more than
81 900 tons for New Orleans bridge.
The American Bridge Co. submitted the
low bid on the main spans and the
McClintic- Marshall Corporation the low
figure on the approaches. Lettings re-
ported for current week at 10000 tons
are smallest since February. New prof.
ects to come out figure at 10000 tons,
compared with $1,000 tons last week
and 10000 tons two weeks ago.
Automobile production shows no
signs of Improvement. with probabil
that the September total will fan below
that Of August and that October out
put will be even smaller. Retail sales
have dropped SHARPLY, and some motor
car makers have now deferred the
bringing out of new models until De-
cember or January.
Seasonal Decline Arrested.
"The seasonal decline in tin plate
oItput has been arrested, with tin min
operations holding at As per cent, and
production may soon benefit from the
rolling Of anticipated releases.
Prices are holding surprisingly well,
although not subject to severe tests.
steel producers see no point In sugges-
tions that the savings from wage cuts
be passed on to buyers. They point out
that what they gain through the re-
duction viii probably fail to lift them
out of the red.
.sThe Iron Age composite prices are
UNCHANGED at 2.i16 cents pound Tor
finished steel, s15.42 a gross ton Tor
Dig iron and $9.17 gross ton for steel
scrap"