Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-19
OPTIMISTIC STEEL
OUTLOOK IS NOTED
Weekly Review Finds Senti-
ment Improved as Orders
Increase.
BY the Associated Press.

NEW YORK, February ia more
cheerful tone prevails in the iron and
steel industry, both because of further
slight expansion in business and more
definite promise of larger and more di-
verSif1ed demands with the coming Of
open weather, Iron Age says in its
weekly review of the industry.
Favorable developments of the week"
the review says, include a squirt in
steel buying by the automobile indus
try, greater tin plate production, more
liberal rail and track accessory specifi-
cations, the release of pipe line tonnage
held up by cold weather, an impressive
upturn in sheet orders and better tone
in the wire trade following rather gen.
eral rains in drought-affected agricul-
tural areas.
Change Is Sudden.
"The change for the better in auto
motive steel requirements is so sudden
that there is doubt whether it is merely
a flash in the pan or marks the begin
ming of a general recovery in motor car
business. Rush shipments of both steel
and manufactured automobile parts
have been necessary in some instances
to round out existing stocks and keep
assembly lines moving. The increase in
SGeel ucHldHu ILdS CIluS ldI Decll 1ClI
chiefly by the Detroit district plant,
which is now operating all six of its
open-hearth furnaces.
Tin plate specifications continue to
improve and tin mill operations for the
country now average 70 per cent, with
several independents running at 100 per
cent. This gain, together with releases
of pipe line tonnage, has helped raise
Pittsburgh district ingot output to 48
per cent from the AS per cent level
which has prevailed for the past month.
A Buffalo independent, beneftting by
rail and track supply specifications, is
making raw steel at rs per cent rate.
Steel ingot production for the country
at large now averages 81 per cent, COM
pared with SO per cent week ago.
Viewing the steel market as a whole,
irregularities in mill operations remain
a feature and extreme caution still DOM
mates the policy of buyers. Consumers
continue to keep stocks low and to de-
pend on quick shipments from pro-
ducers, but it is significant that orders
are more frequent and, although yet
small. are gradually increasing in size.
Conservatism is no doubt holding
back the placing of structural steel
work and has checked expansion of
farm equipment production; yet numer-
Gus miscellaneous steel-consumIng lines
are showing steady, If slow, improve
ment. Highway programs, under way
or contemplated, are stimulating de-
mand for concrete bars and are giving
impetus to the operations of culvert
makers and road machinery manufac-
turerS. Makers of downspouts, cutters
and other sheet steel building products
are taking more steel, and heavier or
derS are coming from producers of
stoves, Office equipment and washing
machines. Releases of sheets, a widely
used material in the Woodworking in
dustry, have shown the first definite
upturn in more than a month, the spe-
cifications of the leading producer being
the heaviest for any week this year.
Price Situation.
THE price situation reflects the I'M
certainty that frequently characterizes
transition periods. Finished steel prices
are under pressure, and further irregu-
laritieS have appeared, with actual re-
auctions in few minor items Never
thelesS. the industry is making a siren
uous effort to hold the current market
and has not given up hope of effecting
an advance on plates, shapes and bars.
While higher asking prices, if adopted
in the next few weeks, could hardly
be expected to apply on second-quarter
tonnage they might serve to drive in
considerable forward business at pres
ent levels"
New structural steel projects this
week totaled $4,000 tons compared with
$4,000 tons in the previous week.
Awards were $4,000 tons, an increase
of 1000 tons over the previous week.
The decline in pig iron at Pittsburgh
brings the Iron Age pig iron composite
down to SSH from $15.88 a week ago,
the lowest since October, 1915. The
composite price for heavy melting scrap
also declined to $11.08 from S11l3 last
week and is at the lowest point since
July, 1921, when it was Sill Finished
steel is unchanged at 2142 cents a
pound.