Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-12
DEMAND FOR STEEL
GAINING STEADILY
Weekly Trade Review Finds
New Business Is Well
Diversified.

NEW YORK, March 12.-Demand
for iron and steel shows q more uni
form upward trend, with production in
creasing at a less deliberate pace than
in recent weeks, Iron Age says in its
weekly review of the industry.
New business is well diversified"
the review says, land, in view of the
pronounced caution still ruling among
buyers, Is true reflection of the ex-
panding requirements of consuming in
dustries. While large backlogs always
give producers feeling of greater
security regarding the future. the de-
cisive factor so far as production is
concerned is the rate at which tonnage
Is released for shipment.
THE size of forward commitments
Is influenced by general sentiment in
the trade, price considerations and Gus
toms, as for example in the case Of
railS, most of which are contracted for
In an annual Fall and Winter buying
movement. Specifications, on the other
hand, are ordinarily determined by the
actual current requirements of the buy
er. This Is particularly true in a time
Of depression, when consumer stocks
are kept at q minimum.
Specifications Gain.
"The real significance of the Steel
Corporations loss of 167,157 tons in
untitled orders in February was that It
reflected a gain in shipments. Further
improvement in shipping orders has
been the experience of the industry
thus far In the current month. Speci-
fications Of leading maker Of sheets
have gained for the eighth consecutive
week, while those of larger producer
of bars, plates and shapes have risen
for the third successive week. Accord
ing to all present indications, March
will show an impressive improvement
over February in shipments, bookings
and mill operations alike, with the
probability that the momentum acquired
during the month viii carry into April
and May.
Average ingot output for both steel
corporation subsidiaries and other steel
products is now estimated at SIS per
cent, as compared with general rate
of So per cent week ago. No reduc-
lions in production are reported BY
any OF the steel-producing centers and
further gains have occurred in Chi
cago Cleveland, Youngstown, South
ern Ohio and in the Wheeling district.
Chicago's present output, So per cent,
is equivalent to rs per cent of its
capacity one year ago, large construc-
ton programs having been completed
In the interim.
Gain in Steel Demand.
"The most conspicuous recent gain
in iron and steel demand has come
from the automobile industry. while
pipeline construction, public works and
heavy structural work in general loom
large as additional outlets for increas-
Ing tonnage. According to preliminary
estimates, 100000 automobiles were
produced in the United States and
Canada in February and expanding
schedules point to an output of 300,-
900 cars this month. Notwithstanding
current improvement the motor car in
'dustry is dominated by conservative
policies, keeping the flow of raw ma
terials in close step with assemblies
and retail demand.
THE recent price policy of the steel
industry has been dictated by neces-
sity rather than prospects Of marked
quotations have been revised upward it.
has been because the market has fallen
so low that serious losses were being
incurred"
About 22,5o0 tons of new fabricated
structural steel projects this week COM
pares with 10000 tons a week ago.
Awards of 10000 tons compare with
So, 900 tons q week ago and $1,000 tons
two weeks ago.
A slight decline in heavy melting
steel scrap at Pittsburgh has brought
a revision in the Iron Age composite
price on this material to $11.08, the
same as three weeks ago. Finished
steel at 2.142 cents pound and pig
iron at SSH a gross ton are un-
changed.