Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-06
STEEL PRODUCTION
STILL IN DECLINE
Trade Journal Notes Wave
of Pessimism Caused by
Drop in Stocks.
BY the Associated Press.

By the Associated Press.
NEW YORK, June 6.-Seasonal IN
f1uences and a fresh wave Of pessimism,
engendered by the performance Of the
securities markets, are having their
effect on iron and steel demand Iron
Age says In its weekly review Of the
industry.
1.-The fact that production Is still de.
clining is not surprising" the review
says, the impressive feature of the
current situation in the steel industry
is that the recession in output is so
gradual.
Apparently there Is little remaining
margin between current consumption
and rock bottom requirements, and
meanwhile, exaggerated caution is re-
sulting in the piling up of deferred
needs which, when released, should
trend to make the eventual upturn in
demand more pronounced.
Average Prices.
while the attitude OF buyers Is now
mainly a reflection of Wall Street
gloom. it may later respond to what
appears to be a definite change in the
policy of sellers. Having become re-
conciled to low rate of operations,
producers have abandoned hope of the
are more determined in their efforts to
obtain prices in keeping with costs.
Finished steel prices, as measured
by the Iron Age composite price, now
average 2.l02 cents a pound, or only
$2.O8 a ton above the low point reached
in the last severe depression 1893
cents pound on February %, 1929.
And II one takes into account the
amount Of business taken in recent
no DC AaA k&,, L.
construction projects, usually subject to
rather sharp concessions, 1t Is likely
that net average returns per ton are no
higher than they were nine years ago.
Pig iron production in May showed
q decline OF Al per cent. While this
was the first reduction in output since
December, it was foreshadowed by the
downturn OF steel ingot production in
April and the continued recession Of
steel works operations during the past
month. Current 1ngot output is eSti-
mated at AZ per cent, as compared with
A per cent week ago. Pittsburgh
Chicago, Cleveland and Buffalo opera
tons have given further ground, while
there has been a moderate recovery In
the valleys. In some instances lower
production Is accounted for by tardy
assumptions following holiday suspen-
SionS.
Automotive Demand.
"A prime cause of the present decline
In steel production is the slackening
OF activity in the motor car industry
Automotive demand for steel this month
Is expected to show further curtailment,
since retail sales Of cars have been ad-
Versely affected by the recent stock
market slump. The Chevrolet COM
pany, which is credited with a produc-
ton of close to $4,000 cars and trucks
in May, Is reported to have cut its
schedule to $4,000 units for June.
Rail mill operations continue to ia
per, now averaging 35 per cent at Chi
cago. and tin plate output has recedcd
from 70 per cent to IS per cent of ca
pacity. Plants making line pipe, struc-
tural steel and reinforcing bars are
making the best showings In fact,
construction work promises to be the
main support of the steel industry for
some tire to come"
Structural steel awards total 81. 500
tons, placing the past week among the
best OF the year. compared with 10000
tons in the previous week and 10000
tons two weeks ago. New inquiry
amounts to 81 1000 tons.
Makers Of hot-rolled strip have