Evening star., 1932-09-22
OUTLOOK IN STEEL
DECLARED BETTER
Producers and Consumers
Feel Confident of Fourth
Quarter Gains.

By the Associated Press.
NEW YORK, September 22.-Althougn
there is naturally disappointment IN
the steel industry that September busl-
ness has fallen short OF even MOD
crate expectation, this Is tempered
somewhat by the widespread conn-
dence among consumers as well as pro-
d,,cers of steel that measurable I'M
movement is merely delayed ana wiz
make itself felt during the fourth quar-
ter. Iron Age says.
"T,,is confidence, though unsupported
nv signs of important steer LoHilase,
other than the projects to pe nnanceo n
bv the Reconstruction FINANCE Coi-
poration. finds its principal pass NJ
the virtually complete absence Oh ;I,., SIee,
Consumers. together with the behe1
that the country's minimum require
ments cannot much longer pe sup-
nlied by the present meager outpuI.
Stocks Are Low.
although the steel industry mas
more than ample capacity to take care
of the country's requirements .nS
point is now being stressed that ,as1r inIJu
nf
Wrought into service because OF lollg
idleness, A sudden increase in demand
for steel might find many consumers
waiting for shipments much oeyono
tha hrief time they have become ac-
cuctnmed to during the past 1e" years.
steel companies are trying 10 % %coilVIlios
cons,,mers of this condition In oroer
to bring about reasonable fepAeia'iA
ment of stocks. s,,,,v
AS compared with the exceeolMngiy M
moor month of August, steel Saies 'tos .us
far In September have gained. Dut .iie
improvement is more impressive oT T,a o
increases have not, however, aHecteu .H7
oil nrodllcts and are barely percepliole
in M steel ingot production, which Is es-
rsted II for this week at 16 per cent
of the country's capacity: tho hest
wire products have made the eess
showing and are being produced IN liie
Chicago district at IS per cent VI 90
pacitv, Tin plate rollings nave oe1t oeat
stenped up to an average OF 80 pei 80.
largely to provide for the iate IOni"v ", IN
mack and there have peen Giue A.
Chicaoo steel sales and contract specl-
Hcations were the best in IL weeks, pul
the comparison is with perloo Oh 'iie
markets greatest dullness. ~
"pig ircn sales have also eXpanoeo Il,
the Chicago district and are hololng up
fairly we'll elsewhere. A New Ehslana ~
meter has bought 5000 tons, some OF ~
for delivery early next year. rig IRON
Contracting for the fourth quarter re-
f1ects the belief Of foundry operators
that their business will improve ourlns
the remainder of the year.
Price Undertone Strong.
Some of the recent buoyancy OF the
scrap market has disappeared. but the
unde-tone of prices is still strong ano
price changes, though less numerous, are
entirely on the upside. Heavy melting
steel has advanced at Pittsburgh 10 an
average of s9.75 a ton delivered, bring
ing the Iron Age composite price 1or
this grade to SITS, the highest flgure
since April and within Is cents ton OF
the peak for this year in January;
Railroad repair work constitutes tie
most important prospect of the steel IN
dustrv for the immediate future, not
withstanding the slownesS OF the car
riers to apply for equipment loans from
the Reconstruction Finance Corpora
ton"