Evening star., 1933-12-20
PRODUCTION JUMPS
AT STEEL PLANTS.
Sharp Squirt in Ingot Total
Brings Unexpected Rush
Late in Month.
BY the Associated Press.

NEW YORK, December 2O.-Further
sharp expansion in specifications against
expiring fourth quarter contracts has
resulted In an upward squirt in steel
ingot output. Although production at
the beginning of the week was scheduled
at 34.2 per cent, actual operations al
ready have reached SO per cent with the
likelihood that they will rise still higher,
says the Iron Age. The gain since
week ago is 51a points, or is per cent.
THE increases are widely distributed,
Chicago operations being up IA points
to 40 per cent, Pittsburgh being up 4
points to % per cent, Eastern Pennsyl-
Vania up 3 points to % per cent, the
Valleys up 8 points to 3s per cent.
Cleveland up 5 points to So per cent,
Buffalo up IA points to Al per cent, the
Wheeling district up 5 points to As
per cent and Detroit up points to
IS per cent"
Orders Piled Up.
Most steel buyers have specified that
shipments against contracts be made on
December 80 or 81 so as to avoid re-
ceiving material during inventory tax
ing, but mills are accepting releases for
delivery at their discretion. The pres
sure on producers has become so great
that 1t Is now doubtful whether they
will be able to fill all shipping orders
by the end of the month.
Undoubtedly many buyers were tardy
in sending in specifications because Of
their unfamiliarity with code restric-
tions. The current rush to specify,
therefore. represents a piling up of
deferred releases. The main motive Of
buyers, OF course, is to protect them
selves against price advances that be-
come effective upon the fulflllment of
their present commitments. The cur
rent contra seasonal improvement in
steel business. therefore. is partly arti-
hcial. December, in effect, is borrow
ing production from January and
February.
Whether there will be an appreciable
decline in mill operations after jan
uary ! cannot be predicted with GER
tainty. Steel required for identified
structures is exempt from the code reg
ulations covering quarterly contracts,
and hence much OF the material re-
quired for public works projects now
being awarded will not be rolled until
next year. Steel products on which
prices were not advanced for the first
quarter, such as sheets and strip steel.
are being ordered sparingly because of
approaching inventories and should
move more freely in January, thereby
tending to offset the expected decline In
releases of other materials.
Auto Requirements Awaited.
Similarly, a large part of the rail-
road tonnage placed or in prospect will
not reach the mills until next year. In
this case. however, much Of the steel
will not affect mill operations until late
in the first quarter or some time in the
second quarter. It Is also becoming ap-
parent that a resumption of automotive
purchases OF steel on an important scale
will not occur until some time next
month. Output in January, however,
may reach 100000 cars, according 10
present estimates, or twice the probable
total for the current month.
In the railroad equipment field the
inquiries Of the Van Sweringen roads
for 12,745 freight cars and 20 locomo-
tives have been supplemented by other
car and repair programs. Central OF
Georgia will buy 200 coal cars. the
Lehigh & New England will order 500
freight cars of various types ana the
Lehigh Valley will rebuild 1000 cars
and repair 60 locomotives.
THE Iron Age scrap composite,
which made its first advance since
August three weeks ago, has risen again,
now standing at s10.67 a gross ton,
compared with S10.25 gross ton last
week.
"The Iron Age composite prices for
finished steel and pig iron are un-
changed at 2.028c- 0ound and $3.50
q ton, respectively.