Evening star., 1933-07-26
NEW PEAK REACHED
BY SCRAP MARKET
Rest of Steel Industry Shows
Belated Tapering Off of
Activities. .syks
BY the Associated Press.

NEW YORK. July 26.-Ingot produc-
ton has declined for the second con-
secutive week and finished steel demand
continues to taper. But the scrap mar
ket, always considered a sensitive baro-
meter, has risen to new high levels for
the year. Scrap prices have gone up
in virtually all market centers except
Chicago and st. Louis, and advances OF
ST at Philadelphia and soc at Pitts
burgh have raised the composite price
Of heavy melting scrap from $1l.58 to
1T Is possible that scrap may be an
ticipating q rebound in activity early in
the Fall, because most current indi-
cations are that belated Summer re-
cession in steel demand has set in. The
national average for steel ingot output
has declined from SO to 81 per cent
Of capacity, now being 2 points below
the peak reached a fortnight ago.
While operations in most market
centers have remained unchanged dur
ing the last week, the Chicago rate de-
cltned from so to Sc per cent and the
Cleveland-Lorain average from 10 to
81 per cent.
specifications for most Of the lighter
finished steel products continue to de-
cline, but releases Of bars, plates
growing and in some districts have pre-
vented any decline in aggregate book
ings.
New Orders SIacken.
"The automotive industry continues
to press for deliveries against contracts
but is placing little new business. Re-
tail sales of cars thus far this month
have not been up to the June level,
Dc thnt xx,tN
further reduction because OF the
sharp break in the stock and COM
modify markets. August output, there
fore, is difficult to forecast, although q
July total Of at least 225 900 vehicles
Is already assured.
THE dearth of new business from the
motor car makers may be due in part
TO resistance to recent price advances
which on a few products amount to as
much as $40 ton. Similar opposition
to the new quotations has been en-
countered among other large buyers
who have not yet become reconciled to
the abolition Of preferential prices.
No new general price revisionS have
been announced outside Of an advance
Of SO to $40 a ton on lap-weld steel
boiler tubes, In line with recent changes
in discounts on commercial seamless
boiler tubes.
Expected shrinkage in the steel re-
quirementS of the automobile industry
may be counterbalanced by larger de-
mands from the heavy industries. The
naval program soon will result in plate
orders, and Federal allotments for road
building, now being distributed among
various States, should stimulate buying
Of reinforcing steel Considerable sheet
piling will be needed for the Govern
ments river and harbor program.
Cleveland Asks Bids.
Cleveland has asked bids on 250C
tons of welded steel pipe and 1050 tons
Of fittings. together with $4,000 tons OF
castiron pipe. Pasadena will open bids
August Is on 5000 tons of steel plates
for a 19-mile conduit and Los Angeles
has taken figures on transmission tow
ers requiring 1000 tons of steel. Fabri-
Gated structural steel awards Of the
week at 6,225 tons. compared with
1900 tons a week ago. Lettings of re-
tons
The Wabash Railway Is in the mar
ket for 800 tons Of structural shapes
for the repair Of 900 freight cars, and
the Baltimore & Ohio has made a siz-
able purchase Of repair material for
the first time In long period Ship
repair work also has picked up in anti
cipation Of increased costs following the
adoption of the shipbuilding code.
Advances in pig iron prices now are
well established and though new bust
mes is light shipments against contracts
continue to increase. At Chicago July
shipments are running 80 per cent
ahead Of those Of June. At Cleveland
the gain Is 40 per cent.
The Iron Age composite prices for
pig iron and finished steel are un-
changed at SIS 80 a gross ton and 1918
cents pound, respectively"