Evening star., 1933-05-06
DEMAND FOR STEEL
|. GROWING STEADILY
Reports From Industry Indi-
cate Rising Prices and
Higher Output.

By the Associated Press.
NEW YORK, May 6.-Mounting pro-
duction, rising prices and broadening
demand characterize the iron and steel
industry, says the Iron Age.
Factors contributing to current ex-
pansion OF business include seasonal
influences, the release Of requirements
that accumulated during the bank Ioii-
day. and protective buying, prompted
by the fear of monetary imitation.
"The widespread belief that prices
are definitely headed upward has re-
tionary tactics which, in some cases,
verge on speculative activity. The scrap
trade, for example, is showing increas-
ing reluctance to sell, holding its ma
terial for further advances. The rising
tendency Of scrap prices Is Nation
wide Heavy melting grade at Pitts
burgh has made the sharp advance OF
SIPS ton, raising the Iron Age scrap
composite price from $3.50 to 1925
a ton, its highest level since February.
1881. Pig iron is also gathering
on valley basic iron having elevated
the Iron Age composite from sl4.0l
to S1410 a ton, the highest figure
since May of last year.
Prices Buoyant.
"The strengthening position Of pri-
mary materials is paralleled by the
buoyancy of finished steel prices. Ad-
vances Of 81 a ton on hot-rolled sheets
and hot-rolled strip and SO ton on
cold-rolled sheets have Just been put
into effect, having been preceded by
widespread covering OF second quarter
in iron and steel may soon be reflected
in higher prices on manufactured con-
sumner products The possibility that
increased material costs may soon force
an upward revision in automobile prices
is already having its influence on mo-
tor car demand. Automobile produc-
tion for April, estimated at 10000 to
10000 units, is expected to be equaled
or exceeded in May.
Motor car requirements, together
with tin plate buying and broadening
demand from miscellaneous sources, &C
count in the main for current expansion
of steel production. Ingot output is
now % per cent Of capacity as against
z5 per cent a week ago, increases hav-
Ing been reported in the Chicago, Pitts
burgh, Buffalo, Eastern Pennsylvania,
Southern Ohio, Wheeling and Valley
districts.
pig iron production in April re-
bounded sharply from the low level
holiday. Whereas March output regis
tered a decline Of III per cent from
that of February, April production, in
terms CT the daily average, rose 1873
per cent. No monthly gain has ap-
preached this since last September,
which schowed an increase of l5.4 per
cent over August.
Total output in April was 623,618
gross tons, compared with 542,011 tons
in March. The April daily rate was
20,787 tens as against the March average
OF 7,484 tons. There was net gain of
10 active furnaces during the month, 48
stacks being in operation on May ! at
a rate Of 22605 tons day.
The steel industry still lacks the
support CT the building industry and
the railroads. However, structural steel
lettings OF the week, swelled by a sin
gle award of 10000 tons for the SUI
perstructure of a San Francisco bridge,
aggregate 126,135 tons, the largest to-
tai since the last week of october, 1881.
New projects call for 24100 tons, Of
which CO 600 tons is for the substructure
and anchorages of the San Francisco
bridge.
Tin Mills Active.
"Tin mills continue to be the most
active among finishing units in the
steel industry. Tin plate output as a
whole has increased to 55 per cent from
so per cert Of capacity a week ago.
Two or three large producers are fully
engaged and several are operating at
rs per cent Of capacity.
"Replenishment buying by jobbers
has also been a factor in the recent
expansion CT demand. To what extent
such buying represents the building up
of badly depleted stocks as opposed to
outright expansion Of inventory in an
ticipation Of higher prices it is difficult
to say. Steel producers, however, are
inclined to discourage speculative buy
ing. In few instances have they pro-
tected customers beyond June 30. With
primary materials showing pronounced
strength, they face the prospect Of
higher costs, which would make heavy
extended commitments at present prices
hazardous.
The Iron Age finished steel COM
posite price is unchanged at 1857 cents
pound