Evening star., 1933-08-16
STEEL ORDERS OFF.
SHARPLY IN WEEK
Average Ingot Output Drops
Four Points to So Per
Cent Level.
BY the Associated Press.

.
NEW YORK, August 16.-Steel de-
mand is yielding to the retarding infiu-
ence of codification difficulties and sea-
sonal recessions in consumption. In
coming business has dropped off ma
.terially in Chicago, Pittsburgh and other
leading centers, and the national aver
age for ingot output has fallen four
points now standing at So per cent Of
capacity as compared with 81 per cent
a week ago, says the Iron Age
AT Chicago production has declined
from SO to Al per cent, at Pittsburgh it
has dropped from 40 to As per cent, at
Buffalo from 81 to 81 per cent. in the
Cleveland-Lorain districts from Ct to
IS per cent, in Eastern PENNSYLVANIA
from 46 to As per cent, in the Wheeling
district from IS to 80 per cent and in
the South from rs to 81 per cent.
Uncertainties Blamed.
Uncertainties growing out of the
national recovery program are respon-
sible In large part for the downward
trend in iron and steel business. Sellers
feel that they will not have a firm
foundation for steel prices until wages
IN the coal industry are settled
Although strike disturbances in the
Western Pennsylvania coal fields have
subsided, the wage rates and working
conditions that will finally be estab-
lished are still unsettled, pending adop-
tion Of coal code
Iron and steel consumers. on the
other hand, are unwilling to make fur
ther purchases of materials until they
hnd way out of some of the perplexi-
ties that have arisen from signing up
under the Blue Eagle. Many of them,
having raised wages and shortened
hours, now fear that they cannot obtain
compensatory increases In their prices,
realizing only too well that the final
arbiter on prices is the ultimate con-
sumer.
They are particularly apprehensive
OF losses on fixed price contracts taken
before they subscribed to the blanket
code. Other concerns have followed
the dictates of the code as to hours and
wages only to find themselves con-
fronted with strikes.
Auto Activity SIumps.
Seasonal reaction in steel demand Is
most noticeable in the automobile in
dustry. Purchases of steel for current
models have been virtually completed,
and initial buying for new models VIII
probably not occur until late in Sep
tember. But code complications also
have affected the attitude Of motor car
builders
"Hesitating to risk an advance in
their retail prices during the remainder
Of this year, they face higher costs in
cident to the new basis Of wages and
hours under which they are now work.
ing. together with chronic labor difii-
culties growing out of persistent efforts
to uQiOniZP their DlantS
Under the circumstances, they are
in mood to offer stubborn resistance
to the one-price policy on steel which
will become effective with the adoption
Of the iron and steel code.
structural steel awards. at $500
tons. compare with $3.50 a week ago.
Both structural steel and concrete bar
lettings are suffering because Of the
slowness with which the public works
program is getting under way. Cleve-
land has placed general contracts call
ing for the purchase of $4,000 tons Of
cast iron and steel pipe and fittings.
Rail Buying Slow.
Railroad buying remains at low
ebb. and Western roads have grown
even more cautious about expenditures
because of decline in traffic in
drought stricken agricultural areas
Coke prices have lost some of their
buoyancy with the passing of strike
difficulties Furnace grade has declined
from SITS to $3.50 and foundry from
$3.50 to s275 Scrap has given ground
at Chicago and the Iron Age composite
has receded from sl2.25 to s12.08 a
ton. the first decline since May The
finished steel and pig iron composites
are unchanged"