The Washington times., 1934-08-08
TIN PLATE RISE
/ BOOSTS STEEL
ACTIVITY

NEW YORK, Aug. 9 O.N.S0
Steel production has risen from
26 to 27h per cent Of capacity
largely as a result Of the sudden
squirt in tin plate demand, the
iron age review points out in its
weekly summary today. Output
gains have been centered chiefly
at Pittsburgh which advanced
3 points to 10 per cent; in the
South which recorded a pickup
of 1e points to IS per cent, and IN
the valleys which rose 2 points
to 81 per cent.
However, the prospects for
further immediate Improvement
depend chiefly upon q continu-
ance Of the increased flow Of tin
plate tonnage and a revival OF
buying in other lines.
The unusual severity Of the
drought in the prairie States is
cited as a possible deterrent to the
steel industry, although the
emergency moves taken by the
administration to slaughter and
can 100000 head Of cattle are
proving of temporary benefit to
producers. The containers re-
quired for this program are ex'
rected to call for close to 175, 200
tons of tin plate. This has been
Immediately reflected in sharp
Jump in tin mill specifications,
followed by q rise in production
schedules of from As to IS per
cent Of capacity.
Motors Order Little
Although there will be some ad-
ditional buying of steel this month
by the automobile industry it will
be restricted mainly to fill-in ton
nages for current models, no large
purchases of steel for new models
are expected until the latter part
of September.
Goyernment,sponsored rail and
track accessory orders will be COM
pleted at Pittsburgh by mid-August
and at Chicago before September
l. No important new railroad
equipment programs are beng
launched.
In the construction field hopes
are centered on speeding up OF
PWA work. Structural steel let
tings, at $500 tons, compare with
11,15O tons last week and 1880
tons two weeks ago. Contracts for
July, at 46,500 tons, were the low
est for any month this year and
compare with 82,725 tons for June
and 1880 tons for May.
The most depressing aspect OF
the market is the failure Of replen-
ishment buying to make its ap'
pearance. There has been a
marked slowing up Of the tempo
of industrial. activity and inven-
tories accumulated by consumers
in June are lasting longer than
had been expected.
This fact, together with a fuller
realization of the extent Of
drought damage, has weakened
sentiment in the scrap market.
particularly in the Chicago district
where there have been rather gen.
eral price reductions. AS g. result
of the break at Chicago, the Iron
AGE composite for heavy melting
scrap has declined from $10.42 to
$1O.33 q ton, O new low for the
year.
Little Steel Used
The summary states that it Is
difficult to believe, however, that
consumption of iron and steel has
fallen off as much as production.
That output was artificially slim"
ulated by anticipatory accumula-
tions of stock prior to July l
seems only too evident from the
production figures.
Pig iron output in July. at
39.510 tons per day. showed a de-
cline Of 38.6 per cent from the
June daily rate of 64,338 tons.
The falling off in steel ingot pro-
duction was even more severe.
the recession of July from June
being 40 per cent. The number
of blast furnaces active August l
was rs, as compared with SO on
July !, a reduction that points
to a further shrinkage in. pig
iron production in the current
month.
July was the first month this
year in which pig iron and steel
output failed to exceed produc-
tion in the corresponding month
of 1888. Pig iron output last
month was 431.6 per cent lower
than in July, 1888. Steel ingot
output was 53.5 per cent below
that Of July a year ago.
The Iron Age composite prices
for pig iron and finished steel
are unchanged at $17.90 a ton
and 2.124c q pound, respectively.
BROWN SHOE PAYS