The Washington times., 1934-07-11
AU To- INDUSTRY.
AND PWA CHIEF
i. STEEL USERS

= NEW YORK, July II U.N.sJ,
According to general expectations
Public Works projects and the
Automotive industry are proving
10 be the chief supports Of the
steel trade in the first normal
week Of the summer quarter, Iron
Age stated today. While steel
producers are building up their
own inventories in some in
stances, the above consuming
groups, together with the rail
roads, are largely responsible for
an increase of points, or nearly
80 per cent, in steel output this
week, bringing the ingot produc.
Hon rate, for the industry to ~
per cent of capacity. ,
Higher schedules are reported
from all principal producing ais
tricts except the Birmingham ana
Wheeling areas, where declines OF
5 points to As and 35 per cent, re-
spectively, have taken place.
Open.hearth plants at Detroit are
still running at capacity and pro,
duction at Chicago is unchanged
at % per cent. Pittsburgh district
OUTPUT has risen 8 points to ID per
cent: Philadelphia, 3 points, to rs
per cent; the Valleys, 18 points, 10
90 nor cont. Cleveland, 10 points,
to "a per cent, and Buffalo, D
points, to Is per cent.
The legal division OF the MIA
has ruled that the filing with a
code authority of bid price IN
accordance with the executive
order of June 20, referring 10
tenders to the Government or
subdivision thereof, does not
effect a change in the bidder S
filed base prices.
Must Follow Code
Any change in the field mini
mum base prices must be made
in accordance with the provisions
Of the code under which an in
dustry in operating. This Is in
entire accordance with the
opinions of steel producers who
bid directly to the Government
on very little tonnage and also
believed that their contractual
relations under the code would
not be affected by the Presidents
order.
The effects of the Federal pub
lie works program are most
noticeable in the West and Middle
West. From $4,000 to $4,000 tons
of sheet steel piling for the Fort
Peck (MontO dam has been
dividend between two producers.
A bridge at Bettendorf, Iowa,
calling for 4,800 tons of struc-
,tural steel and two bridges in
Illinois which will take 2,10o tons
have been awarded. The Ford
Motor Company has placed 1,4OO
tons for it's strip mill building at
River Rouge, Mich, bringing the
weeks structural lettings to TO-
800 tons, compared with 10,550
tons in the previous week and
only $500 tons in the last week
OF June.
The effect of recent steel price
reductions, most of which become
effective this week, are not yet
discernible. Consumers who had
laid in large stocks in the second
quarter in anticipation of the con-
Siderably higher prices which
were filed in April are extremely
critical of the recent change, es-
pecially when inventories were
built up with borrowed money.
Pig Iron Stocked
It is believed, however, that
stocking of pig iron was heaviest
and no price revision is expected
on this product. Sheet and strip
inventories were also built up
considerably, but quotations on
these products still remain well
above the purchasing levels.
Affected by reduced quotations
on bars, plates, and shapes,
sheets and hot-rolled strips. the
Iron Age composite price for fin
ished steel has declined to 2.131
cents a pound from 2.199 cents
a pound, where it had remained
since April "a.