Evening star., 1934-04-04
STEEL PRICES RISE
AS WAGES CLIMB
National Production Aver
aqe Gains One. Half Point
During Week.

BY the Associated Press.
NEW YORK. April 4-The Iron
Age says: General price advances
on steel products ranging from 81 to
So q ton have followed the recent 10
per cent increase in wages. While
the filing of prices has not been COM
pleted, new quotations have been an
nounced on virtually all Of the COM
moner products except pipe, tin plate
and rails.
"On the basis of the advances thus
far made public the Iron Age COM
posite for finished steel will be raised
from 2028 cents to 2.l84 cents q
pound. The advanced figure. how
ever, will still be $2.26 ton below
the average for 1929 and $3.50 q ton
below that Of the popular index base
year 1925, Notwithstanding that basic
wage rates are now back on approx
mately the same level that prevailed
in both 1929 and 1926.
"A possible advance in pipe may re-
suit in a further slight increase in
the Iron Age composite, and the price
of rails may be changed following the
expiration Of the present quotations
on April Is. but no early revision Of
the tin plate price is looked for.
Advance Contracts Let.
"The advances have caused wide
spread contracting for the second
quarter, since mills have given their
customers an opportunity to cover
their needs prior to the effective date
Of the new prices, which in most
cases will not be before April 10.
THE effect of this anticipatory
buying, however. is to rob the indus
try Of the benefit Of the advances
until the third quarter. In the mean
time producers face immediate abb
sorption Of higher labor and fuel
costs. The only advantage that they can
expect to gain from the price changes
this quarter is the operating econo-
mics that will result from the in
creased rate of output that will fol-
low the current wave of buying.
Even now mills are beginning to
feel the effects of the rush of con-
sumers to cover their needs, and
sharply higher operating schedules in
finishing mills are expected by the
middle Of the month. The transi-
tional character of the current phase
Of the steel market is illustrated In
production rates in different producing
centers. Operations at Cleveland are
OF points to Sc per cent of capacity
and output in the South has receded
points to so per cent. On the other
hand the Pittsburgh rate has in
creased points to IS per cent and the
valley average 2 points to 81 per cent.
Production in other districts remains
unchanged and the national average
has risen one-half point to 48ls per
cent of capacity.
Fuel Costs Increase.
Pig iron producers have not vet
filed price changes, but early ad-
vances are regarded as inevitable in
view of the addition Of increased fuel
costs to higher labor charges. Coal
operators have not yet been able to
determine the effect of their own
new wage set-up, but they have tenn
porarily advanced all grades of btu
minous coal Is cents q ton and both
furnace and foundry coke IS cents q
ton. These changes are effective i'm
mediately, since ali fuel contracts
carry a wage clause.
March production Of automobiles
Is estimated at 325, COO cars and April
will bring further expansion of opera
tions. More railroad steel is reaching
mills. More than 10000 tons OF rails
have been placed in the last week.
Inquiries on which early action Is ex-
pected include $4,000 tons for the
Baltimore & Ohio, 10000 tons for the
Norfolk g. Western, 4,200 tons for the
Maine Central and 4.25O tons for the
Grand Trunk Western.