The Washington times., 1935-11-22
SPURT FROM PRESENT
STEEL LEVELS SEEN
FOR START OF YEAR
By LEWIS HANEY

PROFESSOR OF Economies, NeU YORK UntOeTSty
leading journal that steel production has
increased slightly during the past week to 54 per of
capacity This chiefly the result of increased activity in the
Chicago district where the automobile industry has relatively
great effect.
In general may say that steel production holding up
unusually well for this of the More significant
than that however, the fact that shipments of
sumng industries have gained considerably This shows that
only other industries active but surplus stocks
of steel have been reduced
There has been danger that buying would hold up
that in the preceding New Deal spurts steel production
would curtaned to work off stocks Now
the prospect that production be sustained or
increased during the remainder Of the year. and that squirt
develop early next year from about present levels
The situation is made sOunder by the caution
buyers and by the fact that there less likelihood of
anticipatory of buying. For example, if prices
marked finished steel (bars Sheets etc., the
likely come IN December and to apply to the first quarter
of 1885, AT the moment there is little indication buyers
are going to rush in to anticipate such advance for if
prices are raised they will merely affect purchases
and not touch off an unhealthy forward buying spur
Coal and coke little higher Pig iron has been ad
vanced dollar In the last steel scrap has risen
about so cents ton So costs of are higher
Meanwhile demand for steel has increased There has been
sharp increase In automobile production and that
motor and parts manufacturers order steel The rail
buying than they have in long while incud
ing ra and plates and other materials for recondtonng
freight Some Western roads have placed szeabe
orders for New locomotive boiler tubes are also
being bought more heavily.
Trade reports tell of vertabe contractors to GET
i'll Government jobs before December IS deadne and
they asking for prices the construction steel required
The curve OF building activity though been steadily
rising.
Farm implement and machinery manufacturers after An nm
usually sustained season, working new models"
and continue to buy steel for that purpose
The miscellaneous general demand is we'll sustained and
now the tariff arrangement with Canada promises some ex
panson IN demand from that country
Against these indications have been the decline in railway
carloadlngS and financial condition of manv RAILWAYS
government works have been slow. Utilities are buying little
nla nd
chant Wre have shown little activity.
One should note that bets been relatively lower +bo
oars and the rise in semnshed steel NAV merely he
recton of this condition 1' ~ 0oh
must be admitted, too that there has been some antc
P"Ion OF requirements, farm implement makers have
SeeI sheets ahead and ounds have stocked I'D with
pig iron. ~ 0u up Will
But the fact remains that "semfinshed' steel bies
sheet bars e has been advanced price, and the advances
have held and become general. "Wre rods y the semi
shed material for wres have just been advanced in price
Thus from pig iron up, the basis for higher price structure
has been laid
IL seems to be only question of time until ~ consumers
nave used up their supplies and 2 manufacturers who
nave to buy semnihed steel forced to mark nm their
products. ~ P w
AT present these nonntegrated producers who rev IN
others for their semnished STEEL in danger of being
squeezed BY the token the big ntegraed steel COM
pane are not getting much benefit of the price advances
hus ar They consume Of their own pig iron and
semtnshed steel products the price makes little differ
ence to them. ~
rise IN finished steel prices depends upon increased d.
mand for consumption. If we assume this as T tbin wa
may bars and sheets will RISE and the steel comnanies will
probably make money ~