Evening star., 1936-03-18
STEEL LRATESCORES
FURTHER ADVANCE
Large Orders Placed Prior
to Expected Stabiliza-
ton of Prices.
BY the Associated Press.

NEW YORK, March 18.-"The
placing of heavy orders for steel prior
to the expected sterilization of prices
in the second quarter has resulted in
a APPOINT rise in steel production this
week to 81 per cent of capacity" says
the Iron Age. Current output is at as
high level as it has been since June,
1880, although mills operated at the
same rate during the second week Of
June, 1884.
'The Summer bulge in output during
1884 occurred under circumstances not
dissimilar to the current situation, as
sharp price increases announced for
third quarter forced heavy coverage at
the old quotations. Under the code
which was then in effect deliveries had
to be completed by the end Of quar-
ter.
while the current move to stabilize
prices will result in only moderate in
creases. the deadline for the compile
tion. Of shipments will not be enforced
so rigidly. The sudden sharp accelera-
ton in the upward trend of steel out
put can certainly not be attributed
entirely to normal expansion in de-
mand.
Output Up Points.
"Steel production this week is up 7
points to 46 per cent at Pittsburgh,
u point to 631z per cent at Chicago,
points to 72 per cent in the valleys,
! point to AZ per cent at Philadelphia,
9 points to 70 per cent at Cleveland,
3 points to 43 per cent at Buffalo and
10 points to 10 per cent in the Far
West Sheet strip steel and bar mill
operations are up sharply, as these
products are most affected by second
quarter price schedules.
"The second-quarter price structure
is now clearly defined Alloy steel
bars will be subject to quantity diff
ferentialS similar to those applying
on carbon bars, and recent quotations
on cold finished carbon and alloy bars
have been reaffirmed. Small con-
sumers Of all products on which diff
ferentials will apply are seeking to
cover as many of their second quarter
requirements as possible this month at
reduced prices, but many mills are
now booked to capacity on sheets and
strip until April l.
Moderate weather continues to in
spire optimism in the automobile in
dustry and tentative April production
schedules are well above March. Fin
cfn al
heavier. and in this case changes in
the price structure have not had a
noticeable influence.
Building Increases.
reports of increased construction
activity are general and releases of
structural steel piling and reinforcing
bars are uniformly heavier.
Fabricated structural stee! awards
OF the week total 3l,750 tons compared
with $4,000 tons in the previous week
While railroad buying is less con-
spicuous than it was in the first two
months of the year, sizable orders are
still being placed and releases against
old contracts are increasing.
The scrap market has finally re-
flected the release of more plentiful
supplies and shows signs of weakness
despite increasing mill consumption.
While the Iron Age composite price of
No. heavy melting steel based on
quotations at Pittsburgh, Chicago and
Philadelphia is unchanged at STATS D
gross ton, heavy melting prices are
lower at Detroit and Cleveland, where
automotive scrap is more readily avail
able"