Evening star., 1937-08-23
CLIMB EXPECTED
IN STEEL ORDERS
Next 10 Days or 2 Weeks
Are Likely to Indicate
Autumn Trend.
Srecial Dispatch to The Star.


CLEVELAND, August 23-Stee1-
making is at the crossroads for this
season and the next 10 days TO two
weeks are expected to indicate the
trend for the Fall months. Most In
dications are for a turn to the right,
with resumption of satisfactory buying
and an active period. says Steel.
Although the production rate Is
declining from the level of early
August, production at that time was
beyond ordinary midsummer expert
ence and the slackening Of the present
is to a more normal condition. How
ever, part of the present decline is
attributed to need for repair to steel
making equipment which has had un-
usually severe treatment for several
months. Weakening Of demand for
deliveries has been welcomed as an
opportunity to place equipment in con-
dition for an expected active Fall
campaign. Finishing departments
continue at a high rate.
Steelworks operations last week de-
clined 3 points to 81 per cent of ca
pacity. At Chicago a rise of n point
to 865 brought the highest point OF
the year. At st. Louis a rise of 7
points to "a per cent, at Cincinnati 4
points to SO and in New England 10
points to IS reflected rising activity
Pittsburgh declined 35 to 1915 East
ern Pennsylvania to IS. Youngstown
to 73. Wheeling 4 8 to 892, Cleveland
SIS to 10 5, Detroit to 95 No change
was made in the rate at Buffalo at
86 and Birmingham 96.
Some quickening of buying has ap-
peared in almost every market area
and in many lines Of production but it
has not been sufficient to balance
shipments, though in some instances
1t has come close TO that point.
Shipvard strikes IN eastern Penn
sylvania were ended late last week
by workers voting to return. This
will release considerabl plate tonnage
which has been held back since the
strike started in June.
interruption to trade in China by
the Sino-JapaneSe struggle at Shane-
hal is not expected to have great effect
on trade as observers familiar with
the situation believe Japan will retire
as soon as she can do so without loss
of face, as China is one of her best
customers.
Practically all pig iron producers
have opened books for fourth quarter
delivery without change in price. This
action is somewhat earlier than usual
and consumers are beginning to make
reservations, in view of the fact that
an increase in price may be made
later, as was done during first quarter
of this year.
While scrap is marking time in the
absence Of large buying. much
strength is evident. as yard stocks are
small and relatively little material
is coming into the market. Heavy
melting steel at Pittsburgh has ad-
vanced so cents on a tonnage pur-
chase. indicating the underlying
strength awaiting heavy demand to
bring higher range Some scrap OBJ
servers believe considerably higher
prices will prevail by mid-autumn.
Operations Climb.
NEW YORK, August % tPl.-Oper-
ations in the steel industry for the
current week advanced a of a point
to 1913 per cent of capacity, compared
with 832 per cent last week. the
American Iron & Steel Institute esti-
mated today.
month ago operations averaged
843 per cent while year ago the
rate was 725 per cent.