Evening star., 1938-03-16
STEEL PRODUCTION
RISES TWO POINTS
Orders Display Increasing
Diversification-T0taII Is
32oo of Capacity.
Ry the Associated Press.

BY the Associated Press.
NEW YORK, March l6.-Iron Age
said today in its weekly review Of the
steel industry:
"A rise of 2 points in steel ingot
production to 80 per cent of the coun-
try's capacity has occurred this week
without material aid from the automo-
bile industry, the railroads or building
construction, the improvement coming
mainly from miscellaneous sources, be-
ing partly seasonal in character and
partly due to depletion of inventories.
Disappointed as to the net amount
of the freight rate increases granted
last week by the Interstate Commerce
Commission, the railroads have made
no concerted move toward the resump-
ton of buying of even the routine re-
quirements that have been accumu-
lating during recent months of in
action.
The freight rate decision is not
counted upon to stimulate much buy
ing by general users of steel in order
to save the difference between existing
rates and those that will go into effect
about April l, as the net increase to
most buyers will be small.
March, often the best month of the
year for the steel industry, has brought
moderate improvement over February
sales, variously estimated at from 8 to
20 per cent, depending upon the COM
pany and the product. At Chicago the
ingot production rate is the highest
since last November. and there have
been gains in several other districts
One Chicago producer has had the
best sales since the week of January
IA nd another the best week of the
year thus far.
Among general industrial groups,
the farm implement and tractor in
dustry is one of the most active buyers
OF steel. Orders show increasing di-
versification, though in most instances
still small individually, and some users
have bought who have not been in the
market in months. 1t is significant
that pig iron shipments by Chicago
merchant furnaces have increased thus
far in March 40 per cent over the
February rate.
Even at this early date the auto
motive industry is turning its atten-
ton to 1889 models, plans for which
will require the purchase of about $685.
10000 worth of new machine tools
within the next few months. Mean
while production and sales of 1898
models are gaining slowly, but steel
buying continues on hand -to-mouth
basis awaiting further results. If
automobile sales show expected sea-
sonal expansion from now on. some
OF the automobile companies may
come into the market in April for
sizable quantities of steel. Activity is
increasing among some parts makers
and suppliers.
Steel scrap has stiffened at Phila-
delphla on a sale at SIS to a mill.
but elsewhere is weak or merely hold
ing at recent levels However, the
Philadelphia increase raises the Iron
Age scrap composite price to 1888
from $13.42 last week.
Steel ingot production is up three
points at Pittsburgh to 20 per cent;
up two and one-half points at Chi
cago to 80 per cent; down three points
in the valleys to 20 per cent: up one
point in Eastern Pennsylvania to 20
per cent; up five points in the Cleve-
land-Lorain area to rs per cent; up
seven points in the Wheeling -Weirton
district to 81 per cent; up four and
one-half points in the South to IS
per cent, and in the Southern Ohio
area has gained IS points to % per
cent"