Evening star., 1941-05-14
New Steel Demand
S|aekens, Delivery
Pressure Increases
Threat of Mandatory
Priorities Given as
Reason for Decline
BY The Associated Press.

NEW YORK, May l4.-Volume OF
new steel buying has declined in
some regions, although pressure for
shipments is more intense than
ever" Iron Age reported today in its
weekly survey.
AS a possible explanation for the
slackening of demand, the trade
publication cited the threat of
mandatory priorities on all forms of
steel, which would automatically
curtail shipments to consumers not
engaged in defense work.
Regarded as another factor was
the inventory control plan inaugu-
ratad by the Office of Production
Management, which will discour-
age excessive buying and which, If
necessary, could be employed to
commander excessive stocks and
the fact that most steel companies
are fully committed for all the steel
they can produce in l94l, and if
they accept orders for 1912 are do
ing so conditionally."
Passage of the pending priorities
bill by Congress, which is expected
this week" the review continued,
will give statutory authority for
the priorities system, and under this
act the control of strategic mate
rials, including iron and steel, may
be as comprehensive as 1t was under
the war industries board in the
1918 period.
Priorities Opposition Weakens.
The inventory control plan, off,
cially known as general metals or
der No. !, does not become fully
effective until June l, but already
producers of various products which
come under the order have been
asked to reduce shipments this
month which would tend to increase
customers inventories.
Opposition to mandatory pri-
ority system is less pronounced in
the iron and steel industry than it
was few months ago The problem
created for all steel companies by
the tremendous pressure from nom
defense consumers on the one hand
and the growing requirements for
the defense program can perhaps be
solved only by the interposition of
mandatory separation of the essen
tial and the unessential.
The steel industry emphatically
does not believe that the problem
can be- solved In sufficient time by
an enormous expansion of steel
making capacity, expressed in WASH
ington in terms of 3C,00O, 900 tons of
steel and 100000 tons of pig iron
annually. Such expansion could not
be completed in less than a year to
year and a half under more favor
able conditions than at present
exist Shops equipped to build the
necessary equipment are filled up
with essential work for some time
ahead. To cite just one item, blast
furnace blowers could not be built
in less than IS months unless new
shops were created. To provide suf-
f1cient ore for such an expansion
would require the building of new
lake freighters. Moreover, 1t Is be-
coming apparent that the supply of
scrap may not even be sufficient
for the present steel-making capa-
city.
Export Trade Marks Time.
steel export trade is still marking
time to large extent while export
ers await ruling from the price
administrator as to whether ceiling
prices for export shall be the official
price of the Steel Export Association
of America that were in effect on
March 81 or domestic prices. Export
prices were generally above the do
mestic level. In Washington a plan
is being considered to allocate about
100000 tons of steel a year to
Western Hemisphere countries other
than Canada.
'Ineot production has made a
further gain this week to 99.5 per
cent of capacity, closely approaching
the rate in the last week of March.
just prior to the coal strike.
Scrap composite price remains
the same at $1917.'