Evening star., 1941-02-05
Steel Mill Operations
Continuing Brisk,
Demand Strong
In9ot Production Of
1884,, 900 Tons Seen
For Current Week
BY PAUL d. GESNER,

TOT Nutrient week
BY PAUL d. GESNER,
Associated Press Financial Writer.
NEW YORK, Feb. 5.-Steel mill
operations are continuing at brisk
rate this week, with demand strong,
even though production is shade
lower.
Outturn of ingots will aggregate
1864 900 tons. compared with 1851
900 last week and 1,147,000 q year
ago. Last weeks production, by
the way, was the biggest for any
week in history.
The current dip is the first de-
cline in output, except for holiday
periods, since early in December.
The tapering in the current week
is attributed to Shutdowns of occa-
sional furnaces at various points
for refining and repairs. 1t was
inevitable, steelmen said, and had
to come sooner or later, for furnaces
have been operating at breakneck
speed for many weeks now trying
to catch up with orders. An active
furnace has to be refined now and
then.
Demand Continues Brisk.
Demand for metal continues
brisk, but a minute thinning in the
recent volume of orders booked in
dicates that some companies are
permitting customers to order only
enough steel to last them a month
or so. 1t is through this system
of voluntary priorities that execu-
tives are attempting to keep every
one supplied with metal despite
substantial demands on capacity
from home defense plants and Brit
ish sources.
The annual capacity Of the do
mestic steel industry at the moment
is about 84,l4S,000 tons. Home de-
fense, British sources and some
South American export customers
are expected to require 10000, 600
to 22,00O00O tons of metal in 194l.
Last year steel output totaled about
66,500,000 tons.
Through new mills now under
construction the industry this year
expects to add another 1000 900
tons to production capacity and in
1912 a second 100000 tons.
Executives say that with careful
study of the degree of urgency of
incoming orders the industry will
be able to supply all peacetime
lines as we'll as defense plants with
adequate metal and without the
appearance of shortages
Large Copper Imports Seen.
Larger copper imports from Latin
America seem fairly sure. Dealers
estimate domestic copper require
ments in the second 1941 quarter
will average around $4,000 tons
monthly, while domestic production
may not get above $4,000 tons
monthly. Producers, it was indi-
Gated, will have to draw on their
stocks during the period to the
tune of around 10000 tons monthly.
Supplies in producers hands as
1941 opened were about 140 900 tons.
Railway circles report around 50,-
900 new freight cars may be or
dered before fall The only thing
that could hold the orders up, it
was said, would be a request on
the part of equipment builders to
permit defense goods manufacture
take precedent on deliveries. Last
year the Nations railroads put
around $500 new freight cars in
service, compared with 24,500 in
1899.
Growth of use of manufactured
gas as a heating fuel is indicated
in January reports Home con-
sumption of manufactured gas DUR
ing January showed one of the big
geSt increases over a year ago Of
any month since 1899. In 1910 gas
house heating customers increased
164 per cent over the preceding
year.
Wheat Outlook Called Good.
Atchison, Topeka 81 Santa Fe
Railway reports the outlook for
winter wheat in Kansas, Oklahoma,
Nebraska, Missouri. Iowa, Illinois
and portions of Colorado and Texas
Is the best in 10 or II years.
An upward trend of interest rates
on Treasury borrowing during the
next year and a half is expected in
some bond circles. Dealers say in
creases may range between one
eigth of l per cent on short-term
securities to one-fourth of / per
cent on long terms.
Record first quarter sales for
building material firms are being
forecast on the basis of January
business. 1t was the best January
for many companies in years. Con-
tributing to wider sales were Cd
the brisk pace of construction In
the residential field, co industrial
plant expansion to cope with de-
tense needs, 90 construction of
new structures In and adjacent to
traipip0 rorops fnr Arv,ov drsffase