Evening star., 1941-07-09
Steel Industry Faces
Shortage Of Scrap
And Pig Iron
High Rute Of Output
Threatens to Exhaust
Material Supplies
ey the Associated Press.

ey the Associated Press.
NEW YORK, July 9.-The current
high rate of steel production faces
a double -barreled threat in the near
future in the form of shortages Of
pig iron and scrap, principal in
gredients of finished steel, Iron Age
said today in its weekly review Of
the industry.
Steel mills will operate this week
at 985 per cent of capacity follow
ing the drop to 935 per cent last
week due to the Independence Day
holiday Discussing the outlook, the
publication said:
Whether ingot production can
show much improvement during the
next month, or indeed, whether 1t
can hold, is rapidly becoming mat
ter of speculation. not merely be-
cause melting operations are so
high, but because the steel industry
apparently is not far from situa-
ton in which ii will face twin short
ages of pig iron and scrap.
While production of coke pig iron
In June, according to the Iron Age
compilation. reached 4,553.l65 net
tons, compared with 4,599 ,966 tons in
May and the operating rate for the
induStry's blast furnaces was 959
per cent against 93.8 per cent in
May, the supply of pig iron is far
from adequate.
Distribution Control Seen.
"In answer to defense manufac-
turers increasing complaints of
acute shortages of both foundry and
steelmaking iron, the O. P. M. Pri-
critics Division Is expected to place
these blast-furnace products under
some form of distribution control.
1t has not been determined whether
the order will take the form of full
priorities, pool, or both.
Similar confusion now exists in
the scrap market, where a new ele-
ment of uncertainty has been in
jected in the form of resumption
of exports to Great Britain under
the leaSe-lend law at price slightly
over the Government fixed ceiling
for the New York area. This situa-
ton is likely to force an answer TO
the question of whether it is more
important to keep British plants 60
ing than domestic plants.
Mills and scrap dealers gen.
orally are emphasizing the need for
establishment of a set policy with
respect to scrap exports. In some
steel producing areas in the East
and Midwest. predictions are being
made that ingot output will be cur
tailed in from 80 to 45 days unless
supplies increase.
within a few days the Treasury
Department is expected to take bids |
on more than 100000 tons of steel |
for the British, a large share of |
which is expected to be small billets |
and other semi-fnished items. De- !
hveries will be asked for in August |
and September, which suggests
further restriction in non-defense !
business, since completion of the |
order during July and August will |
come at time when American mills |
are jammed with domestic defense |
orders.
Railroad Car Plants Reopen.
ut is now estimated that such |
defense orders directly or indirectly /,
are taking an average of so per cent
Of current steel production, with
the rate for some companies reach
ing Is per cent. While the outpour-
ing of new orders has subsidized to |
some extent, the volume is still |
greater than production or ship |
ments.
"A bright spot in the metals sup |
ply picture is news that three rail- |
road Car building plants which have |
been shut down from six to eight |
weeks because of lack of plates have !
now obtained steel and are operat-
Ing at nearly so per cent. These |
plants are Pullman Standard Car
Manufacturing Co., Butler, Pa;
Ralston Steel Car Co., Columbus, |
Ohio, and American Car g. Foundry |
Co, Huntington, w. Va. A fourth |
plant, that of Greenville Steel Car |
Co, Greenvllle. Pa, was expected to !
resume operations this week. Loss
to railroads from these shutdowns |
Is estimated at 1000 cars. Cars or |
dered from freight car shops or car |
builders during June reached 27- !
265, making a total for the first six |
months this wear of Q2 04Q nne of /