Steel

The steel industry, in sharp contrast to its mood of last summer, now cheerfully faces the future. Prices of bars, shapes, plates and wire products have advanced under broadening buying, while the Steel Corporation has raised its prices on black sheets $2 a ton, and on galvanized and automobile sheets $3 a ton.

Activity of mills, despite temporary setbacks, continues to increase; and the whole steel industry is now approaching a more respectable hailing distance of its capacity. This fall, the lettings for structural steel have run about 73% of capacity. The sheet steel is running at about 80% of capacity. With the prospect of renewed railroad buying next year, as well as other important sources of demand, Pittsburgh is more sanguine now than at any time since the first quarter of 1924.

The lack of hysteria among steel producers at the return of fair production rates is due to the sharp lessons received in the spring of 1923 and again in 1924. On both occasions, demand suddenly appeared, prices rose and steel mills broke all records for production. This led quickly to swamping the market, decreased demand, dull activity and falling prices. The productive capacity of this country's steel industry is tremendous; demand for steel, while wholesome and constant, is not sensational and may not be so in the future.