Cheaper Rails

When the steel industry announced 5~7% price cuts on most of its important products last June, ingot production stood at 28% of capacity. Since then it has increased steadily, reached 47.3%, highest it has been since last October. Whereas the industry could formerly break even at 45% with the old prices, it must now, however, produce at about 55 or 60% to stay out of the red. In an attempt to reach the break-even mark. U. S. Steel Corp. last week suddenly slashed steel rail prices for 1938's fourth quarter $2.50 per ton, bringing them into line with other steel prices, which it left unchanged. Other companies quickly followed suit. Said Iron Age: "While the reductions tend to restrict the possibilities for profit in steel making, this is more theoretical than actual, as there has been virtually no business in these lines for some months. . . ." Once steel's No. 1 customer, U. S. railroads have bought only 12,296,600 tons since 1933, compared to 27,200,000 in the 1927-32 period. Only road to give any inkling of buying now is the New York Central, reportedly in the market for a puny 28,600 tons of rails and track accessories.

This file is automatically generated by a robot program, so reader's discretion is required.