• Short Summary

    NEW YORK, JULY 16 (AP) -- PRICE OF FOREIGN STEEL HAVE RISEN ABOUT $10 (TEN DOLLARS) TO $15 (FIFTEEN DOLLARS) A TON FROM WHAT THEY WERE A FEW WEEKS AGO, STEEL BROKERS SAID TODAY.

  • Description

    NEW YORK, JULY 16 (AP) -- PRICE OF FOREIGN STEEL HAVE RISEN ABOUT $10 (TEN DOLLARS) TO $15 (FIFTEEN DOLLARS) A TON FROM WHAT THEY WERE A FEW WEEKS AGO, STEEL BROKERS SAID TODAY.

    PROSPECTS OF A TIGHT STEEL SITUATION IN THIS COUNTRY AS A RESULT OF THE STEEL STRIKE ARE BEHIND THE PRICE BOOST, BROKERS SAID. BUT THAT IS NOT THE ONLY REASON FOR THE HIKE.

    "EUROPEAN DEMAND FOR STEEL IS VERY GREAT AND STEEL MILLS OVER THERE AREN'T DEPENDING UPON THE AMERICAN MARKET AT ALL," ONE BROKER SAID. "YOU CAN GET EUROPEAN STEEL ONLY ON AN ALLOCATION BASIS."
    A TYPICAL BASE PRICE ON EUROPEAN STEEL WAS $5.90 (FIVE DOLLARS AND NINETY CENTS) A HUNDRED POUNDS FOR STEEL BEAMS PURCHASED IN LARGE QUANTITIES.

    IN HOUSTON (TEXAS) WALTER LEO (CQ), SALES MANAGER OF SHEFFIELD STEEL, (CQ), SAID FOREIGN STEEL PRICES ROSE $6 (SIX DOLLARS) TO $9 (NINE DOLLARS) A TON YESTERDAY. HE SAID FOREIGN STEELMAKERS "ARE THROWING THE BOOK AT US."
    ABOUT 21-THOUSAND TONS OF STEEL FROM BELGIUM AND JAPAN WAS UNLOADED FROM FIVE SHIPS AT HOUSTON (TEXAS) YESTERDAY.

    JEEP MYERS (CQ), TRAFFIC MANAGER OF THE PORT OF SAN FRANCISCO, SAID THERE HAD BEEN AN INCREASING INFLOW FROM BOTH EUROPE AND JAPAN OF MANUFACTURED STEEL ARTICLES SUCH AS SMALL PIPE, NAILS AND WIRE OF ALL KINDS.

    AT LOS ANGELES HARBOUR COMMISSION SPOKESMAN SAID STEEL IMPORTS HAD DOUBLED IN THE LAST SIX WEEKS TO ABOUT 25-THOUSAND TONS A MONTH. IMPORTS ARE COMING MAINLY FROM GERMANY, BELGIUM AND JAPAN, HE SAID. FIGURES GATHERED BY THE AMERICAN IRON AND STEEL INSTITUTE DISCLOSED A SHARP BOOST IN STEEL IMPORTS STARTING LAST AUTUMN AND INCREASING EACH MONTH THIS YEAR THROUGH APRIL, THE LAST MONTH FOR WHICH STATISTICS ARE AVAILABLE.

    IN EACH OF THE PAST FIVE MONTHS STEEL IMPORTS HAVE EXCEEDED EXPORTS. VETERAN STEELMEN SAID THIS WAS THE FIRST TIME WITHIN THEIR MEMORY THAT THIS COUNTRY HAS IMPORTED MORE STEEL THAN IT EXPORTED FOR MORE THEN TWO CONSECUTIVE MONTHS.

    IMPORTS IN APRIL TOTALLED 359,450 (THREE-HUNDRED-AND-FIFTY-NINE--THOUSAND, FOUR-HUNDRED-AND-FIFTY) TONS AND EXPORTS 178,024 (ONE-HUNDRED-AND-SEVENTY-EIGHT--THOUSAND, TWENTY-FOUR). A YEAR EARLIER IMPORTS WERE 114,024 (ONE-HUNDRED-AND-FOURTEEN--THOUSAND, TWENTY-FOUR) AND EXPORTS 266,943 (TWO-HUNDRED-AND-SIXTY-SIX--THOUSAND, NINE-HUNDRED-AND-FORTY-THREE) TONS.

    BROKERS SAID AMERICAN COMPANIES, SENSING A STEEL STRIKE WAS COMING, STARTED BUYING STEEL IN EUROPE AS FAR BACK AS LAST NOVEMBER AND DECEMBER. PRICES WERE RELATIVELY CHEAP AT THAT TIME.

    WHAT ABOUT THE FUTURE?
    "YOU'LL FIND A BIG SLUMP IN IMPORTS FOR THE SECOND HALF OF THIS YEAR," ONE BROKER SAID. "THERE WON'T BE ANY FURTHER BUILD UP OF INVENTORIES, PRICES OF EUROPEAN STEEL HAVE RISEN AND FINALLY THERE'S A BIG DEMAND IN EUROPE FOR THE STEEL THEY PRODUCE."
    A CRUSH OF 21-THOUSAND, SIX-HUNDRED TONS OF FOREIGN STEEL WAS ELBOWING INTO THE PORT OF HOUSTON (place - source) ON THE FIRST DAY OF THE NATIONWIDE STEEL STRIKE, A HOUSTON POST SURVEY SHOWED WEDNESDAY. AS THE IMPORTED STEEL CLANGED ONTO DOCKS, AN OFFICIAL OF HOUSTON'S STRIKE-BOUND SHEFFIELD STEEL CORP. CHARGED THAT FOREIGN STEEL-MAKERS ARE "THROWING THE BOOK AT US" IN AN EFFORT TO TAKE OVER THE MARKET DURING THE STRIKE.

    THE OFFICIAL, SALES MANAGER WALTER H. LEO (CQ), ALSO REPORTED THAT PRICES ON FOREIGN STEEL SPURTED UP BY $6 (SIX DOLLARS) TO $9 (NINE DOLLARS) A TON WEDNESDAY.

    "AND MY SALESMEN REPORT THAT CUSTOMERS HAVE BEEN TOLD THE PRICE WILL GO UP MORE," LEO ADDED.

    EARLIER WEDNESDAY, THE SHEFFIELD OFFICIAL, HAD PASSED ALONG TO A BUSINESSMEN'S MEETING AN OPINION THAT FOREIGN IMPORTS ARE "DEADLY POISON AND ALL OF US ARE COMMITTING ECONOMIC SUICIDE WHEN WE BUY THEM. IMPORTED STEEL ALL FROM BELGIUM OR JAPAN, WAS BEING UNLOADED IN HOUSTON FROM FIVE SHIPS WEDNESDAY. TWO OTHER STEEL SHIPS WERE IDLING OFFSHORE, WAITING FOR EMPTY BERTHS.

    THE TOTAL OF 21-THOUSAND, SIX-HUNDRED TONS OF ALIEN STEEL IN THE PORT WEDNESDAY, LEO SAID, COMPARED WITH AN AVERAGE OF 60-THOUSAND TONS OF STEEL IMPORTED MONTHLY DURING THE FIRST QUARTER OF 1959.

    "THERE'S AN UNUSUAL AMOUNT OF STEEL IN PORT," LEO SAID. "I THINK A LOT OF THE INFLUX IS DUE TO SPECULATION BY STEEL BROKERS."
    ASKED IF HE FORESAW A DELIBERATE ATTEMPT BY STEEL IMPORTERS TO TAKE OVER SHEFFIELD'S MARKETS, LEO REPLIED:
    "I DON'T THINK THEY COULD TRY ANY HARDER. THEY'RE THROWING THE BOOK AT US NOW."
    JERRY P. TURNER (CQ), GENERAL MANAGER OF THE PORT OF HOUSTON, AGREED THE 21-THOUSAND, SIX-HUNDRED--TON INVASION OF FOREIGN STEEL WAS UNUSUALLY HEAVY. BUT HE ADDED:
    "THERE HAS BEEN AN UNUSUAL AMOUNT COMING IN FOR, OH, THE PAST FOUR MONTHS. BUYERS AND BROKERS HAVE BEEN STOCKPILING IN VIEW OF A POSSIBLE STRIKE."
    TURNER VENTURED THAT THERE PROBABLY WAS NOT AS MUCH STEEL ON SHIPS AFLOAT IN THE PORT NOW AS THERE WAS TWO MONTHS AGO.

    "BUT WHAT WILL HAPPEN IN THE NEXT FEW DAYS, NO THAT THE STRIKE IS A REALITY, I DON'T KNOW," HE ADDED.

    THE POST'S DOCK-BY-DOCK SURVEY OF STEEL IMPORTS WEDNESDAY PRODUCED THIS PICTURE:
    CITY DOCK 9 (NINE) -- JAPANESE STEAMER KOSOH MARU (CQ) UNLOADING 5-THOUSAND, ONE-HUNDRED (5,100) TONS OF JAPANESE STEEL.

    CITY DOCK 11 (ELEVEN) -- SPANISH MOTORSHIP MAR CARIBE (CQ) WITH 15-HUNDRED (1,500) TONS OF BELGIAN STEEL.

    CITY BLOCK 12 (TWELVE) -- ITALIAN STEAMER CESCO CORRADO (CQ) DISCHARGING ABOUT 5-THOUSAND (5,000) TONS OF BELGIAN STEEL.

    LONG REACH DOCKS (CQ) -- AMERICAN STEAMER VELMA LYKES (CQ) UNLOADING ABOUT 2-THOUSAND (2,000) TONS OF BELGIAN STEEL; JAPANESE MOTORSHIP EISHIN MARU (CQ) PUTTING ASHORE FIVE-HUNDRED TONS OF JAPANESE OIL WELL CASING AND TUBING.

    ON THE BAR AWAITING BERTHS WERE THE SWEDISH STEAMER I. W. WINCK (CQ) WITH ABOUT 25-HUNDRED (2,500) TONS OF BELGIAN STEEL AND THE JAPANESE STEAMER KASUGA MARU (CQ) WITH 5-THOUSAND (5,000) TONS OF NIPPONESE STEEL.

    IRONICALLY, THE FIRST DAY OF THE STRIKE ALSO FOUND THE JAPANESE STEAMER CHOZAN MARU LOADING A FULL CARGO OF SCRAP STEEL BOUND FOR JAPAN. (CHOZAN MARU - CQ)
    A SPOKESMAN FOR THE SHIP'S AGENTS, THE TEXAS TRANSPORT AND TERMINAL COMPANY, INC., SAID IT WAS THE FIRST SHIPMENT OF STEEL SCRAP FROM HOUSTON THAT HE COULD RECALL IN MORE THAN A YEAR.

    HE SAID THE SCRAP WOULD BE REFINISHED IN JAPANESE MILLS, AND IT WAS "NOT UNLIKELY" THAT IT THEN WOULD BE EXPORTED BACK TO THE U.S. SALES MANAGER LEO (CQ) PICTURED A BLEAK HORIZON FACING SHEFFIELD IN A NOON SPEECH TO THE KIWANIS CLUB IN THE RICE HOTEL.

    USING STEEL RODS IN VARYING LENGTHS, HE ILLUSTRATED HOW FOREIGN STEEL IMPORTS HAD LEAP-FROGGED IN THE HOUSTON AREA SINCE EARLY 1958.

    IN THE FIRST QUARTER OF 1958, HE SAID, FOREIGN STEEL IMPORTS TOTALLED 39-THOUSAND TONS. IT SOARED STEADILY TO 180-THOUSAND TONS DURING THE SECOND QUARTER OF 1959.

    THE ANNUAL OUTPUT OF THE SHEFFIELD PLANT IN 1958 WAS 680-THOUSAND TONS, HE SAID.

    "PRICE, AND PRICE ONLY, IS THE INDUCEMENT FOREIGN COMPETITION HAS TO OFFER," HE DECLARED.

    LEO SAID FOREIGN STEEL HAS BEEN SELLING AT $35 (THIRTY-FIVE) TO $50 (FIFTY) DOLLARS A TON CHEAPER THAN AMERICAN-MADE STEEL. THIS IS LARGELY ATTRIBUTABLE TO CHEAP FOREIGN WAGES, HE ASSERTED.

    LEO SAID THAT AT A GENEVA MEETING OF STEEL PRODUCERS LATE IN 1957, HE LEARNED THAT FOREIGN STEELWORKERS' WAGES RANGED FROM 45 (FORTY-FIVE) TO 98 (NINETY-EIGHT) CENTS AN HOUR.

    AMERICAN STEELWORKERS, HE SAID, WERE THEN AVERAGING ABOUT $2.76 (TWO DOLLARS AND SEVENTY-SIX CENTS) AN HOUR.

    HE SAID THIS MEANT THAT, OTHER FACTORS ASIDE, AMERICAN STEEL COST $40 (FORTY) MORE A TON TO PRODUCE.

    LEO TOLD THE BUSINESSMEN THAT UNQUESTIONABLY AMERICA'S ALLIES NEEDED FINANCIAL AND TECHNICAL AND AFTER THE WAR.

    "BUT WHEN RECONSTRUCTION HAS PROGRESSED TO THE POINT WHERE FOREIGN STEEL MILLS OPERATE AT 100 (ONE-HUNDRED) PER CENT CAPACITY WITH FULL EMPLOYMENT WHILE OUR DOMESTIC MILLS OPERATE AT 70 (SEVENTY) PER CENT WITH REDUCED EMPLOYMENT," HE SAID, "IT WOULD APPEAR TO ME THAT THEIR STEEL MILL RECONSTRUCTION PROGRAMS HAVE COME A LONG WAY."
    APART FROM FRIENDLY NATIONS, LEO SAID, HE RECENTLY DISCOVERED THAT SHEFFIELD WAS LOSING ITS MARKET FOR BENZOL (CQ), A BLAST FURNACE BY-PRODUCT TO THE SOVIET UNION TO THE TONE OF $6.5 MILLION (CQ).

    THE RESULT OF FOREIGN COMPETITION, LEO SAID, WAS THAT THE HOUSTON ECONOMY LOST 23-MILLION (TWENTY-THREE-MILLION) DOLLARS IN 1958. THAT WAS THE AMOUNT BY WHICH SHEFFIELD CUT BACK SPENDING FOR MATERIALS AND SERVICES DUE TO INROADS FROM ABROAD, LEO ASSERTED.

    LEO QUOTED TO THE GROUP FROM A REPORT IN MILL AND FACTORY, A TRADE MAGAZINE, WHICH DEMANDED, "A LONG, HEAD LOOK" AT FOREIGN IMPORTS. "LET'S STOP KIDDING OURSELVES," THE ARTICLE SAID. "THESE AREN'T BARGAINS, THEY ARE DEADLY POISON AND ALL OF US ARE COMMITTING ECONOMIC SUICIDE WHEN WE BUY THEM."

  • Tags

  • Data

    Film ID:
    VLVA6WTNF8IYH584UTD5E3KKCQYBY
    Media URN:
    VLVA6WTNF8IYH584UTD5E3KKCQYBY
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    17/07/1959
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Black & White
    Duration:
    00:01:21:00
    Time in/Out:
    /
    Canister:
    N/A

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