Prospects For U.K. And U.S. Steel Industries

Press, Volume XCVII, Issue 28490, 21 January 1958, Page 15

Prospects For U.K. And U.S. Steel Industries

The British iron and steel industry is expected to produce more this year than the 218 million tons estimated for 1957 although demand may not he sufficient for the total available capacity of 23.5 million- tons to be fully utilised. In the United States the recent decline in orders is seen as “a breathing point in a long-range increase in steel demand.” according to the "Australian Financial Review.” In both countries the steel industry is pushing on with ns development plans. Expansion in Britain Since the end of the war the British steel industry has spent £6oom in development, and ks plans for 1958-62 already agreed upon nivolve another £soom While the Government’s financial measures are certain to affect British steel consumption, the industry hopes to offset this low*»r domestic demand by increasing exports Last year these rose to an estimated four million ingot tons, the highest since 1934. In 1956 they totalled 3.3 m ingot tons. The Iron and Steel Federation in its latest quarterly "Steel Review” pointe td “certain major

elements of weakness in the world economy”—the absence of any upturn in United States business activity and the decline in world commodity prices. And British steel exporters may also be faced in 1958 with keener competition from other exporting countries. On the credit side is the British industry’s increased competitive ability which has resulted from new plant and production capacity. As the review says, it "has never yet been free to deploy its full competitive strength in world markets since the war.” U.S. Stocks Reduced The chairman of the largest American steel producer, Mr £l. M. Blough, says United Stares steel is confident that the present lull is caused primarily by inventory cutting of steel consumers. This, he predicts, will persist well into 1958 with "a continued restraining effect on steel production.” None the less, the corporation will still spend almost 700 m dollars on development projects. For following the current inventory liquidations. Mr Blough considers "a pickup in steel output, engendered by renewed inventory building, can be expected.”