Capacity Output Forecast—B.H.P.

Press, Volume CVI, Issue 31317, 13 March 1967, Page 17

Capacity Output Forecast—B.H.P.

(N.Z. Press Association—Copyright) SYDNEY, March 10. Australian ana New Zealand markets should provide enough demand to allow capacity output for the rest of 1967 in all major product categories, the directors of B.H.P. reported in a supplementary report released today.

Near capacity levels of output have been obtained in the company’s main plants and production records have been set in many departments at Newcastle, Port Kembla and Whyalla. For the six months to November 30, steel ingot production was 3.4 m tons and pig iron output 2.46 m tons. Ingot Production

Steel ingot production was up 7.9 per cent on the corresponding period of the previous year and pig iron production was up 11.8 per cent The directors reported a continuation of the recovery in Australian demand for steel after the decline early in 1966.

In the period under review, tonnages of orders received a week from other than associated companies increased about 60 per cent above the low rate for the six months to May. A continuation of the upward trend in local orders in 1967 is expected as the major steel users, especially primary industry, return to more normal levels of consumption, the directors said. Export Negotiations

Current export negotiations, the report said, were largely confined to tonnages of semi-finished products surplus to the company’s needs. There has been some improvement recently in export prices offering in certain areas for a few categories of iron and steel products.

Longer term however, the

forecasts continue to point to world capacity remaining well in excess of demand and in these circumstances export prices are likely to remain generally unattractive. The report made these points:

Commonwealth Steel Company, Ltd., is still having difficulties and results are disappointing. Production improved in the previous six months, but is still down compared With earlier levels.

Emergency Tariff Stainless steel production increased substantially, a direct result of the emergency tariff measures instituted in March last year. Orders for the construction of two specialised container motor-ships have been obtained and it is hoped to get an order for a 46,000-ton bauxite carrier. Shipbuilding activities should be maintained at a high level and prospects for extending a firm order book well into 1969 appear to be promising.