ENCOURAGING PROSPECTS OF WORLD'S IRON AND STEL TRADE.

Wanganui Chronicle, Issue 12857, 29 January 1913, Page 7

ENCOURAGING PROSPECTS OF WORLD'S IRON AND STEL TRADE.

THE ENORMOUS REQUIRIvMENTS

OF 1913

STEEL COMPANIES LOOKING FOR NEW SOURCES OF SUPPLY.

COAL LIKELY TO BE DEARER

The following extract from a letter received by a local firm from the manager of one of the biggest iron and steel businesses an the United- Kingdom is both interesting and encouraging: Tho prospects of the iron and steel trade in 1913 at present points to a large continuance of high prices for months to come. The railways consume about one-third of the production of iron and steel. In Argentina, Canada, Australia? and elsewhere, constructions of long lengths of new railways are ■in progress and will continue throughout next year, requiring large quantities of rails, etc., in addition to the ordinary requirements. The wants of all countries, ■ both in the Old and the Now World, have now overtaken the present railway facilities, and 'both in the extension of and improvement of track and in the construction of new rolling stock, the railway companies are now committing themselves to enormous expenditure.' The call, therefore, nn the iron and steal trades for 1913 by the world's railways, will in itself demand a great increase in the steel production.

In the shipbuilding industry the prospects -are good; as in the case of the railways tho demands have overtaken tht world's shipping capacity. The effect has been a preeeure of orders for now tonnage, and the shipbuilding yards both in this country and abroad, have contracts which assure them work for mentbs to come. Then again, the building of warships is proceeding at a late surpassing any previous record^ 8«» the demand in 1913 on the iron and steel makers from this course will be of groat dimensions. In other directions the conditions are. equally promising. The industrial movement is assured of record activity. There seems no possibility of any falling off in the demand for oil. The huge capital used in recent years for the1 development of oil properties has brought about c growth which is reacting to the advantage of . the tinplate trade, and the prospects of 1913 are that this trade will require a further increase in their supplies. We therefore come to the conclusion that he demand for iron and feel from the railway companies, shipbuilders, tinplate manufacturers, industrial trades, etc., will bo of record proportions.

The question now remains—Can the world's demand in 1913 be satisfied? The world's production of j,ron and 6teel in 1900 was about 21 million tons. This year the production will, it is expected, reach 34 million tons, or about two million tons increase over that of 1911. or 13 million tons increase over that of 1900. Even with the large increase in production this year, we will start 1913 with short stocks, and manufacturers booked heavily ahead; and tho point to consider is whether the future supply will bo sufficient to meet the demand.

The rapid advance in prices during the present year has brought every fiiriiace available into operation, and it is questionable if any great increase iv production can take place in the future while the consumption of iron in li>l3 appears likely to be greater than in recent years. , Coal is "likely to be deArer, whilst the- cost of labour is increasing, thereby rarsing the cost of production, arid the r.ost .important point, it is a'e well to ri-nu niber, is the shortage of raw material, and all the large 6teel companies of the world are seeking for new eour-cr-s <.f supply, which they find most <lijKcu!t to obtain.

On the above facts, one must »dmit that 1913 looks most promising, and thcio m every indication that it will be a most prosperous yoar; and oonse-rimr-tiy we believe wo shall still see higher prices.