Fair Weather Ahead

As steel mills paced the business boom by operating at record levels, the industry's leaders met last week in Manhattan to discuss the outlook for the rest of the year. Things looked good indeed. In May the alltime monthly steel production record of 10,168,000 tons, set in March 1953, was topped. No one expected that the industry as a whole could maintain the current operating rate of an estimated 96.3% of capacity. Some time this summer, operations are expected to dip, possibly as low as 80% to 85% of capacity, then climb back in the fall.

But at least one steelman did not expect much of a summer slump. After looking over orders already on the books, Bethlehem's Eugene Grace said: "We are trying to pace our vacations ... so they will not interfere with production. I would be sur prised if we don't go through the third quarter at 100% of capacity." Grace an nounced that even though the Justice Department has disapproved of a plan to merge his company with Youngstown Sheet & Tube on the ground that it would restrict competition, the two companies are going ahead with their merger plans. If they do merge, said Grace, the new company will add 3,000,000 tons to the capacity of Youngstown mills.

Benjamin Fairless, former board chair man of U.S. Steel and newly elected pres ident of the American Iron & Steel Institute, agreed that there is plenty of room for expansion. Every year for the next ten years, said Fairless, 2,000,000 tons should be added to capacity to meet the demands of a growing economy.

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