Kankakee Valley Post, Volume 17, Number 1, DeMotte, Jasper County, 22 November 1946 — COAL TIEUP WOULD CRIPPLE STEEL TRADE [ARTICLE]

COAL TIEUP WOULD CRIPPLE STEEL TRADE

Say Prolonged Strike Would Undo Substantial Part Of Progress Toward A Normal Steel Market New York. Nov. 20 said today that a prolonge<Ptieup of the nation’s coal mines would ’"undo a substantial part of the progress made totward the estab-„ j lishment of a normal steel market.” The national metalworking i paper continued: “Having had its first chance in the past few months to step up steel output to unprecedented peacetime levels and thus greatly reduce the tremendous unfilled demand from customers, it appears this week that the industry is abount to be plunged into the per iod of hectic hit-and-miss production schedules and shortages which followed the steel and coal strikes earlier this year. “Unless the coal crisis is passed quickly and a settlement reached there is the bitter possibility that the Steel operating rate will not only sag to a much lower level, but will not regain current levels for two or three months, if then. The unusually high rate of activity has prevented steel firms' from building up coal inventories which are now’ at an exceedingly low point. ' “Should the coal impasse w ith its fundamental issues run into a long period the industry within a few weeks time may find its ingot rate down around 65 or 70 percent. After that the rate would sag much low'er. These severe setbacks would be brought about because of the necessity for banking blast furnaces which have been the main support for the currently high steel activity.”