IRON AND STEEL

Hawke's Bay Herald-Tribune, Issue 196, 4 September 1937, Page 3

IRON AND STEEL

High Prices Offered By Germany and Russia SCARCITY OF METAL Iron and steel were in great demand. In England and it was considered unlikely that there would be any lessening of prices for the next four years, saiu P.otarian Jv. McLeay at the Hastings llotary Club's lunclieon yesterday. Other countrics, notably Russia aud Germany, were ofl'ering high prices in their eil'orls to buy I'roui Britain. . This searcily of motai was a result, Mr McLeay -said, of Brilain's arniy and navy rearmamenfc scheme4 which was given priority with its orders. Tlie price was risiug constautly and, al'ter several substantial losses through this cause, shipbuilders insisted on Ihe insertion of a clause in all contracts protecting them from any increase in the price of materials while constru?tion was in progress. One shipbuilding yard had placed contracts for 20 large vcssels, but it would not be able to begin work on inany of them for at least two years. As another instance of the intcnsity of trade, one factory had cnougli orders to keep it busy for 12 months, and it had asked its ageuts not to go out of their way after further orders. Motor-car manufacturers were also short of raw products and wero having great, difliculty in i'ulfilling their orders. The building costs of largo vessels had risen from £S 13/- to £10 a ton iu a short timo-— an incroaso of 48J por ecnt.