GERMANY AND THE STEEL TRADE.

Taranaki Daily News, 27 July 1920, Page 9

GERMANY AND THE STEEL TRADE.

GERMANY AND THE STEEL TRADE./ OUTPUT ONLY ONE-THIRD OP 1913 TOTAL. There is no likelihood that the country will be flooded with cheap German steel goods, and some experts say that Germany's iron and steel industry is threatened with temporary extinction, according to the Iron Trade Review. "Pig iron production lias diminishe! more or less stsadily during .the past seven years from 10,300,000 metric 'tons in 1913 to 6,29o,OOOlnetric tons in 1010,' '* says the Review. "The output of steel ingots likewise fell from 18,940,000 tons in 1913 to 7,770,000 \tons in the year recently closed. "Dutch shipbuilders at Rotterdam are obliged to import American plates at high prices despite the fact that 'the centre of the once great German iron and steel industry is only 120 miles away, with a water-haul down tie »Rhino thrown in. As a result of the war, Germany has been reduced from second to third place among the iron-producing nations of the world, being supplanted in second position by Britain, the United States being first. "Although the shearing of . important territories from Germany in the west has dealt serious blows to her iron and steel .industry, this fact alone does not account for the present low state, of production. Germany has lost 40 per cent, ot the number of her blast furnaces, 30 per cent, of her steel works, and 28 per cent, of her rolling mills in surrendered territories west of the Rhine; yet her own official statistics show that in tonnage' she retains 70 per cent, of her pig iron producing capacity. In other words, her theoretical capacity for iron and steel production to-day, within the borders laid down by the treaty, is betwefcn 13,000,000 an(l 14,000,000 tons a year, bv)t the actual output is not much in excess of 7,000,000 tons a year. In other word;?, the surrendered German steel plants arc working at only about half their capacity. "Not more than 15 per cent., if that much, of Germany's present steel production of approximately 7,500,000 tons per year is being exported. Most of Germany's current meagre exports of iron and steel are going to Sweden in partial liquidation of the enormous debt for iron ore which has been accumulating in that country. Although Germany still re* tains two-thirds of her known coal resources, she has lost 77 per cent.'.of her iron ore reserves through the cession of Lorraine to France. "It is hardly too mguch to say that the entire future of German steel production depends on the success* with which arrangements may be negotiated with France for minette iron ore". Since Franco needs coal, the beginnings of such an ar- j rangement already have been made | through an agreement to exchange one ton of Ge'rman coke for one and one-1 fourth tons of of Lorraine ore, on a basis of shipments, respectively, of 8125 tonsi I of ore and 6500 tons of eoka .dails*."