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THE COAL TRADE BULLETIN. 39
THE PULSE OF THE MARKETS.
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The generally dull industrial conditions which
are to be expected at this time of year are reflected
in the coal trade. The market, however,
while apparently lifeless and almost featureless,
is by no means so dead as it seems and an early
awakening into activity may be expected at least
in many quarters in which a distinct dulness
now prevails. Although the effects of excessive
production are manifest throughout the central
and western states and price slashing has been
indulged in to some extent, the early resumption
of the iron and steel plants which are about
through their slack season will materially change
the aspect of the coal market. Lake shipments
will likely snow an increase in volume from now
until the close of the season. There has been
much talk of this trade being largely diverted to
the Illinois and Indiana producers but there is
little ground for expecting such a shift. The
question of quality must always be a prime consideration
and until the fields of these two states
can offer at a given point the same fuel value for
each dollar as its eastern competitors the latter
will never be driven from the market. A notable
instance in support of this is provided by the
Chicago market. Throughout the last year it
has for the most part been overcrowded with soft
coal. During practically the whole of this period
Illinois and Indiana coal has been a drug in the
market while eastern coals, notwithstanding their
long haul and the relatively higher expense of
putting them down at the point of delivery, have
always been in fair to brisk demand. The utter
stagnation that has prevailed recently in Chicago
and the western market generally is showing signs
of coming to an end. Steam sizes are in better
demand and a better tone is showing all around.
At Cleveland there has been little if any improvement.
Prices, however, remain firm. Some increase
in the demand for three-quarter coal is
noted. In the southwest the old condition of
being overstocked continues and considerable cutting
of prices is reported. In the extreme south
there is little doing but the outlook is improving
in view of the preparations to make New Orleans
an important center of the export trade. In the
industrial section of the south conditions were
never better. Despite the season and the general
situation the production of coal is being
steadily increased in this section and the demand
is fully up to the supply. Conditions in Ohio and
West Virginia, which have not been good for some
time, are showing some improvement and the
general outlook is regarded as being more cheer­
ful. In the Western Pennsylvania district there
has been a considerable curtailment of output,
due to various factors but mainly to industiial
conditions. The river shippers were disappointed
in their hope of a July rise. About 1,000,000
bushels were sent south on the crest of the brief
high stage the middle of the month. Price quotations
remain on a basis of 90 cents to $1.00 for
run-of-mine, f. o. b. mines.
There has been a slight stiffening in the price
of coke but no particular change in market conditions
has occurred. The production of the Connellsville
field took on a spurt about the middle
of the month but the output has again fallen off.
Consumers continue apathetic regarding last quarter
contracts and producers show no anxiety to
force the market into activity. Upper district
furnace is quoted at $1.80 to $1.90 for third quarter
delivery, with last quarter twenty to thirty
cents higher. No. 1 foundry remains at $2.40 to
$2.50.
Considerable improvement is shown in spots in
the eastern soft coal market. A few operators
have large tonnages moving on current business.
This is due to individual effort on the part of
those who hold large season contracts. All
grades of coal show the result of the midsummer
dulness. The low prevailing freights on ocean
transportation are helping the trade to dispose of
part of its tonnage, since some shrewd consumers
are taking advantage of the low rates and are saving
probably 25c. per ton under the charges that
will prevail later in the fall. Trade in the far
east is taking on a fair tonnage, and many of the
shoal-water and out-of-the-way points are cleaning
up a large proportion of their contracts at considerably
reduced freights, vessels and coal being
now in abundant supply. Trade along the sound
is quiet. Trade in New York harbor is also quiet.
All-rail trade seems to be fairly strong. Shipments
continue practically unchanged in volume
and prices remain firm, with possibly a slight reduction
here and there in order to take business.
Car supply is up to demands, but transportation
is a little slow.
The hard coal market is more than usually dull.
In most of the offices the greatest quietness prevails,
with little business apparently being transacted.
The steam sizes are particularly slow, although
their prices have not yet been affected.
These conditions prevail throughout the country.