THE TRADE AND PRODUCTION OF IRON AND STEEL-Continued.

1 Annual (and Monthly) Statements of Trade of the United Kingdom.

? From Mineral Industry during 1917, p. 347.
* From Iron Trade Review, issue of Jan. 2, 1918.

There have been a number of important developments in the iron and steel industry, as the above figures show. In the first place the exportations of pig iron during the last five years have averaged less than 60 per cent of the 1912 figure. The production of pig iron has remained relatively constant, with a consequent increase in the net supplies available for domestic use. In spite of this increase, however, pig iron has been very scarce in the United Kingdom, so scarce, indeed, that the so-called accessory industries have found it next to impossible to secure stocks. A report received in November, 1918, stated that 90 per cent of the pig-iron business in the Birming ham district at that time was for military or "essential industry account. This report not only suggests the extent of the undersupply of "nonessential" industries, but it also shows that with the cessation and cancellation of war contracts there will probably be a considerable interval of transition before peace business is fully established. The 1918 production figure for pig-iron given above is not official, but it is conservative, in view of the semiofficial predictions made early in 1918. In one such report, for example, the statement is made that there is "reason to hope for an increase of 20 per cent in the production of pig iron." This estimate was based on the installation of new plant, and was probably extravagant. But there has apparently been a considerable increase in productive capacity recently, and as soon as normal demands revive a high rate of production can be expected.

The most striking development shown by the above table is the great expansion in the steel industry. Production has been increased during the war by 50 per cent. Accompanying this development in production has been a steady decline in the imports of crude steel (about 600,000 tons in 1912), and in 1917 the figures show a net export of 100,000 tons. It is quite likely that this change in the steel industry will be permanent. There has been a tremendous increase in plant and equipment. Further, the United Kingdom is favorably situated as a steel-producing center, and the essential character of the steel industry has received a great deal of emphasis during the If the 1918 rate of production is maintained and if domestic consumption returns to a normal level, there will be available as an export 2,000,000 tons of steel or more, and the United Kingdom may

war.

be expected to become a strong competitor for the crude-steel markets of the world. As in the case of pig iron, there has been no abundance of steel in spite of the increased production, although the shortage in this case has been less acute. The distribution of steel to the so-called accessory industries in the closing days of the war was about 11 per cent; this suggests that with the slackening of war industries there will be a large volume of production released for reconstruction, so called, and other purposes.

The trade in manufactures of iron and steel has been seriously disturbed by the war situation. Both gross imports and exports have declined very sharply, and the net exports in 1917 were less than 50 per cent of the 1912 figure. In 1918 a further decline to 30 per cent of the normal level is recorded. The change in the direction of this trade will be discussed a little later.

A summary of the general iron and steel situation in the United Kingdom for the period under construction is presented in the following table:

SUMMARY OF THE IRON AND STEEL SITUATION FOR THE UNITED KINGDOM.

1 There is an importation of old iron and steel amounting to about 100,000 tons per year which is not included in this item.

2 Half of total production of pig iron for the year.

According to the above data the amount of iron (on a metal basis) available for domestic consumption has increased materially in the last two years. As implied in the above discussion, however, this does not mean an accumulated stock, but indicates rather an increase in consumption due to war needs. An examination of the figures under "Excess of all supplies of foreign origin over total exports" shows that nearly the entire increase in the amount available for consumption has been obtained from foreign sources. It appears, then, that the United Kingdom has been able to import a larger net amount of these raw materials during the war than in the pre-war period.

There are a number of complications which enter into such a summary which should be mentioned. In the first place it should be noted that, although all of the figures given are on a metal basis,

1 It should be noted, however, that the present rate of steel production in the United Kingdom is only a little more than half Germany's output in 1913, and less than a quarter of the production of the United States in 1918.

several different classes of iron items are involved. In of semicrude or partly manufactured forms, for exam be some waste material which is never fully recovere no data for scrap or old iron are given in this summar the foreign trade in scrap iron is concerned, this inform omitted without disturbing the calculation, because the exports of scrap iron average, roughly, 100,000 tons per case. The domestic production of scrap iron, howev important factor, since from 20 to 25 per cent of scrap used in the manufacture of steel. This is the principal of the fact that the production of steel as shown in the this section is nearly as large (in some years larger) duction of pig iron, although considerable quantities of used to make castings without passing through the steel The following table presents the direction of trade by le tries for the years 1912-1918 in the case of certain imp

and steel items:

THE DIRECTION OF THE TRADE IN CERTAIN IRON AND STEEL I (Percentages.)

1 Annual (and Monthly) Statements of Trade of the United Kingdom.

As shown above, the large percentage of iron ore imported from Spain. This trade has remained relatively constant the entire period under consideration, both in percentage and a In no year except 1914 did these imports from Spain total le 4,000,000 tons. Other important sources of iron ore are (including Algeria), Sweden, Greece, Norway, and Russia. Th with Russia has shrunk to insignificant figures within the las or three years. Importations of pig iron before the war were from Sweden and Germany. The trade with Germany ha appeared and that with Sweden has been cut down from 11 tons in 1912 to 70,000 in 1917. The percentage of pig-iron with the United States shows a sharp increase to 52 per cent in In the case of crude steel, nearly 50 per cent of the imports of came from Germany. This trade with Germany has not replaced. It should be noted that although the percentage of steel received from the United States has doubled, the quanti 1917 is but 50,000 tons, as compared with 250,000 tons in 1912.1

1 For convenience, the direction of trade tables are usually given in percentages in this study, but it be noted, of course, that these percentages are primarily significant only in connection with the qu of trade as shown by other tables.

The important developments in the case of this export trade are the very sharp declines in the exports of pig iron and manufactured iron and steel products to all countries with the exception of France, in which case there has been a very sharp increase. It has been necessary for the United Kingdom to relinquish a large part of her iron trade with other countries in order to supply France, deprived as she has been of a considerable part of her iron production by invasion. In 1913 the exports of pig iron totaled 1,263,112 tons. This amount was distributed over a long list of countries other than those mentioned in the above table, of which countries the United States and Japan were among the more important. In 1917 total exports of pig iron were only 738,161 tons, of which amount 534,166 tons, or 72 per cent, went to France. Of the total exports of crude steel in 1917, 148,771 tons, or over 89 per cent, were exported to France.

A consideration of the trade in manufactured forms, percentages for which are not shown in the above table, shows a still more striking situation. In 1912 the exports of iron and steel manufactures to British possessions totaled 1,926,308 tons (chiefly to British India, Australia, and Union of South Africa). This trade had declined in 1917 to less than 300,000 tons, about 15 per cent of the pre-war level. The exports to foreign countries in 1912 totaled 1,618,837 tons. This figure has been nearly maintained during the war period, amounting in 1917 to 1,300,415 tons. At first sight it would appear from these data that although Great Britain's trade with the important selfgoverning possessions has slackened, the exports of semicrude iron and steel materials to foreign countries have not declined. As a matter of fact, Great Britain before the war exported important quantities of partly manufactured iron and steel products to the South American countries, to several European countries, and to the United States and Japan. The trade with Argentina in 1912, for example, totaled 302,000 tons. This trade has been very sharply cut in many cases and nearly destroyed in others. In 1916 Argentina received only 66,000 tons, about 20 per cent of its normal import. The total, it appears, has been maintained by greatly increased importations into France. In 1912 a relatively small amount, 58,777 tons, was exported to France. In 1916 France received 1,115,939 tons, and the figure for 1917 was only a little less than a million tons, about 65 per cent of the total for that year.

It is likely that with her facilities and equipment the United Kingdom will be able to recover or replace a large part of this export trade after the war; but it is also likely that there will be a fairly long period of transition before this is accomplished.

COPPER, LEAD, ZINC, AND TIN.

The United Kingdom produces from domestic ores a negligible supply of copper, and insufficient lead, zinc, and tin to meet its own requirements. The production of lead from domestic ores is from 15 to 20 thousand tons per year, and that of zinc and tin from 4 to 5 thousand tons in each case. Moreover, the production of these metals has been less in recent years than formerly, and although there has been considerable attention recently devoted to a possible

1 These percentages are not shown in tabular form because of the large number of countries and items involved.

revival of English mining, it is unlikely that with peace established there will be any development in this direction of real importance. Resources of lead ore were never large and are now seriously depleted, and the deposits of zinc are small in view of the requirements. The tin mines of Cornwall, from which the small amount of copper reported is also extracted, are important; but their total output is only 3.3 per cent of the world's production and less than 20 per cent of the needs of the United Kingdom for domestic consumption.

Although the mining of these metals is relatively unimportant in the United Kingdom, the smelting and refining industry has been highly developed. The normal pre-war output of British smelters and refineries was 45,000 tons of raw copper, 30,000 tons of crude lead, 55,000 tons of spelter, and 22,000 tons of tin. During the war the output of copper and lead has fallen off and that of zinc and tin has been increased.

The data for the trade and production of these four important metals for the years 1912-1918 are shown in some detail in the following table:

THE TRADE AND PRODUCTION OF COPPER, LEAD, ZINC, AND TIN.

(Long tons.)

[The production figures for crude metal given in this table represent the output from domestic ore only in each case. To determine the amount available for consumption, then, it is necessary to add to the "net supply" figure the metal content of foreign ores and concentrates received.]