DEVELOPMENT OF THE INDUSTRY,   1870-1930	39
THE TREND BETWEEN   1880 AND 1903
The period 1880-1900 was characterized by a rapid—nearly
sevenfold—increase in world output of steel due to the exploitation
of the new mass-production processes. Pig iron production only
slightly more than doubled in the same interval.
British pig iron output rose less rapidly than American and
German. The U.S.A. had surpassed our total and Germany had
nearly caught up, although by 1903 there were approximately the
same number of fiir-naces in blast in each country. Pig iron prices in
Europe rose from 1884 onwards, but in the U.S.A. they continued
to fall until 1897. Continental prices during the period fell to the
British level for some grades. British exports were, however, main-
tained, although imports increased, due to Britain continuing to
specialize on hematite and forge and foundry pig, whereas basic
iron was the principal Continental type.
In 1880 wrought iron production in the U.S.A. had caught up
the British output and Germany was over one-half of ours; by 1900
the American output was twice the British, and the German output
nearly as much as ours. The British figure had, in fact, fallen to
less than 20 per cent of the world total.
In steel output also Britain was outpaced; by 1900 the U.S.A.
produced twice as much and Germany rather more than Great
Britain. By far the greater proportion of British steel was made in
open-hearth furnaces and nearly all was of acid type, whereas the
output of steel on the Continent was mainly basic in type, the
largest constituent being Thomas steel. British export trade in iron
and steel still amounted to half the world total, consisting mainly
of finished products, such as rails, tinplate and galvanized sheets.
The exports of Germany, Belgium and the U.S.A. were, however,
increasing at a faster rate than British exports. Those from the
Continent were mainly merchant-iron and steel bars while from the
U.S.A. rails were the principal item.
British imports were increasing rapidly. Between 1880 and 1900
they trebled in total value but decreased in unit value, indicating a
tendency to import materials in a less finished stage of production.
Most steel works in Britain had been established before 1880, and
in 1900 there were no complete technically integrated plants; in
particular, re-rolling in Britain was a separate trade. Abroad plants
had been constructed in larger units or had been economically
combined.