Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-12-24
CAUSES FOR RISE
IN COPPER PRICES
Mines OF Country Are Not Pro.
ducing Metal in Proportion
To Demand for II.
FOREIGN MARKET SETS PACE.
Estimated That This Years Output
VIII Reach Only One Bullion
Pounds

since Nov, Z, or hut little more than
month ago, when copper started on
It's unheard.of ascent, electrolytic cop
per has jumped from slA cents pound
10 23h cents, or the enormuos sum OF
$40. 80 "A ton says an eastern financial
Journal. Lake, In the same period, has
riser from 22h cents a pound TO 2Sh
cents, or the equivalent Of SIS o tor.
Casting copper has jumped from 2lh
10 22% cents u pound. or $3.50 n ton
These rises are based on the actual
quotations, but adding to them the SELL
ingquotations, but adding TO them the
selling prices brokers quote ON small
lots, the rise In little more than one
month would amount to $42 ton on
electroiytic, s39. 20 on lake and 500 80
ON casting. These advances in period
OF few weeks are absolutely unpre-
cedented, and II Is little wonder that
copper dealers are thrown into Juror.
Since Dec. l there has been most
unusual advance. On that date cleo
trolytic copper was quoted AT zzh
cents a pound, which means an adj
vance since the first OF the month or
sii and eddng 10 this the extra one
half cent at which It now sells the rise
would be $3.50. Lake copper on Dec
/ was quoted at 22A cents. The adj
vance would therefore be $3.50 on
quotations. OF $500 ON actual sales.
Casting on Dec. | was quoted at y
cents. which means u rise In the sanrS
period Of $40 60 a ton on quotations, or
$50 80 on actual sales OF small lots.
Last year nj this time both lake and
electrolytic copper were quoted at lsh
cents a pound This means that In one
year these two grades have advanced
Sli2 a ton, while casting advanced sllO
n ton EleCtrolytic jumped more than
one-third OF this total years advance
In but little more than a month and
Tasting and like nearly the same
amount. Based on the actual quota
lions. the rise IN about month would
be about one-flfth OF the total jump for
the year,
. FOREIGN MARKET SETS PACE.
The rise In the foreign market has
kept pace with the advance In the do
nestle market, or rather has set tho
pace. Within the last month, especial
~, II has been the unusual advances
IN London quotations, brokers say,
which have pushed up the domestic
market AS matter Of fact, however,
the same conditions have ruled both
markets and have set the domestic and
foreign prices skyward together.
Though many brokers stlli contend
that the present unusual advances are
due TO speculation in London, none OF
them state that the general advance
from a year ago Is due to that reasok
There Is absolutely no doubt but that
the intrinsic value has gained Immense
la, Is atfl fha inrrpqqp The
matter OF the present advance, though
possibly due to speculation, cannot af-
feet the general tone OF the market;
the tendency Is upward and most brok-
ers say II will continue upward for
many months at the very least.
II Is predicted that copper will 20 To
25 cents a pound during the winter.
Considering the extreme jumps recent
Iy, this seems not far from conserva-
tive. This would mean an advance OF
about $40 over the present quotation.
NATURAL CAUSE FOR RISE,
That there has been a natural cause
for the Advancement OF copper can be
readily proved by statistics of the year
1906 and estimates of experienced deal
ers In the year 1906.
According to the statistics of the gov
1906 was 90l SAB pounds. Extreme
estimates for 1906 reach only l.O00.oOo.-
900 pounds, or but about 10 per cent In
crease Conservative estimates place
the increase In production at about 5
per cent The most conservative esti-
mate of the Increase In consumption IN
20 per cent. while many estimates run
TO 30 and So per cent. II can easily be
seen with this enormous increase of
consumption over production prices are
bound 10 rise. This growth In pro-
duction is due 10 the greater use of
copper as a substitute for other metals.
The extra amount Of copper produced
comes largely from the Lake superior
districts, especially fro mthe Calumet
& Hecla and the Champion properties;
the Montana district, from the North
Butte company; and the Arizona belt,
from the Old Dominion and Copper
Queen properties. Alaska also shows
an increased production and Is becom-
Ing factor In the copper world. Utah,
Tennessee Nevada and California are
also producing more copper and VIII
produce more in the years TO come.
Estimates of copper men show that
IN the past year the English consump-
ton has grown 81 per cent that OF
France 10 per cent and Germany 25 per
cent. This has been big drain on the
copper supply and IS a decided factor
In pushing up prices.
When top prices VIII he reached there
Il no telling. BIT with continued In
crease IN consumption over production,
as seems probable, there IL likely TO be
n continued advance In prices There
VIII be temporary slumps. OF course,
but the general trend in prices, accord
ing to all brokers. will be upward, I'M
less there IS some financial crisis or
some unforeseen event to check the
general prosperity.