Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-02-22
THE COPPER SITUATION.
Larger Consumers Are Generally
Well Supplied with Metal.

K
In Issue Of Jan. 8. we estimated the
! copper production OF the United States
IN 1905 at s2S.0O0. 900 H., In round figures
| the total supply at L3i0000O00 H.. ,
| the stock on hand AZ the end of the
years nc 66,OOO,000 lb.i and the domestic
consumption at $4,000. 900 d., says the
Engineering & Mining Journal we
| shall publish revised figures later, when
| complete official reports have been re-
| ceived; those already In hand indicate
| the probability that we oyerestlmated
! the domestic production by about 25.-
900, 900 h.. which Of course would re-
duce the apparent consumption by a
corresponding amount.
IL appears now that although the
stocks of refined metal In first hands
at the end OF 1905 were practically nil,
the stocks IN second hands were consid-
erably larger than was then supposed,
some consumers having provided Them
selves with more than they Immediately
needed and In few cases, the resale
OF some Of the surplus was offered,
while there were also re-saies in Europe
by China Of copper previously pur-
chased In America, which OF course cut
OF demand that would otherwise
have been filed perhaps by direct ex-
porta zion from this country, these
transactions having been induced by
the high price then ruling for the met
al 1t wac indeed the rapid and ex-
tensive rise in price during the early
part Of December Inspiring the fear
Of famine In the metal, which caused
some consumers to overbuy and led
directly TO the stagnation IN the do
nestle market, that has existed since
Just before Christmas and has lately
produced a decline in price,
At the present time the Views OF the
situation are widely different. The large
consumers are generally well slpl
for considerable time to come, con-
tracts for delivery as far ahead as June
having been made In some cases during
the recent activity In the market, and
are now in waiting attitude, seeing
no inducement to provide for future
requirements so much in advance as
appeared advisable little while
ago They are one step close to
the ultimate consumption than the sell
ers of refined are, and possibly see the
signs OF a slackening IN the demand,
which excessively high prices inevit-
ably bring about at some stage or
other. on the other hand, the pro-
duceH are generally confident OF the
soundness OF the conditions which put
the price to It's recent high mark. and
the selling agencies which represent
the output Of large percentage Of the
copper refined In this country are hold
ing their metal at 1S%qlS1ac They are
making no sales, but being already
well sold ahead they feel no urgency
to do business, and are also In walt
Ing attitude, confident that the large
consumers viii soon be Obliged to re-
ka I'll AZ
asked. In the meanwhile business Is
being done by those who are willing
to sell copper, and the market Is made
around i7%al7S cents
The situation IL peculiar, and In some
respects has resembled that Of 1901,
with the important difference that the
price was then artihcialy upheld by
the Amalgamated Copper company,
which stocked it's metal while other In
terests sold at concession from its
asking price: but nothing artificial ex-
lists I'm the present condition. and there
IL no sign OF the accumulation Of any
stock. The immediate future depends
largely upon the actual status OF the
demand for final consumption, In other
words the general business condition;
II this continues as good ms II has
been, there must be soon another up
ward movement Of the metal II
shows falling off, or ~ the present
dullness continues much longer one or
another Of the large producers now
holding aloof, win be likely TO reduce
his asking price, In the meanwhile
the producers have It In their favor
that the business in copper Is on a
hand 10 mouth basis. and an accident
to any important producer-such as
fire In a mine, smelling works or re-
fnery--w would Immediately cause
scramble for metal; while against them
Is the specter Of a strike In the coal
fields, which would seriously check
business In all directions. During the
present week the market has certainly
assumed O stronger tone.