The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-07-15
Financial Troubles Due to In
creased Capital Needed
to Meet Prices.
INTERESTING DATA
ON COPPER PRICES
Consumers Are Still Out of the
Market for the Red
Metal.

AZ tie Siu VI JIe HrsI SIX months Oh
1907 the situation in the copper market
may be summed up as follows. says the
Engineering and Mining Journal:
First-The consumers who ceased buy
Ing three o. four months ago are still out
OF the market Whereas. at the begin
ming OF last March they still considered IL
necessary to contract for their require
ments three or four months ahead, since
that time they have not considered It
necessary 10 pursue the same policy. OBJ
v!ously this manifests n great change in
sentiment In the meanwhile the pro-
ducers have been filing their contracts
for delivery, and with the beginning of
July in general all contracts have been
completed. or course. there are some
running into July, but on the other hand
there is still unsold some June produc-
tlon, and even some May production. AT
the beginning OF the year there was
about 100000 pounds OF refined copper in
the hands OF the principal refners. Their
stock is now surely larger, and will In
crease so long as the consumers remain
out of the market. 1t is evident now, as
was surmlsed month ago that last
spring many important consumers over
bought. This is manifested by the re
sales that have been made by them, by
their requests 10 delay delivery, and by
their ability to remain out of the market
after July has begun.
Second-At the beginning OF the year,
the statistical position was extraordinarily
strong. At the mid-year il is uncertain
what the sta tistical position really is. 1t
Is claimed that the American production
has decreased, but the statistics upon
which such claims are made are pure
guesswork. Anyway the domestic pro-
duction is only one factor (true 1t is the
largest factor) I'm determining market
al "A n
ers produce a large amount OF copper
from imported material. In 1906 the pro
duction OF domestic mines was 917.e2o,0o0
pounds, while tho production OF the priu-
cipal rehners was about 1.l65, 600, ,0OO
pounds. BY the principal refiners' we
mean those whose business Is chiefly the
many small rehners. whose business is
confined 10 the retreatment Of old ma
tcrial, which In the aggregate produce
large amount OF marketable copper. that
never figures in statistics. In the absence
Of complete statistics as to the refined
product, estimates of consumption and
the general statistical position are at the
best only rough approximations.
Third-Complete statistics of the Inn
ports and exports or coppersar as yet
available only for the first five months
the imports OF 81, $50. 500 pounds which is
greater than any claim as 10 the diminu
ton in the rate OF domestic production,
On the other hand, exports have de,
with the corresponding period of 1906.
This falling of Is exaggerated because OF
the strike Of longshoremen at New York
in May. wherefore the exports In that
month were unusually small. while the
exports in June have been rather large
because OF the shipment Of copper that
making this allowance. the exports of
copper show O decided falling off in
1907 as compared with 1906 1t is hihGly
unlikely that consumption In the United
t1t1 G., l..1 to
pared with last. TO an extent that would
take care Of the increase.
Fourth-It is evident. therefore, that AT
the mid-year the statistical position OF
copper is not so strong as II was al the
beginning OF the year, nor is IL so strong
In Europe, where recent market condi
tons have been similar to those In the
United States. James Lewis e. Son. In
their last statistical circular, report the
consumption in Great Britain during the
first FIVE months OF 1907 as 1S.0S0 long
tons, as against 2S 9l9 in the correspond
Ing period of 1906; in France. 22.16S. as
against 2i.72S; in Germany consumption
3S.SO4
Fifth-As TO the market price. devel-
opments are still uncertain. The whole
world is awaiting the breaking of the
deadlock which has existed In America,
The selling OF the production in America
and the buying of the major portion Of
the consumption arc both very much con-
centrated. The question is upon what
OASIS the DIX prOuuCSTS DlS CODSun-
ers will agree for the business that must
inevitably be done In the near future.
There recently has been a concerted ef-
fort 10 hold up the price, to which the
big consumers (who are really tho big
manufacturers. not the consumers) are
apparently not loath, provided that they
can see the ultimate consumers will
take their goods at the high price that
will be asked. So II really is upon the
ultimate consumers, end the general con-
dition of trade and finance, that the fu-
ture OF the market depends. Concerted
action on the part of the big producers
may artihcially sustain prices for while.
but they cannot do so in the long run
II the ultimate consumers Will not pay.
Accumulation Of stocks mean interest
charges, which sooner or later force dis
posal Of stocks for what they Will bring.
AT present the general feeling of trade
is more optimistic than 1t was little
while ago, and we may see an upward
turn in copper. but the general trend
for all the metals Is likely to be down
ward. Settlement TO q more conservative
basis Will not be regretted, because tho
financial troubles thai lately have dis
turbed the markets both here and abroad
are due In no small degree to the largely
Increased capital that is required to carry
on business at the greatly enhanced prices
for commodities.