The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-05-06
HOW WILL COPPER
ACT THIS MONTH?
Deadlock Between Producer
and Consumer Of Red Metal
Still Continues.
SITUATION SHOULD BE
CLEARED UP IN MAY
Consumers Have Been Absent
From the Copper Market
for Months.

The deadlock between the producers
and consumers OF copper continues, Some
OF the producers are willing and anxious
to sell, but comparatively few OF the con.
sumers manifest any inclination to buy
even at the concessions In price which
arc offered. says the Engineering and
Mining Journal. On the other hand the
United Metal Selling company, and other
interests of the same opinion. are ostcn-
sibiy holding firmly at the asked price
2oc per lb. for clectroiytc and display nc
inclination TO sell at anything below that
but who knows at what figure business
might be done IL 1t were really offered
In the meanwhile the market is estab-
lished by sales which are actually made
together with bona fde offerings. The
dispute respecting the price of copper,
which is exciting the portion OF the press
that has stock-market affiliations, and is
nlystifylng the daily papers. depends en-
tirely upon the point whether the price
or copper is the asking price for metal
that Is not sold. or is the price actually
received for metal that is sold. Our
View, now as always, is the latter. and
our quotations OF the market are based
on that View.
Our readers who have memories going
back five or six years will recollect that
there was a similar controversy I'm 1901
when the United Metal Settings company
was endearoring TO sustain the price of
copper around 1Sc. Other interests took
the business at lower prices, while the
United Metal Settings company accumu-
lated stocks. Toward the end Of the year
The load became too great. and on Dec.
10 the price was cut TO 1o6c, followed by
another cut on the 18th to 13Gc. and on
the 18th 10 1890. At present, the situa-
ton Is not parallel one Except In SO
far as the controversy rs to the price Is
concerned). there being no such large ac-
cumulatlon OF stock as there was In 1901.
As We have previously pointed out. the
situation appears to be more closely anal
ogous TO that OF January and February
1906. However. the conditions are in
many respects different from those which
prevailed at the latter time II is not
pessimistlc 10 say that there is now more
uncertainty as TO the future than there
was then.
The statistical position OF copper is still
apparently strong. During the first quar-
ter ot this year there was probably no in
crease III production, On The other hand
the exports decreased, leaving more cop
per available for domestic consumption,
II is highly doubtful II there were any In
crease IN the consumption during the first
quarter Of the year. The increase in 1906
was greatly exaggerated. Instead of the
70 per cent. Increase. which was COM
monty talked about the actual consump-
tion, about $50, 0o0, 900 lbs, showed gain
OF only about ~ per cent. over 1905,
However, the production in North Amer
lea having shown an increase Of less than
per cent, and tho year having begun
without any stock To speak OF, a great
increase IN price was inevitable, although
as in all cases where calm Judgment is
left behind. the anxiety OF the consumers
10 cover their requirements caused them
10 DID up the market against each other.
which policy was naturally fostered by
the producers. always desirous TO obtain
the maximum possible for their output.
As we remarked at the time if consum-
ers had followed a more conservative
policy, they probably would have had no
great difficulty In meeting their require
nents This became manifest month
or two ago, when the withdrawal OF con-
sumers from the market Immediately
caused the premium for early deliveries
TO disappear
The present waiting attitude on the
part OF the consumers Is easily under
standahle- There has been a little con-
OF orders, but the governing factor Is the
awakening TO the realization that indus
trial conditions in general during the
last year have developed too high a de
gree OF tension. The price for copper and
for other commodities is intimately con-
nected with the financial situation The
produoer Of copper demands and receives
cash on delivery; or at the most grants
81 DAYS credit, but the manufacturer is
Obliged to give long credits and take
many commercial chances. The d,ffer-
ence between 25c and 15c copper. on the
a9msstlG ssa noo Goo eonsumn;ion n; Of 1906 means
spelter pig iron and other commodities
swell enormously the load which is put
upon The consumers, who have TO pay
tnese premiums, and tax upon our IMAM
clal resources.
AS an important consumer Of copper
has stated recently. in the present temper
OF the market consumers hesitate to buy
heavily for future delivery and are waiI,
Ing for stronger incentives before placing
further orders Consuming requirements
Will have To he more urgent than at
present before buyers will be tempted TO
pay the prices now quoted for distant
futures. 1t Is not a time for manufnc-
turers 60 add heavily to their stocks.
unless they are compelled TO. Ii the
recent unprecedented industrial demand
OF the country should slacken. it would
be reasonable to expect that the market
for raw materials generally will find a
more more normal and consequently a more
carries along with It danger TO legiti-
mate trade, especially 10 consumers With
Their thousands OF customers. to whom
and extended credits are un-
orders on prices now current.
II Is unqucstionable that we shall be
obliged, sooner OF later, TO come down
to a more reasonable level. The hands
time. The difficulty will be TO go down
hill without accident, recent occurrences
have shown what Is 10 be feared AS 10
The immediate future. everything depends
upon the consumers, Their requirements
ire not provided for beyond June eXccpt
IN occasional instances. We have now
reached The end of April, and they have
been absent from the market for nearly
.wo months, Provision for large require
nents can not generally be left until the
asst minute. Producers are required TO
nave considerable time to meet sDecifica-
Ions. Consequently. there likely is TO be
III appearance OF consumers In the mar.
tet during the coming month The |
opinion that Will then develop will decide |
he near future. We look for an inward |
'eaction as the result OF the buying thnt |
will then take place. but after that the |
rend is likely TO be downward
Teacherl TeacherI