The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-06-17
SPELTER SITUATION.
Zinc Ore Reduction Plants Are Spring
ing UP Rapidly


During the last few years. especially
during 1905, conditions have been devsl
opng in the zinc Industry of the world,
which are OF supreme importance. This
relates particularly TO the enormous In
crease in the supply of ore offered 10 the
smelters. New South Wales and Mexico,
the former gradually and the Inter sud
denly, have developed into producers of
zinc ore OF the hrst magnitude says the
Engineering and Mining Journal The
production Of zinc ore in New South
Wales in 1906 amounted TO l02, $50 long
tons. against 103 900 long tons I'm the pre-
vious year, but going behind the face OF
the returns, It appears that there was
considerable Increase, because OF the bet
ter grade OF the ore produced In 1906 the
estimated WELD Of sDelter from the ore
exported having been s3,427 tons in 1906
against 30,637 tons In 1905.
American smelters received from Mexi-
co $4,000 short tons of ore in 1906 against
32.16i In 1905, and practically none In
1904. Some Mexican ore also was export
cd 10 Europe. Besides these large new
supplies. European smelters have been re-
Gently obtaining good deal of ore from
twhere zinc smelling works are now be-
ing erectedl and Turkey. while in 1906,
a considerable supply OF calamlne ore of
high grade was for the first time re-
ceived from Rhodesa. where there ap-
pears TO be large deposits. which will
afford steadily increasing output,
ready had an important effect upon the
worlds market for spelter. For one thing
II has cut of all hope that the Unite
States will soon become an exporter Of
spelter on the, contrary. it is To be
feared that. more frequently than usual
the, price OF spelter In the United States
VIII have to be reduced In order to pre-
tive tariff Of l.5c per ID. During the last
three or four years the prices for spelter
at London and New York have been
showing an increasing disparity, at pres
cnt there is a difference of about Sc
per Id. This is easily explained by the po-
sltion OF the European smelters, who in
The abundance Of their ore supply are
able on the one hand to offer speIter at
lower and lower prices and OH the other
hand bid lower and lower prices to the
for smelling ali - Tine. line ct 'a'se margin
During 1906 the s!nelters' margin was
so large that the business was unusually
profitable. The natural result Of this. to-
gether with the refusal OF the smelters to
accept certain supplies Of ore. has been
TO lead several OF the mining companie les
together with other metallurglcal compa-
nies 10 go into the smelling business on
their own account. AT the present time
there is something like an epidemic I'm the
construction of new zinc smelling works
In Europe. In SIlesia and the west OF
Germany 1t is reported that six large
ly gone into opcration). under con-
struction: ono or two new smelters are
being built In France; a large works is
works was lately completed in Aus
| tralla making two now In that common
| wealth, and a works Is TO be built in
| japan.
Some OF the new works that are being
| erected In Germany occupy locations
which give them much better facilities for
| the transportation Of ore by canal and
| river from Rotterdam and Antwerp than
B, any other works in Germany at present
! possess. Consequently, there Is no doubt
! that some Of these new works will capture
| a good deal Of the business of smelling
| foreign ore. Naturally. the situation Is
viewed with a good deal OF alarm by the
| existing concerns. The increased COM
/ petition will doubtless reduce smelling
! prices 10 normal level and the hope OF
| great profits from the new enterprises
/ based on existing conditions, probably will
| fall OF fulh0ment for that reason. How
ever, the effect on the American murket
| VIII be obvious
With large supplies Of cheap ore. and
! competition among The European snelt-
! crs that materially reduces their margin
| FOR smelling. there is little likelihood
that American smelters Will have any op-
| portunlty TO export spelter. In other words
! me conditions in Europe will tend to
! Keep The London price steadily below the
| price In America. AS regards the eitua-
| uon IN Europe, looking toward the more
distant future, the hope will be that the
new works will produce no more than to
| satlsiy the annual Increase or the de-
mand, while the old works Will maintain
| thelr present production. This ia the
| uost optimistic view that can be taken
! anyway. the change in conditions is not
Efeiy to be sudden, inasmuch as only a
small Iii poriion OF the new smelling capacity
! VIII go into operation during 1907 IL
may be remarked that tile United states
also VIII have a considerable increase In
| BmeItinG capacity In 1907.