The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-07-19
DEVELOPMENTS
IN THE COPPER
SITUATION
Calumet K Hecla Makes Initial Cut
Quickly Followed by Phelps
Dodge Interests.


in the offering price of copper. The
Phefps-Dodge interests were quick to
take their cue from the Calumet and
as soon as they heard that the latter's
price had been made twenty-three
cents for the best grade of lake, they
named twenty-five cents for electro
lytic. Not until recently did the
United Metals Selling company meet
the prices named by the other large
sellers.
We understand that Europe got the
first opportunity to get its Calumet
and Hecla supplies at twenty-three
cents per pound, but that no very
heavy sales have thus far been made
either in this country or abroad at
the reduced prices.
An interest having Affiliations with
the United Metals Selling company
says: The cut which has just been
made was entirely unnecessary, and
has thrown the trade into state of
the widest confusion. No more cop
per can be sold at twenty-five cents,
and in view of the practical famine
of supplies in the hands of the manu-
facturers, the reduction in price is
taken by the buyers as virtual con-
fession that no business could be
done at the higher figures when such
was not the fact.
1.-The buyers now fear that the con-
cession just made is but preliminary
to more of the same kind, and they
are disposed now to feel their way
along cautiously, in fact. more cau-
tiously than ever before.
1T would have been easily possible
to cover the consumers for August
and September at twenty-five cents
per pound, and trade conditions for
the immediate future at least would
have warranted the purchase of raw
material at this figure. II it devel-
oped during the next sixty days that
we were actually face to face with a
heavy shrinkage in the consumptive
demand, it would have been simple
matter for all the large producing in
terests to have simultaneously met
the situation by cut to twenty-five
cents.
This would have steadied the sit
uation, but now the buyer will shop
around as never before. The United
Metals Selling company has received
practically no inquiry since the an
nouncement of the reduction in sell
ing prices, which leads me to be-
lieve that the new business done at
the new schedule has been of very
small dimensions.
.In View OF the strong technical
position of the metal, it was foolish
in the extreme to have practically
confessed to the buyer that hereafter
he, rather than the seller. was to die
tate the situation.
AT the moment we are all at sea,
the manufacturer is at sea and the
seller of finished goods is utterly be-
logged in attempting to name prices
to his drummers.
Charles F. Brooker of the Ameri-
can Brass company, the man who, as
an individual, buys more copper than
any other man in the world, is in
New York, but we understand he has
not yet covered his requirements. He
buys largely from the Calumet and
Hecla, as for some work the Calumet
and Hecla brand is indispensable.
but, of course, the latter company by
no means furnishes all of his require
ments of 100000 pounds per an
mum.
From Boston we learn that the
deadlock which has prevailed in the
copper market for some weeks sit
uation which precluded any business
whatsoever at the nominal prices
quoted, has been broken, and the Cal
umet and Hecla, the United Metals
Selling company and Phelps, Dodge
e Co. have all quoted prices at
which they stand ready to do bust
ness. Calumet and Hecla is receiv
ing from domestic buyers one cent
per pound above the quoted price of
twenty-five cents for e}ectrolytic. Eu-
rope has also come into the market
and is buying Calumet and Hecla
lake at twenty-three cents per pound.
The real test of the situation is
now on-the disposition of the large
consuming interests to buy heavily
at the reduced price.
This reduction of three cents,
which was forecasted by the Boston
News Bureau July 1st, is the first
setback which the copper metal mar
ket has had since it began its advance
Just two years ago. On July 1. 1905,
lake copper was quoted at Is Is
cents and electrolytic at Is cents.
According to the maxims of trade,
the present concession should imme-
diately put the market at the direc-
ton of the buyer rather than the
seller, and would operate against any
large commitments for future deliv-
cry In other words, consumers are
not apt to stock up heavily on fall
ing market. 1t now remains to be
seen whether or not this is "a falling
market or whether as has happened
before, the reduced prices will lead
to the placing of such a volume OF
orders as will quickly demand the
raising of the prices 10 their former
level
To date the amount of business
which has been placed at the reduced
price is large. Negotiations are still
on between producers and some of
the large consuming Interests, and
are vet to be finally contaminated.
The disarrangement of manufacture
ers' price lists covering finished
goods into which copper enters, incl
dent to any material change in the
price of copper, is very upsetting to
the trade, and, strange as 1t may
seem, the vital consideration to the
manufacturing consumer is not a
cheap price for copper, but stable
or Notwithstanding price.
There has been practically no cop
per business for six weeks or two
months Supplies in the hands of
manufacturers were never so low,
and from a technical standpoint the
copper situation could not he
stronger.
The producers, however, have real