The copper era., 1908-08-06
Walkers Weekly Copper Letter.

Copper is stronger. Lake is 13g to
49, cents, and electrolytic is selling
for 13 cents per pound. More copper
has been sold this week than in the
three or four weeks proceeding.
Domestic consumers are coming into
the market. That a few of them
have built up considerable confidence
in the futue is reflected in their COM
plants because they are unable to
buy copper for October delivery at
present prices. l understand that
none of the large producers are will
ing to sell for later than September
delivery at quotations here given.
Some interests express that buyers
haye been supplied so freely without
any material advance in prices. As
has been stated in these letters pre-
viously, there is probably about two
months production of copper await
ing sale. The greater portion of it
is being held for slightly higher
prices: and fear that competitive
selling might cause . sudden reaction
is causing many producing interests
to meet the demand at about Is
cents.
Real improvement is beginning to
be noted in the brass trade. A num-
Der of fOundries have increased their
working forces recently, and all of
them are buying more copper than
for several months past. There is
also an improved demand for copper
wire, and the rolling mills are quite
busy, as might be expected with cop
per at its present low price.
Foreign buyers probably viii not
follow the market advance. Nearly
all of the British and European con-
sumers bought in excess of their i'm
mediate requirements early in the
year, going on the principle that the
metal should be secured when it was
cheap. They can now well afford to
retire from the market and await
developments.
1t is very good opinion that the
price of copper will hold between Is
and If cents during the coming three
months. The statistical position Is
not quite strong enough to warrant
the expectation of any consdera bic
advance. While the consumptive de-
mand is increasing, it will be some
time before it exceeds the current
volume of production. The prospect
is good, however, that there will be
an active market and that supplies
in the hands of producers will dimin-
ish rather than increase.
The cost of producing copper is be-
leved to be one cent per pound lower
now than It was a year ago, due to
curtailment by some of the nigh cost
producers, reductions in wages, in
creased efficiency of labor and lower
cost of supplies. Most of the mines
also, are working on a slightly higher
grade of ore, and some of the low
cost producers are forcing production
somewhat [ believe that the world :,
copper IS now being made at al
average cost of % cents, and thai
there is an average profit of 81 cent:
per pound or all of the copper going
to market. This is very good bust
ness profit, and it must be expected
therefore, that production will have
tendency to increase for some time
I to come.
The theory has been advanced thai
| because of the constantly increasing
copper output in this country anC
elsewhere the price must necessarily
decline. | know that it is possible
for copper prices to advance i'll spite
of a rapidly increasing production
In 1901 l visited a large number OF
mines in the southwest, and found
several of them preparing to increase
their output, or to begin producing
on a considerable scale. A few
months after my return copper SOLD
around IL cents. Notwithstanding
the certainty that production woulC
increase, l was very bullsh on cop
per when it was at bottom prices.
knew that consumption would in
crease also. Since 1901 the world