The copper era. (Clifton, Graham County, Ariz.) 1899-1911, 1910-05-20
The Metal Market.
From Boston Commercial.

Copper is dull and prices are sag
ging slightly. Lake is 125 to 13 cents
and electrolytic is 12g to 12g cents
per pound. The report of the Cop
per Producers association for the
month of April, which will probably
appear as usual next Tuesday, is ex-
pected to show considerable in
crease in the surplus. Exports last
month, 1902 tons, were smaller
than those of any preceding month
since May, 1907. The total exports
of the first four months this year,
however, were 81, 1852 tons, comparing
with 81, ,233 tons in the corresponding
period last year. Foreign advices
state that German and British cop
per consumption are increasing, but
indications are that in France there
will be a slight decrease during the
coming few mouths. The general
business reaction, which appears to
be under way in this country, proba-
bly, means a slight decline in the
American consumption also.
Unless something happens soon to
stimulate consumption the price of
copper will probably be marked down
to II cents. The history of the trade.
shows conclusively that whenever
copper has been available at II cents
or lower the consumption has enor-
mously increased, both in this coun-
try and abroad. In only eight years
out of the past thirty has the price
of copper failed to average over II
cents per pound, and the low prices
occurred following the collapse of
the Secretan syndicate in 1885 and
1856, and during the business panic
extending from 1892 to 1897. The
Amalgamated corner collapsed in
1901 with approximately as large
surplus of copper as there is at pres
ent, yet the average price in 1902
was about 12t cents to 134 cents in
1908.
The trouble at present is that
surplus of copper accumulated dur
ing the 1907 panic period, and since
then production has increased in a
little more rapid ratio than cousump-
riou. Although this country is using
about as much copper as at any pre-
vious time il its history, consumption
has not increased as rapidly as it
would have had it not been for the
ambition of leading politicians to
regulate the country's business.
of fa
curtailment of output by the larg-
est producers were begun last year,
and for a time some progress was
made; but recently the negotiations
were brought to an abrupt termina-
tion. 1 understand that Anaconda
and the most of the other large pro-
ducers are now arranging to increase
their monthly output. 1t would APP
pear, however, that Calumet & Hecla
and Phelps, Dodge & Co. are still
curtailing somewhat. The large and
rapidly increasing production of
Utah Copper and Nevada Consoli-
dated is the most important factor
in the situation. These two COM
panies, including Boston Consolidated
and Cumberland Ely, have produced
n the past three years by far the
greater portion of the copper which
now figures as the worlds surplus.
If the price of copper drops to II
cents L believe there will be heavy
foreign buying, and that consump-
tion the world over win so largely in
crease that it will soon absorb the
existing surplus and put the market
in much stronger statistical posi-
tion. At the moment it does not ap-
Dear possible that the average price
of copper will be as high as 13 cents
this year; but the expanding busi-
less activity, which will result from
a continued increase in the worlds
output of gold and good crops,
should make a market for all of the
copper that will come from the mines
in 1911 and 1912 at Is cents, or
higher price per pound. The copper
metal market is under going a severe
test, which is likely to continue for
two or three years longer, after
which there should be a considerable
advance in prices. The current in
creasing production promises to cul-
inmate in 1914, and the two or three
years following may see recurrence
of the metal market conditions ex-
perienCed in 1906, when a practical
famine existed and the metal sold as
high as 26 cents per pound.
Prices declined continuously during
the early part of the week, but at
the moment, a rally is under way.
Speculative accounts have been
liquidated almost to the last share,
and low prices are attracting invest
ors and long pull spectators. De-
spite the rather blue outlook for the
metal market, copper shares are
likely to have further rally. Specu-
lation in mining stocks will continue,
Notwithstanding the present de-
preston. The developments of the
coming few months is likely to cause
considerable buying of the stocks of