The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-04-07
WORLDS ZINC INDUSTRY
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(Engmeering and Mining JournaD
The key to the depression in the
zinc market is the apparent ability OF
one country. Germany. to outseu the
world An other important zlnc-pro-
ducing countries, i'm particular Bel
gium the United States and Aus
tralia. are not meeting the low prices
at which Germany is offering zinc
abroad. AS result of this situation.
the entire zinc market OF the world is
in am unhappy position Almost every
1inc-p producing country is disposing of
It's output i'm whole on in part, at
prices almost universally below the
cost of production. and the United
states zinc industry especially is feel
ing acutely the effect of European
competition. Production has been
curtailed from month. to month in an
effort 60 meet the situation, but with
ont any result in stimulating the do
nestle market lmportauons are con-
tnually threatening the market re-
gardless. seemingly OF how low it
drops.
Primarily German competition in
zinc at low prices is possible because
of the low value of the mark. and
trading is being pushed to the limit
/ by the Germans in an undoubted eff
Tort not only to regain some measure
of the hold exercised upon the worlds
zinc trade before the war, but also to
convert a valuable domestic resource
into much-needed cash or course,
the low value of the mark alone does
not allow of cut-throat competition.
IL is only because of the fact that la
Dor and fuel costs are paid in depre-
ciated paper currency at rate far
lower than the equivalent in any 9TH
er important competing country that
Germany can underbid other zinc pro-
ducers.
Belgium's Unfavorable Position.
The resultant Reorganization in the |
worlds zinc markets has left Belgium
and Australia in peculiar positions. |
The Belgian producers are holding /
their zinc output, which is almost en- |
urely smelted from Australian con- |
ccntrates, at a price of about G "a per |
long ton, which is more than 30 per |
cent higher than the present London |
quotations for spot zinc and it is ne
ported that they have succeeded in |
obtaining a loan on their stocks. Bel |
gian zinc smelling companies have |
contracted to take deliveries of Aus /
ITALIAN concentrate at prices eqmval- |
emit to about G9h per ton laid down |
at Antwerp. These contracts were /
made at a time wnen zinc was selling /
ior much higher prices and when |
Belgium had begun to make deter /
mined efforts to regain her position in /
the zinc industry The eagerness of /
the Belgian operators to book ship |
ping from Australia Port Phie) Incl /
dentaly has kept the freight rates |
between the two points at a high |
level Belgium can not prohtably |
produce zinc under present prices of |
concentrates and market conditions.
German zinc production is not |
large, possibly a third as much as
the monthly production of the United
states, but it is sufficient under the
present state of affairs and the de
moralized markets to cut big figure
in cheaply supplying good part of
the worlds light requirements Ger
many is relying entirely on her own
resources in producing zinc, as the
supply of Australian concentrates
normally furnished the country has
been entirely cut off Although the
result of the recent Upper Silesian
plebscite has not been definitely an
it seems to insure German
retention of the rich and favorably
located zinc deposits in the province
md to strengthen Germanys import
ince as a zinc producer.
That Germany is making a strong
bid for her former share of Broken
hin concentrates seems evident from ,
present market tactics and from ad-
,ices abroad, where the impression is
prevalent that inasmuch as Australia
s denying the German zinc industry
supply of concentrates, Germany is ,
loing and will do everything in her .
,ower to depress the zinc market of
hat continent The great advantage
by Germany in carrying
mt this policy is the low foreign ex- ,
.hange value of the mark. Desirable
is it may be to solve the perplexng
problem of exchange and to introduce
iome measure of sterilization. it mat y
ers little to Germany how low pres .
mt exchanges are so long as they do :
rot fluctuate greatly.
Zinc Prices Respond to Political Sit !.
uation.
The inability Of the allies and Ger
many to reach an agreement over =
operations, and the steps conse =
Iuently taken by the allied countries p
o enforce penalties have resulted in i
timening the price of zinc, and ar
esting a decline that has been pro-
eeding for months. However, it is
noticeable that the London spot quo
alton for zinc was influenced more
han was that for futures. Indicating
hat the London market discounts U
he duration, 0f fhp Droeenf situation q