Arizona republican., 1922-05-29
COPPER MARKET.
IS CON T|MU|NG
To MOVE WARD.
indications Point to 15-Cent
Copper Within Few
Months and 16 Cents by
First of Next Year.
BY CHARLES r. WILLIS
Editor, Arizona Mining journal.

The spectacular rise in the price of
copper during the past two weeks has
been the cause of much speculation
as to its cause, when it will stop and
what may be expected of the future.
The cause of the rise in price may be
attributed to several things: First,
the fact that the surplus of copper
is practically exhausted; second, that
a number of the larger selling agen-
cies withdrew their copper from the
market; and third, that the demand
particularly the European demand)
has maintained at full strength. The
May sales of copper will probably be
little better than 200, 900, 900 pounds.
During the first five months of this
year the sales of copper have ex-
ceeded the production by about 40,-
G00,000 pounds per month so that,
outside of the pool held for export.
the surplus supply has dwindled OF
figure that makes the copper con-
sumers wonder where their copper is
coming from. for the needs of the
next few months. The withdrawal of
the copper of the large selling agen-
cies was not complete as they still
continued to supply their larger Gus
toners.
1t is we'll known that the copper
mines can speed up production and
get more copper than the forty mill
lion pound difference but it Is also
realized that any increase in the pres
ent production Of the mines cannot
affect the surplus of copper for at
least three months and that, before
that time, there will be an actual
shortage of the metal as predicted in
these columns some four or five
weeks ago.
Thus the impending shortage forced
the price up almost an eighth of
cent every two days until the four
teen cent mark was reached at which
point the price of copper win un-
doubtedly hold for q short time as
some of those holding copper stock
that has not been on the market will
take advantage of that price and un-
load sufficient for quick cash. How
ever, there is not being enough held
to make it stay long at that point and
an additional rise in the price may
be expected within a comparatively
short time.
Already a number of the mining
companies have started to increase
their production, the Copper Queen in
creasing to 100000 pounds monthly,
the United Verde starting up on a
larger scale than originally planned,
ana others. Dut, as mentioned ABOVE,
this will have no effect on the market
for three months and by that time 1t
is believed that copper will have
reached the fifteen-cent mark. In
fact, it is freely predicted that copper
will be fifteen cents before August 1.
During the war practically all of the
copper. 80 per cent to more exact, was
used for war purposes and during all
of that period improvements in cleo
trical plants, hydro electrical devel-
opment, ETC., was at a stand still and
the things for which copper is used
now have the problem of getting
caught up, which will make a large
prospective demand. 1t has been es-
timated that the outlay for improve
ments and extensions among public
utilities, for trolley lines, telephone.
hydro and other electrical power
plants will call for an expenditure
this year of $1,000, ,000,0 900. This is in
order to catch up the condition
caused by the shortage of copper
during the war
1t is then reasonable to expect
and it is backed by figures on the
monthly increase in consumption so
far this year-that by the time the
increased production gets on to the
market, we will see an increased de-