The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-02-27
BAD MARKETING
HURTS COPPER
PRICES
Consumption of Copper, Last
Year Largest in History.
Says S. A. LeWisohn.
BY w. 8. COUZINS.
Copyright, 1924, by International
News SarVicAl

(SopyrIBntp IVES, oy AnternhGonaI
News Service.)
NEW YORK, Feb. 27.-Bad mar
keting methods constitutes one Of
the greatest handicaps with which
the copper market is graphing. and
the psychological aspects Of market
ing rather than the preponderance Of
copper production over world con-
sumption, is keeping copper prices
In the bottom" Sam A. Lew1sohn,
president and manager Of the Miami
Copper Company, said today.
AS long as the price Of copper re-
mains low, Mr.. Lewisohn pointed
out. the fabricators and other users
OF the red metal decline to enter the
market for any more than their
day-to-day requirements. When
prices show a tendency to advance
the more eager they seem to be in
filing their requirements. This &C
counts for the occasional spurts in
the market, the last Of which ad-
vanced prices from liz to 13h
cents a pound.
Consumption Of copper in this
country last year." Mr.. Lewiston
said, was the largest Of any year
in its history. exceeding two billion
pounds. Consumption abroad is
moderately good. Taking a world
view Of the situation, we find that
production only slightly exceeded
consumption last year, and hence
the reserve stocks were not drawn
on to any extent.
II think we are at the peak Of
production for the time being, since
any further increase in copper pro.
duction would necessitate the in.
PRODUCTION of fresh capital, which
takes time to assimilate. On the
other hand, consumption is bound
to increase, and as soon as this
fact is established in the minds OF
fabricators, consumers and middle
men, the psychological aspect OF
the market situation will change
and prices will quickly recoil."
Replying to question as to the
financial status of the various cop
per companies, in view of the pass
ing of dividends on two important
companies this week, Mr.. Lewisohn
said: Profits in copper producing
depend entirely on how the ore
lies. For that reason some Of the
copper producers are generally re
ferred to as high cost producers
and some as low cost producers. The
production costs vary from to IL
or IA cents today. depending on the
location and the character Of the
ore. In general would say thai
the copper industry as a whole can
not thrive and expand on ~ cent
copper"
Flooding of the market with chear
copper duty free from South Africa
Spain and South America, combined
withthe hand to mouth buying pol
icy Of the fabricators of the rec
metal, was cited by another promi
nent copper producer as the reason
for the present irregularity in the
market
THE copper industry as now con
stituted." he said, was developed
to take care of the normal domes
tic consumption and the normal re
quirements of customers In Europe
and any deviation from that pro
gram easily upsets the copper mar
ket If all Of the copper ROLLINS
mills, producing the copper sheets
rods tubes and wire for American
industry were to attempt to con
tract for their own requirements fol-
the next three months, they woulC
inaugurate a buying panic which
would send the market to 20 cent!
pound.
Such a close adjustment between
production and consumption is no
good thing for the industry. Their
is as much copper consumed at II
cents as at IL cents a pound, and
therefore, an increase to a fail
basis for the producer would no
curtail the use Of copper in Ameri
can industry.
ION the other hand fabricator
and consumers stand to lose al
much as the producers by the en-
forced closing Of any Of the import
ant mines, with the consequent dis
location of working forces and tn,
ultimate curtailment of market sup
ply"