The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-17
USE Of COPPER.
SHOWS BIC
INCREASE
Last Years Consumption in
United States Double
That of 1921.
By w. 8. COUSINS.
Copyright. 1924, by Cosmopolitan
Newa Sarvicenl

News Servic@)
NEW YORK, March 17.-There
are many interesting phases Of the
copper situation today, but none
more interesting than the fact that
copper fabricat;ons. rolling mills
and other users OF the red metal
are able to dominate the market
and, for the time being at least,
to dictate the prices at which they
will acquire the metal for their
daily use. Psychology, say the
copper producers, while they sell
their copper at about the cost Of
production, and in q few important
cases, suspend the dividends on
their stocks.
Increased Consumption.
Copper consumption in this coun-
try is increasing by leaps and
bounds. Last year domestic con-
sumption was double that Of 1891.
while exports continued on a large
scale. More than two billion pounds
was used at home and 700, 900, 900
pounds sent abroad. But the annual
importation Of about 100000. 900
pounds Of cheaply produced and
duty-free copper from the Katanga
mines of Africa. from Rio Tinto,
Spain and South America, upsets
the calculations of the sellers and
helps to keep the market flat on
the bottom. This copper comes
into direct competition with Ameri-
can copper costing IL to 16 cents
a pound to produce.
There is no unanimity of senti-
ment among copper producers as to
the policy Of permitting this foreign
copper to come into the country
duty free. Were it diverted from
here by a high tariff wall it would
logically seek the European markets
and American industry would lose
the trade and the profits accruing
from the refining and manufactur.
ing processes of the metal. One
or the largest American copper com.
panies, Anaconda, recently pur-
chased the Chile Copper Company
mines in South America, the output
of which, at low producing costs,
are imported here duty free. I'm
position Of a duty would, accord
lngiy. affect the profits of this and
other American companies.
Low Prices Hurt.
1t is a popularity Of the copper
market that sales are made with
greater difficulty when prices are
low than when they are high, AS
long as fabricators believe they can
secure their future supplies at low
prices they refrain from entering
the market and making commit
ments Tor other than day-to-day re.
qulrements. Any concerted effort
10 place contracts for copper suffi.
cient to cover contracts for a
period OF six weeks, according to
leading producers, would see rapid
rise in prices, and they point to the
furry in the copper market in
March Of last year, when prices rose
quickly to IL cents, as confirmation
OF their statement.
The rolling mills, largest fabrica-
tors OF copper, and producing princi.
pally sheets, rods, tubes, and wire,
must have copper to keep them
operating, and would suffer as
greatly as the producers by a shut.
down in any large number of pro.
ducing mines. Copper mining in
America was developed to it's pres.
ent status on the basis of normal
European consumption absorbing all
the surplus above domestic require.
ments, and curtailment Of proluy.
ton means an increase cost per
pound.
May Start Mills.
Some Of the big producers have
considered seriously the question of
establishing their own rolling mills.
thus removing one source OF market
uncertainty, and enabling them to
get behind eVery manufacturing
process from mining the metal to
the implement made from it for the
consumers use. The Anaconda
company, by it's acquisition Of the
American Brass Company, sustains a
direct relationship to the manufac.
ture and consumption of As per cent
Of all the brass entering into Ameri.
aon inII1cfV1y