The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1924-02-07

Heving that the course of the zinc
market during 1924 will not follow
the precedent of 1928. The latter be-
gan auspiciously; stocks were low, ex-
port demand was strongly in evidence
and a good domestic business in pro-
gress. All was well until the late
spring. Then, due largely to the in
dustrial confusion developed by the
Ruhr occupation. England and the
continent ceased to be buyers of our
metal particularly at the high price
level it had reached here This ces-
sation of export demand synchronized
with a sharp halt here of confident
buying and the beginning of 8. period
which, lasting well into the year, was
characterized by a policy of extreme
caution This characteristic applied
to the buying of most raw materials,
but its effect upon the zinc market
was intensified by a genuine depres-
sion affecting the galvanizing indus
try and, consequently the largest
market for zinc. There were two rea-
sons for this slump in galvanizing op-
erations, one temporary, one rather
more fundamental. In the first place,
the galvanized product demand from
the agricultural sections of the coun-
try fell far below expectations, due, as
is well known now, to the impaired
purchasing power of the farming in
terests; in the second place the rela-
lively light demand for galvanized
products general emphasized a fact to
which attention has been several
times drawn but which is only lately
becoming thoroughly appreciated
that the galvanizing industry as a
whole is tagging seriously behind its
competitors. Due to the thinner coat
ing of zinc which they apply to their
product, thereby much deterioratine
its lasting qualities, they have turned
a great many consumers from using
galvanized articles. Recent activities
on the part of the American Zinc In
stitute to raise the standard of gal
vanized wares point to the apprecia-
ton OF this fact. A few figures picture
the situation: Today about 10000 tons
of zinc per month is being consumed
by galvanizers, or less than 40 per
last three pre-war years for which ac-
curate figures are available over 60
per cent of our zinc production went
into galvanizing Compared with
1910, current consumption OF zinc Ii
galvanizing shows an increase of less
than 20 per cent: in other industries
it has increased over 100 per cent
AS is usual, zinc production last
year could not adjust itself immedi
ately to the changes the year develop
ed It is adjusted now, and the sta
BILE market prevailing during the last
few months emphasizes the sound
balance between supply and demand.
Zinc stocks are somewhat higher than
they were at this time last year;
nevertheless they represent less than
a months supply and this small wis
ible" increase during the year is full
" If not more than balanced by the
decrease in the invisible" supply for
consumers stocks have been worked
down to the barest of minimums.
Galvanizing operations have i'm
proved decidedly, and it is fair to be-
lieve that the improved purchasing
power of the agricultural interests
will have a marked effect uDon their
demand for galvanized products, just
as their impaired position last year
affected that demand adversely. Sheet
and strip makers are busy; and prices
have been advanced, with improved
business as a result. The brass-mill
consumption of zinc continues at
high figure, and the outlook for the
building, automobile and electrical
trades is such as to confirm the opin-
ion that this consumption will con-
tinue. In those industries which use
zinc in nom metallic form, principally
the tire, rubber goods and paint lines
orders on hand and in prospect justi-
fy a belief that 1924 will at least see
the same excellent volume of business
that held throughout 1928.
Two factors viii have an increas-
ingly important effect on the trend OF
the zinc market. 1t is we'll known
that the smelling capacity Of this
country is only being partly utilized;
and the assumption may be drawn
correctly, if based on past experience
that any appreciate price advance
will bring on increased production
and a consequent oversupply of metal.
There is an excess smelling capacity
but there is not an excess ore supply
available except at prices far above
the present level. It is not generally
realized by consumers that for some
time past zinc has been selling below
its replacement cost; that for smelters
which draw their needs from the
principal producing districts miami
Joplin and wisconsin, metal IN ore
costs them from 81 to 6%c. East st.
Louis basis, depending upon how they
see fl TO figure costs; that zinc ore
has been marketed with peculiar Wis
dom and the supply so regulated that
while visible stocks of refined zinc
have grown during the past year, ore