Douglas daily dispatch., 1926-01-28
Weekly Copper
Review

Again 1t is necessary TO repeat,
copper is quiet, staying at the 14B
mark-nothing spectacular happen
ing. The copper situation is furnish
ing no fireworks on which to base
stock market speculation and copper
buying and selling is running on an
even keel, staying good enough but
not good enough to justify increased
production, nor bad enough to JUS
tify the producers from further re-
ceding in price.
A great difference of opinion ex-
lists in the trade regarding prices,
some quarters contending that no
justification existed for the extreme
ly low price of IA cents or slightly
less that was established a week or
10 days ago by certain dealers in
their effort to procure, business and
that with little cooperation the
quotation could have been maintained
at 1850 cents a pound.
Those who are looking for higher
prices base their views on the fact
that the statistical position of cop
per is growing stronger daily, and
likewise believe that there will soon
be evidence of a greater demand
from abroad. There is room for in
creased production as some companies
are still running at a reduced rate,
but it is not likely that this will be
done until change takes place in
the European situation.
European and French consumption
of copper continues at good rate
and domestic consumption is at a
high rate. Indications point that as
soon as the French tangle gets
Strengthened out and European ma
tions get to trading with themselves
in the volume that is to be expected
as a result of the Locarno under
standings, there will be a marked
increase in Europe's requirements of
copper.
A slight decrease in shipments and
an increase in production during De-
cehnber brought about a small in
crease in the surplus stocks and
of the consumers that a price re-
duction might follow December
shipments of copper by North and
South America producers amounted
to 114,354 short tons compared with
118,491 the month before and H.
779 in October. Shipments for 1925
were 1,415,724 tons against 1,319'-
784 in 1924 December copper stocks
increased 1O,362,O0 pounds. The
months production of copper was
1855 tons compared with 11S,474
in November, making the total for
the year 1,S52,3O9 tons against 1,3OO,-
332 tons in 1924. The surplus stocks
of refined copper on January l, 1925
were 1903 tons. This compares
with surplus stock of 136,434 on
January L, 1925
The history of the American cop
per industry in 1926 was further
large reduction in surplus stocks
of the metal, new high records in
refinery output and domestic and
world consumption. In the II months
over 584, 500 tons of American copper
were exported, and of this total rs
per cent was taken to Germany. Eng
land, France and italy were our next
best customers in the order named,
taking respectively 19 per cent, 10
per cent and 13 per cent OF the
total for 1925 exports GA per cent
were abroad in the form of wire
bars, indicating that majority OF
takings were for electrical purposes.
Domestic shipments of the metal last
year totaled S31,171 tons. Total re-
finery output last year was 1857
500 tons as compared with 1,3OO,3S2
tons in 1924.
There has been no material diff
ference during teh past year as to
the proportion of copper furnished
the world by the various producing
countries. Out of t,54O,9OS tons pro-
duced in the world, the United States
furnished 94S.127 tons, Chile and
Peru 2S6,9S4 tons, Europe 10000
tons and Belgian Congo 9S,74S tons.
During 1924 the figures for total
production ran 1,459,4S4 tons and the
United States furnished 89S,464 tons,
Chile and Peru 227,91O tons, Europe
$4,000 tons and Belgian Congo 9S,-
478 tons. The gain was largely in
United States production.
In analyZing the gain in United
States production it will be noted
that the greatest increase came in
the vein mines which are the higher
cost producers and in the Lake mines
which are very deep and likewise
high cost. Hence the change in the
copper situation during the past year
is now that, with even prices and
better efficiency, the high cost pro-
ducers are going we'll and the bulk
of the burden of stablizng is fall
ing upon the low cost big pro-
ducers.
Entirely aside from the statistical
evidence presented in argument that
copper prices should be better, the
above makes it evident that copper
conditions are better now than they
were a year ago.