Douglas daily dispatch., 1927-07-12
Weekly Copper ReUiew
BY CHARLES r. WILLIS
Editor, The Mining Journal

The tendency on all the metals is
downwards, although copper has peen
able to hang on to its 1914 cent price.
For the first time in many months
lead and zinc have come to the same
price, 6.2O lead having weakened con-
siderably The cut in lead prices
has greatly stimulated sales.
European sales Of copper have been
maintaining very well so far this
year, with practically every month
ahead of last year. This is partially
due to the fact that foreign stocks OF
the metal are at a very low ebb and
does not necessarily mean that more
copper is being used. The British
brass and copper mills are operating
at about SO per cent capacity and the
mills of Germany are able to under
bid them and get the business.
In underbidding, however, they are
operating on an unsafely small mar
gin of profit, yet they anticipate by
building volume business to apply
greater efficiency and get their costs
down. The Germans are working TO-
wards the American method OF mass
production and consequent lower
cost. To get mass production, they
must get the business and to get the
business they must have lower prices:
Copper for export has increased
about 16h per cent in the first i've
months of this year over the same
period of last year. The fact that
Germany increased 129 per cent IN
the same period accounts for most OF
the Improvement, although England
has increased 19 per cent. France
has had very unsteady conditions and
decreased So per cent in this same
neriod Germany has taken 81 ,23O
| tons of copper in the first five months
of 1927.
The mere fact that dividends are
being maintained by most OF the cop
per producers indicates that they 40
not expect an indefinite continuance
of the 1917 cent price, as some OF
them are dipping into reserves to get
the dividend requirements, but there
is no relief in evidence until we get
either a strong buying movement or a
drastic production cut. We have no
reason to expect either, but will prob
ably get both in moderation.
Even though the American Smelt-
ing and Refining company have re-
duced their contract price on lead to
e 20 there is more optimism in that
metal than in any of the others
business in the fields using lead has
picked up somewhat, especially the
storage battery field, and the leao
people report business better Jnan
usual and above the average. Inc
low price has, of course, been an az
tractive bait to get the buyers lntc
the market.
The tendency on zinc has not peer
good, as the production has peer
steadily increasing during June anc
the shipments decreasing, therefore
when the June statistics are madt
nublic there will probably be an IN
crease in surplus stocks, which are
already too large.
In view of the present condltlon o.
the metal markets, one would thlnK
that we are slipping badly IN the USE
of those metals, yet that is not tne
fact. as more copper lead ard zinc
are being used than ever before.
# has been interesting to observe
that the percapita use OF copper NJ
the United States has Increased &c
1854 pounds in 1926, as against "a
pounds in 1914 and 6O4 pounds II
1921. The increase is largely due &c
the more extended use of the metal II
building construction, in electrical de-
vices for the home, in washing ma
chimes. automobiles, refrigeratlns
n1ants. etc. There has been a con-
slant increase each year since 1871.
Lead likewise has steady increase
in the per capita consumption, al
though not as great as copper. Dur
ing 1926. 1878 pounds per person was
used. as against 9.48 in 1914 and 704
in 1921. In zinc the figures for 1914
1921 and 1926 are respectively QUO
pounds, All and 1908 pounds.
The possibilities of the consumptloI
of the metals in foreign countries Is
well shown by the per capita con-
sIInption of other countries as COM
pared with the United States. While
the United States is using 1919
pounds of copper per person, France
is using 6.23, Germany 5.73 and Great
Britain 6.86.
Likewise, while the United States i
using 1918 pounds of lead per person
France consumes 4,89, Germany 5.2f
and Great Britain 1895 pounds. The
zinc per capita for the United States
is 1908, while France is GIG, Germany
I497 and Great Britain 1872.
OF course, the greater use IN the
improved standards of living OF the
United States is partially due to the
greater percentage of the people, ye'
conditions in Europe in this way are
improving and can be expected tt
continue to improve in the ways thai
consume the metals.
The whole trouble and cause OF the
present metal market is overproduc-
ton. Large production is, however
essential to low costs and any further
production cuts would probably bring
costs up and lose some of the eff
cheney gained by the close application
to cost cutting of the past severa
years.
While curtailment is one remedy
for the present situation, there is an
other remedy and that is increased