Douglas daily dispatch., 1927-11-01

market and practically all classes OF
buyers have been active. The buy
ing has been for prompt delivery
and little for November and almost
none beyond that time. There seems
| to be little tendency on the part OF
| the producers to sell forward, partlcu-
| larry at present prices. fe,f
The weakness on the zinc market
in Europe has led to reports Of q
movement to form a European zinc
syndicate with an agreement be-
tween the Belgian and American zinc
interests, This combination would
place n the control Of about three
fourths of the worlds zinc production
as Belgium controls about 20 per
cent of the world production and is
the largest European producer.
Through negotiations and an
agreement last year, the American
interests have gained foothold in
Europe and much of the zinc mark
citing difficulty abroad is attributed
to the sharp competition between
American and Belgian interests, and
the proposed syndicate is planned to
remove that difficulty. The weakness
of zinc in Europe has had it's direct
reflection on the American market,
which has been damaging.
There is now a willingness to buy
on the part of the consumers OF
copper whereas there has been g
reluctance for many weeks past.
While copper has been selling well,
it has been bought only because the
consumers had to cover their re-
ouirements. The producers have held
firmly to the IS Ia price and the
consumers have finally come in at
that price. 1t is reported that the
past weeks buying of copper was
larger than any week since early III
1927.
In buying of copper on the scale
of this past week, it would be sup
posed that much of this would be
for future delivery, but the low
status of the stocks of the consum-
ers is shown by the fact that the
bulk of the buying was for Novem-
Der delivery and very little future.
Thus December requirements remain
yet to be bought.
In spite of all the curtailment
statements of the copper productions
made in August, the world copper
production statistics do not bear II
out. The average daily rate OF pro-
duction in July was 1884 tons, III
August 1855 tons and in September
4,443 TONS
In other words, the history Of cop
per curtailment programs has re.
peated itself. 1t starts out with all
good intentions and in two or three
months it gradually creeps back :
the place where it started from. IT,
September daily rate is about tlic'
same as for the first nine months.
It is no wonder that the copper
consumers do not place much stock
in curtailment statements from the
industry as a whole. The who'll
thing works in a cycle. Curtailment
is necessary to bring the prices up,
production is necessary to bring the
costs down and both cannot be econ
omically accomplished at the same
time. Curtailment brings the cost
up and production quickly drifts back
to the point of better. costs.
Fortunately the sales of the met.
al have been increasing and have
been in excess of production so thL;
the surplus stocks have been decreas-
ing and now stand at the lowesc
figure of the year and every indi-
cation is that good sales may be
expected to continue. The outlook
for copper is better now than it has
been at any time during the present
year, and it is generally felt that an
increase in price is coming shortly
The sales of the past week were
sufficient to bring about an in
crease but the producers seemed to