Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-28
STOCKS OF METALS
CONTINUING HIGH
Cuts in Production Costs
Fail to Operate as Out
put Mounts.
BY j. c. ROYLE.

special DlSpatcn 10 i ne star.
NEW YORK, June 2S.-Producers
Of non-ferrous metals have made
great strides in the cutting of costs
and the improvement of methods of
production, but they are not yet get
ting the full benefit of them, because
they have not been able to reach
accords on the restriction of produc-
ton. In other words, they have learned
how to produce more copper, lead,
zinc and some other metals, but have
not learned how to increase consump-
ton and sales to an equal degree.
Mine, mill. smelter and refinery
costs all have been cut. but stocks of
metals are high and buyers, domestic
and foreign. cannot be stampeded into
purchases in advance of needs. The
latter are confident they can get the
metals they need when and as they
want them, and, to some extent, at
their own price.
Copper Status Not Serious.
The condition in copper is not espe-
cially serious. Producers can make
money at lower prices for the red
metal than at any time since the pres
ent wage scale came into effect. De-
mands for electrical equipment have
done much to permit the working of
ore bodies under present conditions.
Copper men now are convinced that
ore can be mined profitably al n depth
Of 5000 feet or more and are making
preparations to operate at that depth
in the Butte and Occur d'Alene dis.
trictS.
Pig lead prices are the lowest in sew.
anal \ l..
stocks of that metal This seems due
to production in excess of consump-
ton. both in the United States and
Mexico. Zinc is in much the same
position. The production of lead and
zinc has risen far beyond the demand
or foreign SmelterS. At least two i'm
portant zinc reduction processes are
being given tryouts and may aid the
industry nightly.
The building industry is aiding cop
per, lead and zinc. 1t is estimated that
in the last year 275.000 900 pounds of
copper were used in building, The
galVanlzers of steel sheets for building
use huge quantity of zinc. while lead
also is vitality affected. The steadiness
of the construction industry has been
a saving factor with the metals.
Silver Production.
Prospects for high silver prices arc
not encouraging. World production
is heavy and shows no signs Of dlmin.
ishing. Silver prices are 10 GEMS an
ounce under those of a year ago.
World stocks are about 25.O0OO0O
ounces larger than at the beginning
of 1926. Stocks in the United States
are around 605.000 ounces. while
stocks at Shanghai are approaching
140,000,000 ounces and Indian reserves
are near $50, 900, 900.
Earnings of nickel producers are
slightly better than a year ago, hut
demand has dropped considerably with
the Summer slackcning of the auto
mobile and steel trade. The alumni
mum outlook is steady. since heavy
stocks have been liquidated and i'm
ports have been cut down. Tin pro-
ducers, all foreign, are favored with
the best prices in eight years.
Chinese disturbances are blamed to
no little degree for the conditions of
the markets for many of the non-fer-
rous metals. This has not been felt
particularly in this country but it !
has been acutely noticeable in Lon.lon
which dominates the metal markets of
the world.