Douglas daily dispatch., 1927-05-03

from the UllHeS " bhC S@NNN-~
equivalent amount.
There is no question that the
sentiment on the copper situation
is better and the price is stronger.
The curtailinent program seems fixed
and no further curtailment is IN
evidence, as the producers are min
ing less copper than is being sold
and there is no reason to go further
on this program. The amount is
but slightly less, however, and no
quick fluctuations are in evidence.
Lead at 6.s5 is the weak metal
now and it's low price greatly con-
Germs the producers of that metal.
1t has been thought several times
during the declining price that the
bottom had been reached but it has
continued to drop.
Possibly the ambitions for lead
price are out of line, as they are
based on the 1850 price which pre-
vailed at the beginning of 1925, at
which time everybody was searching
for lead mines which could become
quick producers. Some were found
and production scared.
During recent years lead has had
a hectic price career. Starting in
1924 with a price of IT'S, it rose
in two months to- 900, remaining at
that price for a month and then
gradually dropping until it reached
bottom of 700 at the middle of
the year and then graually increased
until it closed the year at $50.
Then it continued to rise during
the early part of 1926 very rapidly
| until the middle of January, 1925,
it had reached the 1880 mark and
by the later part of April it was
down to IT'S. Then the upgrade
started and the end of 1925 saw
lead at 1926
This continued into 1925 and the
decline started early in the year
until it reached bottom of 7.65.
Then it started upward until in
September, when it reached its peak
of $50, and it then started down
and has been going down ever since
to the present price of 6S5. This
has, of course, been with minor
fluctuations.
A recap of the lead prices shows
the trend
In 1924 lead started at 7.75.
Rose until Feb. % to 800.
Dropped to May % to 700.
Rose to January 10, 1925, to 1850
Dropped to April 21 to 775.
Rose to December to 9.25.
Dropped to May 81, 1926, to 1865.
/ Rose to August 80 to $50.
] Dropped to present price, 6S5.
Thus an analysis of the price
fluctuations indicates that it is about
at it's bottom and that it is due to
start on the upward path.
But the trouble is that it is
! overdue in starting and this con-
dition probably come about because
of the present condition of overpro-
duction and little or no tendency to
| curtail.
The March production of lead from
the United States was 61,365 tons,
as against 59,3S3 tons in January,
the last month with the same num-
ber of days. Likewise, Mexico pro-
duced 1924 tons in March, as against
| 11,497 tons in January, etc. For
tunately, Canada, Australia and sew
! GTdl SHldlIeT pIOQuCiAS COuAlbiAOo ASo-
sened their production, but the world
production of lead for March totaled
1902 tons, as against 1854 tons
+, in January.
The constantly increasing produc-
tion has meant that lead has had
an increasing surplus, and while we
had a surplus stock of refined lead
totaling 1914 tons when lead was
at it's last peak price, we now have
a surplus of 41,O47 tons.
/ There has been a continuation of
favorable business conditions in he
country and there is no reason to
expect any lull in buying other
than that coming from the periodic
buying periods, but the whole lead
situation looks as though we might
expect a new low price for the past
few years before we get the turn
| upwards and that the turn upwards
cannot come unless we have unpre-
cedented better business, i. e., better
than we have any reason to expect,
or we get some drop in production.
Zinc is in a similar condition of
overproduction, as the world pro-
duction in March totaled 123,46S tons,
as against 121,222 tons in January.
The additional production came be-
cause of increases in Canada, Bel
gium, Germany, Polish Silesia and
] Australia, and slight decreases in the
United States. There has been, how
ever, a decrease started in March,
the full force and effect of which
will not be seen until the April
figures.
Relative to the prospects for zinc,
A. ]. NJ. Sharpe, correspondent for
the American Zinc Institute, SAYS:
! Though the statistical position of
the metal is good, no great encour-
agement is forthcoming, as to the
outlook for the market, and the
price will in all likelihood continue
to fluctuate in sympathy with the
market movements of the other non.
ferrous metals, and particularly with
lead"