Douglas daily dispatch., 1927-02-22
COPPER PRICES
RETURN TO l3C
AFTER SLASHINC
by CHARLES #. WILLIS
Editor The Mining Journal

~~. Inc cutting OF the prices on cop
per, week ago when it was down
to 121a cents, brought about a very
large volume of sales, and the buye
had their own way while stocking
up for the spring. This price slash
ing lasted but a short time, how
ever, and copper has come back to
the 13 cent mark strong.
Export copper dropped along with
the United States price and the new
Inc, set at 13 cents, also brought
about an immediate large volume OF
business. Even with the large guam
tity bought in both the United States
and Europe, the consumers are not
bought up to htheir requirements and
there is every evidence that good
buying will continue.
In recent months, the large pro-
ducers have not been selling when
copper was at low level, but this
last price drop saw many of the
producers into the market and ready
and willing to sell at the current
price. Some producers held out, but
there seemed to be plenty of copper
available at the low price and lots
of it moved.
The sensitiveness of the copper
market is indicated by the fact that
a production increase over three
months period totalling but three days
consumption caused the price to drop
one cent.
The surplus of refined copper in
the United States jumped to a total
of 93,9S2 tons with the end of jan
uary, higher than it has been at
any time during the past two years.
At the end Of 1925 it totaled 1902
tons and at the end of 1926, S5,5O1
tons. Yet in view of the fact that
January shipments totaled 124,629
tons, this is not. a high surplus.
On the other hand French and
English stocks of copper have gone
down so that it is probable that the
total copper available is little if any
greater than it was several months
ago. The ready buying on the new
low export price showed that Europe
was hungry for the metal.
January production took a sizeabla
jump upwards, from 12O,85O tons in
December to 128,736 tons in January,
this excluding secondary copper pro-
duction. This trend of production
may be seen in contrasting this
figure with January of last year when
109,954 tons were produced.
Copper shipments took a greater
jump upwards, however, than pro-
duction, from 114,779 tons in Decem-
ber to 124,629 tons in January. This
was divided into 48,13O tons export
copper and 76,449 tons domestic. The
copper exports for December totaled
52,837 tons and domestic shipments
61,942. The latter figure does not
indicate anything, as December was
the lowest month of 1926 as the
average domestic shipments per month
during the year was 75,1S1 tons.
For the last four months copper
production in the United States has
exceeded shipments, yet the whole
total excess is no startling figure,
being but 25,649 tons as against a
total amount of copper produced Of
over half million tons or about
5 per cent excess production.
Although freely predicted as a
result OI the -QEOp LII COppSIs. P4ICCs
there has been no evidence of any
ourtai1ment of production. Production
is being maintained at the higher
levels started last October and has
been higher than consumption for
several months, but the surplus has
not yet reached point where it is
of great consequence. The cry of
curtailment is probably suggestive
psychology.
The announcement of the American
Telephone and Telegraph and its sub
sidiaries that they are going to
spend $4OO 100000 for plant additions
and improvements, has a very direct
effect on the outlook for copper,
many light and power companies
have started expansion programs, and
almost all the business tht use cop
per in quantity except automobiles,
have a good 1927 outlook.
Lead has also been favored with
a buying movement of consequence
as the sales have been much higher
than usual, and the best sign is that
the buying has been throughout the
field of lead uses and not confined
to any limited circle. The storage
battery trade was the only quiet one