Douglas daily dispatch., 1927-09-13
Weekly Copper ReUieuO
BY CHARLES F. WILLIS
Editor. The Mining Journal


the price of copper during the past
week, the continued sales and the
outlook have been good and the mar
ket has a better tone. On the other
hand, lead and zinc have weakened,
lead dropping to GAO and zinc to $50
and little or no interest in either of
these metals.
The general industrial conditions in
the country are such that good busi-
ness is expected in all of the metals
and it is known that the fabricatorS
and manufacturers are not covered on
their fall requirements, hence the lat
ter part of September and early Octo-
ber are expected to develop good
buying and possible price increases.
Copper is no longer in the condition
of over reproduction on account of the
recent curtailment by the operators,
but lead and zinc have more of the
metal available than can readily be
absorbed and hence there is no desire
on the part of the consumers to place
orders for other than immediate needs
as there is little likelihood of sharp
rise caused by a shortage.
The zinc market has been excep-
tionally quiet, more so than for many
months past and, while the demand
is fair and keeping reasonably up to-
wards the average, it is decidedly a
neglected metal insofar as interest is
concerned. The reason for the lack of
interest in zinc can probably be found
in the fact that the worlds production
is running considerably ahead of that
of last year, while industrial condi-
tons are not as good as they were a
year ago.
For the first seven months of 1927,
the world output of zinc has aver
aged 1901 tons per month, against
110,891 tons as the monthly average
for 1926, or about a five per cent in
crease. There was no month last year,
except December, when the zinc pro-
duction. totaled as great as the 1927
average. The high month of this year
was in March when 123,852 tons were
produced. The present production,
however, is about 10000 tons monthly.
The lead production of the world is
not averaging as large this year as the
monthly average for the first seven
months of 1927 is 1898 tons as
against 146,546 tons average for 1926.
The world production for July totaled
141 ,567 tons, an increase of about 5000
tons over June, although no increase
in the daily rate. Mexico has been
increasing in lead production as has
Australia, while the United States,
Canada and Spain have been de-
creasing-
In the beginning of 1927 there was
so much evidence of declining busi-
ness in copper and the bad market
was caused by the fact that the pro-
duction has increased about five per
cent, while the consumption had in
creased only four per cent and the
market was so nearly in a balance
that it took but a little difference to
make it slump.
Since April, however, the decline in
consumption has been quite marked
and the drop from the year in con-
sumption based upon the first seven
months is about IL per cent. Thus
the sharp curtailment of production
was necessary and it will begin to
show it's results in the fall months.
There is every reason to expect a
stronger copper market in the fall
months as it is known that the de-
mand must increase and it is also
known that less copper will be avail
able to fulfill the increased demand.
There is no great anxiety on the
part of the producers to turn their
metal into cash Immediately and they
are not inclined to cut prices or bid
hard for business, feeling that they
now have the market advantage.
On the other hand, it is not felt
that the better fall market will bring
any great price advantage and no spec
tacular price movement. The copper
producers appear to be aiming for
about 14-cent market, but they are
willing to bring the market to that
price by slow and steady advances-a
fractional increase, a slight recession
from the high point of that increase,
holding and stabilizing the market for
a while before marking up another
increase.
The copper market is fundamentally
and statistically sound, much better as
to these factors than the market for
lead and zinc. The progress OF copper
consumption has been most interesting
and shows in itself where the time is
coming when it really will tax the
copper producing capacity of the
world to supply the metal needed. This
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