Douglas daily dispatch., 1928-02-26
Weekly Copper Re0iew
BY CHARLES F. WILLIS
lEdItOr, The MINING JOurnafl


The metal market has not been be-
having itself in the past week in a
manner which would create much OPP
timism. Lead ore has had the A. S.
! and r. contract price dropped from
$50 to 6.25, zinc has hit below its
lowest price level of the past five
years, $40, and copper is an eighth
off and bringing only 1890 to the
| producer In spite of occasional sales
of higher price copper, it has not yet
averaged as high as the 14-cent mark
to the producer.
The reason for the weakening con-
dition of theA metals is clearly shown
in the fact that none of them are
having consumption in excess of the
production and the surplus stocks are
all climbing Thus the buyers foresee
another period of plenty of metal and
producers are doing that for them,
thus saving them the investment and
making a probable lower price.
The copper surplus stocks at the
end of January totaled 96,476 tons as
against 95,298 at the. end of Deem
ber, 90,874 at the end of November
and 1882 tons at the end of October.
Thus there has been an increase Of
about $4,000 tons refined copper sur
plus in three months period.
The lead surplus stocks in the
United States and Mexico at the close
of January totaled 36,418 tons" of the
refined metal. At the end OF Decem-
ber the figure stood at 1886 tons
and at the end of November at 30,016
tons, more than 5000 tons increase in
two months.
Zinc stocks have been stea adily
climbing since September the figures
for the end of each month being
September, 34,277 tons; October, 36,223
tons; November, 39,920 tons; Decem-
Der, 40,751 tons, and January, 32,163
tons, total increase of about 5000
tons in four months. The percentage
increase is the least in copper and
likewise copper is by far the strongest
of the metals. f.@
There is a continuing reduction in
the stocks of standard copper in Brit
ish warehouses These stocks were
large two years ago and the standard
copper available slowed down the
activity of the copper exporters in
setting control of the European mar
ket. These stocks dropped 21,872 tons
during 1926 and 21,786 tons during
1927 and they have dropped 975 tons
in January, so that they stand at
10747 tons now as against 54, ,405 tons
two years ago.
This has generally improved the
copper conditions in Europe and the
situation is now well in the hands Of
the exporting association. It is not
generally expected that Germany will
be as large a customer during 1928
as it was last year, but that other
European countries VIII increase more
than enough to make up for a drop
in the German imports.
It is stated that the large ship
ments of standard copper from Brit
ish warehouses during the past year
have gone to American refineries and
it is generally supposed that most OF
this copper is owned by American in
terests and will be withdrawn as re-
quired. For many years, the price of
standard rather than electrolytic cop
per has been the guide to European
buyers and they cannot realize that it
has lost its significance.
During the month of December, eX-
port shipments of copper from the
United States exceeded domestic ship
ments and this is the first time that
such a condition has existed for many
years. This has not had favorable
effect on European buying as it is
regarded as a serious weakening OF
the American market.
Germany consumption of copper last
year was the greatest in its history,
totaling 265,O0O tons of which $4,000
tons was produced in Germany and
the balance imported. The 1917 con-
sumption was in increase OF So per
cent over 1926 while the amount pro-
duced in Germany increased but 20
per cent over the previous year. Ger
man importations of copper during
1927 were only exceeded by the
2l8, ,200-ton figure of 1913, although
axya,, thof xJaor fha oOncIn1ntiOn was