Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-24
LEAD CONSUMERS
LAYING IN SUPPLIES
Upward Tendency Indicated.
Other Metals in Not So
Strong a Position.
BY J. G. ROYLE.
pispatch to The Star.

speciaI Dispatch to The star.
NEW YORK. January 24.-Careful
buvers now are providing for their lead
requirements for the next two or three
months. This policy was caused pri-
marlly by the statistical position OF the
metal. and the upward tendency indi-
Gated has been aided, In turn, by the
buying by consumers.
The first quarter OF 1923 may mean
better profits for some producers. but
the situation still leaves something 10 DE
desired by many mine owners.
Stocks of lead in the hands OF Amerl-
can and Mexican producers have shown
steadv declines. and now are believed 10
be we'll under 10000 tons. Further de-
clines in supplies are forecast owing 10
the heavy demand by battery and cable
manufacturers. Statisticians, therefore:
forecast price increase of at least nan
a cent n pound. but even this will leave
the metal a cent below the level OF a
year ago.
Zinc Production Heavy.
Slab zinc production has been so high
that price increases III that metal have
been checked before they got we'll start
ed. but there is good demand from
galvanizers Reserve stocks are well over
4O. 900 tons, gain OF $4,000 tons as
compared with this time last year. For
eign demand is in better shape, but
there is still an inertia noticeable III
the market.
The position of silver has improved
to a certain extent. but the volume pro-
duced has made it difficult for the de-
mand to keep pace. Betterment Is
present in the oriental situation. al
though the political situation in the
heaviest buyers Of silver in the Far
East is precarious at best.
These three metals are showing
marked resistance to downward move
ments. but there is almost equally
strong pressure to hold prices down ex-
cept in the case of lead. The position
OF one. moreover. has a distinct pear
ing on the others. The three metals In
many ores are found in conjunction,
Thus. for example. a mine which relies
on lead principally for its profits IRE
ouently depends on meeting mining and
smelling charges by the sale OF the
metals found in conjunction with lead.
II these are down in price. profits are
cut materially.
Copper has improved its position TO a
greater extent than the others of the
non ferrous group Buying botn a!
home and abroad has improved and
stocks of the red metal have been re-
duced. while prices have chung close
around IA cents a pound. This flgure'
Il is estimated. gives many OF the pro-
ducers a fair margin of profit.
Pine Demand Helps.
The EXPANSION of the electrical IN
d,,strv. the increased production OF au-
tomobiles and the enormous volume 0!
building construction have all heipeo
imnroye the situation. Perhaps one OF
the most potent factors has been the
remarkable demand established loi
brass and copper pipe. which have re-
placed steel and wrought iron pipe LOT
plumbing purposes In many new con-
striction projects. This has rendered u
necessary for the copper and brass re-
search organization to open a racine
Coast branch.
THE main trouble with all the non
ferrous metal mines at present Is tha'
mine capacity far exceeds consuHp
tive demands To secure advances o.
prices to profitable levels for all strict
regulation of output Is necessary. bu'
no sooner has restriction raised the
price OF the metals than there Is an
immediate inclination on the part Oh
the low cost producers again to increase
production. which in turn results Ill q
decline in metal prices.
Companies, which can produce cop
per. for example, at 7 cents pound
are not greatly exercised as TO wna'
happens TO those who cannot produce
1t below II or IL cents. so long as their
own profits are secure. This situation
eventually Is bound TO be remedied
either by consultations or by other
means.