Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-27
COPPER PRICE CUT 4
ISHELD UNLIKELY
1e.Cent Level Quoted by
Producers Seems to Be
Stabilized.
BY CHARLES =. SPEARE.
speeial pispateh % Ths Sac. !.


NEW YORK, November 21.--The
efforts Of the copper producers to hold
the market for copper metal At 10 cents
against the demands Of consumers for
q lower price Is one of the conspicuous
After-effectS In the industrial world of
the break in securities At present it
seems the Is-cent level viii be main
tanned for some time.
Demand for copper has been COM
paratively light for some weeks. It was
accentuated by the caution that first
developed among consumers when stocks
were breaking. All along the statistical
position OF copper has been quite
strong, but recently there has been
some indication of an excess of out
put over requirements in this country
though with plenty Of evidence that
foreign demand Is holding up well. Sales
for export In the last few days are
estimated around 10000, 900 pounds.
RumOrs DisprOved.
- Rumors have been, current that some
OF the largest users Of copper have been
asking for . sharp concession In price
and are willing to buy metal until their
demands are met. Among them are the.
railroads that have extensive electrin-
cation programs and the public utility
companies that plan to go ahead with
deferred extension work Just as soon as
they can make satisfactory financial ar
rangements. Wall Street has heard in
the last few days that regular buyers
OF metal were asking, from / to 3 cents
pound under the present price. scale.
Investigation thoroughly disproves these
One weak feature in the situation is
the fact that metal appears. to be ac-.
cumulating In the hands of the sneft-
erS, and 1t Is reported that smelling ina
terest would welcome enough of o break
In the price OF C6pper to. start an OUT
ward movement In, their copper stocks.
On November /. copper stocks were 49,
S4S tons or about the, same as early ia
September. Most recent figures Of cop
per exports indicate steady expansion
since the early part of the Summer and
an especially large gain between the
ngures or July and those OF September.
Copper metal was run up rapidly last
Winter and touched price Of a. cents
q pound in April after selling around
10 cents q pound at the end Of 1929.
Consumers at that time were in a
papicky state Of mind, fearing that they
would not be able to cover their re-
quirements, and they overbougnt them
selves. This led to an abrupt fall In
much as 4 cents . pound In . few days
and gradually worked down to around
10 cents, at which figure It has held
for some time.
Average Price Of Copper. ,e
A decline Of I or cents in the pound
for metal would seriously affect earnings
Of the high.cost producing companies,
which have little margin Of profit until
copper metal sells above IS cents q
pound. At the same time, production
Of metal, which has greatly increased
during the period Of maximum quota
tons this year, would be restricted and
the general statistical position, by so
| much, would be strengthened. -
The average price of copper metal
last year was 14.7l cents. In 1927 10 was
1904 cents. During the denation Of
commodities in 1921 It was as, low as
1855 cents, or only 50 per cent OF the
average price OF 1918. Maximum prices
were reached in 1917, when the average
Tor the year was 1919 cents. During
the Summer Of 1917 copper metal- aver.
aged Is high as 351k cents. ~ - ?,