Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-17
INCREASED COPPER
SALES PREDICTED
Early Upturn in Price OF
Metal May Follow Heavier
Demand.

Federal officials do not expect any
lasting effects from the drastic drop In
the price of copper, although they 40
not minimize the importance to indus
try of the development which caused
recession from 10 cents to l4.3 Genus
pound. The blame, in some quarters
is placed directly on artificial MAMIE
nance of prices,
The statistical position of copper has
warranted a drop for months, but the
price had been pegged at ID cents. Con-
sun1ers were thoroughly aware OF the
trend and by withholding buying orders,
confident in the belief that they could
NIL their needs at any time, have pre-
cipitated the drop.
Other Commodity Prices.
Government officials say the quota
ton level may possibly revert to the 10
cent mark, but even so they see a oe-
pressing influence on certain industries
Some 60 so far as to say that the artl-
fetal maintenance of prices has never
been proved successful, although they
are discreetly silent on the efforts OF the
farm board to restrict production OF
wheat, cotton and tobacco with the
same object in view.
Reduction in the cost of copper, they
indicate. is likely to increase demand,
but on the other hand, they point out
that until the market is stabilized con-
sumers are likely to withhold orders In
the hope of further recessions. The
first effect will be felt on the mining
industry. For months restriction mas
voluntarily been placed on production,
but this drop will mean the closing OF
some of the higher cost producers. 1t
Is well known that some properties can
and do produce copper at a cost OF
to 9 cents a pound. There still remains
an ample margin for these.
The drop will not be passed on to the
consumers Of copper products immed1-
ately. The copper products now avail
able for use in the building industry
have been made from 18-cent copper
and until these stocks are cleared no
reduction is in prospect 1t may check
building to some extent, in that con-
tractors will delay placing Of orders in
the hope of still lower prices. The same
is true of the automobile industry, the
radio manufacturers and the hardware
producers.
The utility companies stand to benefit
first Of all and their consumption is
heavy item. Low costs may produce
heavy buying from this source.
Government officials were not sur
prised by the price cut They said to-
day that they had been fully cognizant
of the increase in copper stocks Of a.
1877 tons in the Western hemisphere dur
ing March. This brought the total re-
serves to 256,020 tons, which compared
with 1858 tons at the end of March,
1929, and was the highest point reached
since July, 1922. Shipments across the
Atlantic we're 104, 1877 tons, as compared
with 165, 806 tons in March year ago.
Production Decreases.
It is true daily production in March
dropped to 4,099 tons as against 4,328
tons in February and 5,276 in March,
1929. But the use OF scrap copper rose
to 12,165 tons, making the total from the
scrap source for the year nearly third
more than in 1929.
Government agencies, it is evident,
disapproved of the pegging of the copper
price at ID cents on an economic basis.
They point out that whereas copper was
for time maintained at 18 cents by
keeping 80 per cent of possible require
ments in reserve recently, the policy was
changed and an effort to accomplish the
same results was made by holding stocks
beneath possible orders. None the less,
many expect to see copper recover in
price since 1t is an essential commodity
and lower prices are deemed likely to
revive both foreign and domestic de-
mand.
Copyright, 122C.D