Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-13
COPPER INDUSTRY
FACING SHUTDOWN
Further Large Additions to
Surplus May Force Com
plete Stoppage.
BY CARLTON A. sHIvELY.

Special Dispatch to The Star.
NEW YORK, August. 13.-Complete
shutdown of American copper mines
and further curtailment of output, if
not entire stoppage in other parts Of
the world, Is believed by an important
section Of the copper industry to be
inevitable. Each month the statistics
on copper production, shipments and
stocks show further large additions to
the surplus, according to the American
Bureau of Metal Statistics Addition
TO stocks Of refined metal in July for
North and South America amounted to
26.943 short tons.
This made the fourth successive
monthly increase, the rise last month
being a little under $4,000 tons and in
the preceding month 10000 tons. Stocks
of 440 AIT tons of refined metal and
6le,l7s tons of refined and blister
copper are by far the largest in the
records of the industry. Although pro-
duction continues to decline, dropping
from 9s.275 tons in June to 90 4o8 tons
in July, the decrease in shipments was
even greater. Last month they fell to
So. 465 tons. against 49, 6S in the pre-
vious month and 1l7,902 year ago.
Output of primary copper In TINS
country in July was 36,606 tons, against
44,47S in June and 54,249 in July OF
1880.
Precedent for shutdown.
In a few. months it is expected that
Rhodesian copper win come to the
market. and while some In the trade
feel that further curtailment here
would merely help out South African
fe
that agreement might be had abroad II
something really effective we're done at
home The industry has precedent Tor
complete shutdown. Oppressed by the
wartime stocks in 1920, the United
States copper mines shut down ana re-
manned closed for a little over year.
Arguments against shutdown are
numerous. They include the dislike OF
producers to throw more labor out Of
employment and the tendency Of the
miners to leave the vicinity OF the
mines, making 1t difhcult to secure
SUFFICIENT help for resumption of opera
tons when conditions improve. On the
other hand. carrying such huge stocks
/ OF metal is becoming more and more
diflcult burden for the producers. A
| point which Is not generally appre-
cisted is that the monthly statistics on
copper as published do not tell the whole
story They stop short OF stocks in
! fabricators' hands and Of copper under
/ consignment. The extent Of these
stocks can only be estimated but they
may run as high as 200 600 tons.
The problem might be capable Of
early solution without further curtail-
/ ment or complete shutdown if there
was some hope for largely increased
{ consumption, but the outlook Is rather
cloudy Some sales may be made 20
Germany under PROPOSED long term
! credits, but general pickup In industry
Is needed
CurtaiIed Production.
Nearly a year ago copper producers
here and abroad met in a series OF con-
ferenceS and agreed upon curtatlment
program. which at the time many re-
garded as inadequate. II did have the
effect Of slowing down the increase Ia
stocks for a while, cutting down out
put about $4,000 tons. Since then
some producers have voluntarily cur
tailed much greater than the per-
centaRes agreed upon. Magma. United
Verde and a few small concerns are
said 10 have shut down entirely. A
complicating factor has been the sharp
/ decrease in shipments. At the time Il
| the agreement they were around $4,000
| tons month. They have since declined
about IS per cent.
Alarmed at the drlft OF a1alfs, an
other conference was called last Spring,
+ and for a while Il looked as though
( sharper curtailment might be had The
conference finally broke up without
action. Refusal Of large Canadian
producer to agre, on the grounds that
/ the reduction proposed was inadequate,
was said TO be partly responsible.
Doubtless also. the sudden squirt in
copper orders from abroad. based on
announcement Of the German repara-
| items payments suspension. had some
! thing to do with il. Another confer
ence this Autumn Is probable
/ Large producers are said 10 be hold
| ing copper for 3 cents a pound, but
custom smelters ofIer 1t ct TO or even
less At this price there is little II any
profit for any North American pro-
ecopygisht 1871