Evening star., 1931-12-21
COPPER INDUSTRY
IN HOPEFUL MOOD
Price Advance Follows Im-'
medlateIy When Producers
Agree on CurtaiIment.
BY BRADLEY w. TRENT.

Special Dispatch TO The Star
NEW YORK, December 21.-Serti-
ment in the copper industry Is decidedly
more cheerful as a result Of the con-
summation Of plans to curtail produc-
tion approximately rs per cent and
solve marketing problems of Copper Ex-
porters, Inc, governing foreign sales Of
the red metal
Three important developments fol-
lowed Immediately on the heels of the
accord. One was an advance in the
price Of refined copper to IA cents,
compared with recent price Of 6la
cents pound. The other was the an
nouncement by the Phelps-Dodge Cor
poration that it had reconsidered its
decision to withdraw from Copper Ex-
porters, Inc, and would continue as a
member Of that cooperative sales
organization. The withdrawal was to
have gone into effect on December IS.
Resumption of Buying.
A third significant development was
the resumption of active buying of cop
per By European consumers 1t is esti-
mated that in three days this week for
eigners purchased nearly 30,000.000
pounds of metal. Their buying began
before news of accord was actually re-
ceived, indicating anticipation of con-
summation of copper plans.
The foreign buying of copper was so
active even at advancing prices that
strong conviction was expressed today
that the price of copper will have a
further advance. The talk current in
metal circles was that the market
might rise to cents pound before
the current movement ends. The cop
per market always has been volatile
one, moving widely. as rule, when
swing begins whether it is upward or
downward. Foreign demand is expected
to continue because European fabrica-
tors, according to information in the
New York metal trade, are short Of re-
serve stocks of metal required to fill
contracts.
The recent negotiation of copper pro-
ducers left one moot point open. That 4
is the publication of monthly statis.A
! tics of the producing industry. Owing
to failure of certain producers to make
public their figures on production, con-
| sumption and surplus stocks, the
| monthly reports for October and No
Vember have not been issued. That was
! the first omission of the data in years.
| The general feeling is that withholding
OF statistics was due to a conviction
| that publication would exert a bearish
| influence on the market.
Surplus Is Large.
Copper stocks in producers hands at
present are the largest in the statistical
| history Of the industry. They are esti-
mated at about 100000 short tons in
| North and South America alone. That
would be approximately one billion
| pounds Additional stocks Of metal are
in the hands of American consumers.
Foreign stocks are also excluded from
the figures Stocks have been accumu-
latins steadily for two years.
The further curtailment of produc-
ton planned is expected to halt that
accumulation. 1t is expected to hold
production down to approximately 3d.
600 tons of refined metal month. That
is believed to be no more than current
rate of consumption. That production
includes japanese and other scattered
production as well as the largest pro-
ducers of America and Africa. who fur
nish about 80 per cent of all the cop
per consumed in Europe and the United
States.
(Copyright. 1e3l)