Evening star., 1935-12-01
Put Off Increases Despite
Rising Costs to Help
Consumption.
COPPER CHIEFS LIKELY
TOTRY SAME STRATEGY
Producers of Red Metal Also Feel
That Mark.ups Might Cut
Down Deliveries.
BY ]. G. DONLEY.

Special Dispatch to The Star.
NEW YORK, November 30.-When
costs are on the upgrade Is 1t good
business to hold of price advance on
your product as long as possible?
Evidently the steel industry believes
the answer is yes for so far all the
important producers have accepted
the lead of the United States Steel
Corp, through one of its subsidiaries,
in leaving prices unchanged for the
first quarter of 1886.
1t may be set down as fairly well
accepted business adage that while
higher prices may stimulate buying.
particularly of speculative and
stocking-up nature, lower prices slim
ulate consumption.
And that may very we'll have been
the thought that turned the decision
against a general price advance in
steel products at this time. The steel
industry well remembers the wave Of
speculative buying that swept over the
mills in 1888 when industry suddenly
became imitation conscious" and set
out to cover future needs a long way
in advance. That sort of buying is
good while it lasts, but it brings only
a short-nved boom. After that the
reaction-for speculative buying can
not long run very far ahead OF
actual consumption.
Expected to Follow Lead.
1t is reported in trade quarters
that copper interests are likely to
follow the price strategy of the steel
industry. This week has seen a re-
sumption Of active buying Of the red
metal, and it is estimated that Novem-
ber shipments will run to about Sc 900
tons, against the unusually heavy
movement of more than $1,000 tons
in October and a total consumption
of about 343,0 900 tons for the first 10
months of this year. Sales on one
day early this week were about $500
tons, or the largest days sales since
early October.
Those who are opposing marking
up of the price of copper at this time
feel that nothing would be gained by
such q step, while the actual flow
of metal into consumption might be
slowed down somewhat. They argue
that if the situation Is really as
strong as it seems, it is just as well
to sit back and let buyers force up
the price, If their needs are broad and
persistent enough to bring about that
result.
Books Opened Early.
With the aim of preventing a Jam
of demand around the year end, a
number of producers and smelters have
acted earlier than usual by opening
their books for March delivery this
week. The situation should be kept
well balanced by extending to buyers
every facility for providing for their
needs, and If the consumptive demand
is sufficient to produce an inclination
to bid up for supplies, then the onus
of higher prices will be placed upon
buyers rather than producers.
Lead and zinc are in much the same
position as copper, recent heavy de-
mands having brought about large
movement into consumption in No
vember. November lead shipments
are expected to top the October total
Of $4,000 tons by several thousand
tons. Zinz shipments also have run
substantially above the previous
month. In these metals, as in copper
even If producers deem 1t wise to
stand on present prices, the buying
inquiry may be sufficient to lift quota
tionS.
(Copyright, 1857