Copper's Week

Three things engaged the attention of coppermen last week: Union, Curtailment and Tariff. Union in the copper industry has existed through Copper Exporters, Inc.. the tight-lipped powerful U. S. selling association. Recently Phelps Dodge Corp. objected to some of the Association's policies, served a 30-days resignation notice (TIME, Dec. 7). Last week copper's united front was reunited. Phelps Dodge's resignation was withdrawn. Copper Exporters, Inc. seldom makes statements but it was understood that the selling agreements have been modified, that henceforth a member may undersell the Association in Europe. This makes artificial price-pegging unlikely. Fire-refined copper (6% of the U. S. output) has been placed under control of the Association. Curtailment plans seemed lost for good when long conferences in Manhattan broke down (TIME, Dec. 7). Last week, however, companies producing over 90% of the world's total supply agreed to a curtailment plan which takes 26-c-% of capacity as a basis. The agreement was informal, without binding strings. Many companies not previously involved in curtailment plans were said to have consented, including mines in South America, Rhodesia, Canada. Total world production is expected to run at about 75,000 tons a month during 1932, of which 60,000 tons will come from curtailed mines. World output recently was running at 120,000 tons a month. Coppermen are thought to have agreed to stop curtailment should copper reach 12-c- or should stocks of copper above ground not equal the deliveries made during the preceding four months.

Tariff agitators felt happy last week when the U. S. Tariff Commission reported on copper costs. Taking 1928 as a basis, it found that the U. S. cost was 13.29-c- per lb., the foreign cost 11.87-c-. Decreasing exports and increasing competition were forecast by the Commission. Copper companies which want a tariff do not feel it is of immediate importance, wish to have it to fall back upon should curtailment break down.

With the industry apparently being patched up, copper buyers last week began to enter the market, sent the price to 7 1/4-c- from its recent low of 6-c-. Although there was talk of 8-c-, even 9-c- copper by the year-end, copper bulls predicated their prediction upon the assumption that copper is marked up every year when inventory-taking time comes to U. S. manufacturers. Real buying dwindled last week when the price showed signs of rising further.

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