8 3/4c Copper

In 1929 the price of copper was artificially shot up to 24-c- a pound. Since then the coppermen have paid stiff penalties for their violation of economic law. Fortnight ago copper sold at 9-c-, a price not seen since the depression year of 1894. Last week the demand for copper languished further, the price fell to 8 3/4, a level never before recorded.

Most important aspect of the drop was the decision by coppermen that they will henceforth allow the price to drift as it will, even if this means elimination of high-cost producers. The history of copper has been full of attempts to peg the price, and even 1929's lesson was not heeded. Late last year the leading producers decided to curtail production by 20%. They boosted the price from 9 1/2 to 12 1/2 within one week (TIME, Nov. 24). But although production has remained curtailed as agreed, demand has also ebbed. The biggest copper buyers -- utilities and the building industry -- have been in no hurry to buy. While the daily rate of production in April of North and South American producers was 3,374 tons against 4,151 a year ago and 5,376 in April 1929, stocks of copper on hand in May showed the first gain in six months, jumping 8,781 tons. Further complications will come next year when three big African mines (Roan Antelope, Rhokana and N'Kana) start production. Katanga, big Belgian Congo producer, is now working and has curtailed 10% to cooperate with the U. S. producers. But last week reports said U. S. coppermen no longer regard Katanga as a threat, would rather compete than barter with it.

Few copper companies can make money with copper below 10-c-, and even the cheapest producers will have difficulty in extracting profits while the industry is running at its present 65% of capacity. Many companies have borrowed against their inventories and may have to issue bonds. Last week it was reported that Anaconda, which in 1929 sold common stock to retire its bonds, will soon be in the market for funds with which to pay off its bank loans, now nearly $50,000,000 as against $35,000,000 in 1929.

Other Metals besides copper and steel were soft last week. Prices at leading markets were :

Last Week Year Ago

Lead. lb 3.75-c- 5.5-c-

Tin, lb 23.1-c- 32-c-

Zinc, lb. 3.37-c- 4.65-c-

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