Scramble for Copper

Less than a year ago, the U.S. had such a glut of copper that the industry was asking for tariffs and subsidies. By last week copper supplies were, so tight that the price of copper was bobbing like a puppet. Custom smelters, who had been selling copper at 32-c- a lb., got out of the market for a week, came back at 34-c--a lb. Major producers were selling copper at 31-c- a lb., v. last year's low of 25-c- a lb.

Why the scramble? Rising industrial production accounts for some of the demand. But chiefly, copper consumers are buying because they fear the price will go still higher if strikes shut the big mines. Says American Smelting & Refining's Vice President Simon Strauss: "Copper consumers have long memories. They remember the copper shortages of several years ago, which were politically rather than economically caused." Strikes have already shut one U.S. smelter and threatened the big mines of Northern Rhodesia. Copper buyers are also hedging the possibility of a strike June 30, when the contract of the International Mine, Mill & Smelter Workers expires. Thus copper experts expect the price to go still higher. But when labor peace is assured, they think it will settle down, because current refinery capacity of upwards of 2,000,000 tons is more than enough, even if business picks up more.

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