METALS REVIEWED

Daily Telegraph (Napier), Volume 59, Issue 50, 31 March 1930, Page 10

METALS REVIEWED

The low level metal situation is re» viewed in the Australasian. It is ob. served that metal prices depend chiefly upon world's supply and demand, and demand in the principal* consuming countries is so much lower than it was a year ago that the output of the metals has greatly exceeded the demand., Here we have evidence that Australia is not the only country suffering from decreased industrial activity and consequent unemployment. Copper (electrolytic) is steady in price, but there are indications that the strong American group is being undermined by outside holders, who are selling at a disoount on the fixed price of £84 a ton. American producers have dominated this market for sdme time, but it has to be rememhered that much of their output is consumed in the United States. Other countries therefore have been prompted to deal on a hand-to-mouth basis, and stocks have accumulated. Stocks have increased. despite curtailment of production, and the price in London has fallen tp the lowesb level since 1922. Industries which consume tin have had to retrench, because of the reduced demand for tin plates and allied products. and the metal, which has always been a payvn ior Wealthy speculators. has met with little support in the open market. Spelter (distilled zinc) has receded so far that experts are saying that the world cannot expect to obtaiii'its supplies at the prevailing figure for much longer, and that economic forces wiU bring about a recovery in th© price. Yet th© price is declining persistently, and there is little talk of any producers closing their mines. Th© trouble \vith spelter is that it is usually found in niineral association _ with other metals and its rejection is a problem, «ven if it is being produced at a loss. A zinc cartel was formed last year . but it was disbanded in December last, and the best remedy that producers seem to have is to reduce costs and increase the margin of profit on their other metals. ■ Lead is controlled by an organisation of producers, and it is fairly steady at a price which is profitable to Australian companies There is some talk of the price of lead being lifted, to compensate for the fall in the nrice of spelter., but this suggestion will find little support from producers who have learned that artificial prices for any commodity can become a handicap, and that rationalisation is the salvation of industries which have to contend with new conditions hrouglit about by world - wide defl ation.