THE TIN SITUATION.

Auckland Star, Volume LX, Issue 10, 12 January 1929, Page 4

THE TIN SITUATION.

SUPPLY EXCEEDS DEMAND, BUT FUTURE GOOD. For the past twelve months the tin situation has been the subject of a good deal of discussion. In the opinion of Sir Krnest Birch, chairman of the Eastern Smelting Co., Ltd., many of the views expressed have given an entirely false impression. At the annual meeting in London he deprecated the predictions being made of an impending famine in the metal. He said that as far as he could see there was no present justification for this idea. For the first nine months of the year the production of tin from /all sources showed an increase of approximately 15,000 tons, and for the full year may be found to exceed 22,000 tons. The number of dredges now on order would probably still further augment the output in Malaya, where it was probable the peak of production would n'ot be reached for another year or more. There was no doubt that the production of tin this year had exceeded consumption, and this was a perfectly normal consequence of the high prices caused by the inverse position which obtained for some time previously. During the period of increased output the visible supply had grown by only a little more than 5000 tons. He drew an encouraging conclusion from the robustness thus shown by the consuming industries, and producers were justified in regarding the future with confidence. After a period of strongly progressive production it required time for the natural increase in the world's consumption to catch up and restore equilibrium between supply and demand. The tin industry was passing through a period of readjustment, the end of which might not be yet, but he could see no reason whatever for doubting that it would continue to enjoy as large a measure of prosperity in the future as it had done in the past. In common with other smelters, the company was doing its full share in the lowering of costs of production, and the policy would be maintained. It must be recognised, however, that smelting practice had made great advances in recent years, and the scope for further improvement was consequently narrowed.