PRICES RISING?

Auckland Star, Volume LXVIII, Issue 47, 25 February 1937, Page 16

PRICES RISING?

METALS ADVANCE.

ARMAMENTS ACTIVITY.

DOMINION MARKET AFFECTED

Though the recent sensational rise in the price of tin on the I«ondon market^ — reported by cable to be an advance of 170/ a ton —has not affected the local prices, local importers state that prices for various metals and other goods connected with the armaments industry are showing a continually "creeping" rise. The general average rise during the past six months, it was stated by one merchant to-day, is in the region of 15 to 20 per cent. Every letter these] traders are receiving from Home advises that there has been an advance in price for one metal or another; they advise also that orders for many metals cannot be guaranteed fulfilment within any specified time. All this will have effect in advancing prices on the New Zealand market. Some doubt is felt in business circles about the reported advance in the price of tin, which, plus exchange, would represent an advance of £10 12/6 a ton. The jwresent wholesale price is 3/6 a lb, and the advanced price would be in the vicinity of 4/0. It is felt that there has been some mistake in the cabled price. New Zealand' is now mostly supplied with tin from Broken Hill, Australia, but it is anticipated that the price will advance with the English rise. In any case, whatever the advance, it will not be felt here until present supplies and those already on the water are exhausted. Galvanised Wire Up. Until two weeks ago there had been no advance in the price of galvanised wire. It was reported then, however, by the manufacturers that there would be an advance in price of 5 per cent. This, including exchange, will represent an advance of about 25/ on the New Zealand wholesale price. It is anticipated, as with all other metals, that the price will advance still further in coming weeks. Roofing iron has again advanced, this time by 30/ a ton, making a total advance in the past <six months of over 20 per cent. Copper and tin have hardened still more, and steel shafting hae advanced 15 per cent. The rise is not confined to the English and Continental markets. It was reported some weeks ago that the Canadian firms dealing in the manufacture of metal goods were fully occupied with the manufacture of munitions and armament goods. This was given further evidence recently in the advance of Canadian nail* and staples by 10 per cent. Grocery Advances. The rise in the price of tin will have serious effects on all tinned commodities, so that if the reported rise in price is correct grocery warehousemen expect that there will be a general advance in these goods. The possibility of a rise is aggravated by the fact that there have been rises aleo in various oils, waxes and chemicals. One manufacturer of polishes pointed out that one wax commodity, which be bought for £86 a ton during the'depression, and which normally cost about £170 a ton, now costs £220. All grease products' have felt the effects of the demand created by munitions activity, and chemicals, too, show the reflection. The most spectacular rise has been in glycerine, which has risen in cost from IOJd or lid a lb to 1/5 1-7. This commodity had three sharp rises in the_ course of a month. In the early part of December it lose £13 a ton, and within, a week there had been another rise of;£l3. In the first week of January it rose a further £20 a ton—a total rise of £46 ;a ton. The warjin Spain has caused rises in other • chemicals, mercury, oils and licorice. Again the manufacturers point out to New Zealand buyers that they are having difficulty in getting supplies, and that they cannot fulfil big orders. Olive oil, which was formerly 10/6 a gallon, has now risen to 15/, and almond oil has practically doubled in price— 2/10 to 4/10 a lb. The price of copra hae, of course, risen owing to the demand, and the rise in products with an oil content ie exemplified in the quotation of 1/5 a lb for cocoa butter, which was formerly BJd a lb. A Seller's Market. Corks are not now such a vital commodity since the rise in favour of .the bakelite and screw cap for bottlea and jars, but here again there has been a rise in price. Local buyers were first asked to pay freight, which had formerly been included in the price, and then there was a 10/ rise, making a total advance to the local buyers of about 50 per cent. It was pointed out as a significant thing, however, that camphor which was formerly a munitions ingredient,, had apparently been replaced The price had dropped considerably in the course of the year. There is still a steady demand foi cereals of one sort and another, indicating that ordere were constant, and th« price of rice, which had risen from about *8 17/6 a ton to £10 15/ c.i.f was steady at that figure. Warehousemen pointed out that there was little difficult? now in selling—it was a seller's market Where formerly buyers had been content to fill their immediate requirements they were now trying to stock up as much as possible to avoid furthei increases.

The full effects of these price rises lave not yet been felt by the general public, but it is anticipated that there will ehortly be fairly sharp rises, particularly in tinned goods.