TIN QUOTA

Press, Volume LXXII, Issue 21978, 30 December 1936, Page 11

TIN QUOTA

RESTRICTION AGREEMENT RATIFIED BY SIAM (OUTEO TKES3 ASSOCIATION—COI'TIUGHT.) BANGKOK, December 28. The Siamese Assembly, at a secret session, unanimously ratified the tin restriction agreement. Two weeks ago the following announcement was made in London:— "The International lin Committee has decided on a reduction in the production quota for the first quarter of 1937 fromV per cent to «» P«cent «* the 1929 standard tonnages This is the first quota fixed. under the renewed control. The decision.caused no sui prise in the market. It does nomean a reduction in the actual world output, as the Siamese tonnage "as been increased as a result of recent negotia--I(The increase in the international quota to above the 1929 base tonnage followed shortly after an agreement tor production control, for a period of live years beginning next year, was reached early last month. The terms provided for Siam a quota of 18,500 tons annually, against a flat rate of 9800 tons plus an extra allowance which brought the total to 12,250 tons. With an international quota of 90 per cent, existing when the agreement was renewed, Sian's permitted output would be 16,550 tons. The quota fixed for next quarter will adjust her proportion of the total tonnage to the rate agreed upon. Variations in the quota, and prices of the metal since the early part of

Visible supplies at the end of November showed a substantial decline on the month. An interesting point in the price of the metal is that the backwardation, which had reached unhealthy size in the course of the last year or so, and which had diminished to £3 at the time of the November increase in quota, had disappeared entirely in the latest quotations. World consumption of the metal in the year ended September 30, 1936, was 153,751 tons, against 134,916 tons in the previous year. World production for the two periods was 166,032 tons and 124,585 tons respectively. The present international quota provides for a production of approximately 190,000 tons. THE DEMAND FOR COPPER INCREASE IN INDUSTRY MOUNT LYELL CHAIRMAN'S VIEW Stating that the statistical position of copper was very encouraging, Mr P. C. Holmes-Hunt, chairman of directors of the Mount Lyell Mining and Railway Company, Ltd., told shareholders at the annual meeting in Melbourne this month that it was fair to expect an even better financial result from mining operations in the current year. An examination of the general conditions in the metal business over the last few years, he said, showed that demand for copper had been expanding steadily, but the exceptionally large world stocks of refined copper of a few years ago, and the continuation of production at a rate in excess of consumption, had brought about an unsettled market and low prices ruled. Aiming at a more satisfactory position, leading producers in March last year had agreed upon a scheme of restriction of production. That step, fortunately had been aided by the general improvement in industry, resulting in an increased demand for the metal. The world stocks of refined copper in March, 1935, amounted to 520,000 tons, and by the end of October this year they had been reduced to about 320,000 tons, which was less than three months' market requirements. For some months consumption of copper had been ahead of production, and since August 1 five increases of production had been decided upon by producers operating under the restriction scheme to meet the growing demand. In some quarters the increase in consumption had been put down mainly to the increase in armaments. Apparently that was only a portion of the reason, for the great developments in industry generally, and especially the electrical industry, suggested that the improved industrial accounted for quite a substantial portion of the increase. From a study of the most recent advices on the position of copper, the impression was gained that the trend of consump.tion was still upward. PRICE OF GOLD (united rasss ASSOClATlON—copyright.) LONDON. December 28. The price of gold is £7 Is 6Jd a fine ounce.

last year, are shown below: — v Quota Price p.c. a ton. 1935— £ March 14 .. 45 216 June 12 .. .. 50 229 August 9 .. 65 222 October .. .. 70 232 October 22 .. 80 223 December 9 .. 90 218 1936— February 19 .. 85 212 June 25 .. .. 90 176 November 12 .. 105 235] December 12 .. 100 234i)