RAW MATERIALS BOOMING

Evening Star, Issue 22595, 12 March 1937, Page 9

RAW MATERIALS BOOMING

HECTIC WORLD SCRAMBLE SPECTACULAR RISES IH TIH P/ess Association—By Telegraph—Copyright LONDON, March 11. (Received March 12, at 11 a.m.) The spectacular rises in tin have taken the market by surprise. Only a week ago a leading firm of metal brokers advised curtailment of the quota on the ground of possible over supply in relation to genuine demand. It appears that the bulk of the buying is coming from speculators, not consumers, based on the belief that tin is undervalued in relation to other metals. The total turnover of th© four base metals yesterday represented £1,500,000.

Some operators are believed to have made large fortunes. Rubber is again higher on Russian and American buying.

The increasingly hectic world scramble for raw materials is evidenced by a German decree controlling supplies of iron and the stoppage of exports from Belgium. The British Iron and Steel Federation is negotiating with the Soviet for the immediate purchase of. 500,000 tons of iron or© valued at £2,000,000. The excitement has extended to wheat and cotton. While reactions from time to time are inevitable the general opinion is that higher commodity prices have come to stay. City businessmen express the opinion that one happy aspect of the rise is that it makes it more difficult for Italy and Germany to carry out their dangerous rearmament schemes.

HO INTERFERENCE WITH SPECULATORS LONDON, March'll. (Received March 12, at 1.30 p.m.) No Government action is likely regarding raw material speculation. The Government believes that the reports of speculation are somewhat magnified, and it will leave speculators to suffer the consequences of their own actions.