Commerce, Mining, Finance

Evening Star, Issue 23178, 30 January 1939, Page 8

Commerce, Mining, Finance

London Markets Still "Jittery" Metal Prices Lower Last Week London markets experienced another attack of the “jitters” last week, a period conceded to be the worst since September. The recent fall was generally checked, however, and several gilt-edged issues closed better. Apart from the firm inquiry for Government loans, there was little of note on the Dunedin Exchange this morning. Wide margins ruled for two transtasman leaders, and generally the market displayed signs of slackness. Business was restricted. Base metals experienced a depressing period last week, the four leading stocks —copper, lead, spelter, and tin —all averaging the lowest levels recorded this year as well as touching the lowest daily prices. Averages compared with those ruling on the opening week, show that copper has lost £2 7s, electrolytic £2 6s, lead 12s, spelter Is, and tin £4 15s.

BASE METAL TRENDS FUTURE OBSCURED INFLUENCE OF AMERICA POLITICAL UNCERTAINTIES Keviewing recent trends in base metal markets, the ‘ Financial Times states that the long-term outlook tor copper remains encouraging, ihe immediate future is clouded by political uncertainties, and consumers at present have little incentive to buy in large quantities. . Lead and zinc prices are governed largely by the trend of copper although the co-operative action ot Empire and other producers has provided an excellent prop for the lead market, which has pursued an eminently satisfactory course since the formation of the Lead Producers’ Association three months ago. Zinc, now valued at more than £z a ton less than lead, has been reactionary for some time. Market and trade opposition to the proposed increase in the duty on foreign metal from 12s 6d to £1 10s a ton, and the proposals to raise the Empire premiums to afford greater protection to the domestic zinc smelting industry have provided an unsettling influence. Tin, protected by drastic curtailment of output—the existing 45 per cent, quota contrasts vividly with the nearmaximum rate of production of the other three metals—and by the buffer pool, has been a very firm market. Copper producers have the matter of adjusting supply and demand well in hand, but while adjustments are being made the factor of sentiment can wreatly upset market calculations. United States consumption is now running at a fairly good rate, but consumers have been buying very sparingly for many weeks. In spite of the seasonal slackening in commerce, American industrial news continues cheerful, particularly in regard to the future outlook. There is plenty of substance for the anticipation of a marked recovery in the early spring. Until Wall Street commences to discount any foreshadowed revival, base metal markets may sag, but the effective restriction schemes now operating will protect prices from any severe reaction npHE EVENING STAR ’ is the best ■A Medium for Advertising HOUSES FOR SALE. SECTIONS FOR SALE. DAIRY FARMS FOR SALE. BOARD AND RESIDENCE, WANTED EMPLOYMENT.

UNSETTLED CONDITIONS ■JITTERY" WEEK FOR MARKETS WORST SINGE SEPTEMBER LONDON, January 23. The stock markets experienced a “ jittery ” week, the worst since September. Heavy liquidation ceased and the fall was generally checked, several gilt-edged stocks closing ouc-eighth better than the lowest level. Transatlantic stocks are improving, following the Wall Street recovery, but industrials remain at a low level. Australian 4 per cent.’s conversion declined 5s to £97 15s, and Commonwealths 4;} per cent., 1940-60, were for the first time for eight years at par. Brokers are recommending holders to exchange lower yielding Indian stocks for these. The chairman of five big banks, in speeches at the annual meetings, generally urged the Government to grant effective aid to industry’s , export drives to meet the commercial warfare, which Lord Wardington emphasised replaced the former exchange of goods for mutual benefit. No one is unduly apprehensive with regard to the state of the public finances. Hides are very quiet. The wool sales were generally well supported, although mefinos sometimes sold at sellers’ lowest limits. Cross-breds were brisk in the face of active home inquiry. Butter continues quiet after heavy purchases, while cheese is inactive. HUGE STEEL LOSSES TWENTY COMPANIES IN AMERICA VOLUME OF PRODUCTION Twenty steel companies, representing a substantial part of America’s iron and steel industry, reported an aggregate net loss of £2,000,000 for three mouths, with operations at 30.76 per cent, of capacity, compared with a net profit of £14,000,000 for a same period a year ago, when operations averaged 84.65 per cent, of capacity. In the previous quarter the same companies nad a net loss of £1,000,000, with operations at 31.58 per cent, of capacity, compared with a profit of £12,000,000 in the same quarter of the year before with plants running at 85.20 per cent, of capacity. For the six months, with operations averaging 31.17 per cent., the 20 companies lost _ nearly £3,000,000 fixed taxes, depreciation, and fixed charges, compared with a profit of £26,000,000 in the 1937 period, reflecting 84.88 per cent, operations.