POSITION OF COPPER

New Zealand Herald, Volume LXXIII, Issue 22512, 1 September 1936, Page 7

POSITION OF COPPER

MARKET REMAINS FIRM HIGH PRICE IN LONDON RECOVERY IN TRADE A sustained firming of the market for copper in the last few weeks has been attributed to probable dislocation of industry in Spain following the civil war. It is thought that production of the Rio Tinto mine, which is in the province of Huelva, Spain, may be affected, although no specific reports have been received.

The Bio Tinto mine is tho largest copper producer in Europe, and it is about tenth in order of importance among the copper mines of the world. Some idea of its size is shown by the fact that there arc facilities at Huelva for loading 10,000 tons daily into steamers. This was almost the total copper production of Australia in 1934, which was 12,012 tons. Tho latest spot quotation in London of standard copper is £3B 8s ljd a ton, compared with £37 14s 4Jd a month ago. It is v;-01l above the price recorded in 1935, £36 6s IO.Jd, and is approaching the highest of 1933, £3B 18s 9d. Although tho troubles in Spain may have had something to do with a rising market in recent weeks, world conditions in the last 12 months have suggested strongly that increased prices would follow if consumers' demands persisted.

Copper is indispensable in modern industry, and recovery in trado immediately creates an increased demand for tlio metal, particularly in the electrical, motor-car, and building trades. Activity in the heavy industries, which lias been stimulated in most European countries by the acceleration of rearmament programmes, has been a particularly potent factor in inducing an increased demand for copper. Conditions in tho United States, which is easily the largest single producer in tho world, are, apart from abnormal demands created by war or fear of war, the strongest factor influencing the stability of the market for copper. Because of a continued increase in industrial activity in the United States, consumption there this year is expected to show an appreciable increase.

In sympathy with rises on the London market and expectations of a higher dividend, prices of Mount Lycll shares have steadily appreciated in the last four weeks on tho Auckland Stock Exchange. They rose from 26s 6d a month ago to 29s 6d.

GOVERNMENT BUTTER FIRST LOADINGS MADE CAMBRIDGE AND PORT HUNTER The first of the new season's butter, which inaugurated the Government's guaranteed prices plan, is now being loaded on the Port Hunter and .the Cambridge at Auckland. Actually, all produce made after August 1 became State property, but during tlio past month, old season's or " free " produce has been shipped from store. Although new season's produce has been graded and stored during .the month, it does not pass into the hands of the Primary Products Marketing Department until placed on board ship, when payment is made.

Payment will be made by the drawing up of schedules for each of the banks at which the factories concerned in the shipments have accounts. The banks will be advised how much is to be credited to each factory's account, and the bank will be re-imbursed by "a cheque from tho Marketing Department.

The Cambridge, which is bound for West of England ports, is carrying about 48,000 boxes of butter from Auckland. She iviil complete loading at Napier and Wellington. The Port Hunter's butter cargo includes 59,000 boxes from Auckland, which is the final loading port before the vessel sails for London. The Port Hunter's arrival date in England is October 12, and the Cambridge is due on October 26. Shipments of old season's cheese will continue until October.

STUD SHEEP SUCCESSES INTERNATIONAL SHOW NEW ZEALAND STOCK • A collection of pedigree sheep of various breeds was sent from New Zealand to compete at the' international, livestock show held at Palermo, Buenos Aires, Argentina, recently. Wright, Stephenson and Company, Limited, which arranged the selection and transit of a good representation of New Zealand sheep breeds, has received advice that, although the representation was a small one, it was phenomenally suecossful, the Corriedales in paiticular tnking all the leading honours. The representatives of this breed wer<> selected from the well-known Biishev Park Estate, Palmcrston South. They won both the grand championship and reserve grand championship in rams with the only two sent, and also won similar high honours in the ewe section. The company sent only one Roniney to compete, and this x ram, £rom the wellknown All<aa flock of Mr. Quemiu Donald, Featherston, won his cjass and secured tho reserve grand championship. Honours in Lineolns were also won by n large representation of this breed from the Dominion. The grand championship was won by a ram bred by' Mr. Wm. Ray nor, of The Kirs, Masterton. and other awards were gained by rams bred by Mr. Eric Wilton, of Rangitmnau, Masterton.

RISE IN RUBBER FAVOURABLE OUTLOOK A London trade report issued early in July refers to the firmer tendency in the' rubber market, with the spot price' improving to round 7. : ! d per lb., which was the highest, quotation for over six years. Demand was mainly centred on near deliveries, and AugustSeptember was quoted the same as for spot, but forward positions were also higher, with October-Sep-tember 7 13-lGd. January-March next year, 7Jd, and April-dune 7 15-lGd per lb

The report states: "The next meeting of the International Rubber Committee is provisionally fixed for the end of September, and in -the absence of any announcement following the usual monthly meeting last weak any uncertainty that previously existed in regard to the immediate outlook has been removed It is now taken for granted that the export quota for tho regulated countries of production will remain unchanged at 65 per cent of the basic standard for the second half of the year, l'rospeots for the grower are looking more hopeful, as apart from tin 1 higher selling price estates will stand to benefit from the output release of 5 per cent which came into force from July 1, and producing costs will be lower." '