METAL PRICES FALL

New Zealand Herald, Volume LXXIV, Issue 22714, 28 April 1937, Page 7

METAL PRICES FALL

INFLUENCE ON SHARES ISSUES MARKED DOWN . DISTURBANCES IN MARKET Sharp dec!inos in the London prices for haso metals have been reflected in a corresponding drop in values of metalproducing companies' shares, levels for ' which have been marked down fairly substantially 011 all New Zealand Stock Exchanges. Share prices were lifted to record levels over a month ago, but a rapid decline has recently set in and at this juncture there is no sign of the tide being stemmed. As a result of the British Government's rearmament programme prices of metals in London began their upward movement in January, and in February and March the impetus carried them to record levels. Spot copper reached over £.'7B a ton, the highest price since 1930, while both lead and spelter were at levels which had not been exceeded in 10 years. Tin passed the £3OO mark, which had not been reached since 1927. Reduction in Gold Price Then came one of those disturbances which seem to bo inseparable from a market in which world-wide influences can make themselves felt. Metal prices were falling in London before the | rumours of a reduction in the price of gold in the United States brought sellers heavily into the market and caused further setbacks, but this factor was largely responsible. The following table illustrates movements in the London prices over the past year, spot quotations being given in each case:— Apl. 26 Highest A pi. 'Jo 1U37 this year 11)30 £" s d £ s (I £ s d Copper 58 3 0 78 2 0 37 10 V/ 2 Lead 24 11 3 30 7 o 10 1 3 j Spelter 22 17 0 37 (l O 15 7 0 j Tin .. 253 15 0 302 10 O 'JOG 7 (J Share Values Compared j It will be seen that present values | are still substantially above those of a I year ago, and the rise appears to be I soundly based on increased consiunp- | tion. However, shareholders are palpably nervous, and values have dropped sharply, although here again last year's levels are exceeded. The following table gives the market values of three representative metal-producing companies, showing the latest price, the highest level reached this year, and tho price a year ago:— Apl. 27 Highest Apl. 27 1037 this year 1930 £ s d £ S tl £ s (1 Broken Hill 3 1>» 0 4 11 0 2 10 U Elect. Zinc (pref.) .. 218 3 3 8 9 2 0 0 Mt. Lyell . 2 5 3 218 0 1 4 8 Eliminating Fluctuations The disturbance through which the metals market is passing should bring about a much healthier position than that which prevailed when the "bulls" appeared to have the market at their mercy. Weak speculators will probably be eliminated and violent fluctuations in price should thereby be avoided. I While some irregularity may be seen j in the near future until the market be- j comes more settled, increased consumption and a shortage of stocks should maintain prices at profitable levels for the producing companies. QUOTATIONS IN LONDON WEAKNESS OF MARKET LONDON, April 20 Following* are to-day's quotations on j the London metal market, compared j with those of April 23: Apl. 20 Apl. 23 Per ton Per ton £sd £ s d Copper, stan., spot 58 3 si GO 8 9 Copper, stan., 3 mos. 55 3 9 57 11 Copper, electrolytic 02 10 0 05 () 0 to to 01 10 0 00 10 0 Copper, elec., wire bars . . 01 10 0 GO 10 () Lead, soft, spot . . 24 1 1 3 'JS 8 9 Lead, soft, forward 21 7 0 25 5 0 Spelter, spot, . . 22 3 7 O 25 8 9 Spelter, forward . . 23 0 0 25 10 0 Tin, stan., spot . . 253 15 0 200 10 0 Tin, stall., 3 mos. 250 5 0 255 12 0 SAVINGS BANK'S YEAR DUNEDIN INSTITUTION EXCESS OF WITHDRAWALS [BV Tier, KG It API! OWN COURESPOXD EXT,] DUNEDIN, Tuesday The balance-sheet of the Dunedin Savings J3ank, which was presented at, the annual meeting to-day, showed that during the year ended March 31 the amount lodged by depositors was £907,232, and withdrawals totalled £915,543. Interest added for the year , was £07,838, and the total standing i to the credit of depositors was 1 £2,365,000. it was reported that, on , the whole, the year had been very successful, a large volume of business having been put, through and a considerable number of new accounts having been opened.

HIDE PRICES EASE LESS OVERSEAS INQUIRY SKIN VALUES HIGHER Then; was :i slight decline in prices i for hides at the fortnightly sale hold |by Auckland brokers yesterday, i Although competition was fairly brisk j the; demand from overseas weakened and exporters were slightly restricted. Values for skins were higher, but tallow eased. Prices for best grades were: — Hides. —Ox (abattoirs). heavy, 12d to 12% d per lb; medium, 1I%(1 lo 11%; light, 11'4d to 11 lid; ox (country butchers), heavy, Hid to lU/Vl; medium, u'yl to 0%; light, Ud to li'^d; cow ' (abattoirs), heavy, 1 od; light lo medium, lOd; cow (country butchers), heavy, U'jd to o%d; light to medium, to }>% d; farmers' (all weights). 7d to 7 3 y1; yearlings (abattoirs), heavy, lid to 11 Viii; light to medium, 14Vid to 11/ id: second grade, 8(1 to lOd; faulty and cut, 7d lo .S'jd; calfskins, 31b to 51b, I(\VA to 1G l /ad; (ill) and Sib, :<i! :-d to l(i : %d; seconds and cut, lid to 14% d; slippy, (id to 12(1. Salted Sheepskins.—Half to three-quarter, lartje, 7s to 8s 4(1; medium 5s lOd to (Is Od; bare to three-quarter wool, large, 3s Od to 4s lOd; faulty or small, 2s to 3s (id. Dry Sheepskins.—Three-quarter to fullwool, medium to fine crossbred, lOVad to 17d per lb; coarse crossbred, Is'/ 3 (1 to 10V<d; damaged and faulty, lO'/jd to t3Vad; halfwool medium to fine crossbred, 15% dto coarse, 15d to 15Vid; damaged and faiiltv 8(1 10 10'/jd; bare to quarter-wools, sound,' Hd to 13Vjd; damaged and faulty, 5d 10 8 /ad. Tfl How .—Good quality, 23s Od to 24s per cut; second grade, 21s to 22s (3d; third, 17s Od to 10s (id. NEW YORK MARKETS WIDE LIQUIDATION NEW YORK, April 20 On the New York Stock Exchange to-day commodities and stocks underwent wide liquidation as the result of the weakness in European speculative circles and the continued fear of possible changes in America's gold buying price. All staple lines except sugar suffered. The entire stock list showed losses ranging up to nine points, United States Steel being among the heaviest declines. At Winnipeg and Chicago wheat dropped 3 to 4 cents.