Market watch The 125 years of CIM archives, in both their language and information, provide wonderful snapshots of the history of the Canadian industry and global economics. As part of our celebration of 125 years of CIM, we have pulled pages from a 1927 edition of the CIM Bulletin for a temperature-taking of the metal markets at the time. It proved to be a particularly successful year for metal production in Quebec and marked the beginning of operations at Noranda’s Horne copper smelter.
of:
Industry
(Specially contributed by “Engineering and Mining Journal,” New York.), December-January, 1926-7.
C
opper – The decline in copper prices continued over the holidays at a somewhat faster rate than usual, buying being dull for two or three weeks, and production at the end of the year showing an increase that was discouraging to those who wished to see a firmer market. Some copper was sold as low as 13 cents per lb. delivered on Jan. 7th, but a week of good buying, both in the United States and abroad, resulted in prices advancing from one-quarter to three-eights of a cent by the middle of the month. Consumers are probably pretty well supplied for early requirements and a dull market may result in prices sagging again in the weeks to come. Consumption is excellent still, but supplies are more than adequate, so that stocks have shown a tendency to increase in the last two or three months. Foreign demand is somewhat improved, and Copper Exporters, Inc., recently made its first increase in price since it was organized – from 13.50 to 13.625 cents per lb. The undertone of the market, however, is rather weak, and, unless fundamental conditions change, little hope can be seen for much higher prices in 1927. Lead – Lead, like copper, has also suffered a further decline, the current level being 7.65 cents per lb., New York. The foreign influence continues to be the determining one in this metal, the London price recently having come very close to that at which it would have been profitable to import bullion lead into the United States. Foreign demand has not come up to expectations, but domestic continues excellent, and domestic production has set a new record in the year just ended. Cable manufacturers have been particularly active in recent months, taking large tonnages of lead. The market has not yet shown any indication of turning upward, but it cannot be called weak. Zinc – In December, production for the first time showed a surplus of about 7,000 tons over consumption, and this condition of affairs was immediately reflected in a decrease in price, the present level, in the middle of January, being about 6.70 cents per lb., St. Louis. Galvanizers report a very quiet business, but brass manufacturers are active. Until galvanizing picks up or
72 | CIM Magazine | Vol. 18, No. 1
the foreign market improves, it would seem unlikely that the present production can be absorbed, so prices are likely to react to such a point as to curb production. Tri-State operators are, in some instances, near the limit of economic operating already, with concentrates at a $45 basis for 60 per cent zinc blende. High-grade zinc has found a good outlet, and so far the price has been well maintained at 9 cents per lb., delivered in the East. Silver – Chinese and Indian buying has improved recently, so that prices have again been above 55 cents an ounce. The price does not seem likely to change materially in either direction unless conditions are markedly different in China. The Indian currency situation is not likely to have any effect now for a year or two. A settlement of the Chinese difficulties and prosperity in India would have a bullish effect on the silver market; on the other hand, Chinese stocks of silver are large, and production has expanded considerably in the last year. Tin – Demand for tin has moderated somewhat, and prices have softened along with those for the other principal non-ferrous metals. Sport Straits have recently been freely available, but still commands a moderate premium over forward positions. Straits tin for prompt delivery sold for about 67 cents per lb. in the middle of January. Aluminium – Aluminium continues in good demand, and the principal producer is quoting unchanged prices, at 27 cents per lb. for either 98 or 99 per cent grade. Importers are quoting as low as 26 ½ cents for the lower grade. Minor Metals – Nickel, cadmium, cobalt, and bismuth continue at unchanged prices, with generally good demand. Nickel had a particularly good year in 1926, with production equal to about 80 per cent of the war peak demand. Cadmium has been in somewhat freer supply owing to African production coming on the market, so that supplies have accumulated somewhat, and more attractive prices are said to be quoted on large contracts.
Photograph by Vavasour & Dick from the archives of BaNQ Rouyn-Noranda; ID 763528
Nickel had a particularly good year in 1926, with production equal to about 80 per cent of the war peak demand.
Canadian Market Since our last report (December 15th) there has been a marked decline in lead, zinc and copper, amounting in the case of the first two metals to about ¼ of a cent per pound and in the case of copper to nearly ½ cent per pound. There have been several theories advanced for the decline, some being of the opinion that a possible trade slump in the United States would demoralize European markets. Others claim that the slackness is merely incidental to the dull period of the year following the holiday season, and that markets should become active at an early date. Whichever view is correct, the metal trades are undoubtedly dull, both in Europe and the United States, and until things brighten up we cannot expect much increase in prices. Zinc has been offered freely in Europe with very little inclination on the part of the buyers to absorb offerings, and the publication of the usual statistics for the United States showed a substantial increase in the stocks at December 31st over November 30th. The average price for prime western zinc, f.o.b. Montreal, in car lots, for the month ending January 15th, was $8.45 per 100 lb. Lead production continues at a good rate and weakness in the United States market has been reflected in Europe with a consequent reduction in price on the London metal exchange. The
drop has not been serious and, as stated above, there is a good chance of an early recovery. In fact, at this writing (January 15th) there is a firmer tone to the market. The average price for lead, f.o.b. Montreal, in car lots, during the month ending January 15th, was $7.70 per 100 lb. There is very little interest shown by copper consumers in Europe. American deliveries against contracts are reported to be normal and consumption in the United States seems to be continuing as usual, but the export market has fallen very flat and all efforts to revive it at the moment seem to be fruitless. The average f.o.b. Montreal price for electrolytic ingot copper during the month ending January 15th, in car lots, was 15 cents per pound. CIM
Help us commemorate 125 years of CIM. Share a photo or story that captures a special memory or achievement from your time in the industry.
Send them to editor@cim.org.
February 2023 | Février 2023 | 73