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.
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Industry
(Specially contributed by “Engineering and Mining Journal,” New York.), December-January, 1926-7.
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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
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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.