Metals hit high levels

Media

Part of The American Chamber of Commerce Journal

Title: Metals hit high levels
Creator: United States Press
Language: English
Year: 1937
Rights
Fulltext: January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 Metals Hit High Levels (Ey United Press) The continued increase in demand at all world markets this month for all metals caused prices to steadily increase to the best levels in several years. Production has continued to gain as new mining ventures get underway to cash in on soaring prices. Commodity markets have been exceedingly bullish, even surpassing the gains registered on the stock markets. As surances that the New Deal’s crop control program will be continued plus an actual shortage of certain commodities, such as corn and rubber, has greatly benefited the situation. Wheat prices have reached post-depression highs as Europ ean nations buy heavily to lay away surplus stocks for possible use in event of war. Another factor in the wheat market is the acute shortage of tonnage to move the Australian crop. The United Press learns that the acute shortage of shipping tonnage has virtually halted shipment of ores from the Philip pines, excepting gold. The lack of tonnage unquestionably will continue throughout 1937, regardless of an early settle ment of the Pacific Coast maritime strike, shipping agents predict. There is even a possibility Philippine sugar growers will encounter difficulty moving all of their quota tonnage to the United States by the end of 1937. The tonnage rate for sugar from Manila to American ports has skyrocketed from 88 to 811 a ton and even at the latter figure there was no tonnage available for sugar at the time this dispatch was written. Continued increase of metal production in the Philippines was revealed Jan. 14 when the Department of Commerce in Washington issued preliminary estimates of 1936 gold and silver production. The United States imported from the Philippines in 1936 about $6,000,000 more gold than in 1935 when it received 815,335,467 from the islands. The United States received $2,273,064 in gold from the Philippines during December, the department reported. Philippine gold production in 1936 exceeded that of Alaska, according to announcement of the U. S. Treasury Department. The islands produced 599,453 ounces during the year, valued at $20,098,855. California, with a production of 1,042,915 ounces, was first in production. The Philippines ranked se cond, South Dakota was third with 589,229 ounces, and Alaska was fourth with 510,982 ounces. Total production for the United States was reported as worth 8150,959,270. Development of silver production in the Philippines during the year also was revealed by the Department of Commerce report. Preliminary figures issued showed 1936 Philippine silver output amounted to 472,992 ounces valued at $364,181. Total silver production for the entire United States in 1936 was estimated at 62,024,929 fine ounces worth $47,759,195. This compared with 45,924,454 ounces in 1935 worth $33,008,201, indicating the extent the treasury’s silver purchasing program has benefited that industry. The New York bar silver price has hovered around 45 cents in January, declining to 44-3/4 cents at press time. Increased silver production has been accompanied by a marked gain in copper and lead production. The export copper price in New York touched 13.05 cents on Jan. 13, the highest price in seven years. However, many spot sales were being made at 12.75. Reduced visible supply of copper plus a steadily increasing demand from Europe has produced brisk buying of the metal. Reports from the copper mining sections indicate the reopening of a number of mines which have remained idle since 1931 when copper prices fell considerably below the cost of production level. Heaviest speculative trading in copper continues to center in London. It is too early to forecast the effects of the announcement in London Jan. 13 that all production restrictions agreed upon by copper producing countries are being temporarily removed by mutual agreement. (Please turn to page 32) What you really buy is DRILL HOLE at so much per foot WE ARE.PROUD TO PRESENT THE DA - 35 A New 150-lb.-3y2 inch DRIFTER THE FASTEST DRILL THAT Ingersoll-Rand HAS EVER BUILT The Earnshaws Docks & Honolulu Iron Works Sole Agents—Manila, P. I. P. O. Box 282 Branch Office: Tel. 2-32-13 Bacolod, Occ. Negros IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN' CHAMBER OF COMMERCE JOURNAL January, 1937 Metals Hit High Levels (Continued from page 29) Most traders continued optimistic despite the removal of restrictions, feeling that it will require many months to stim ulate p eduction sufficiently to offset the present, low copper reserves, and prices of copper mining shares on the New York Stock Exchange remained popular with traders. The demand for lead has continued good with prices holding around last month’s levels. Philippine interest in lead this month turned to Hong Kong where L. R. Nielson, Manila broker, concluded a contract to operate the lead mines of Hong Kong Mines, Ltd. After a personal inspection of the property, Nielson announced his engineers were satisfied with the prospects sufficiently to warrant early installation of a 150-ton mill. AVERAGE METAL PRICES FOR DECEMBER, 1936 {By United Press) NEW YORK, Jan. 16.—The market for non-ferrous metals moved steadily upward during the past month with copper very strong, the magazine Metal d’- Mineral Markets reported today. Domestic copper during December averaged about one cent above the price prevailing during October and November. Demand was strong. Lead and zine also found brisk demand and prices gained about one cent a pound on the average. Sales were estimated at more than 25,000 tons of lead for the month and sales of zinc exceeded 20,000 tons. Substantial improvement in the demand for tin has sentprices for that metal steadily higher during the winter. The average New York price for Straits in December was 51.823 as compared to less than. 45 cents last October. Metal & Mineral Markets reported average metal prices for December as follows: Copper: Electrolytic, Domestic, Refinery................................. 10.763 Electrolytic, Export., Refinery...................................... 10.835 London, Standard Spot................................................ 45.946 London., Forward............................................................ 50. 364 Lead: New York........................................................................ 5.554 St. Louis.......................................................................... 5.406 London, Spot.................................................................. 25. 560 London, Forward............................................................ 25. 503 Silver and Sterling Exchange: Silver, New York, per cz............................................. 45.352 Silver, London, pence per oz................................ 21.238 Sterling Exchange, “checks”......................................... 490.670 Zinc: St. Louis, Spot............................................................... 5.273 London., Spot.................................................................. 17.957 London., Forward............................................................ 18. 145 Tin: New York, Straits.......................................................... 51.823 London., Standard Spot.................................................232.108 Goid, per oz., U. S. pi ice.........................................$35,000 Quicksilver, per flask.................................................$90.25 Antimony..................................................................... 12.918 Cadmium...................................................................... 90- 000 Platinum, Refined, per oz. ........................................$48,000 Aluminum, 99 + %...................................................... 20.000 Domestic quotations above, unless otherwise stated, are in cents per pound. London averages for copper, lead., zinc and tin are in pounds sterling per long ton. Sterling ex change, checks, is in cents. (Please I urn Io page JO) World Sources of Chromite (('anti nued from page dl) 1931. Japanese imports of chromite in 1933 equalled home production. In the Philippines, the chromite industry is just beginning to receive serious attention, and with the United States, the largest chromite consumer, depending entirely on foreign sources for its supply, the development of chromite mines in the Islands will prove a boon to the national welfare of both countries. Quoting a report from the United States Bureau of Mines issued this year: ‘'Recent reports from the Philippines indicate considerable development Petter Diesel Engines Fred Wilson & Co., Inc. Wilson Building 53-55 Barraca Manila of chromite in the islands. Exploration work has been going on for several years, and reserves of some magnitude have been blocked out. A trial shipment of 500 tons of high-grade ore shipped to the United States in 1935 was reported to run 53.59 per cent chromic oxide and 14.43 per cent ferric oxide. Present plans are said to provide for shipment of 25,000 tons yearly over the next 4 years”. The importance of the chromite industry to the Philippines will be obvious when the figures on American Chromium imports and exports are considered. American imports contrasted with world chromium exports for the decade 1925 to 1934 show the importance of the industrial setup in Advantages SIMPLICITY ECONOMY RELIABILITY Sole Distributors For the Philippine Islands: the United States to chromite producing coun tries, and though exports from America increased during the latter part of the depression, the United States still remains by far the world’s largest user of chromite. American require ments during the post-war period caused imports to reach a peak of 331,860 metric tons or 78 per cent of world exports in 1930. During the next 2 years imports dropped sharply, amounting to only 90,574 tons (42 percent of world exports) in 1932. Although imports had recovered 100 percent, to 195,383 tons in 1934, their relation to world exports varied but little, being 41 per cent in 1933 and 44 percent in 1934 compared with 66 per cent for the pentad 1925-1929. During the past 10 years the United States im ported chromite from Cuba, Greece, India, New Caledonia, Southern Rhodesia, Turkey, Russia, U. S. Africa, and Yugoslovia. Examination of the above sources from which America received chromite for her industrial needs reveals the changes in locality from which she drew her supplies. Nearly 60 per cent of American requirements during the period 192529 were met by imports from British Africa, but in the five years following less than one-third came from this source. Cuba maintained the same relative position during the two periods while India showed a decrease. Increased im ports are credited to Greece, New Caledonia, Turkey and Russia. 3’110 extent of the Greek increase is questionable as the movement of Yugoslavian ore out of the port of Saloniki is credited to Greece in import statistics. Imports of chromite into the United States enter through the Atlantic Coast ports and are used largely in the industrial States in the north eastern part of the country. Such is the story of chromite during the past two decades; that it has definitely influenced world commerce and added greatly to the pros perity of the producing nations is without ques tion. With the further developcmcnt of chro mite mining in the Philippines a new chapter will have to be written into the history of this important mineral. As yet, the full extent of chromite deposits in the Philippines is undeter mined, but as further explorations and develop ments reveal the abundance of chromite ore here, the Philippines stands a fair chance of becoming the world’s next great source of Chromite. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 LUMBER REVIEW By FLORENCIO TAMESIS Director, Burtau »f Forutrj Lumber and timber exports in October fell 36% below the September figure but was 65% greater than in October, 1935. Japan’s consumption of logs continued comparatively heavy. Log exports to this market constituted 70% of the total lumber and timber exports during the month under review. For the first time, shipments of logs, amounting to 1,604,416 board feet, were made to Korea. An in crease in Japan’s already large consumption of logs is expected in the next few months as several licensees or concessionaires dealing with Japanese importers are putting up addition al machineries in their concessions with the view to increasing production. Demand in the United States in October registered a decline of 40% from the previous month and 15% below October last year. Ship ments are being greatly affected by the maritime strike in the above country. Difficulties in finding bottoms for the Pacific Coast and even for the Atlantic Coast are being encountered by local exporters. Shipments to China during the month under review consisted entirely of sawn lumber, amount ing to 183,168 board feet. This is 402% greater than the October figure last year, but is consider ably below the previous month, which amounted to 5,860,104 board feet. The total exports to China in September was, however, considered to be unusually large. Shipments to Australia in October consisted of 88% logs and 12% sawn lumber, totaling 179,352 board feet. Total exports to Europe during the month under review declined slightly from the October figure in 1935, but was 2-1/2 times greater than the previous month. The • increase was chiefly due to larger shipments made to Great Britain and Ireland. The local markets continued strong and prices are on the upward trend. Mill production in October registered a slight increase compared with the same month in 1935. Mill inventories increased about 3,000,000 board feet compared with October last year. The following statements show the lumber and timber exports, by countries, and the mill pro duction and lumber inventories for the month of October, 1936, as compared with the corres ponding month of the previous year. Lumber and Timber Exports for the month of October 1936 CustomsDestination Board • Feet Declared Value Japan........................ .. @13,297,064 1’240,512 United States.......... ... 2,117,456 147,253 Korea........................ . .. 1,604,416 32,484 Great Britain.......... 895,064 69,718 British Africa.......... 392,624 25,550 China........................ 183,168 9,297 Australia................... 179,352 5,891 Ireland...................... 46,216 3,474 Hawaii...................... 28,832 3,665 Portuguese Africa... 25,440 1,274 Norway..................... 13,144 1,036 Belgium.................... 18,656 1,561 Singapore....................... 2,968 800 Sweden........................... — — Hongkong....................... — — Total................... . 18,804,400 1*542,515 1935 CustomsDestination Board Feet Declared Value Japan.......................... 6,710,224 P 108,613 United States............ 2,510,504 182,892 Korea.......................... — — Great Britain............ 930,680 71,275 British Africa............ 215,816 12,573 China.......................... 36,464 1,816 Australia..................... 864,536 47,325 Ireland........................ 81,832 7,189 Hawaii........................ 848 80 Portuguese Africa... . — — Norway....................... 13,568 2,361 Belgium...................... — — Singapore.................... — — Sweden........................ 7,208 963 Hongkong................... 424 45 Total................... .. 11,372,104 P435.132 Not:-: This represents mostly solid log scale, that is, 424 board feet to a cubic meter. For 50 Mills for the month of October Lumber Deliveries Month from Mills 1936 1935 Oct................................. ,19,329,336 20,550,345 Lumber Inventory Oct................. 1936 ............. 43,071,260 1935 40,732,316 Mill Production 1936 1935 Oct................. ............. 21,556,244 21,266,517 Not/: Board Feet should be used. Copra . . . (Continued from page 39) Canadian ports, which increases the expense of shipment. Shipments for the month totalled 2,594. metric tons. All of these factors are cutting down pro duction and apparently will further decrease production in the near future. G n hai.—-1936 w:is on the whole a larger copra year than 1935, arrivals being approx imately 5% over those of 1935. This increase, however, was very unevenly distributed, the first half year showing an increase of 25% and the second half year a decrease of perhaps 8%. This factor upset trading conditions a good deal because in the first half of 1936 European buyers absorbed much of the Philippine production with American buyers laying back for the larger supplies expected the second half. When these larger supplies failed to materialize, and in fact proved short, this combined with the drought, the rising prices in all commodities the world over, and a desire to build up stocks, was res ponsible for the situation whereby copra and co conut oil advanced as they have not since 1920. 1936 should have been a good year for producers, and probably was. For mills it was an average year, for most mills could not afford to speculate on what appeared to be an unreasonable market. Prospects for 1937 are dubious. It is pro bable that copra will be short, particularly in the North part of the Islands for the first half year. In the second half year there should be a good deal of copra, but it is then entirely possible that the present demand for spot oil will not continue, for by that time America’s own supplies of oils and fats will be replenished. It is a significant fact that although imports into the United States of oils and fats in the past two or three years have been increasing by leaps and bounds, the only important commodities not sharing in the increase have been coconut oil and copra. More and more, copra and coconut oil are feeling a competition of other more cheap ly produced oils and fats, and the higher prices go the narrower becomes the use of coconut oil and copra. It is very necessary, therefore, to watch the situation closely, for there can be no assurance about prices in 1937, although for the first few months at least the prospects look favorable. Annual Meeting The annual meeting of the Chamber of Com merce for the election of three directors in the board of nine, and for other purposes, is set for 5 p. m. Friday, January 29. The secretary has mailed notices to all active members and inclosed proxies that should be executed and mailed back to him in the event a member will not be at the meeting. Tell It to the Judge Only occupied vehicles are allowed on the Escolta. No cruising taxicabs one way. Cars and carromatas, ’ware one way streets unless going the right way. Tuesdays and Saturdays are market days. There’s plenty of traffic, and the fine for ob structing it—P2.50. But speeding is an offense, too. The moral of And Sudden Death is enforced by the curt words “P20.00”. Calesa ponies that are hurt or lame take their drivers to the Municipal Court of Judge Locsin at Bonifacio and Aduana, if the vehicle squad is nearby. Yet with only 10 men, the job is only begun. Parking had better be done according to rule, because if not, it gets in the hair of the traffic squad. They want to teach all drivers the new ways. Once the lesson is finished, know your stuff or else I Average Metal. . . (Continued from page 32) (By United Press) NEW YORK, Jan. 19.—The market for man ganese and chromite continued firm today, prices temaining at the levels established last month. Closing quotations today: MANGANESE: 22.4 per pound, C.I.F. South African, 48-51 per cent, 30. Brazilian, 46-48 per cent, 25. CHROMITE: Long ton, C.I.F.— Indian, 45-47 per cent, $16.75-17.00. Russian, 48-50 per cent, $19.00-195.0.