Less than a year ago, the U.S. had such a glut of copper that theindustry was asking for tariffs and subsidies. By last week coppersupplies were, so tight that the price of copper was bobbing like apuppet. Custom smelters, who had been selling copper at 32¢ a lb., gotout of the market for a week, came back at 34¢-a lb. Major producerswere selling copper at 31¢ a lb., v. last year’s low of 25¢ a lb.
Why the scramble? Rising industrial production accounts for some of thedemand. But chiefly, copper consumers are buying because they fear theprice will go still higher if strikes shut the big mines. Says AmericanSmelting & Refining’s Vice President Simon Strauss: “Copper consumershave long memories. They remember the copper shortages of several yearsago, which were politically rather than economically caused.” Strikeshave already shut one U.S. smelter and threatened the big mines ofNorthern Rhodesia. Copper buyers are also hedging the possibility of astrike June 30, when the contract of the International Mine, Mill &Smelter Workers expires. Thus copper experts expect the price to gostill higher. But when labor peace is assured, they think it willsettle down, because current refinery capacity of upwards of 2,000,000tons is more than enough, even if business picks up more.