KAURI GUM PROSPECTS

Sun (Auckland), Volume 1, Issue 39, 9 May 1927, Page 2

KAURI GUM PROSPECTS

BELGIAN CONGO INFLUENCE THE MARKET REVIEWED Though the market at present remains depressed and weak, kauri gum prospects as far as the local trade is concerned appear brighter than for some time past. The large surplus stocks held in store—an ever-present reminder of the slump of 1922 and an attempt to foist prices—are gradually* being cleared and shipments practically* every month are well ahead of production. Even so, merchants are not rushing on the market and it is estimated that approximately 2,500 tons of gum are stored locally. Production on the fields has fallen to a minimum, the best diggers for the most part having deserted the fields until high prices rule. The product of the Belgian Congo is, of course, according to a leading dealer and exporter, the factor holding the world’s market down, and,* irrespective of Control Board activities, with the Belgian franc at its present parity, diggers can hope for little improvement. Trade w*ill go to the Congo more and more while the rate of exchange is so much in favour of Belgium. The only New* Zealand lines which appear to be inviting much demand at the present time are the grades used for the making of linoleums. White swamp, B2 and good black chips, well washed, are finding most favour. White gums are very slow* sellers and prices compared with pre-laquer days are extremely low*. A falling off in inquiry for bush gum is registered, but any well got up lines of bled meet a ready market. Specky and discoloured grades go Garbs only sell at low prices. A fairly* large shipment was sent away by the Canadian Challenger, a proportion of this shipment apparently being hurried forward to escape the levy which commenced to operate on May 1.