BRITISH TRADE REVIEW

Sun (Auckland), Volume III, Issue 621, 25 March 1929, Page 10

BRITISH TRADE REVIEW

METAL MARKET BUOYANT WOOL OUTLOOK HOPEFUL (Australian and N.Z. Press Association) LONDON. Saturday. The one bright spot on the Stock Exchange this week has been the market for base metals and mining shares, which, thanks to the meteoric rise in the prices of metals on Monday, lias been active and buoyant. Some of these shares closed last evening slightly under the highest quotations for the week, but with the prices of copper, tin, lead and spelter all maintained. Activity in the shares is expected to continue. Other sections of the Stock Exchange, with the exception of a few industrial oils, have been extremely dull, notably giltedged stocks, owing to the uncertainty of the monetary position and the fears that the New York rediscount rate would be raised. This advance has not Yet been made, but the apprehension in this connection continues. Commenting on the base metal position the Statist” says: ‘‘The trend of activities in the industrial world is creating more than a normal increase in the consumption of non-ferrous metals. Copper for instance, the consumption of which in the last decade fluctuated in close conformity with that of lead and zinc, is now in enormous demand. Its consumption increased in the past few years only a little less rapidly than did that of zinc and lead together. Although the abnor- : mally high price of copper will cause i some substitution of aluminium, there is every prospect that the demand will | be on the increase for some years to j come, as rapidly as the supplies will permit. PROBABLE EFFECT ON MARKET ‘‘The remarkable flurry last Monday will probably have the same effect on the metal market as well-planned advertising has on any special product of general use, and will make metals more attractive to buyers, and may thus cause consumers to carry much larger working supplies. If so, the metal markets, and also the whole producing and consuming situation, will be to some extent stabilised and generally benefited. But there should be constant co-operation between the producers and the consumers in building and maintaining the markets. The consumers would assist in preventing the frequently recurring shortages of supplies, by advising producers when they see indications of important expansion and demand.” NEEDS OF WOOL MARKET Discussing the wool outlook Messrs. 11. Dawson and Sons write: “At the present moment the stability of prices would appear to be dependent on the financial ability of the trade to carry the stocks of wool already purchased without sacrificing values, or. what is more desirable, on a genuine revival of the demand at the piece goods end of the industry. More trade is the primary need, but unfortunately vital economic factors have but limited the scope in which to operate in the present complex and difficult conditions; for it goes without saying that cheaper money, cheaper goods for the community. cheaper cost of production, with fewer barriers, more free intertrading between nations, are necessary factors in an all-round revival of trade. “Taking a general and wider view; although the outlook is not very bright, there are a few hopeful signs. The season in the overseas market is approaching its close, and the excessive supplies will not now provide any source of weakness. Our home markets show improving confidence, thanks to the cheaper level of values, and the comparatively light stocks. Manufacturers are providing attractive goods at remarkably favourable values, and although new business is not yet plentiful there is a better tone and more hopeful prospects. In the Lome trad© the most satisfactory feature is that there is a generally prevalent feeling that Merinos have reached a safe level.”