London, June 20.
A sustained advance in copper prices since the announcement of the quota cut shows that the London Metal Exchange chooses to place a bullish interpretation on the action of producers, although some operators in copper are afraid that it envisages a further decline in consumption.
The recent heavy buying "for Japanese, Russian and other Continental accounts has temporarily subsided, otherwise it would be generally considered that the statistical position has not warranted a cut in the quota despite the poor American position.
Furthermore, the 10 per cent. cut roughly offsets the recent increase in American exports of domestic copper, and, although non-United States producers therefore lose what American exporters have gained, there does not appear to be any other way vf keeping the non-United States position stable.
Although no official figures have been published, it is understood that the basic tonnages of the restricting countries amount to about 710,000 short tons annually. The Rhokani Corporation has been granted an additional 952 short tons; therefore, the 10 per cent. cut reduces the output of the restricting countries by about 5,000 short tons monthly.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.