i INDUSTRY & BUSINESS

Nonferrous .Metals Looking Up Things will look better for the non-

ferrous metals industry this year: Con­sumption will improve, shaky prices will stabilize, and profits should get better. But labor negotiations slated to begin this summer could upset the industry's optimism.

Alcoa's board chairman, I. YV. Wil­son, told the National Industrial Con­ference Board's "recovery" meeting in the Hotel Commodore. New York City, that the outlook for aluminum is opti­mistic for 1959. Shipment of aluminum products to consuming industries should increase from 10 to 25c'< over 1958. And with demand on the uptrend, he expects the disrupted profit picture to straighten out this year. Result: bet­ter profits.

Aluminum consumption in 1959 will be at least 10 rr better than last year's 1.6 million tons, but it could easily be 15 to 2(Κΐ higher, he adds. Alcoa takes an attitude of guarded op­timism because the excess primary alu­minum capacity may act as a deterrent to large inventory buildups by fabrica­tors.

In Wilson's opinion, the prices of alu­minum and aluminum products will re­

main relatively stable until mid-1959. Then the three-year contracts signed by the primary producers and labor unions in 1956 will end. Second-half prices will depend to some extent on the outcome of new contract negotia­tions. Some indications of the trend in bargaining will come from negotiations in the steel industry, where contracts terminate a month earlier.

• Copper, Lead Better. Increased activity in the automobile, appliance, and public utilities industries will im­prove copper's position in 1959. Ship­ments this year should run 10 to 1 5 ' ' higher than in 1958. Prices should stay stable despite ample supplies of the metal. Here again, though, with domestic contracts slated to expire in lune, labor is the unknown factor.

Meanwhile, Wilson continues, lead should also have a better year. There should be a 5 to 109r increase in lead shipments to meet higher demands for storage batteries and other lead prod­ucts. Lead is in excess supply, but cut­backs in mining and production plus an import quota system (based on 80^r of the annual average in the five-year period 1953-1957) should help narrow

the supply-demand gap and in turn promote better price stability. (Lead was reduced 1 cent two weeks ago to 12 cents a pound.)

Zinc, too, is in long supply, and there have been production curtailments. Wilson points out that there is also an import quota on zinc similar to the one on lead. These factors will combine this year to bring supply and demand into balance and should strengthen zinc prices.

Wilson expects zinc shipments to go up about 10ΓΛ this year on the hopes of a better year in the auto and steel industries. Zinc, unlike aluminum, cop­per, and lead, should not be affected seriously by labor problems this year. Contracts which involve zinc workers are scattered with respect to plants in­volved and expiration dates.

As for magnesium and titanium, prospects are much better this year than last. Demand for magnesium could increase as much as 20r-<, îis air­craft and missile programs move ahead. " Last year's ingot production was roughly 60 million pounds. Titanium should also benefit from the missile and space programs this year.

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