ORE
WOLDY
THE HONG KONG DAILY PRESS. TUESDAY, DECEMBER 31, 1929.
HONG KONG TRADE IN 1929.
AND METALS.
One merchant interested in this business states that exporters on the whole have not found trade profitable as, in a great number of TOUCHES NEW instances, analysis of shipments RECORDS.
CHINESE TIN OVER. PRODUCED.
JAPAN'S POSITION AS
CHINA'S CUSTOMER,
In the reports which "reach us from dealers in ore and metals, it is noted that she price of wolfram org touched a new rocord this year, and that the demand from Europe and America is very brisk
In every branch of the 'ore busi- ness the difficulty of transportation from the interior to Hong Kong is 'put' down as, one reason why busi ness in minerals produced in South
China has been difficult.
Chinese tin producers are facing keen competition from Straits tin, and considerable over-production
has led to lower prices.
Japan's position, ne a buyer of "Chinese ore has been growing more and more important, and in the amatter of supplying certain steel products, she is finding a much better market in China, owing to lower prices, than European and American producers,
WOLFRAM ORE.
locally differed from those at des tination by over 10 per cent., a very unatisfactory state of affairs and detrimental to the trade in this Colony. This matter is being in- vestigated, and may perhaps lead to a better working arrangement in the future.
MANGANESE ORE.
JAPAN PRINCIPAL BUYER FROM SOUTH CHINA.
CHINESE TIN.
LOW PRICES AND OVER. PRODUCTION.
Chinese tin, which comes prin-
from cipally,
THE COAL MARKET. -
JAPANESE COAL STILL IN DEMAND.
Yunnan province, COMPETITION FROM INDIA, through Haiphong, has suffered a set-back in price during 1929, as owing to the keen competition of producers of Straits tin, there has been what might be described as over-production.
The tin produced from Yunnan province is taken to Haiphong by rail, where it is shipped to Hong Kong for distribution to the vari ous buying centres.
The practical monopoly which
Kong was somewhat shaken in 1929 Japanese, coal had enjoyed in Hong
by the appearance of Indian coal on the market, at a price which-- for the present, at least-makes Japanese coal look expensive.
The figures to the end of the year were not available when this re-
America and Japan are: the largest buyers, but a good quantity Port was written, but according to is used in China, Shanghai buyers statistics up to the end of Noven- being quite often in the market forber, it would seem that the import this ore.
of coal into the Colony is a little leas this year than last. The figures for the various classes of coal are given below.
On the whole, 1929 has not been 30 good a year as 1923, but since October the heavy drop in exchange has had its effect upon the local
Practically the whole of the out- put from South China of manganese ore has been absorbed by Japan, and although Europe and America have been making bids for this commodity, they have not been able to compete with Japan as a buyer. The quantity shipped to America from Hong Kong during the past This is due to several reasons, the chief of which is that the low twelve months is placed at between rate of exchange with Japan, which 2,000 and 3,700 fans. Japan has is still on a downward tendency, thought about 1,700 tons, and Shang- has enabled Japanese bidders to
bai and Foochow has purchased offer higher prices than competitors about 2,800 tons. The total quan. from other countries. It is esti-tity exported is between 7,000 and mated that Japan has purchased no, $,000 tons. less than 10,000 tons of manganese As is generally known, the largest market, and prices have gone up ore during the year.
and most important centre for the j Exportation has been a difficult production of tin is the Straits roughly $1.50 per too, which is problem, as it has not been easy Settlements, the product being sold about 10 per cent. above the prices as Straite tin. Owing to the keen ruling prior to the drop in ex- to bring the ore where it
trom Kwangai, is produced, to Hong competition offered by producers of Kong, due to civil commotion and Straits tin, Chinese tin has receded change. This rise, though welcome, in price, and the quantity exported is not enough to meet the deficiency to banditry.
the trend of prices has been down-Yen and Hong Kong dollars, which has decreased year by year... While caused by the drop in exchange in ward production" is more than enough to cope with the consumphould have made the price of coal tion.
a further 10 per cent, higher, The anil America is not too promising local buyers, although they are pay. The tin-plate industry in Europe real position, therefore, is that for the tin producing business, and more for their coal since the dealers (who after alll are mere drop in exchange, are really not distributors) fear, that, the low paying enough to dealers who have prices prevailing will be continued
to meet a drop of 20 per cent, in for some time. A small re-action exchange against a rise of 10 per in the steady downward trend of cent. in price. Accordingly, for the prices may be noted now and then, New Year, & further advance in the but no permanent rise in prices is price of Japanese coal is fully ex- anticipated in well-informed quar-
pected. ters..
Since the commencement of the recent trouble in Kwangtung and Kwangsi, the transportation of ore has stopepd entirely, so that to- wards the close of the year no
However, as hostilitics have now
further business has been reported, EUROPE AND AMERICA BUYS almoet ceased, it is expected that
OVER 2,000 TONS.
As the main producing centre of wolfram ore is China, business in this trade is keenly watched in the Colony, which compotes with Shanghai as the shipping centre through which this ore finds its way to Europe and America,
A record price was touched this year, no less than 880 per picul being offered recently for wolfram ort. This is due to the fact that transportation between the produc ing districts and Hong Kong is exceedingly difficult, due to the civil war and general. commotion in the South."
At the beginning of the year the price per picul was in the vicinity of $30, but no sooner did the Kwangsi group take Up Arms against the National Government
then the price advanced to $45 per nicul, and continued to soar during the months of May and June, touch- ing 860 by the end of the first half-year. This upward tendency contiqued during the following [". months of July and August, $70 and then 875. being touched, and in a few isolated instances no less than 350 per picul was paid.
This high price, fortunately, was not maintamed for very long, and from October the market gradually "eased."' By November it had receded to $68, and at the begin ning of December business could have been closed at 300 The de- mand, which earlier in the year had come from London and New York, Blackened towards the end of the year, and consequently little or no business Bus been recorded, this month,
some large shipments will be made from Hong Kong at the beginning of next year, when some 3,000 to 4,000 tons is expected,
The price of manganese ore has not moved very appreciably this year, about 828 per ten, f.o.b. Hong Kong being offered for ore of 50 per cent. purity. Ore of about 45 per cent, purity fetched only 822 a tor in the same period. A slight advance was recorded be. tween August and December, the price per ton being 830 and 821 for 30 and 45 per cent. purity respectively.
ed.
A New Rival.
Eighty per cent. of the coal im- commodity at the beginning of tht this year is traceable to the fact The London market price for this ported into Hong Kong is for bunkering, and the smaller turnover year was about 2025 per ton, and that freight business in the Colony this figure was maintained unti! has slackened, and consequently March, when it dropped to £220. In April and May it receded further the demand for coal has diminish- and touched respectively £216, £209, and then find. In June some busi. ¦-- ore is obtainable at Pakboi, in
A small quantity of manganeseness was recorded at £197, and the south-west of Kwangtung pro vince, the quantity being about 45 per cent. purity, but the port is not convenient for shipping, as owing to the shallow water only Pakhoi. very small steamers
reach
'Can
BISMUTH ORE.
EUROPE BUYING AT HIGH PRICES.
The production of bismuth ore is very small, but what little is produced fetches high prices, no less than $2,000, per ton being offered this year."
Dealers report that production
then a slight revival in rates was business is the appearance in the A special feature of this year's observed. £202 being paid at the market of large quantities of end of June. In July the London Indian coul. This coal is being price was 214 and in August £910, sold cheaper than Japanese coal, but since September another drop and consequently is finding ready was recorded, tht price being then buyers. Chinese coal, Kailan or £205. In October it fell as low as Kaiping, is also cheaper than £199 per ton, but business during Japanese, and is enjoying a fairly the last two months has been at good demand. Alightly better rates, £183 being offered.
FLOUR MARKET.
LIMITED BUSINESS BUT PROSPECTS BRIGHT.
Only a limited amount of busi- has been very limited, it being esti.ness, confined to meet the bare mated that only from 80 to 100 tons necessities of the market, was done was marketed during the fast this year in flour. twelve months. This has all been dull, and although business has The first six months wore very snapped up by buyers in Europe.
always been slack for the first few The price of 82,000 per picul has months it was particularly so this It is anticipated, however, that been maintained during the year, year, and consequently prices were the demand will very soon set in and is likely to remain steady ruling very low in June. again; in fact, it is fully expected during the coming year, there that orders will be received in the being no special reason to antici-recorded in America, due to millers first month of the New Year, as pate a rise..
China is the biggest supplier of this ore and dealers muet turn'in this
direction whenever they want sup
ples. The quantity, as far as it
has beca posible to ascertain,
ANTIMONY ORE.
In July a rise of 20 per cent. was
bolding off; the business locally was correspondingly influenced, a rise being noted. Since then the price of flour has been gradually going up, but business is very res tricted, as the Chinese are not buy- which was exported from Canton have not been very tempting for owing to the uncertainty of the Market conditions for antimonying more than absolutely necessary and Hong Kong to Europe and America this year is, about 2,000 1999, about 8100 per ton being offer political situation. Moreover, the ton. This figure, it must be noted, ed from Europe and America. The new taxation is making business is not obtained through official production is very small, and with Swatow, Amey, and Foochow sources, as since the abolition of throughout the twelve months it is very difficult. During the summer, the Import and Export Office, exact believed that only from 1,000 to it is gratifying to note, the local statistics not available in 1,500 tons has been produced in stock was almost cleared up. regard to any commodity."
-South China.
Since the drop in exchange busi That the year has been a very The price, of course, is regulatedness is a little better locally, and prosperous one for producers is by the demand from Europe and the prospects for next year are evidenced by the following statis America, but the market has been quite good. tica, showing the highest and lowest gradually sliding down, and at the market prices per picul during the love of the year only $6 per picul
is being offered for "spot.”
0147
last five years:—
Lowest. Highest.
1925 ........
$17
820
1926
318
$95
1927
$92
$30
1928
$22
833
1029
230
480
It is believed that at one time the National Government intended to deal in this ore by granting monopolies, but owing to the diffi culty in transportation and the un- certainty at producing centres as to the quantity available from time to time, the scheme has been tem "porarily shelved. The most import- nnt producing-centre this year has been Kiangsi province, next to "which Comes Kwangtung and
Kwangsi.
On many occasions, shippers have had to claim force majeure or re- quest extension of the contracted shipment dates owing to transports- tion difficulties. A case is also known where an entire shipment was sunk in, the East River by
THE VALUE OF THE DOLLAR.
MONTHLY T.T. RATES.
2/- 1/112 1/11
1/11
1/11
The Auctuations of exchange during the year may be judged from the following figures:-
January 31 February 28 March 31 April 30 May 31 June 30 July 31 August 31 September 30 October 31.. November 30 December: 98
1/11.
1/11
∙1/11/2 1/103
1/81 1/8.
It
..
11
At the moment Japanese coal is still lending, and although Indian and Chinese coal at present is, cheaper, it is confidently expected. that prices must advance in the near future, as the drop in ex- change must affect everyone.
The best quality Japanese coal can be obtained at about $17 per ton, ex-ship. Against this, Kailan coal can be bought in Hong Kong at about $18 per ten ex-ship for the best quality. Indian coal, best quality, ex-ship is about 816 pez ton.
The prices are all in Hong Kong dollars.
The quantity of coal imported eleven months of the present year into Hong Kong during the first
up as follow
When you pour from this battle
Tile the bottle quickly nearly upside down, and the sahúsky wilow freely. Do not shakes the bottle while the whisky le Lowing.
You can always buy 'Johnnie Walker' with confidence. Its century- "old reputation for purity and maturity is backed by a most emphatic guar- antec. And the non-re- fillable bottle is a certain safeguard. Such good whisky is well worth protecting.
JOHNNIE WALKER
Sale Agents:
CALDBECK Born 1820-
MACGREGOR
& CO., LTD., SHANGHAI HONGKONG TIENTS IN
Still going Strong
JOHN WALKER & SONS, LTD., SCOTCH WHISKY DISTILLERS, KILMARNOCK, SCOTLAND.
us estimated at 095,000 tons, made THE RICE MARKET.the local trade, had been entirely
Japaness
Indian Tonkin Kaiping and
China Fushan Other places
་
Tons." 327,000
145,000
NEW AND SERIOUS
121,000
COMPETITION.
North
50,000
37,000 20,000
595,000
THE STEEL TRADE.
IMPORTS DECREASE OWING TO HOSTILITIES.
closed for over a month, due to political disturbances; moreover, there was grent depreciation of the Chinese subsidiary currency.
During May a fair amount of trading was recorded at prices which enabled suppliers to dispose
Ch 5/29
WOOD OIL.
BUSINESS SUSPENDED.
The wood oil exported from Hong
PRICES AND DEMAND BOTH of their holdings without serious Keng is a product of Kwingąj Pro-
DOWN.
loss. Siam and Saigon markets had
civil
practically stopped shipments to vigee, and the estimated total. this port, and directed them where exports during 1999 amounted to more favourable prices could be about 8,000 tons, U.S.A. taking Rather a gloomy view is taken by obtained. South American buyers those interested in the rice busi having come into the market at this about 65 per cent of that quantity. ness. There has been a fair amount time, bought advantageously at The local price has fluctuated be
tween $33 and $39.50 apicul ex of trade done, but the end of the about 168. par cwt. c.i.f. year sees a decline in prices and Toward the middle of June a godown. During December the small improvement in conditions Dealers interested in the steel demand, with the United States, occurred. With local supplies ex-
war along the West River business report that the local im- owing to competition from Mexico.ceeding the demand," prices ad stopped all arrivals, and wood oil port of steel has diminished appre-
vanced considerably. The Saigon has been unobtainable in Hong tiably during the present year,
Considerable activity was dis-
market rose, due to a heavy de- is interesting to note the owing no doubt to the fact that played upon the arrival of new-crop mand from Java and the shortage
Kong. figures supplied by a leading firm hostilities in China have affected rice at the beginning of 1928, owing in arrivals of paddy. Siam report- of flour dealers regarding the industrial development, and that to depleted stocks from 1928, and ed & market firm, with, stronger world's wheat position. The actual Hong Kong as a distributing cen- prices were fairly well maintained tendency. wheat production for 1928 is given tre is consequently handling a Bs follows:-
in consequence. Sustained by a In sympathy with the advance in Bushels.
smaller turnover.
brisk demand from the West Coast prices at producing centres the Owing to the dullness of the mar of South America, as much as 18 local market responded, and a fair 494,000,000
ket, the import of constructional shillings per cwt. c.it, was book ly satisfactory business was trans- 003,000,000 160,000,000
steel from Europe has depreciated ed for January shipment to that acted at rising values during the heavily, and the Canton situation destination.
months of July to September. The 300,000,000 290,000,000
is not likely to encourage prospec Activity subsided as requirements decline in exchange at the begin tive buyers to place ordens with were filled, and with heavy, arrivals ning of October materially assisted $1,300,000,000
dealers in Hong Kong.
from Siam and Saigon-coupled to offset the higher prices of this
The rice market presented, no Added to this trouble is the can with the proximity of China New cereal, with the result that business new feature except the rather Total.....3,547,000,000 tinued fall of the Hong Kong dol-Year (February 10) when suppliers was brisk.
weaker tone at the close of the year lar, which of course is against all were anxious to clear their stocke Serious Competition in American for new crop riec.
Demand was The estimated production on July imports, and consequently it is prices receded and the market be
Market. (late alecky" and a moderate business this year was about 500,000,000 feared there will not be very much came dull, with a downward ten- bushels less than last year, and bigger business in 1930 than has dency,
The new crop of China rice made was done with Bonth America at since then it has been found that been the case this year. Big Supplies and Smail Demand.
its appearance in the month of De about 178. per cwt. c.i.f. for Siam tober, but only a very small volume ped, equivalent to a local price of Garden & per cent. as usually ship- even this shortage is a conservative As regarde galvanised steel estimate In U.S.A. and Ornade sheets,, which come largely from Continued dullness accompanied of business was registered with the H.K.80 per picul f.o.b. for Decem alone the shortage between the Japan the Japanese being well by receding prices characterized U.S.A, buyers being reluctant to estimated production for this year able to underquote their competithe market for the next three pay the high prices demanded. The
The Hong Kong General Cham- and the actual production of last tors in Europe and America-only months. Eupplies continued to prospects of the Chins: rice trade ber of Commerce during the year year is placed at attle over a very small businces has to be come in liberal quantities from the in this direction are very standardized the various grades of 200,000,000 bushele! Comment on placed on record. Here again the producing centres, with only a favourable is a new grade of the tendency of the market during sudden fall of exchange is reapon light demand. Canton and the Mexican rice has been recently in-ice, and it is hoped that mer- chants will take full advantage of the next few months would be cible for the cessation of ordera neighbouring provinces, one of, the troduced in the United States which this king assistance in
Canada
America
India
Australia Argentine
Europe (excluding
Russia)
compares favourably with the local Seemin grade, and it is foared that within the next two years this local: trade will be totally ruined.
Reports of a good harvest in both® Siam, and Saigon mark the com mencement of a decline in prices, and demand from foreign markets has also slickened.
ber shipment.