Show BUSINESS t r l REVIEWING TilE THE COPPER PICTURE Last year was an eventful one for the copper industry with the basic price of the red metal undergoing several changes throughout the year It was also eventful for two of the Industry leaders and Anaconda In view of the significance of important happenings a brief review of events is in order W WAVERING A PRICES lUCES In mid March 1976 the price of copper was 63 cents per pound a level that had prevailed throughout most of the previous year But at that time lime there were hints of Improvement improvement im Im- Im provement and a general feeling that copper prices would be raised before summer Shortly thereafter during a three-month three period the price was actually increased three times climbing in early July to toas toas toas as high as 74 cents per pound This price held during the summer and early fall but by October mid-October demand for copper had softened to such an extent that a price reduction to 70 cents per pound was necessitated And And early last month the price was decreased again this again this time to 65 cents per pound LOOKING AHEAD Even though current demand for copper is relatively slow and inventories are high a pickup in demand over the next few years seems probable particularly particularly par par- if there is an important important im im- im upturn in the housing industry a big user of copper for plumbing and roofing Other outstanding users are the appliance appliance appliance ap ap- ap- ap industrial machinery electrical and automotive industries Assuming that there ther is no copper strike this year we feel that consumption of the red metal could experience experience ex ex- ex a fairly good increase during 1977 even though substitute substitute substitute sub sub- materials are continuing to make inroads As for the price some tam to the scene expect that copper prices will be increased as the year moves along and that by bythe bythe bythe the end of 1977 the price may maywell maywell well weil be in the range of 75 to 80 cents per pound If this is to happen however demand will have to increase appreciably and producers will have to adopt farsighted and realistic production policies policies' Although better days would seem to lie ahead for copper we we certainly are not looking for a boom in this highly variable industry AND ANACONDA In 1971 the Federal Trade Commission ordered to divest itself of its Peabody Coal subsidiary After a number of appeals which were of no avail the company in October of last year finally announced that the Peabody unit would be sold to a group of companies headed by N Mining Corporation for 12 billion in cash and securities securities' The TIle sale however is still subject to the approval of the FTC ETC which has not yet given its okay As for Anaconda in March of 1976 Atlantic Richfield made a tender offer for six million Anaconda shares and then InJune in inJune inJune June it announced that it had reached a preliminary agreement for merger of Anaconda with a wholly owned Atlantic Richfield subsidiary But Rut the FTC then th filed a suit to block the proposed merger on on the grounds that it might lessen competition in the areas of uranium oxide and refined cropper copper Subsequently however its suit was rejected by a federal judge and then appealed by the FTC Very recently the matter was finally settled and the merger of Anaconda into Atlantic Richfield was con con- consummated summated The exchange of shares is now in process At the present time the Research Department of Babson's Reports recommends that investors retain the stock of ant and Atlantic x field which now owns Anaconda and operates it as a subsidiary sr Babson's Dabson's also suggests sugg suggests A maintaining a hold position o on oh Phelps Dodge and Asarco Iri In corpora ted two other copp copper producers of considerable importance It sh should be noted however that purchase of copper Opper stocks is not being recommended at Um this time |