Alcohol Headache: Rising Costs - C&EN Global Enterprise (ACS

Nov 6, 2010 - At the same time it is heading into an era of rising production costs, affecting synthetic as well as fermentation processes. This expla...
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show some production loss from the 3 1 . 3 million gallons turned out in 1957. Currently, t h e only major fermentation aleohol plant in operation is that of Publicker Industries, Philadelphia· This plant h a s resumed production after a strike. Fermentation plants oould get going elsewhere if the O w e m o n e n t would release some of its h u g e holdings of off-grade c o m . This m i g h t bring o u t larger production of e t h y l and butyl alcohols a n d feed supplements., such as those that are made by *Commercial Solvents and U. S. Industrial Chemicals. • Gains b y Synthetic. Industrial alcohol production by fermentation and synthetic plants since 1950 is shown in t h e following compilation by Stanford! Research Institute:

MARKETS Ethyl Alcohol Zig-Zags Above 2O0-MÏIIÏOI1 Gallon Level Millions of G e l i o n s — " 9 5 % b y Volume

Year

1945

1948

1951

1954

Source: 1945-57, U.S. Treasury, Alcohol and Tobacco Tax Division

1958 (Est.)

Alcohol Headache: Rising Costs N a t u r a l gas is factor in recent price upturns for ethyl and isopropyl alcohol I N D U S T R I A L alcohol is e m e r g i n g from a prolonged p e r i o d of m a r k e t uncertainties and labor difficulties into t h e bright light of expanded output a n d consumer d e m a n d . At "the same time it is h e a d i n g into an era of rising p r o d u c t i o n costs, affecting synthetic as well a s fermentation processes. This explains the r e c e n t action of manufacturers in advancing prices for alcohol. Tank c a r price for ethyl was moved u p 5 cents per gallon to 5:2 cents. delivered in the East, w h i l e proprietary solvent was given a 6-cent boost, and SI>-40 (a specially d e n a t u r e d formula) w a s advanced a s much a s 8 cents a gallon. The s t e e p upturn i n t h e latter formula is supposed t o h a v e some connection with the scarcity a n d high price for brucine ( the d é n a t u r a n t ) employed in hair preparations. • Raw M a t e r i a l s Cost M o r e . These a r e the first price advances for industrial alcohol in more t h a n t w o years. Higher 44

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costs for n a t u r a l gas which supplies ethylene, t h e r a w material, are said to explain the u p t u r n for synthetic alcohol. Unworkable and high prices for blackstrap molasses a n d corn are the major factors in t h e instance of fermentation ethyl a n d b u t y l alcohol. The situation in natural g a s also explains an upturn of 5 cents in isopropyl alcohol. Thus far, this has not b e e n reflected in quotations for acetone, prime isopropyl derivative. During t h e first half of 1958, ethyl alcohol outputs bettered the corresponding production in 1957 b y 2 5 to 35*7r. Indications a r e t h a t production will maintain a good rate d u r i n g the last half of this year. T h e o u t p u t for t h e first seven m o n t h s of 1958 came to over 154 million w i n e gallons. • Year's P r o d u c t i o n . Alcohol p r o duction estimates for the full year range from 2 3 0 t o 2 8 0 million wine gallons; synthetic p r o v i d e d by far the bulk of t h e supply. Fermentation alcohol m a y

1950 1951 1952 1953 1954 1955 1956 1957

Fermentation Synthetic ( Millions of gallons ) 61.2 120.7 120.2 108.1 45.5 44.5 74.9 31.3

104.0 113.5 125.9 147.5 153.7 172.3 1S0.6 192.6

Most important denatured alcohol i s S D - 1 , or specially denatured, l a r g e s t outlet for which is in the chemical! processing lines. In SD-1 consumption, a l dehydes are foremost. I n 1949 c h e m i cals co«sur~ed lOKfi million gallons o f S D - 1 , a figure which since has g r o w n to over 188 million gallons. AJ: t h e close of the last war, in 1945, chemical requirements for this alcohol in making rubber amounted to over 4 2 o million wine gallons. • D e n a t u r e d Alcohol Use. Smaller increases have taken place in alcohol consumption for the manufacture o f plastics, foods, drugs, cellulose, a n d for shellac. Plastics, mostly noncellulose, s t e p p e d u p alcohol consumption from 3.1 million gallons in 1949 t o 4 - 3 million gallons in 1956. T h e food and drug industries, a t t h e same time, have increased their "use of alcohol from 9.9 million gallons t o 12.S million gallons annually. Cellulose, shellac, and resin products ( a p a r t from noncellulose plastics ) have lost g r o u n d as a group. This classificatiorm took 3.53 million gallons of SD alcohol i n 1949, and 3.50 million gallons o f t h e alcohol in 1956. Solvent and miscellaneous uses for alcohol have grown from 36.4 million gallons in 1949 to 56.3 million gallons in 1956.

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W E E K ' S PRICE CHANGES September 29, 1958 Advances CCBKCNT

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Hew Pricing Policy C o p p e r sulfate and copper oxide p r i c e s henceforth will b e SBt firm for a period ahead instead of fluctuating with c o p p e r metal. Republic Chemical, N e w York, says t h e price in the instance of this seller will b e quoted firm for a 12-month period instead of following t h e gyrations of t h e refined copper market. Republic manufactures copper sulfate and oxide at Baltimore. The sulfate is a widely consumed fungicide, u p t o o n e half of which is exported in s o m e vears.

KChas. Pfizer a n d ۩., Brooklyn, a n nounces a 10-cent reduction in itaconic acid, technical grade, t o 3 9 cents p e r pound, carlots, reflecting process improvements. i> Dow Chemical, Midland, effected a reduction of 2 cents per pound for its D o w Latex 5 6 6 to a bulk price of 3 6 1 / 2 cents p e r pound *of solids. G. J. Williams, plastics sales manager, said reduction was made possible by increased sales volume.

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