Behind the Markets by HARRΥ
STENERSON
Current export trends favor large t o n n a g e i t e m s · · . New t u r p e n t i n e ceiling is 350% above prewar level a n d c h e m i c a l s n o w absorb 75% o f supply . . . Pyridine accorded new o u t l e t s in p h a r m a c e u t i c a l s pentine for chemicals ami pharmaceuti cals alone, a group which includes syn thetic camphor, accounted for 68 r c of the 190,196 bbl. consumed «luring April 1944 to March 1945.
XPOKT business in chemicals is be
E ginning to assume some importance al
though restrictions, both of the foreign and home-made variety, tend to hold a good deal of it in cheek. The end of the war caused some export shifts in the or ganic field, but stimulated the call for large tonnage items such as caustic soda, soda ash, sulfur, and phosphate? rock. Chemical export «lata for 1945, avail able only to the end of October, show that shipments to foreign nations fell off sharply in many organic chemicals, including ethylene glycol, phenol, cresylic acid and cresols, acetic anhydride, citric and oxalic acid, butyl alcohol, acetone, butyl acetate, carbon tetrachloride, and hexamethylenetetramine. T h e export drop was particularly marked in acetone, phenol, and the cresols. Foreign requirements are now evidently being switched to other organics, and in this connection it is noted that exports recently have expanded in items like phthalic anhydride, aspirin, acetic acid, glycerin, and formaldehyde, and con siderably in benzol. Greater export activity is taking place in DDT with the removal of licensing regulations. In line with rehabilitation plans in various European nations, it is also likely that we shall witness a material expansion in ferti lizer exports. Phosphate rock will be needed in large tonnage to supply super phosphate factories in Japan, and there is a worldwide shortage in nitrogenous fertilizers. Turpentine*s New Position At mid-month ΟΡΑ finally authorized long-awaited ceilings for gum turpentine, establishing the producers' price at 83.5£ gal., f.o.b. still or bulk storage» plant, and the dealers' maximum at 84.5c gal., f.o.b. dealers 1 shipping point. The new ΟΡΑ ceilings are some 350% above the low open market prices which prevailed for gum spirits in 1938-39, and reflect the new status created for this product as the result of chemical development. The average price for gum turpentine during the 1938-39 season was 22.61* gal., Savannah, and the monthly low for modern times was reached in September 1938 when the average was 20.92c\ Demand for turpentine during the war for the processing of synthetic* camphor and other chemicals expanded consider ably and only minor quantities entered into paint, varnish, and lacquer, a former large consuming outlet. The use of tur VOLUME
Wartime
It turpentine eonsiunption by makeisof adhesives and plasties, ester gum, and synthetic resins, and by insecticides and disinfectants is added to that by chemicals and pharmaceuticals, the total turpentine used for all these purposes rises to 144,338 bbl. during H>44 45, or more than 75T> of the total consumed. The amount used by paint, varnish, and lacquer during the same period was 10.9'^.
Price Trend for Chemicals
ariH Paints • 20
110
100
SOURCE
BUREAU
OF LABOR
STATISTICS
Whoteaale prices for chemicals and related products, in terms of index numbers, compared with similar trend for building materials* paint and paint materials* and all commodi ties. (I926*=> KM)). Department of Commerce and Bureau of Labor Statistics. MILLIONS OF DOLLARS 550
MILLIONS OF
500
450 400 350 300 250 200 150 100
• * « t f > < 0 K O O » O .
(M *> *
«A
Previous chemical exporf record of $330,000,000 annually during I9S0 was greatly exceeded in the past war. Current volume is affected by shifts in classifications hut probably ia tcrti above postwar exports of 1920-30 period. 1
EXPLOSIVES EXCLUDED FOR Y E A R S Ι » Ι · * · · Ι · ANO *9*3.
2 4, N O . 3 » » F E B R U A R Y
10, 1 9 4 6
U . S. DEPARTMENT O F COMMERCE
425
Β Ε Η I IS D
THE
Competitive Factors Naval stores dealt *rs feel that high prices for «rum turpenthu» will force the paint trade to the μι«·;Μ«·Γ use of other products, especially petroleum thinners. Against this the turpentine producer can point t o his newer, growing market offered b y camphor, pharmaceuticals, ndhesives, and resins, and which evidently is able t o absorb gum turpentine at high prices. Camphor is a phistirizer for nitrocellu lose motion picture» film and plastics and an essential pharmaceutical product. Ger many η a d e considerable headway in the production of synthetic camphor following the first World War, which competed against .Japan's natural product in the world markets. T h e first production in this country was i n 1918, but the initial large-scale commercial plant was not com pleted l»y D u l'ont until 1932. The original capacity of Ι,ΛΟΟ,ΟΟΟ lb. was increased t o 4.000,/«* lb. Seidliti mixture. 3 * to 30V«* lb. Quicksilver. $3 to $104 per flask
2 4, N O . 3 .
*
Mi
Chemical Price Developments The latter half of January was marked by a number of price developments in chemicals and related materials. Fine chemical manufacturers in a competitive move lowered the price schedule for tartar products, and quicksilver engaged in a series of price declines which brought the metal down to $103 per flask, from $107. Advances were effected in carnauba and candclilla waxes, a number of imported tanning materials, and oiticica oil. The following items were advanced :
VOLUME
φ
A T-'. I G
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h d v e _ jaJLcooJi _og_ ;_p_r_obJLem jL^iil.;_
G r a h a m steam jet v a c u u m w d t e r
coolers
are the mostmodernitypé of machine y o u cah~ b ύ y .; ^ .ί-bacIçë d b y i ; ô y e r 2 5 engineering
yWars7of-
e x p e r i e n c e , in t h i ^ f î é i d . : . .
À s k f o r b u l l e t i n N o . 6 0 . ". ;. I t g i v e s y o u , t h e f a c t s · _- : ^ > : .l;·: ^ . . - - · ^ ,:;;_/,·•> .·"'- . : v - 1Λ"*'-Λ .-" 1 y-AWarçJed the/Maritime *' Ai'.f /Pëhnàntand - Victory Fleet FJag,;Âpril .8/1944·
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GRAHAM M F G . CO., I N C . 4 1 5 Lexington Avenue, N e w York 1 7 , Ν. Υ.
FEBRUARY
10, 1 9 4 6
429
