BUSINESS
BEHIND THE
MAHUETS
HARRY STENERSON, Associate Editor
Competitive position of glycerol is strengthened by recent price cut in synthetic . . . More capacity planned by Shell and Dow to meet anticipated future demand •QRICE changes either way in glycerol million pounds a year. Its completion is A ordinarily occasion little comment, but set for late 1954, and in addition to glycthe reduction of 3V2 cents earlier this erol will turn out allyl chloride and epimonth for refined glycerol was effected by chlorohydrin. A second glycerol project getting some the synthetic producers and this has led to a good deal of speculation in that trade. attention is the one covered by a certifiThe price cut by Shell Chemical brought cate of necessity for $219,810, 60% the tank car basis to 40 cents per pound, certified, issued to Gustave T. Reich, at and corresponding reductions followed in Falling Creek, Va. Mr. Reich, with Pubthe various grades derived as by-products licker Industries, Philadelphia, for some time, is said to be an authority on ferof soap manufacture. Trade reports connect the price cut with mentation chemical processes. Dow Chemical is planning synthetic an effort on part of the synthetic producer to write new contracts, as some of glycerol operations and recently applied those entered into with consumers when for a certificate of necessity for that purthe synthetic project started some years pose. Some of the original Shell patents, ago are now expiring. The comment also out not all, for the production of glycerol is made that synthetic glycerol capacity from propjdene will expire in 1954. is due for expansion by Shell and others, but the action undoubtedly was com- Future Consumption These plans probably anticipate the petitive. Increased synthetic production would day when by-product glycerol supplies be welcomed because of the downward will be substantially lower than at prestrend in soap production and the indi- ent, while consumption of glycerol and cated future slump in the flow of glycerol other polyalcohols will be greater. How much greater is not easily forseen because from that industry. As to waning production of by-product of the competitive situation, particularly glycerol, the figures for the first half of in the alkyd coatings industry which has Ï953 hardly convey the idea that the been taking increased amounts of pentasoap industry or its glycerol units are erythritol for these products. Alkyd resins are understood to account on their last legs. Production crude in the first six months was 113.5 million for 29 to S07r of glycerol consumption in pounds which, if continued for the re- this country. Percentages of glycerol or mainder of the year, would make for a pcntaerythritol entering the manufacture crude output of better than 227 million of coating compounds are not fixed, and are variables depending upon the market pounds. Stocks of crude glycerol were by no prices for both products. Synthetic glycmeans burdensome at mid-year, and the erol makers are confident that their prodsame might be said for c.p. refined. In- uct can compete with PE. Cellophane is another important outventories of crude at the end of last June were 13,131,000 pounds, or 1.3 million let for glycerol, probably not as important above June 1952. They were more than as coating resins or tobacco. No market researcher, however, would ever set down 16 million pounds in June 1951. Refined c.p. glycerol stocks at the end cellophane for anything but increased of June totaled 25,774,000 pounds, or 1.2 production. Because of its good color million more than one year previous. How- synthetic glycerol is important to celloever, the refined inventories arc» some 2 phane. It is also approved by the Food and Drug Administration for foods and million pounds less than in 1951. The all-time record for glycerol pro- cosmetics. Pharmaceuticals require the duction was reached in 1950 at 225.5 USP grade. million pounds. This dropped to 211.3 Crude Glvcerol million in 1951, and to 187.9 million in 1952. Last year, however, was a period ( Production, 100% Basis, Thousands of Pounds) 1951 1952 1953 of strikes and plant shutdowns for other 22,538 17,059 17,938 causes and its comparison with 1951 or J a n . Feb. 21,265 17,740 17,778 1953 would not be a good one. March 22,537 17,513 20,985 April
Additional Capacity Shell's new synthetic glycerol plant at Norco, La., will add some 25 million pounds to production (C&EN, Aug. 24, page 3438) and probably bring the company's glycerol output up to around 80 3698
May
Tune July Aug. Sept. Oct. Nov. Dec. TOTAL
19,990 17,635 15,292 11,044 16,064 15,290 17,293 16,721 15,679 211,348
18,079 12,516 11,708 10,362 15,390 15,664 18,350 15,937 16,984 187,902
18,798 19,822 18,199
— — — — — — 113 5 2 0
CHEMICAL
When glycerol consumption was 240.3 million pounds in 1950, aikyds and ester gums accounted for 70 million; tobacc© and explosives; each 30 million; cellophane, 26.7 million; cosmetics and dentifrices, 12 million; drugs and pharmaceuticals, 12 million. No one polyalcohol can claim tobacco as its exclusive domain. It uses glycerol, sorbitol, and diethylene glycol. It is said that less glycerol is entering explosives due to the increased use of lower cost ethylene glycol. U.S.P. glycerol meets requirements of the United States Pharmacopeia. The term, "C.P." denoting chemically pure glycerol, is generally used for this product, according to the ACS monograph "Glycerol/' (No. 117) by Carl S. Miner and Ν. Ν. Dalton. The U.S.P. grade contains not less than 95% C 8 H 8 0 3 . The other grades, all well known, are high gravity, yellow distilled, dynamite, saponification crude, and soap lye crude. High gravity glycerol contains not less than 98.7c/c of glycerol and is suitable for resins and other industrial products. Yel low distilled is taken for certain processes where the higher purity types are n o t es sential. One of the more important is as a lubricant in tire molds. Dynamite glyc erol is of bigh concentration a n d in other respects is similar to higb gravity. Direct Ammonia Use A letter from J. P. Okie, industrial chemicals department manager, Shell Chemical, would indicate that this com pany played a more important part in the development of the direct u s e of am monia in the soil than was s e t forth on this page in the Aug. 24 issue. Mr. Okie's letter follows: Much as we were interested in your column last week about the expansion of anhydrous ammonia activities, w e feel that in several important respects you unin tentionally slighted the contribution which Shell Chemical has made to this field. For not only did our research and development people successfully introduce ammonia into irrigation waters in 1934, a s you indi cate, but they also initiated study of the direct injection of ammonia into the soil in 1938 and in 1941 sponsored the first successful commercial use of this method. In this connection we perfected and in 1938 patented both a metering system and a special injection shank. Due to government restrictions on the use of am monia during the early days of the war, this activity was interrupted, b u t in 1943 application to the soil by both irrigation and direct injection was resurned on a commercial basis. We have subsequently become the largest supplier in the west ern part of the United States. It may surprise you to learn that Shell Chemical does not sell agricultural am monia on an f.o.b. plant basis. All am monia sold to the farmer is applied by trained Shell Ν Ha distributors from com pany-owned containers. To make this pos sible. Shell Chemical obviously has h a d to take responsibility (including financial responsibility) for solving the transporta tion, storage, and application problems. We hope you will agree that this indi cates we have a fairly substantial amount of capital tied up in the field a.nd a com parable budget devoted to agricultural ammonia research. AND
ENGINEERING
NEWS
