^eÂùtdt&e 'TfùvtâeU è? HARRY S T E N E R S O N
Freer supply of butyl alcohol a n d acetate is accounted f o r by slower rate of buying rather than by increased production . . . Fermentat i o n i n d u s t r y h a s b e e n f a v o r e d to a n e x t e n t b y l o w e r g r a i n p r i c e UTYL alcohol and butyl acetate joined the lower trend of ethanol and other solvents during the first week in May when the tank car basis for both synthetic and fermentation grades were reduced one cent to 14 cents per pound. Methanol at about the same time was cut one cent to 26 cents per gallon, tank cars, and both reductions were comparatively mild as compared to the deflationary movement which brought denatured ethyl alcohol down to about one fourth of its cost in 1948. Butyl alcohol consumers evidently had expected a more sizable adjustment in prices, and many of them had deferred delivery contracts pending such action. The course of the market from now on will depend upon a number of factors; principally sellers' competition, supplies, and raw material costs. Neither the synthetic nor the fermentation producers at this time have any price advantage in the sale of butyl solvents. Both are quoting tank cars at 14 cents, drums in carlots 15.5 cents, and drums in less than carlo ts at 16.5 cents. One segment, however, may have a costs advantage, and some believe it is significant that the initiative in the recent price reduction was taken by a synthetic producer. η-Butyl alcohol and acetate are made synthetically by some from hydrocarbon gases while others employ ethanol as a starting point. The raw material of the fermentation butyl producers is corn, and it is worth noting that the costs for this product have been curving down ward in recent months. The cash market for corn in Chicago during the first week of May was $1.39 to $1.39% per bushel, or some 93 cents lower than it was a year ago. Corn prices have been ruling below the government support level.
B
Solvent Supplies Supplies of both butyl solvents are undeniably larger than they have been over the past 12 months or so. There is reason to believe that they are not excessive, and that they stem from cur tailed buying rather than from large production. The outputs of primary τι-butyl alcohol last year aggregated 140,268,824 lb., as compared with 138,816,908 lb. during 1947, an increase of a l i t t l e n i o r e than 1%. Butyl alcohol production during the first two months of this year also shows only a moderate gain over the same time 1484
in 1948. The totals are 21,614,877 lb. as against 21,046,397 lb. The fermentation producer dependent upon corn often finds himself in competi tion with the feed industry for supplies. In times of grain shortage the feedstuff trade, with a more flexible price economy, can outbid the chemical producer for the grain. At mid-March, however, the index of grain feed prices was 4Z% lower than a year earlier, and corn was still below the support level. The chemical producer as a result has bene fitted through lessened competition for his raw material. The consuming pattern for butyl sol vents has not changed greatly over the years. η-Butyl alcohol is a widely em ployed solvent for resins, especially for ethyl cellulose, and is a latent solvent for nitrocellulose. η-Butyl alcohol and acetate enter a wide list of synthetic organic chemicals. The industry based on automobile coatings and other lac quers was practically built upon the availability of low-cost butyl alcohol.
Chemical Price T r e n d s Advances Menthol, lb.
CURRENT
PREVIOUS
$9.20
S 9.00
Declines Acetaldehyde, 99%, lb. $ O.IIV2 S 0.12 Acid, acetic, glacial, synth., drums, 100 9.00 10.00 lbs. Acid, acetic, glacial, synthetic, tanks, 100 7.50 8.50 lbs. Alcohol, butyl, second ary, tanks, lb. 0.10 O.lOi/ι Alcohol, butyl, syn thetic, drums, lb. 0.151/* O.I61/2 Alcohol, butyl, syn 0.14 0.15 thetic, tanks, lb. Alcohol, η-butyl, fer ment, grade, drums, lb. 0.151/2 O.I6V2 Alcohol, η-butyl, fer ment, grade, tanks, lb. 0.14 0.15 Alcohol, propyl, tanks lb. 0.08 0.10 Aluminum chloride, lb. 0.10 0.12 Ammonium chloride, gray, 1001b. 7.05 7.60 Butyl acetate, second ary, tanks, lb. 0.11 O.IIV2 Butyl acetate, syn thetic, drums, lb. 0.151/2 O.I6V2 Butyl lactate, lb. 0.421Λ 0.46 Copper chloride, lb. 0.18'A o.2iy* Dibutyl phthalate, lb. 0.31V* 0.32 Lead carbonate, lb. 0.16»/* 0.17»A Lead metal, Ν. Υ., lb. 0.14 0.15 Lead oxide, yellow, lb. 0.15»/« 0.16*A Phloroglucinol, com mercial, lb. 4.50 7.00 Rosin, gum, 100 lb. 6.20 6.38 ! Toluene, Pittsburgh, tanks, gal. O.20 0.23 Turpentine, gum, gal. 0.39V4 0.401/1 Zinc ammonium chlo ride, lb. 0.075 0.081 Zinc sulfate, 100 lb. 4.55 5.25
1
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CHEMICAL
In lacquers it increases the solvent power of other solvents, enhances blush resist ance in coatings. Chemical Tank Barge» The chemical expansion in the South west may be giving its first indication» of nearing completion, but the capacity for chemicals already established in Texas and elsewhere in the South will call for greater shipping facilities than are now available. Water shipment is now being employed for such things as caustic soda, chlorine, alcohol, and the return of normal competitive selling in the industry would indicate that barge and tanker shipment might be resorted to on a growing scale in an effort t o hold down costs. Ethyl alcohol of synthetic manufac ture was loaded some time ago at New Orleans for shipment to Yonkers, Ν. Υ., and according to the Seaboard Shipping Co., operating the service, this was the first alcohol cargo to be transported by tank barge. The vessel is 200 feet long, 42 feet wide, and about 12 feet deep. Other commodities transported by barge during April included 2,000 tons of liquid caustic soda and 550 tons of cot ton linters. These were shipped from Lake Charles, La., to Havana. Cuba. The company stated that similar opera tions are planned along the Atlantic Coast. The savings in shipment costs over rail transportation are obvious and should be reflected in lower prices for bulk chemicals produced in the Gulf area. I n this connection, it is interesting to note that the Stanolind Oil
