Behind the Markets Lf HARRY STENERSON
K e e n e r c o m p e t i t i o n a n d lower prices s t i m u l a t i n g n e w p r o d u c t re s e a r c h i n t h e c h e m i c a l i n d u s t r y o n a ^vidc f r o n t . . . T h i s a c t i v i t y is now finding increased emphasis i n m a n y branches of manufacturing ^THHERE is valid reason to look for greatly increased emphasis upon new product development in the chemical manufactur ing industry over the next few years. Established a n d essential products are just as essential a s they were 10 years ago, but they m a y not be as profitable. Greatly increased productive capacity and a more intensified era of competition in the sale of established items can have b u t one result, the lowering of prices to the point where m a n y of t h e m will yield a small profit or no profit a t all. This pros pect of slimmer returns on t h e industry's bread-and-butter products explains more than a n y t h i n g else a t this time the re newed a n d greater activity in market re search a n d new product development. T h e experience of t h e E. I. du P o n t de Nemours & Co., Inc., has become almost a classic example of the value of continuous product development. Almost a year ago, the company's president, C. H . Greenewait, said t h a t they confidently expected to create m a n y new jobs through experi mental research. " I say this with assur ance," h e said, "because 20,000 D u Pont employees are t o d a y engaged in the manu facture a n d sale of products which either did not exist or were not produced com mercially in 1936. These products pro vide jobs for m a n y more thousands of people in other businesses which use and sell t h e m . " P a r t of M r . Greenewalt's s t a t e m e n t at t h a t t i m e was m a d e in connection with the $30 million expansion of research facilities a t his c o m p a n y ' s experimental station. Some Newer
Two Unusual
Products
O n e iiew product often brings prestige and business t o a m a n u f a c t u r e t h a t is equivalent t o a hundred more common place items. T h e n e w antibiotic aureomyein might b e placed in t h i s class. Lederle Laboratories released this product for sale a r o u n d the start of December; today it is available i n quantity sufficient to m e e t demand. Aureomycin h a s stimu lated great interest as the clinical evidence has shown i t to be highly specific against m a n y forms of pneumonia, including so-called virus pneumonia.
Developments
Since t h a t time, not only D u P o n t but other manufacturers have brought new chemicals t o t h e stage where they can either offer t h e m in quantities for com mercial use, or in smaller a m o u n t s for experimental processes a t their own or their customers' plants. N o conclusion can be reached as t o consuming trends; in fact, they a r e as diverse in their appli cations a s t h e industry's existing products. R o h m & H a a s Co., Philadelphia, list a number of new commercially available chemicals which were strictly experi mental items a few years ago. As might be expected, t h e y include some products related to t h e company's established methacrylates, known as higher methacrylates, also a n u m b e r of esters, alcohols, and nitrogen compounds. One indication t h a t a chemical has at tained commercial status is t h e addition of a price to i t s listing in t r a d e literature.
948
Koh.m ά H a a s consider t h e acrylic items as new products although only a b l e a t this stage to offer them in 400-lb. d r u m quan tities. T h e n-hexyl methacrylate is offered at 7 1 cents, n-lauryl methacrylate at 81.00, a n d n-octyl methacrylate a t 83 cents per p o u n d . These a r e all believed to ha,v-e promising application. O n the other hand three of t h e newer alco»hols t h u s far h a v e h a d only small industrial uses although more important outlets might b e found in t h e future. T h e y are octylphenoxy ethanol, a t 65 cents per pound, octylphenoxydiethoxyethanol, 65 cents, and octylphenoxytetraethoxyetha.nol, a t 50 cents p e r pound. Uses are in such things as ball point pens and cosmetics. T w o of the newer esters, methyl hydroxyisobutyrate a n d ethyl hydroxyisobatyrate, a r e intermediates for methacryl ate. A third, ethyl ethoxypropionate, finds application in pharmaceuticals.
C h e m i c a l Price T r e n d s Advances CURRENT PREVIOUS
Menthol, l b . Uraraon, t o n ° Alcohol, btityl, syn thetic, drums, lb. Alcohol, ro-butyl, ferxnent, drums, lb. Bixtyl acetate, second ary, tanks, lb. Biatyl acetate, second ary, carlots, lb. DLbutyl phthalate, lb. Lfcad acetate, lb. Lead carbonate, lb. Lead metal, lb. Lead oxide, red, lb. Lead oxide, yellow, lb. Oil, coconut, lb. Oil, corn, l b . Oil, cottonseed, lb. Oil, peanut, lb. Orange mineral, lb. Platinum, metal, oz. Rosin, gum, 100 lb. Ta-llow, lb. β Effective April 1.
S 8.80 98.00
S 8.75 93.00
S O.I6V2
S O.I8V2
O.ÏGVÎ
O.I91/2
O.liy*
0.13
0.13 0.32 0.2δ»Λ 0.19V4 0.18 0.203/4
0.19 V4 0.16 0.113/, 0.113/, 0.141/ί 0.2310 72.00 5.85 0.07i/a
0.141/Î
Ο.331/2 0.27 0.2O5 O.I91/2 0.221/4 Ο.211/4 0.17 0.12 0.121/4 O.I51/2 0.2460 78.00 6.54 0.O73/4
CHEMICAL
Chloromycetin, first of the antibiotics t o be synthesized b y Parke, D a v i s & Co. also appears destined for an outstanding career a m o n g manufactured pharmaceu tical chemical. . I t is reported t o be very effective against rickettsial ailments. N e i t h e r aureomycin nor Chloromycetin a r e now low-cost products. As in t h e instance of penicillin a n d streptomycin, however, price reductions are certain to come with expanded volume. Parathion, insecticide manufactured by American Cyanamid and M o n s a n t o Chem ical Co., a n d marketed by t h e former under the n a m e of Thiophos, will probably b e available for the first time t h i s year in volume sufficient t o meet seasonal de m a n d s . T h i s product, a thiophosphate, is n o t t h e complete answer t o the need for a general purpose insecticide, b u t its effec tiveness has been indicated against a very wide range of insects. There a r e probably h u n d r e d s of new chemicals with indicated uses which are awaiting further product or m a r k e t re search. T h e y m a k e up t h e chemical in d u s t r y ' s arsenal in its drive t o maintain v o l u m e and earnings in t h e years ahead. T h e maleic acid derivatives a r e among t h e groups which appear destined for m u c h m a r k e t development in the years a h e a d . A factor in this is t h e greater availability of diethyl maleate which is said t o offer advantages over maleic a n h y dride. Commercial Solvents Corp. says i t is often better to use diethyl maleate as t h e s t a r t i n g material rather t h a n t o at t e m p t esterification of t h e corresponding derivatives prepared from maleic a n h y dride. Price
Trends
The price situation in chemicals has been featured b y fairly substantial de clines in b u t y l alcohol, b o t h synthetic and fermentation, and in which action t h e synthetic manufacturers a r e understood to h a v e t a k e n t h e initiative. T h e current m a r k e t for synthetic b u t y l alcohol in d r u m quantities is now 16.5 cents per pound, a reduction of 2 cents from t h e previously prevailing quotation. N o r m a l b u t y l , fermentation grade, is down b y the same a m o u n t . In t h e view of the b u t y l producers, these commodities are following a long-term trend initiated by ethyl alcohol, which m u s t be considered the bellwether of the solvents group. F o r competitive reasons, b u t y l alcohol and its derivatives will probbably follow alcohol down and in this, the manufacturers are assisted to a n extent b y lower prices for grain. A good p a r t of the w a r inflation has been "washed o u t " of t h e b u t y l s a n d t h e y are now approximately o n e and a half times their prewar values.
AND
ENGINEERING
NFWS
