CHEMICAL INDUSTRY: No growth in demand - C&EN Global

May 10, 1971 - Basic chemical industry after-tax earnings dipped 10% in the first quarter, while the earnings for all manufacturers were posting about...
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company leaves these features open as ideas for inclusion in future models. The Varian instrument needs no external lock on TMS to maintain stability, the company claims. CHEMICAL INDUSTRY:

No growth in demand It is becoming increasingly evident that the basic chemical industry's continuing dismal financial performance is due primarily to an almost unprecedented lack of growth in demand for chemical products. The overall annual growth rate in domestic output of major chemical products followed closely by C&EN dipped to only 1% during the first quarter of this year. This follows a decade of uninterrupted gains at an average annual rate of close to 10%. Basic chemical industry after-tax earnings dipped 10% in the first quarter, while the earnings for all manufacturers were posting about an 8% gain. Chemical makers seemed to have some things going for them in the first quarter. For instance, overall chemical prices continued to show a slight improvement. Layoffs and other belt-tightening moves kept the increase in the industry's total labor costs to about 2 or 3% over the year-earlier level. However, the usual growth in business volume just hasn't been there. And it hasn't been there for more than a year. The overall running average annual growth rate for big-volume chemicals—including

Growth rate of chemical products continues to sag Per cent growth8

« Running average annual growth rate for 40 major chemical products. Source: U.S. Department of Commerce, Tariff Commission, Textile Economics Bureau

major inorganics, organics, plastics, and its derivatives, and some basic and man-made fibers—held at very reaction information are being declose to 10% throughout 1969. It veloped. For example, Dr. B. L. actually peaked at 10.4% at the Walker and Dr. J. A. Carney of the close of the year. However, it fell University of Guelph, Guelph, Ont., every month during 1970, reaching working with rat adrenals, found 2.4% in December. By February significant decreases of those cholesterol esters that lead to steroidothis year it was at 1.2%. Of course, this 14-month decline genesis in rats subjected to various has not been uniform throughout kinds of stresses—exposure to cold, the industry. Inorganic chemicals surgical insult, or starvation. Unhave been the least affected. Out- fortunately, at the same time other put of 14 inorganics, for instance, esters containing different fatty grew an average 3.3% in 1969. By acids also decreased in the rats. In a somewhat similar situation, this February this annual rate had drifted down to 2.3%, its relative antagonists for prostaglandins so far have failed to show clear-cut strength due mainly to fertilizers. Organics and plastics have been pharmacological activity in spite of much more heavily hit. In 1969 efforts by many workers, says Dr. production of organics gained 14%. J. H. Sanner of G. D. Searle and Co. Last year growth was about 3% and Three types of materials have rethere has been further weakening ceived the greatest attention: 7this year, particularly in styrene oxa derivatives of prostanoic acid, and vinyl chloride. Plastics grew polymers of phloretin phosphates, 19% in 1969, but their growth rate and complex dibenz-oxazepine hydrazines. is now down to about 2%. Low potency is particularly a The only bright spot on the horizon recently has been fibers. After problem; doses of 100 to 200 mg. a very weak year in 1970, shipments per kg. of body weight are needed moved up 8% in the first quarter of to have discernible effects in animal studies. What little effect has this year. been detected in such studies has no correlation with antiprostaglanBIOCHEMISTRY: din potency, according to Dr. SanRole of cholesterol ner, who also discussed some reSome further insight into the diffi- sults obtained by numerous other culties of trying to unravel the vi- scientists. What has happened, he tally important reactions and mech- adds, is that a start has been made anisms of cholesterol and of pros- in developing prostaglandin antagotaglandins was given in Houston, nists through basic knowledge of Tex., last week at the 62nd annual techniques and materials. meeting of the American Oil Chemists Society. Two Canadian scien- BLOOD CHEMISTRY: tists described efforts to identify the factors that influence the break- Sugar-sensing device down of cholesterol esters in rat Although insulin therapy has proved adrenals. And a research worker a boon to countless diabetics over from G. D. Searle outlined current the years, inability to continuously efforts to develop effective prosta- match an individual's insulin need with his blood sugar level gives rise glandin antagonists. Cholesterol esterified to fatty to a variety of undesirable side efacids in blood, the liver, and cer- fects caused by wide swings betain endocrine organs is receiving I tween large excess and too little of much study because of the convic- the hormone. Better days may be tion by many medical scientists that ahead for diabetics as a result of a it is intimately involved in proc- sensing device that monitors the esses that lead to atherosclerosis rise and fall in the level of blood and heart disease. Breakdown of sugar as it occurs. Developed by cholesterol esters in adrenal glands the University of Southern Califorand livers during periods of stress nia's school of medicine, the unit, has been thought by some to be a which may be implanted in a percause of increased cholesterol levels son's body, retains its sensitivity inin blood and of the subsequent definitely and doesn't adversely affect the blood's chemistry. heart and circulatory difficulties. The glucose sensor opens the way Proof of these theories eludes researchers, although techniques for to design of a sophisticated insulin studying metabolism of the esters, delivery system, contends Dr. Samanalytical techniques for cholesterol I uel Bessman, chairman of USC's deMAY 10, 1971 C&EN 23