Behind the Markets ty
HARRY STENERSON
Use of m o l a s s e s i n a l c o h o l m a n u f a c t u r e c u t i n half d u r i n g 19461947.. .Prices for m a n y essential raw m a t e r i a l s f o u n d prohibitive b y d r u g i n d u s t r y . . , C o t t o n - r a y on s t a t u s n o w r e v e r s e d "C^THYLENE, sulfite liquor, and potatoes are the raw materials t h a t are providing more of the nation's postwar alcohol supply along with corn, while the use of molasses has been cut in half. In normal times, prior to government control, corn and molasses were the major materials for industrial alcohol manufacture. More corn is finding its way into distilleries than last year, b u t the total use of all grains is down considerably. T h e Treasury D e p a r t m e n t ' s Alcohol T a x Unit shows t h a t for the 9-month period, July 1947-March 1948, the use of grain products for industrial alcohol amounted t o 329,232,823 lb., as compared with 1,175,909,825 lb. during the corresponding period in 1945-1946. Only 44,150,389 gal. of molasses entered alcohol against 88,370,384 gal. in 1945-1946. Industrial alcohol plants, on the other hand, reported t h e use of 550,371,988 lb. of potatoes and potato products during the 9 months, Gompared with 91,533,916 lb. in the previous period. For m a n y consuming lines the alcohol shortage is a thing of t h e past, and it -was even noted a t t h e recent meeting of the American D r u g Manufacturers Association t h a t the supply now seems adequate. It was stated t h a t t h e use of synthetics and other items had greatly increased the demand, and attention was called to the fact t h a t the price has increased to practically four times the prewar cost. Prices Found
Use of
Substitutes
M a n y will think it odd t h a t consuming industries should find it necessary to discuss substitutes for glycerin almost 2 years after J a p a n ' s defeat; still we hear that propylene glycol can be used in place of it, also t h a t work is being conducted toward t h e development of other substitutes. In certain lines, such as pharmaceuticals and synthetic resins (phthalic resins), there is no alternative for glycerin and the manu-
Drug Industry
Needs
Sugar
Sugar bowls m a y be back on household a n d restaurant tables but industry is still n o t getting its full requirements. The
CORROSION CONTROL
Prohibitive
B u t n o t all raw materials for drug manufacture h a v e returned t o their former star tus. A committee headed by C. L. McArthur m a d e specific mention in this connection of intermediates, solvents, corn products, special alcohols, phenols, salicylates, soda ash, alkalies, acetic anhydride, domestic caffeine and theobromine, also raw glandular materials. T h e drug manufacturers also indicated t h a t they were not able to b u y some chemical products at prevailing prices. In some cases, t h e report said, certain products are available at a greatly increased price b u t with a n increase of from three to five times the usual price, it is not economically possible t o use the material. Saccharin is now down to earth with resumption of normal production, but during the recent stringency i t was offered in the markets as high as S8.85 per lb., although available formerly at S1.30. Other things still far short of demand are, according to the drug industry report, sugar, glycerin, and packaging materials. VOLUME
Diversion of raw materials is held partly responsible for the glycerin headache. Coconut oil from t h e Philippines would now probably be sufficient, it was said, except for one thing. T h e Government directed t h a t 5 0 % of the available coconut oil be diverted to Europe For use as fat, so t h e shortage continues. T h e price of glycerin meanwhile rose from 18 cents to around 55 cents per lb., which, it was contended, almost prohibits its use in some cases. (The price for C.P. glycerin is now easier.)
facturer has no choice between a substitute a n d a high price. The D e p a r t m e n t of Commerce affirms t h a t the supply of glycerin is short, b u t it holds t h a t t h e coming months might witness a better balance of supply and demand as more raw materials become available. Copra is the product from which coconut oil is obtained, and it is estimated t h a t the exportable surplus of copra from t h e Republic of t h e Philippines during 1947 will increase 9 to 10% over 1946. The government agency also states that a larger quantity of inedible tallow and grease is anticipated from domestic slaughtering houses as the result of an expected rise of 1 0 % in the cattle kill. T o alleviate t h e situation, we are importing crude glycerin from Argentina a n d the Dutch East Indies and bringing in refined glycerin from Belgium, Portugal, a n d India. Glycerin production is being revived in Japan.
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M u t u a l C h r o m i u m Chemicals are b e i n g used increasingly in varied industries to c o m b a t c o r r o s i o n of ferrous surfaces because they have p r o v e d to b e the m o s t e c o n o m i c a l a n d effective chemicals in a w i d e range o f c o r r o s i o n c o n t r o l a p p l i c a t i o n s . I n m o s t i n s t a n c e s , only small quantities are needed t o p r o l o n g t h e life of the e x p o s e d metal indefinitely at small cost. P r o g r e s s i v e m a i n t e n a n c e m e n n o w c o n s i d e r i t just as u n s o u n d t o b r i n g steel o r cast i r o n i n t o c o n t a c t w i t h stagnant o r r e c i r c u l a t i n g w a t e r , without r e n d e r i n g t h e w a t e r rust-inhibitive, as t o e x p o s e t h e metal t o t h e a t m o s p h e r e without p r o t e c t i o n . I n fact, c h e m i c a l rust i n h i b i t i o n is n o w o n a practical footing w i t h the t w o o t h e r major p r i n c i p l e s o f c o r r o s i o n prevention — p r o t e c t i v e c o a t i n g s and special alloys. S o m e o f t h e m o r e r e c e n t uses of c h r o m a t e c o r r o s i o n i n h i b i t o r s are i n refinery cond e n s e r s and c o o l e r s , diesel e n g i n e s , pipe lines, hydraulic Jifts, m e r c u r y arc rectifiers a n d s l u s h i n g c o m p o u n d s . If any of these applications suggests a possibility of using c h r o m a t e s i n o n e of y o u r o p e r a t i o n s , w r i t e to o u r R e s e a r c h Dept., stating in detail your corrosion problem. Bichromate of Soda Bichromate of Potash
Chromate of Soda Chromate of Potash
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VOLTAGE REGULATOR W i t h a STABILINE type IE Voltage Regulator in the power line, electrical apparatus is assured of constant voltage. Regardless of line changes — rapid fluctuations or slow variations — the delivered voltage is held to w i t h i n — 0.1 volts of the preset value. Typical are the performance curves of type IE5101. Although the input line voltage may vary from 95 to 135 volts, the preset o u t p u t voltage is stabilized to well within — 0.1 volts. Fluctuating line voltage is just one problem of many in maintaining constant voltage. Others are varying frequen cies, loads, power factors together with waveform distortion. An investigation of the STABILINE type IE w i l l show, in addition to stabilization of — 0.1 volts, such characteristics as . . . waveform distortion never exceeding 3 percent . . . regu lation to within — 0.15 volts for any load current change or load power factor change from lagging .5 to leading .9. Write Superior Electric, 926 Laurel Street. Far Information and Literature
SUPERIOR ELECTRIC co.
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A D M A report said in this connection: 4 'Practically every pharmaceutical m a n u facturer contacted is in need of sugar. In 1946 the United S t a t e s h a d available 7,7S0,0O0 short tons. T h e a m o u n t esti m a t e d for 1947 i s 9,300,000 tons. T h i s is an increase of 1,520,000 tons over 1946 a n d 1,300,000 t o n s o v e r 1941. O u r p e r capita consumption of s u g a r d r o p p e d from 98 lb. in 1940 to 73 lb. in 1945. If the estimate for the 1947 crops proves accurate the per capitt. c o n s u m p t i o n should b e in t h e vicin ity of SS lb. or slightly more for the present year. I t is estimated t h a t we will n o t strike a balance between supply a n d de m a n d before 19-48 if production continues under favorable conditions. E v e n then the situation will n o t be entirely normal, b u t will be a great improvement over t h e first few years. Special sugars, dextrose, glucose, maltose, as well as starch and sim ilar p r o d u c t s derived from, grain h a v e improved, b u t i n some cases are in s h o r t supply. 7 ' While industrial production for t h e na tion during M a y held a t t b e high April r a t e the adjusted F e d e r a l R e s e r v e Board figure for t h e l a t t e r now shows t h a t pro duction d r o p p e d a b o u t 4 points from t h e March high of 190. Chemical production remained a t a r o u n d p e a k levels, b u t tex tile production is still declining from t h e high m a r k s set i n the fall of 1946. April d a t a for chemicals are n o t avail able for analysis, b u t production probably held a t t h e F E B I n d e x of 254 set in M a r c h , which equaled t h e 1946 high. T h e r a t e in M a r c h 1946 was 234. T h e index for industrial ckiemical production rose to 429 in M a r c h , c o m p a r e d with 422 a t t h e end of last year a n d 3S2 one year ago. E m p l o y m e n t in the chemical industry also is holding a t very high levels. T h e n u m b e r engaged in chemicals a n d allied p r o d u c t s t o t a l e d 566,000 a t t h e end of M a r c h , according to t h e U. S. B u r e a u of Labor S t a t i s t i c s , compared with 555,000 at t h e end of 1946, and with 540,000 a year ago.
CHEMICAL
Textile
Trends
Textile i n d u s t r y trends are of p a r a m o u n t i m p o r t a n c e to chemical manufacturers in view of t h e large and growing use of or ganic a n d inorganic chemicals in this field. A survey b y t b e C o m m e r c e D e p a r t m e n t shows t h a t wool consumption on a per capita basis doubled between 1939 and 1946, due p a r t l y to changes in clothing types worn by w o m e n , also t o b u n c h i n g of wool d e m a n d for other purposes. C o t t o n consumption w a s only one-third higher, a n d while the s u r v e y does n o t say so, this was u n d o u b t e d l y due to inordinately high prices for cotton as well a s competition from o t h e r fibers. I t does p o i n t out, how ever, t h a t r a y o n fiber has risen less in price t h a n e i t h e r cotton or wool, t h u s giving rayon a competitive a d v a n t a g e . P o u n d for pound, says Survey of Current Busi ness, r a y o n staple fiber now costs less t h a n raw7 c o t t o n , reversing t h e p r e w a r price.
AND
ENGINEERING
NEWS
