price was 14 cents a gallon, with total cost to Carbide (including freight, duty, and reprocessing) about 26.5 cents. To date, 18 million gallons have been delivered—with n o indication when t h e rest will b e coming. Only o n e U. S. fermenter is producing on a large scale basis today—Publicker Industries of Philadelphia. P u b licker's total capacity is 124 million gallons a year, b u t operations are far Lack of invert molasses and high cost cloud future, below this rate. L a r g e volumes of molasses which t h e company holds in storbut surplus corn could come to the rescue age at N e w Orleans a n d other locations are being consumed, but spokesmen During Cuba's most recent sugar sur- will not indicate h o w long it can conJLVISING SUGAR PRICES spell prosperity for planters—but serious trouble for plus period, producers there sold a large tinue to operate on this backlog. fermentation alcohol producers. Going amount of their sugar as "high test" or USI is operating West Coast fermenworld rate is 6.75 cents a p o u n d of raw invert molasses with the price as low as tation facilities probably using Hawaisugar, more than double t h e price six 7.8 cents per gallon. This equals a ian a n d local molasses. Cross country months ago. This is a high figure which sugar content price of I V 4 cents a shipping costs a n d by-product use also means t h e disappearance of cheap pound, a most economical level a n d one change economics in such production. molasses, a necessary item if fermenta- at which t h e fermentation industry Commercial Solvents is producing some could compete well a n d survive. In industrial a ^ o h o l from grain and cleantion alcohol is to remain competitive. Some three fourths of t h e nation's 1955, t h e Cubans produced 215.9 mil- ing u p remaining molasses inventories. industrial alcohol is produced syntheti- lion gallons of invert for export, all but Sugar prices will probably stay high cally, using ethylene as a r a w material. 77 million for t h e U . S. Similar figures for several years. Long term futures Latest government estimates show U . S. for 1956 are 97.9 million produced for are close to the 5-cent level; short term capacity at 2 4 3 million gallons of syn- export, all b u t 14 for t h e U . S. But arc close t o current rate. T h e Cubans with s u g a r prices now a t a high level, and others in t h e International Sugar thetic alcohol annually. Union Carbide is shown as t h e largest no invert is being produced for export Council a r e trying hard to keep producproducer, with 120 million gallons this year and none is foreseen for 1958. tion in line. This year's C u b a n crop, (Whiting, Ind., 15 million; South Charleston, W . Va., 4 0 million; Institute, W . Va., 10 million; Texas City, Tex., 55 million). Esso is second with âJ>ulH&â& Cubait Mo!asses D i m a 42-million-gallon capacity. USI ( National Distillers) is next with 4 0 million, ; Cuban Frpiduat^îk * 225r~~ captive uses. N o w that sugar prices j . W h e n sugar prices d r o p , T h e fiscal year ended June 3 0 , 1956, 200 a r e h i g h , there's n o i n v e r t p r o d u c t i o n goes up saw 255.7 million gallons of industrial invert i n sight alcohol ( 9 5 % ) produced, 1 8 1 million Ï75Î synthetically a n d 66.4 million from molasses. Today's ratio is even more oneÏ50I 740 ' sided becaused of sugar developments. During the period July 1956-February 12$; 1957, 28.5 million gallons of molasses went into alcohol. In the same 1955 Té' 56 period, t h e figure was 6 7 . 7 million gallons. • Synthetic Price Is Cheap. In view of its relative size, synthetic alcohol naturally sets the price pattern. Today, it's 4 7 cents a gallon for the "naked" alcohol (without dénaturant a d d e d ) . This allows a decent margin s. of profit, with estimates for making it : J95^(fà} -1958 $BS$3 : ^miîkim^Q from ethylene ranging anywhere from 14 to 3 3 cents a gallon, according to current government data. t W o r l d Situation a n d Effect. T h e already almost completely sold, is estiBlack strap, t h e lowest grade of mo- world alcohol picture is confused and mated between 5.15 and 5.5 million lasses, sells a t close to 2 5 cents a gallon tight. F o r years France has exported tons. O n e thing could darken t h e delivered in the United States for ani- large quantities of alcohol t o the U. S. Cubans' rosy picture, and they know it: mal feed. This is far out of reach for and o t h e r countries. With t h e price of overproduction—6 to 7 million tons, as fermentation use. Some 2l/2 gallons sugar u p and t h e difficulties caused by just after Korea. I t took t w o years of of black strap are required to produce the Suez crisis, t h e French stopped ex- drought a n d a "sugar panic" t o elimi1 gallon of alcohol ( t h e actual ratio is porting. A year ago France contracted nate this C u b a n stockpile. 15 pounds of sugar content for 1 gallon to sell 2 4 million gallons of alcohol from • Surplus Corn Is t h e Answer. P u b of alcohol). sugar beets t o Union Carbide. Base licker doesn't feel that the picture is all
•M A R K E T S
Fermentation Alcohol Slips
94
C&EN
MAY
6, 1 9 5 7
black. As oae top company executive peats SL "We balneal decided as yet to g o out of the fermentation business." Ladustay people have taken a long look M tibe wepost of the President's Commissoon on Increased Industrial Use of AgrBCufoumal Ptodocts (C&EN r April 29, page 4 7 ) . They feel this will not only help dear faun surpluses but could save amd prove a boon to the fermentatioiQ alcohol insestui&urv. The «wntt route to alcohol is probably î h e next step. T o be competitive, surplus coann ^rôwld bave to be sold to the iaadnstry by the Government at prices as low as 30 cents a bushel. While this
price is considerably lower than government support levels, agriculture's problem is to eliminate some of the surpluses which constantly pile u p at high storage costs. Publicker and other producers note that people have been saying that the fermentation alcohol industry has been on its last legs for a good many years, but they're still in business. Nevertheless, the day of really cheap invert molasses looks like a past era, in the near future at least. Cheap surplus and offgrade corn may be the only answer to keep the synthetic producers from becoming the alcohol industry.
SITUATION WANTED PLANT NEEDING HEAVY DUTY CORROSION PROTECTION
Feed Supplements Stepped Up Capacity for BHT being doubled and promotion is pushed for antibiotics in poultry/ animal rations WOTLO
NOT EXPECT
that
a
doubling of plant capacity for p-cresol had nrauch to do with the feed industry. IBL a large measure this happens t o g-gplaihn the action of Hercules Powder nra dkwrchlftngr p-creso! facilities at GibbsNL J. Tbe product being taken in infeoeasÈEig quantity for feeds is a purified grade called butyîated hydhroxy toloeneBHT itself is not a nutrient in feeds. It protects nutrient vahte and palatahOfty of poultry and anfma? feeds and prevents rancidity- It inhibits decompocâfcâon of αβ-sohibîe vftamms. USI Chesmôcals says BHT also enhances nTiHlrè-afrirera of tlbe yefiorar carotenoid pignuentts* tiros imparting good skin and color to poultry. The ratio is V 4 to 11 ' 2 pound of B H T per ton of feed. Hercules evidently underestimated die BHT demand when it provided for ,a 3HnaiBkiia-pc«ind unit at Gibbstown for ponrified p-cxesol. The new facility went into operation early this year. A second wctSt with similar capacity was planaaed inamedliateJy and with its compSetkwii production at Gibbstown will be brou^bt to 6 million pounds a year. Î F e e d Antfbrôttcs. The feed market for penicillin, cMorotetracycline, oxy-tetracyeîme. bacitracin, and other antu>fiotks« sneanwbile^ continues to expaiod. Two years ago the production of antibiotics as feed supplements lagged bebimd demand, since then has beea stepped op moderately. Total output in 1955* for example, was 520,000 pouudsv while sales ran to 553*000 pounds. Production of antibiotics far this market probably ranged up feo 570,000 pounds in 1956 and should undergo additional increases this yearAmtibiotks as feed supplements alone probably represent an annual
market of around $28 million at the present time. Sales two years ago were $26.1 million and estimates on current business must give effect to the active development that has taken place in this field recently. "High-level feeding" is the objective of current programs for the antibiotic supplements and aims at disease prevention in poultry and animals with big doses. The sales pitch of the chemical companies: lower stock losses, healthier animals, and better market return. • Package Idea Grows. High-level antibiotic feeding may call for 50 to 200 grains of zinc bacitracin per ton of feed, plus other nutrients. In Com-
Antibiotics for Animal Feed Supplements
If paint is doing a satisfactory job of pro tecting your plant structure or equipment against chemical fumes, splash or spray, stop right here. If not, GACO Neoprene N-700 Maintenance Coating is a product you should know about. It wraps a film of tough, elastic Neoprene rubber around metal, wood, or concrete ; offers the advan tages of higher resistance to corrosive agents, wide temperature ranges, sunlight, weathering, surface abrasion—and at lower applied cost.
i
1956 1955 1954 1953 1952 1951
Production, Pounds 570,000 (est.) 520,000 479,000 434,000 258,000 236,000
Sales, Pounds 565,000 (est.) 553,000 562,000 391,000 172,000 196,000
Value of Sales (Dollars)
Total 1956 1955 1954 1953 1952 1951
9
$26,105,000 25,871,000 19,423,000 16,962,000 17,532,000
• N o t available S. Tariff Commission
Unit Value ο
$47.21 46.03 49.68 98.50 89.31
GACO Neoprene STARTS work where the toughest paints fail You get a back-log of almost 20 years of experience in corrosion control among the top names in U.S. Industry when you specify GACO Neoprene Protective Coat ings. And there's an entire family of 6AC0 products and services available including field technicians, laboratory, fabrication, and lining facilities. A GACO Corrosion Specialist in your area is prepared to serve you. For complete information, write-we'll forward literature of interest. GATES ENGINEERING
COMPANY
Wilmington 9 9 , Delaware Pioneer Leader fn Protective Coatings Authorized
Distributors
in
principal cities U.S.A. Australia.
Belgium. England. Finland. France. Israel, iapan. Norway. Okinawa. Philippine Islands. Puerto Rico. Sweden. In Canada: Gaco Products Ltd.. Brantford. Ontario.
MAY
6.
1957
C&EN
95
