INDUSTRY
& B U S I N ESS
Molybdenum Shortage to Ease Next Year Record output this year and planned expansions put end of shortage in sight U.S. molybdenum producers expect to turn out a record-breaking 77 million pounds of the metal this year. This is a 17% increase over last year's production of 65.6 million pounds. But more important, it is a good indication that both the domestic and world-wide shortage of molybdenum is easing. The U.S. accounts for about 70% of Free World production. Donald J. Donahue, executive vice president and treasurer of American Metal Climax, sees the end of a tight supply situation which has intensified since 1963. Mr. Donahue forecasts that substantial new primary molybdenum production, together with expanded recovery of molybdenum as a by-product of copper refining, will increase Free World capacity to more than 110 million pounds in 1966. This is more than a 10% jump over the expected output of 98 million pounds this year. However, he says that, while the tight supply will ease, he doesn't foresee an oversupply of molybdenum on the Free World market. Last year, U.S. consumption of molybdenum concentrate (MoS 2 ) hit about 46 million pounds (contained molybdenum). Free World consumption hit about 85 million pounds. Mr. Donahue says that, since the Korean conflict, the annual growth rate in consumption in the Free World has averaged 5 % ; the U.S. averaged just under 5 % . But during the current period of general business expansion, he says, growth in consumption has exceeded 10% per year, both domestic and foreign. At this rate, U.S. consumption should hit about 53 million pounds this year; in 1966, it should jump to about 57 million pounds. Free World consumption should hit about 93 million pounds in 1965 and about 102 million pounds in 1966. But the consumption figures don't
show accurately the demand situation. Molybdenum users have had to be satisfied with what they got because of the tight supply. Mr. Donahue says this is one reason why the 110 million pounds of Free World production in 1966 won't lead to oversupply. He says, "Consumers everywhere have been forced into deliberate molybdenum conservation. What the growth in consumption would have been had molybdenum been freely available is a matter of speculation." The steel industry, which accounts for about 80% of the total U.S. consumption of molybdenum, has been using conservation measures throughout 1964 and 1965. In making molybdenum alloys, steel producers have been working on the extreme low side
of the percentage of molybdenum in alloys. However, in 1966, with increased supplies available, there will be a relaxation in conservation, Mr. Donahue says. In addition, increased supplies will stimulate interest in developing new uses for molybdenum. Stockpiles. Since 1963 the tight supply situation has been relieved somewhat by the release of the metal from government stockpiles by the General Services Administration. In 1963, GSA released 5 million pounds of molybdenum concentrate (contained molybdenum); in 1964, 8 million pounds; and in the early part of 1965, 3 million pounds. Government stockpiles now total 68 million pounds, which is the national security objective established in March 1964.
MINING. At Climax Molybdenum's mine in Colorado, holes are drilled before blasting. Climax, now the nation's only primary producer, will soon be joined by Molybdenum Corp. of America, whose mine in New Mexico is near completion
Producers are now on their own to meet U.S. demand. By-product molybdenum is an unreliable source, because it is tied to copper production. If copper production is up, so is molybdenum production. However, the reverse is also true. Wallace MacGregor, president of Climax Molybdenum, a division of Amax, says that more effort must be expended to find new deposits. Climax Molybdenum, the sole primary molybdenum producer in the U.S., plans to have a 3.5 million pound-a-year molybdic oxide operation in full swing next year at the Climax mine in Colorado. Next month, however, Climax Molybdenum will have company. At that time, Molybdenum Coip. of America will start operating a new molybdenite mine at Questa, N.M. The company says that total production from the
Molybdenum Output and Use Spurt Ahead
Year
(millions of pounds) U.S. Exports Industrial U.S. and ProConsump- Inventory duction* Build-up tion**
1964
62 57 61 41 51 68 67 51 65 66
1965
77**
1955 1956 1957 1958 1959 1960 1961 1962 1963
37 39 35 27 35 36 35 38 41 46 53
25 18 26 14 16 32 32 13 24 20 24
•U.S. Bureau of Mines figures. ••Climax Molybdenum estimates.
mine in 1966 will be about 10 million pounds (contained molybdenum). In 1967, Kennecott Copper, the largest producer of by-product molybdenum, will be operating its first molybdenite mine, thus becoming a primary producer. The mine is in British Columbia, Can. (C&EN, Feb. 15, page 17). Challenge. Mr. Donahue says, "The challenge facing molybdenum producers is to provide industry in all sectors of the Free World with an assured supply." He believes that expansions under way or projected will enable the molybdenum industry to meet that challenge for the remainder of the sixties. The principal longerrange objective, he adds, is to be able to cope with requirements for molybdenum in the seventies. 38
C&EN
NOV.
8,
1965
Aluminum, Steel Vie for Beverage Can Market The struggle between aluminum and steel producers for the can materials market is back in the news. The current battleground is the beverage can business. Aluminum has been making steady inroads into beverage cans— especially for beer—despite the fact that tinplated steel and aluminum cans are priced about the same. But in the past few weeks: • Major steel companies have cut prices on tin-free steel suitable for use in beverage cans, and raised prices of tinplated steel for cans. • American Can Co. announced that its new tinless beer can (C&EN, Aug. 23, page 24) will be about 10% less costly than comparable tinplated cans, effective Jan. 1, 1966. • National Can Corp. and Crown Cork & Seal Co. have been licensed by American to make its tinless beverage cans. Continental says it has an agreement with American to acquire rights to the system. The aluminum industry meanwhile has countered with a statement that it isn't shaken by these moves. Alcoa predicts substantial gains in can industry consumption of aluminum in 1966 and adds that tin-free steel cans are "as yet untried" in terms of "adhesives, coatings, transporting, storage, opening, and functional aspects." U.S. Steel started the latest offensive when it cut the price of tinless steel 45 cents per base box to $8.00 "to speed reception of the new allsteel c a n " At the same time, the price of tinplated steel was raised 25 cents per base box to $9.35. U.S. Steel's action was followed by other major steel firms, with National Steel adding a new twist. National came out with a new price on a steel with a very light coating of tin that is only 10 cents per base box higher than the previous price. Responding to the steel companies' moves, American Can boosted its prices on tinplated steel, effective Dec. 1. What the new prices are American hasn't said yet. American, National, and Continental will begin producing the lower-priced tinless steel cans next year. Clouding the picture even more for aluminum producers is the recent attempt to raise the price of aluminum a half cent a pound to 25 cents (see page 3 4 ) . Optimistic statements to
the contrary, aluminum will not have an easy time furthering its penetration of the beverage can market. Both tinless and lightly tinplated steel cans will be lower priced than either aluminum or conventional tin-plated cans. Just how aluminum will meet this challenge isn't clear as yet.
Air Products Enters Food Freezer Business Air Products & Chemicals is entering the liquid-nitrogen food freezing business with a new quick-freeze system called Cryo-Quick. It displayed the system last week at the National Frozen Food Show in New York City. The new system is a conveyorized, inline, continuous freezer. It is available as a complete, off-the-shelf, liquid-nitrogen food freezing unit. The company claims it can fresh freeze such things as tomatoes and avocados, which can not be successfully frozen using mechanical methods. A stainless steel conveyor carries food through an insulated freezing tunnel, also stainless steel, where the food is rapidly frozen by a spray of liquid nitrogen at - 3 2 0 ° F. Shrimp, for instance, are frozen in nine minutes using this method; mechanical freezers take two to four hours. The quick freezing technique prevents the formation of large ice crystals which often severely damage the cells of food products. Since cell-wall rupture is minimized, drip loss is reduced, and dehydration is cut considerably. (Weight loss with shrimp is reduced from 10 to 17c) Nitrogen is used because it is inert, is the least expensive usable material, and is available in large quantities, usually as a by-product of liquid oxygen production. Currently, the use of liquid nitrogen for food freezing represents almost 5% of industrial nitrogen sales of 2 million tons for 1965, according to Donald E. Cummings, vice president of Air Products. But he expects that by 1970 this segment may reach 30% ($190 million). Other companies already in the business are Liquid Carbonic division of General Dynamics Corp. with CryO-Transfer (developed by Integral Process Systems), National Cylinder Gas division of Chemetron Coip. with Ultra-Freeze (made by J. W. Greer Co.), and Air Reduction with its Magic-Freeze.
