n e w s of t h e w e e k the inventory began, toxic chemical releases to air, land, and water have dropped significantly. CMA members report a decrease in emissions of 60% since 1988, the first year companies had to comply with TRI. "We believe that product use information will dilute the program's value and whittle away at its effectiveness," CMA concludes. The proposed rulemaking comes on the heels of a proposal that would require seven new industry categories for TRI and last year's addition of nearly 250 chemicals that must be reported. President Clinton made community right to know a major environmental political issue a year ago when he promised to expand TRI. Congress tried to head off EPA on the chemical-use reporting front this year by adding an amendment and report language to EPA's budget legislation that would have halted funding for the development of use reporting rules. That amendment was eventually dropped. David Hanson
The chemical trade surplus—$1.17 billion—fell 27.2% below last July's surplus. The July chemical trade surplus fell 28.6% from that of the previous month. Although June is historically one of the strongest months for chemical trade, this year's June-to-july drop-off is much greater than that in 1995—17.2%. For the first seven months of 1996, chemical exports were valued at $35.9 billion, a 1.4% increase from the same period in 1995. But chemical imports for the first seven months totaled $26.3 billion, a 10.6% rise over last year. That led to a $9.66 billion chemical trade surplus for the first seven months of 1996, compared with the $11.7 billion surplus in the same period a year earlier. Both the strength of the dollar and lower chemical prices in July 1996 versus July 1995 partially account for the rise in chemical imports and the drop in U.S. chemical exports. Slow exports of fertilizer, organic, and plastic chemicals contributed to the decline in total chemical exports in July, offsetting export increases in cosmetic, dyeing, inorganic, medicinal, and miscellaneous chemicals. According to Allen J. Lenz, director of economics at the Chemical Manufacturers Association, Washington, D.C., alThe Commerce Department's release of though chemical export volumes have international trade data for July revealed been up during the first half of 1996 a precipitous drop in the trade surplus compared with 1995, prices have been for chemicals, which contributed to a down. Chemical import volumes—and greater U.S. trade deficit in July com- prices—have been up, however. These conditions have contributed to the drop pared with June. U.S. chemical exports were valued at in the chemical trade surplus. "Certain $4.94 billion in July, a 1% drop com- European economies are not doing pared with July 1995. Chemical imports well," he says, leading to more product into the U.S. rose to $3.77 billion, up coming into the U.S. from that region 11.4% from the same period last year. than is being exported to it. Meanwhile, except for - — — imports of fertilizers— which declined 39.2%— Chemical trade surplus slips imports of all other chemi$ Billions cals rose in July versus the 2.0 year-earlier month. And in July, the U.S. was running a trade deficit for inorganic, medicinal, and organic chemicals; in the same month last year, only imports of inorganics outpaced exports. The drop in the chemical trade surplus contributed to the 42.7% growth of the U.S. international trade deficit in July versus June. Exports of all goods and services totaled $67.2 billion, Source: Department of Commerce compared with $69.7 bil-
Trade surplus for chemicals declines
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SEPTEMBER 30, 1996 C&EN
lion in the previous month and $64.3 billion in July 1995. Imports were $78.9 billion in July, compared with $77.9 billion in June and $74.4 billion in July a year earlier. But taken on a seven-month basis, the U.S. trade deficit has actually declined. For the first seven months of this year, the trade deficit, as reported by the Commerce Department, stood at $63.9 billion. That compares with a deficit of $71.4 billion for the same period in 1995. In 1994, after seven months, the trade deficit was $58.7 billion. George Peaff
Plastics shipments outpace production The surge in demand for plastics that started this year continues. Figures released last week by the Society of the Plastics Industry in Washington, D.C., show that sales are significantly outpacing production. In July, the most recent month for which data are available, production of plastic resins totaled 6.2 billion lb, an 11.6% increase over the same month in 1995. But shipments reached 6.4 billion lb, up 21.1% from a year ago. Production from January through July was up 5.6% over the first seven months of 1995, to 42.6 billion lb, and shipments were up 12.0% to 45.1 billion lb. Based on anecdotal reports, these trends are continuing into August and September, says Paul K. Raman, first vice president at investment banker PaineWebber in New York City. "We are clearly in the middle of a plastics boom, with strong demand, low inventories, and rising prices. This is the area of pricing strength in the chemical industry." Polyolefin demand is up across the board. Leading the group is linear lowdensity polyethylene (LLDPE): Sales grew 38% in July 1996 compared with July 1995. Polypropylene posted the next highest sales increase, up 29% compared with last year. Close behind are polyvinyl chloride, up 25%; high-density polyethylene, up 20%; and polystyrene, up 18%. Monthly figures can be distorted, for example, by buying surges before an anticipated price increase. However, the supply-and-demand picture was just as strong for the first seven months of 1996. For four of the five resins (excluding LLDPE), sales were up 5 to 17% over the same seven months of 1995, while
