Facts
&Fieii
for the chemical industry No expansion lasts forever, and, as the data graphed and tabulated o n t h e f o l l o w i n g p a g e s of C&EN's annual Facts & Figures issue show, 1990 clearly marked the end of the strong growth the U.S. chemical industry enjoyed through much of the late 1980s. Still, by some measures, 1990 was not a bad year for chemical makers, more of a lackluster one. Sales continued to rise, as they have every year since 1981, though not enough to offset rising raw materials costs. Production posted its second year of only modest expansion, thanks to softening in most important enduse markets for chemicals, particularly housing construction and automobiles. But earnings fell for the second year in a row for the 30 major chemical makers C&EN regularly surveys—22% in 1990. And the outlook is for more of the same before things get better. With no turnaround yet in major
&
28
June 24, 1991 C&EN
chemicals markets, more plants coming on stream at a time when capacity utilization is already soft, and the prospect of continuing tightness in raw materials supplies, thanks to events in the Middle East, 1991 isn't shaping up as a turnaround year. The data presented on the following pages illustrate statistically the overall health of the chemical industry both in the U.S. and, to a lesser extent, in several other important chemical-producing nations. The data pulled together here come from a variety of sources, such as government agencies, trade associations, and international organizations, as well as the individual companies that comprise the chemical industry. In many cases, these raw data have been used by C&EN's staff to develop analytical measures and comparisons that help put the industry's recent results into better perspective.
At a glance Section O n e : P r o d u c t i o n
Section F o u r : M a r k e t s
The U.S. chemical industry raised output last year 3%, making 1990 the second year in a row of only modest p r o d u c t i o n increases. Most major sectors of the industry held fairly steady for the year; only plastics, led by 15% increases in output for both polypropylene and low-density polyethylene, showed significant gains. The biggest volume commodity chemicals generally posted gains for the year. Page 30
Chemical markets, like the U.S. economy as a whole, were soft in 1990. As the overall economy moved into a recession at year's end, key markets for chemicals— such as new housing and automobiles—were posting only the latest of several poor years. Agriculture, on the other hand, did well in 1990. Page 62
Section T w o : F i n a n c e s A l t h o u g h sales c o n t i n u e d to climb, setting yet another all-time high in 1990, rising raw materials costs and softening capacity utilization ate into profits and profitability for chemical makers. Overall, earnings dropped 22% among the 30 companies C&EN tracks. Capital spending, however, remained strong, and R&D expenditures increased. Page 39 Section T h r e e : E m p l o y m e n t The number of people working in the chemical industry was essentially unchanged last year at nearly 1.09 million. Scientists and engineers among that number rose to 78,400 in January 1990, 1% higher than their level a year earlier. Women were 30% of the chemical work force in 1989, compared with 33% for manufacturing workers generally. Among the larger chemical companies, overall employment declined 2% in 1990. Page 58
Section Five: F o r e i g n T r a d e U.S. firms exported almost $39 billion in chemicals last year, setting a record high chemical trade surplus of $16.5 billion. Chemical trade worldwide was strong, up 12% when measured in U.S. dollars, though trade volume grew somewhat less. Germany, long the world's largest exporter and importer of chemicals, strengthened its lead in both categories, thanks to unification. Page 64 Section Six: F o r e i g n C h e m i c a l Industries Slowdown was evident in the chemical industry throughout the world in 1990. In Western Europe, drugmakers boosted earnings, but more purely chemical makers did not. Although Japanese production grew for many chemicals, s h a r p rises in oil costs took their toll in company earnings. Recession cut volume and prices for many Canadian chemicals. And Eastern Europe and the Soviet U n i o n posted their worst year in more than four decades. Page 66
June 24, 1991 C&EN
29
Production by the U.S. Chemical Industry
Little change in chemical output last year Production by U.S. chemical makers held steady in 1990. The softening of growth that was evident in most sectors of the chemical industry by the end of 1989 never quite became an actual decline in production during 1990. Instead, by most measures, production changed little last year. According to the Federal Reserve Board, production of chemicals and allied products rose a modest 2% overall in 1990, somewhat less than the 3% gain made in 1989, and right in line with the 2% average annual performance for the group over the past 10 years. The largest volume chemicals, C&EN's Top 50, didn't perform as well, posting a 1.4% gain in 1990 after an annual gain of only 0.8% in 1989. Output for the major organic chemicals rose 1% in 1990, while inorganic production was up 1.6%. Though only inching upward, production for these 50 largest volume chemicals has set new all-time highs each year for the past three. Plastics had the best year of the major chemical sectors, with overall production up 9% in 1990, according to Federal Reserve Board data, and 8% as measured by the Society of the Plastics Industry. But other synthetic materials fared less well. Synthetic rubber production was off 4% for the year as were man-made fibers, including cellulosics. Fertilizers, too, had a moderately good year, with all three major nutrients posting production gains of 5 to 8% for the 1990 crop year, which ended June 30. Some of the biggest losses in production were among large-volume inorganic chemicals. Although the group as a whole rose 1.6% for the year, hydrochloric acid fell 26%, calcium chloride fell 28%, and ammonium nitrate fell 10%. In contrast, sodium hydroxide rose 11% and ammonia rose 4%. As mandated by t h e Montreal protocol, production of chlorofluorocarbons fell sharply in 1990. 30
June 24, 1991 C&EN
Plastics only chemical sector to show much growth in 1990 Production, % running annual growth rate 3
Inorganics Organics i Plastics Fibers Total - 1 0 1
i 11 i i i
M
i i r l i i i 11 i i i i i i 11 i i i i i i i i i i I i i i i i i i i i i i I
1986
1987
1988
1989
M
i i i i i i i >
1990
a Average running annual growth rates in production of major plastics, inorganic and organic chemicals, and all chemicals, and in shipments of man-made fibers. Sources: International Trade Commission, Bureau of the Census, Society of the Plastics Industry, Textile Economics Bureau
I Chemicals hold on to production gains of late 1980s Production index, 3 1987 = 100 Basic chemicals
Chemicals and allied products
9 0 1
i i I i
1986
M
i i
M
11 i 11
1987
i i i i i i 11 11 i 11 i i i i 11 i i i i i 11 11 i i I i i i i 11 i 11 i i I
1988
a Seasonally adjusted. Source: Federal Reserve Board
1989
1990
1991
3
50 CHEMICALS: Very modest growth last year for both organics and inorganics Rank
1990
Billions of lb 1989a
1990
1989
Sulfuric acid Nitrogen Oxygen Ethylene Limec
88.56 57.32 38.99 37.48 34.80
Common unitsb 1990
1989
86.60 53.91 37.42 34.99 34.36
44,281 tt 791 bcf 471 bcf 37,480 mp 17,400 tt
43,301 tt 744bcf 452bcf 34,994 mp 17,178tt
Average annual growth 1989-90
1988-89
2.3% 2.8% 6.3 3.0 4.2 0 7.1 -5.9 1.3 0.7
1985-90
1980-90
1 2 3 4 5
1 2 3 4 5
6 7 8 9 10
6 7 9 10 8
Ammonia Phosphoric acid Sodium hydroxide Propylene Chlorine
33.92 24.35 23.38 22.12 21.88
32.72 23.47 20.98 20.58 22.83
16,958tt 12,175tt 11,688tt 22,117mp 10,942tt
16,362tt 11,735tt 10,492tt 20,575mp 11,413tt
3.6 3.7 11.4 7.5 -4.1
-2.7 0.5 -0.3 -3.1 1.4
-0.4 3.0 1.4 8.2 1.0
-1.5 1.2 0.1 4.9 -0.4
11 12 13 14 15
11 13 12 14 15
Sodium carbonated Ureae Nitric acid Ammonium nitrate' Ethylene dichloride
19.85 15.81 15.50 14.21 13.30
19.83 15.93 16.70 15.74 13.39
9,925tt 7,905tt 7,749tt 7,107tt 13,301 mp
9,915tt 7,963tt 8,349tt 7,871tt 13,385mp
0.1 -0.7 -7.2 -9.7 -0.6
2.9 0.6 4.5 4.9 2.7
3.1 3.4 1.0 1.0 1.9
1.8 0.1 -1.7 -2.5 1.8
16 17 18 19 20
16 17 18 19 21
Benzene Carbon dioxide9 Vinyl chloride Ethylbenzene Styrene
11.86 10.98 10.65 8.99 8.02
11.94 10.68 10.14 9.24 8.34
1,610mg 5,491tt 10,652mp 8,988 mp 8,018 mp
1,621 mg 5,339tt 10,137mp 9,238 mp 8,338 mp
-0.7 2.8 5.1 -2.7 -3.8
1.8 5.6 11.9 -7.0 -7.2
4.8 1.9 2.4 4.0 1.0
-2.2 6.2 5.1 1.6 1.6
21 22 23 24 25
22 20 23 30 25
Methanol Terephthallc acidh Formaldehyde' Methyl ferf-butyl ether* Toluenek
7.99 7.69 6.41 6.30 6.10
8.17 8.43 5.89 8.23 5.81
7,987mp 7,692mp 6,413mp 6,302 mp 841 mg
8,168mp 8,427mp 5,894mp 8,229 mp 801 mg
2.2 -8.7 8.8 -23.4 5.0
0.3 -17.7 -6.1 44.9 -8.5
9.8 3.5 2.7 27.2 3.8
1.1 2.4 1.4 na -1.9
26 27 28 29 30
26 29 28 27 31
Xylene Ethylene oxide p-Xylene Ethylene glycol Ammonium sulfate
5.70 5.58 5.20 5.03 4.99
5.80 5.03 5.35 5.46 4.69
791 mg 5,581 mp 5,201 mp 5,028 mp 2,495tt
805 mg 5,032mp 5,345mp 5,462 mp 2,347tt
-1.7 10.9 -2.7 -7.9 6.3
5.8 -15.5 -4.6 -1.0 0.6
1.4 0.6 1.7 3.8 3.6
-1.4 0.7 2.1 1.4 1.6
31 32 33 34 35
24 32 34 35 33
Hydrochloric acid Cumene Acetic acid Potash1 Phenol"1
4.68 4.31 3.76 3.62 3.51
6.35 4.43 3.29 3.52 3.81
2,341 tt 4,312 mp 3,756mp 1,640tmt 3,512mp
3,177tt 4,427 mp 3,294mp 1,595tmt 3,807mp
-26.3 -2.6 14.0 2.8 -7.7
20.3 -0.6 4.3 4.9 6.9
-3.5 5.2 5.3 4.8 4.8
-2.1 2.2 2.4 -3.1 3.2
36 37 38 39 40
36 37 39 38 42
Propylene oxide Butadiene" Acrylonttrile Carbon black Vinyl acetate
3.20 3.16 3.03 2.87 2.55
3.20 3.12 2.36 2.91 2.55
3,200mp 3,156mp 3,029 mp 2,868mp 2,546 mp
3,200mp 3,122mp 2,363 mp 2,913mp 2,553 mp
0 1.1 28.2 -1.5 -0.3
2.9 -1.5 -9.4 -0.1 -0.3
5.9 6.2 5.2 2.2 3.8
6.1 1.2 5.2 1.2 2.8
41 42 43 44 45
43 41 40 44 46
Cyclohexane Aluminum sulfate Acetone Titanium dioxide Sodium silicate
2.47 2.42 2.22 2.16 1.76
2.27 2.49 2.53 2.20 1.67
2,468mp 1,208tt 2,221 mp 1,079tt 878tt
2,274mp 1,244tt 2,525mp 1,101tt 834tt
8.5 -2.9 -12.0 -2.0 5.3
-1.0 1.0 9.6 7.7 2.7
8.3 -1.0 4.4 4.6 4.9
2.3 -0.6 0.7 4.2 0.9
46 47 Adipicacid 47 48 Sodium sulfate0 48 45 Calcium chloride" 48 49 Isopropyl alcohol 48 50 Caprolactam TOTAL ORGANICS TOTAL INORGANICS GRAND TOTAL
1.64 1.47 1.38 1.38 1.38 216.82 409.07 625.89
1.64 1.51 1.92 1.47 1.31 214.68 402.51 617.19
1,640mp 733tt 690 tt 1,380mp 1,380mp
1,640mp 755tt 962 tt 1,474mp 1,308mp
0 -2.9 -28.3 -6.4 5.2 1.0% 1.6% 1.4%
2.5 -7.6 32.0 6.1 4.0 -1.4% 2.0% 0.8%
2.5 -2.4 -2.9 2.2 5.0 4.6% 2.1% 2.9%
1.1 -4.3 -3.5 -2.8 4.3 2.1% 0.5% 1.0%
.
2.1% 0 % 3.8 5.1 3.7 0.9 4.7 2.7 1.9 -0.9
a Revised, b tt = thousands of tons, bcf = billions of cubic feet, mp = millions of pounds, mg = millions of gallons, tmt = thousands of metric tons, c Except refractory dolomite, d Natural and synthetic, e 100% basis, f Original solution, g Liquid and solid only, h Includes both acid and ester without double counting, i 37% by weight, j Production data for earlier years unavailable. k All grades. I K 2 0 basis, m Synthetic only, η Rubber grade, ο High and low purity, ρ Solid and liquid, na = not available.
June 24, 1991 C&EN 31
PRODUCTION: Like manufacturing as a whole, most chemicals rose only slightly in 1990 Annual change
Industrial production indexes, 1987 = 100
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1989-90
1980-90
Total index Manufacturing, total Nondurable manufacturing Chemicals and products Chemicals and synthetic materials
109.2 109.9 107.8 110.3 107.2
108.1 108.9 106.4 108.5 106.5
105.4 105.8 103.6 105.4 102.5
100.0 100.0 100.0 100.0 100.0
95.3 94.3 94.9 94.6 93.9
94.4 91.6 91.5 91.4 92.2
92.8 89.3 90.8 91.4 92.8
84.9 80.9 87.0 87.5 88.6
81.9 76.6 82.5 81.8 79.4
85.7 80.3 84.5 89.2 91.2
84.1 78.8 83.1 87.8 86.3
Basic chemicals Alkalies and chlorine Industrial gases Inorganic pigments Inorganic chemicals, nee
108.6 99.5 109.2 104.3 110.1
106.6 103.2 108.0 111.0 105.7
98.3 96.0 104.1 102.6 96.4
100.0 100.0 100.0 100.0 100.0
95.1 92.1 98.8 96.2 94.7
96.1 93.6 92.8 95.1 97.2
96.9 95.3 97.5 89.0 98.0
92.1 87.9 85.9 87.3 94.3
86.5 82.1 80.1 79.1 89.2
96.9 94.6 91.2 90.7 98.7
96.5 101.5 91.5 90.6 96.8
Industrial organic chemicals
107.1
109.2
103.1
100.0
95.1
94.1
93.4
89.9
81.0
97.0
92.8
Synthetic materials Plastics materials Synthetic rubber Man-made fibers
106.5 115.8 88.6 92.7
103.1 106.7 92.4 98.7
104.4 106.8 105.0 99.5
100.0 100.0 100.0 100.0
91.6 88.2 109.3 93.7
86.9 84.1 114.4 86.6
88.9 81.1 132.8 93.3
84.3 74.4 124.1 92.3
71.8 64.4 110.5 76.4
79.5 68.3 114.5 91.7
71.2 64.2 110.8 74.9
Chemical products Drugs and medicines Soaps and toiletries Paints
113.3 114.0 112.3 99.5
110.1 108.1 111.1 104.8
107.5 107.2 107.9 103.9
100.0 100.0 100.0 100.0
95.9 96.7 96.7 97.5
90.2 88.5 91.3 95.7
89.0 86.9 90.6 91.8
86.6 86.1 91.4 84.6
83.0 82.7 89.2 78.8
85.4 80.9 97.7 84.1
87.6 80.2 103.5 87.0
Agricultural chemicals
105.1
108.2
107.2
100.0
88.5
96.1
102.0
87.5
88.8
102.3
97.2
-3
1
Petroleum products
108.2
106.1
103.4
100.0
98.9
92.6
92.8
89.6
89.3
94.1
99.0
2
1
Rubber and plastics products
110.2
108.9
105.9
100.0
90.8
85.8
83.8
74.3
65.9
66.6
61.7
1
6
3% 3 3 2 2
1% 1 1 2 1
-2
nee = not elsewhere classified. Source: Federal Reserve Board
Only potash, which is largely imported, showed strong growth in 1990 Annual change 1990a
Thousands of tons b
1989
1988
1987
1984
1986
1983
1982
1981
1980
1989-90
1980-90
a
180
168
155
160
193
185
200
189
189
a
731
658
780
940
1,036
912
853
917
811
-14
-2
17,178 16,658 15,733 14,474 15,690 15,922 14,867 14,075 18,890 19,037
1
-1
-8 -11
-2 -7
2,468 5,481 6,999
3 22 15
-3 -2 -2
Salt, productionh Evaporated' Rock' Salt in brine1
39,400d 39,278 39,170 36,943 37,282 39,217 39,181 32,973 37,665 38,899 40,396 6,700d 7,070 7,203 6,896 6,316 6,162 6,334 5,276 5,273 6,206 6,358 14,200d 14,140 12,750 12,230 13,333 13,990 13,653 11,870 12,806 11,866 11,806 18,500d 18,068 19,218 17,817 17,633 19,065 19,195 15,827 19,586 20,826 22,231
0 -5 0 2
nc nc nc nc
Sodium carbonate, production*
10,098
8,275
2
2
Sulfur, production1" Apparent consumption1 Frasch, production Recovered elemental, production Other, production
12,484 14,082 3,968 7,110
12,778 11,845 11,616 12,221 12,797 11,742 10,240 10,788 13,388 13,080 13,983 14,012 12,481 11,669 13,192 13,976 12,112 11,088 14,093 15,056 4,286 3,499 3,530 4,457 5,524 4,622 3,530 4,641 6,997 7,044 7,176 7,103 6,791 6,411 5,857 5,747 5,462 4,855 4,695 4,490
-2 1 -7 -1
0 -1 -6 5
7
-3
Bromine, sold or used
Calcium chloride, production
193 cd
Lime, sold or used0 Lithium, consumption
690 17,400 3.0
Phosphate rock Marketable production Exports
50,700 7,700
Potash (K 2 0 equivalent)9 Production Imports Apparent consumption
1,810 4,590 5,680
1,405
193 801
3.0
3.0
2.7
2.6
2.5
3.2
2.2
2.0
3.2
9,915
1,316
1,677 4,648 5,803
9,632
1,243
1,391 4,490 5,609
8,891
1,296
1,325 4,643 5,338
8,438
1,354
1,429 5,063 5,893
8,511
1,416
1,724 5,323 6,638
8,511
1,372
1,575 4,894 6,231
8,467
1,249
1,967 4,253 5,647
7,819
1,293
2,377 5,287 6,849
8,281
1,695
0%
3.0
54,913 50,000 45,145 44,445 56,035 54,230 46,928 41,241 59,110 59,982 8,644 8,920 9,319 8,651 10,071 12,707 13,239 10,849 11,458 15,737 1,758 3,759 4,960
0%
1,547
a Preliminary, b Elemental bromine sold as such or used in preparation of bromine compounds by primary producers, c 75% CaCI2 equivalent, d Estimated, e Includes Puerto Rican production, f Lithium content basis, g Includes muriate and sulfate of potash, potassium magnesium sulfate, and parent salts; excludes other chemical compounds containing potassium. h Figures for 1980 are total obtained by all recovery methods that was sold or used by domestic producers (slightly different from U.S. production); figures for 1980-81 include Puerto Rican production. I Sold or used as such, j Natural and synthetic for 1980-86, natural only in 1987-90. k Sulfur content basis. I Calculated from shipments plus imports minus exports (sulfur content basis), nc = not comparable. Sources: Bureau of Mines, Bureau of the Census
32
June 24, 1991 C&EN
1
Production by the U.S. Chemical Industry
U.S Biggest volume organics generally did well in otherwise mixed field ORGANIC CHEMICALS: Annual c;hange
Production
Millions of lb unless otherwise noted
1990a
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
Acetic acid, synthetic Acetone Acrylonitrile Aniline Benzene, mg bc
3,755 2,221 3,029 947 1,615
3,294 2,524 2,362 1,016 1,631
3,159 2,303 2,609 1,029 1,608
3,246 1,846 2,452 829 1,575
2,728 1,910 2,182 824 1,362
2,897 1,788 2,349 716 1,283
2,619 1,862 2,219 786 1,318
2,807 1,859 2,146 663 1,232
2,748 1,694 2,035 557 1,052
2,705 2,144 1,997 634 1,308
2,977 2,076 1,830 659 1,534
14% -12 28 -7 -1
Bisphenol A 1,3-Butadiened 1-Butanol Caprolactam Carbon tetrachloride
1,141 3,155 1,269 1,379 271
1,241 3,121 1,751 1,307 na
1,340 3,169 1,194a 1,261 761
1,000 2,931 1,155 1,156 672
956 2,546 881 1,109 627
949 2,340 716 1,089 646
762 2,452 908 1,027 713
643 2,353 833 977 573
480 1,915 730 793 587
555 2,986 809 928 726
530 2,799 790 905 710
-8 1 -28 5
—
8 1 5 4 -9
Chloroform Cumene Cyclohexane Dioctyl phthalate Ethanol, synthetic
497 4,311 2,467 302 na
588 4,426 2,273 306 549
524 4,455 2,297 344 562
462 4,105 2,276 343 574
422 3,745 2,070 296 529
275 2,627 1,657 275 649
405 3,754 1,994 301 1,060
362 3,345 1,656 300 1,077
299 2,743 1,275 266 1,023
405 3,309 1,820 304 1,317
273 3,459 1,964 353 1,451
-15 -3 9 -1
6 2 2 -2
—
—
376 429 667 679 416 468 504 627 608 537 543 7,642 8,987 9,235 7,876 6,656 7,813 7,562 9,346 9,929 9,020 7,386 396 324 162 339 282 152 na 290 171 155 164 37,474 34,988 37,204 34,951 32,859 29,847 31,383 28,680 24,501 29,418 28,667 9,974 11,108 7,619 13,299 13,383 13,028 12,197 12,940 12,101 10,710 11,506
2 -3
6 2
—
—
7 -1
3 2
Ethanolamines Ethylbenzene Ethyl chloride Ethylene Ethylene dichloride
1989-90
1980-90
2% 1 5 4 1
Ethylene glycol Ethylene oxide 2-Ethylhexanol Formaldehyde, 37% f Isobutylene
5,027 5,580 596 6,412 1,145
5,461 5,031 612 5,893 1,193
5,517 5,953 743 6,280 1,244
5,183 4,785 662 5,733 1,035
4,771 5,430 571 5,549 1,124
4,178 5,430 536 5,606 na
4,823 5,699 541 5,815 883
4,425 5,534 387 5,465 760
4,309 4,987 325 4,817 741
4,143 4,937 389 5,721 1,035
4,386 5,220 367 5,555 1,052
-8 11 -3 9 -4
1 1 5 1 1
Isopropyl alcohol Maleic anhydride Methanol, synthetic Methyl chloride Methyl ethyl ketone
1,380 418 7,986 498 473
1,474 475 8,167 461 450
1,389 448 8,142 597 482
1,371 382 7,537 373 672
1,301 359 7,205 605 600
1,235 394 5,003 410 537
1,394 359 8,186 482 543
1,209 299 7,982 409 531
1,380 260 7,555 366 468
1,669 293 8,577 405 614
1,836 304 7,153 362 692
-6 -12 -2 8 5
-3 3 1 3 -4
Methyl methacrylate Methylchloroform Methylene chloride Perchloroethylene Phenol, synthetic9
1,207 785 471 384 3,512
1,161 783 482 481 3,806
1,100 724 504 498 3,562
1,029 694 516 473 3,351
943 652 566 414 3,115
858 869 467 678 2,841
917 675 607 573 2,889
844 586 584 547 2,638
721 595 532 585 2,023
592 611 891 691 2,578
564 587 780 765 2,568
4 0 -2 -20 -8
8 3 -5 -7 3
Phthalic anhydride Propyleneh Propylene glycol Styrene, monomer Terephthalic acid, dimethyl ester1
941 917 999 22,113 20,571 21,224 805 800 840 8,017 8,337 8,984
1,035 19,019 747 8,014
863 16,522 573 7,888
820 14,887 500 7,622
870 15,559 462 7,709
838 13,959 484 6,802
684 12,535 400 5,942
870 13,482 473 6,679
818 13,676 488 6,856
3 8 -1 -4
1 5 5 2
7,690
8,426
10,234
7,601
6,257
6,490
5,912
5,626
4,843
6,235
6,054
-9
2
Toluene, mgbj Vinyl acetate Vinyl chloride o-Xylene p-Xylene
843 2,545 10,650 943 5,200
806 2,552 10,135 983 5,344
892 2,561 9,058 971 5,601
967 1,813 8,402 940 5,155
611 1,710 8,439 788 5,035
698 2,112 9,463 675 4,779
728 2,024 6,084 688 4,264
780 1,963 6,875 781 4,114
714 1,876 4,902 802 3,391
852 1,936 6,874 918 4,532
1,010 1,922 6,466 995 4,238
5 0 5 -4 -3
-2 3 5 -1 2
Note: mg = millions of gallons, a Preliminary, b Tar distillers and coke-oven operators not included, c Specification grades, d Rubber grade, e Mono-, di-, and triethanolamines. f By weight. g Does not include data for coke ovens and gas-retort ovens, h All grades, i Includes both acid and dimethyl ester (DMT), without double counting, j High-purity toluene, includes material used in blending motor fuel, na = not available. Source: International Trade Commission
June 24, 1991 C&EN 33
INORGANICS: Mixed results mark production for both the year and the decade Annual change
Production
Thousands of tons unless otherwise noted
1990a
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1,208 16,958 7,107 2,495
1,243 16,362 7,871 2,347
1,237 16,821 7,504 2,333
1,227 16,098 6,547 2,189
1,222 14,487 6,091 2,080
1,268 17,319 7,149 2,093
1,129 16,692 7,146 2,067
1,119 14,072 6,240 1,956
1,154 15,801 7,091 1,768
1,294 19,044 8,861 2,185
10,943
11,413
11,257
11,078
10,436
10,402
10,700
9,960
9,176
2,341 188 204
3,177 208 204
3,228 177 168
2,996 173 153
2,413 136 152
2,807 121 144
2,732 109 139
2,468 103 117
7,749 791 471
8,349 744 452
7,991 722 452
7,225 685 405
6,734 677 383
7,631 665 393
7,726 661 375
12,175
11,737
11,659
10,599
9,578
10,607
Phosphorusm Sodium chlorate, 100% Sodium hydroxide, 100% Sodium phosphate"
356 353 308 290 11,688 10,491 568° 610°
343 267 10,533 549
344 289 11,553 586
364 267 10,691 617
359 259 10,811 625
Sodium silicate' Sodium sulfate, 100% q Sulfuric acid, 100% r Titanium dioxide, 100% s Urea
3
Aluminum sulfate* Ammonia, 100% c d Ammonium nitrate, 100% e Ammonium sulfate, 100% d f Chlorine gas9 h
Hydrochloric acid, 100% Hydrogen, bcf, 100% IJ Hydrogen peroxide, 100%k Nitric acid, 100% k Nitrogen gas, bcf, 100% u Oxygen, bcf, 100% u Phosphoric acid, 100% r
2v5
1989-90
1980-90
1,286 19,653 9,128 2,136
-3% 4 -10 6
-1% -1 -2 2
10,763
11,421
-4
0
2,450 88 108
2,574 105 111
2,888 107 116
-26 -10 0
-2 6 6
6,768 560 346
7,390 483 349
9,093 490 431
9,231 479 431
-7 6 4
-2 5 1
11,370
9,767
8,253
9,958
10,848
4
1
386 295 10,914 675
366 323 10,039 669
361 291 9,385 651
426 297 10,621 696
432 312 11,625 727
1 6 11 -7
-2 0 0 -2
771 878 664 812 833 805 710 685 952 791 692 733 864 819 755 1,140 1,111 914 901 837 799 1,203 44,281 43,301 42,580 39,256 35,993 39,890 41,802 36,583 33,233 40,742 44,158 1,022 1,079 727 660 761 1,101 760 835 931 968 860 7,905 7,963 7,914 7,433 6,264 6,975 7,433 6,137 6,470 8,062 7,830
5 -3 2 -2 -1
1 -4 0 4 0
Note: bcf = billions of cubic feet, a Preliminary, b Commercial, 17% Al 2 0 3 ; includes municipalities, c Synthetic anhydrous, d Excludes by-product ammonia liquor and ammonium sulfate, e Original solution, f Synthetic and noncoke by-product, g Includes quantities liquefied for use, storage, or shipment, h Includes anhydrous hydrochloric acid production, i High- and low-purity gas. J Liquid and gas; excludes amounts vented and used as fuel, and amounts produced in petroleum refineries for captive use. k Includes unspecified amounts produced but not withdrawn from the system. I Excludes amounts produced and consumed in making synthetic ammonia or ammonia derivatives, m Elemental, white (yellow), and red. n Tripolyphosphate (100% Na5P3O10). o Includes tetrabasic (pyro) phosphate, p Soluble silicate glass (water glass), solid and liquid (anhydrous); excludes amounts produced and consumed in making meta-, ortho-, and sesquisilicates. q Anhydrous, high and low purity, and Glauber's salt, r Gross (new and fortified), s Composite and pure. Sources: Department of Commerce, International Trade Commission
Synthetic noncellulosic fibers output Billions of lb 9
SYNTHETIC FIBERS Production declines for all fibers except polyolefins 1980 81 82 83 84 85 86 87 88 89 90 Annual change Millions of lb
1990
NONCELLlILOSIC FIBIERS Acrylic3 506 2662 Nylonb 1822 Olefin0 Polyester 3195 CELLULOSIC FIBERS Acetated 505 Rayon TOTAL 8690
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1989-90
1980-90
543 2740 1639 3594
588 2669 1588 3681
592 2689 1494 3541
616 2514 1393 3305
631 2343 1249 3341
671 2412 997 3392
671 2419 906 3544
624 1927 723 3196
691 2332 785 4176
779 2358 748 3989
-7% -3 11 -11
-4% 1 9 -2
580
614
605
619
558
9096
9140
8921
8447
8122
f 199 \421 8092
229 401 8168
196 388 7027
261 509 8754
316 \ 490} 8680
~13 -4%
"5 0%
a Includes modacrylic. b Excludes aramid in 1983-87. c Includes olefin yarn and monofilaments and olefin and vinyon staple, tow, and fiberfill. d Includes diacetate and triacetate; excludes production for cigarette filters. Source: Fiber Economics Bureau
34 June 24, 1991 C&EN
1
Production by the U.S. Chemical Industry
SYNTHETIC RUBBER: Output decline, which began in 1989, accelerated in 1990 Annual change
Production Thousands of metric tons
Ethylene-propylene Nitrile Polybutadiene Styrene-butadiene rubber Other3 TOTAL
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
256 56 403 853 546 2114
260 69 411 874 647 2261
263 76 407 909 679 2335
254 69 371 850 638 2182
230 59 336 792 596 2013
215 53 330 735 505 1838
215 67 359 958 556 2155
175 55 333 904 468 1935
123 45 288 876 498 1830
178 66 342 1032 404 2022
144 63 311 1074 423 2015
1989-90
-2% -19 -2 -2 -16 -7%
1980-90
6% -1 3 -2 3 0%
a Includes butyl, polychloroprene, polyisoprene, silicone, and other synthetic elastomers. Some values are estimated. Source: Rubber Manufacturers Association
Plastics production Billions of lb 60
PLASTICS: Production of major resins moved ahead last year
40 20 0 1—i i i i i 1980 81 82 83 84 85 86
i i i 87 88 89 90
Annual change Millions of lba
1990
1989
1988
1987
1986
1985
1984
1983
1982
THERMOSETTING RESINS Epoxyb Melamine Phenolic6 Polyester6 Urea TOTAL
499 202 2,946d 1,221 1,496 6,364
509 222 2,879d 1,319 1,477 6,408
486 207 3,066d 1,404 1,425 6,588
433 212 2,869d 1,367 1,382 6,263
398 173 2,735d 1,271 1,271 5,848
385 192 2,621d 1,223 1,210 5,631
406 210 2,502d 1,232 1,199 5,549
334 180 2,477d 1,084 1,172 5,247
336 286 179 158 2,006d 2,333d 997 865 1,165 998 5,010 4,313
THERMOPLASTIC RESINS. Polyethylene Low density' High density9 Polypropylene Styrene polymers Polystyrene Styrene-acrylonitrile Acrylonitrlle-butadienestyrene and other styrene polymersh Polyamlde, nylon type Vinyl resins Polyvinyl chloride and copolymers Other vinyl resins' Thermoplastic polyester TOTAL
1981
1989-90
1980-90
315 167 1,499 947 1,165 4,093
-2% -9 2 -7 1 ~1%
5% 2 nc 3 3 nc%
1980
11,176 8.334 8,318
9,695 8,102 7,238
10,397 8,400 7,274
9,599 7,995 6,647
8,903 7,182 5,812
8,889 6,671 5,139
8,413 6,085 4,940
8,041 5,689 4,433
7,503 4,928 3,477
7,693 4,695 3,955
7,291 4,405 3,648
15 3 15
4 7 9
5,012 134 2.335
5,104 113 2,394
5,187 148 2,418
4,780 126 2,254
4,470 92 2,196
4,054 87 2,036
3,838 99 2,127
3,570 93 1,889
3,191 91 1,380
3,621 107 1,745
3,521 111 1,705
-2 19 -2
4 2 3
556
569
566
507
465
399
396
321
228
312
274
-2
7
9,088
8,478
8,350
7,971
7,256
6,772
6,760
6,067
5,326
5,707
5,470
7
5
226 1,879
220 1,630
222 1,652
212 1,394
195 1,175
190 965
187 899
186 778
177 648
208 609
196 na
3 15
1
47,058
43,543
44,614
41,485
37,746
35,202 33,744
31,067
26,949
28,652
26,621
8%
6%
Note: Totals are for those products listed and exclude some small-volume plastics, a Dry-weight basis unless otherwise specified, b Unmodified, c Includes other tar acid resins, d Grossweight basis, e Unsaturated, f Density 0.940 and below, g Density above 0.940. h Includes styrene-butadiene copolymers and other styrene-based polymers, i Includes polyvinyl butyral, polyvinyl formal, and polyvinylidene-chloride. na = not available, nc = not comparable. Source: Society of the Plastics Industry
June 24, 1991 C&EN 35
1
Production by the U.S. Chemical Industry
Fertilizer consumption Millions of tons 30 Total 20
FERTILIZERS: All major nutrients had increased use in 1990 crop year
Potash (K 2 0) Phosphates (P 2 0 5 ) llllllllilllllllsi
10
\ 0 1980
Nitrogen (N) I 81
l_ 82
I 83
L 84
1—--- i 85 86
i 87
i 88
i
l 90
89
Note: Years ending June 30. Sources: Department of Agriculture, Fertilizer Institute
Annua change
Consumption
Nitrogen (N) Phosphates (P205) Potash (K20) TOTAL
1989-90
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
11,076 4,345 5,203 20,624
10,593 4,117 4,838 19,548
10,512 4,129 4,973 19,614
10,210 4,008 4,837 19,055
10,424 4,178 5,053 19,655
11,493 4,658 5,553 21,704
11,092 4,901 5,797 21,790
9,127 4,138 4,831 18,096
10,983 4,814 5,631 21,428
11,924 5,434 6,320 23,678
11,407 5,432 6,245 23,084
Thousands of tons
5% 6 8 6%
1980-90
0% -2 -2 -1%
Note: Years ending June 30. Source: Fertilizer Institute
ION: Phosphate rock declined, ammonia and potash showed little change FERTILIZER PRODUCTION: Annual change Thousands of tons
1989-90
1983-90
1990
1989
1988
1987
1986
1985
1984
1983
14,167 2,579 2,395 4,231 4,750
14,192 2,528 2,327 4,253 5,644
14,136 2,765 2,260 4,501 6,999
13,357 2,472 2,153 4,253 5,988
12,565 2,250 2,058 3,564 5,945
16,594 3,178 2,343 3,975 7,928
16,613 3,365 2,078 4,889 7,999
13,361 3,232 1,969 4,112 6,385
0% 2 3 -1 -16
1% -2 2 0 -3
13,860 2,252 1,998 44,311 11,344
13,507 1,991 1,777 47,676 10,962
11,575 1,818 2,032 42,220 10,234
9,537 1,679 2,049 39,330 8,903
7,492 1,416 2,127 36,227 8,085
10,800 1,641 2,570 49,348 9,837
12,358 1,654 2,404 47,465 10,899
10,264 1,423 2,684 40,664 9,182
3 13 12 -7 3
4
2,350
2,316
2,243
1,810
1,715
1,713
2,168
1,928
NITROGEN PRODUCTS Ammonia Ammonium nitrate Ammonium sulfate Urea Nitrogen solutions PHOSPHATE PRODUCTS Dlammonium phosphate Monoammonium phosphate Concentrated superphosphate Phosphate rock Phosphoric acid (P205) POTASH PRODUCTS Potassium chloride
Note: Figures are based on Fertilizer Institute surveys and may not represent the entire industry. Source: Fertilizer Institute
36
June 24, 1991 C&EN
6 -3 1 3
PESTICIDES: Strong growth in 1989 helps insecticides recover from declines of early 1980s Annual change
Production Millions of lb 3
Herbicides Insecticides*3 Fungicides0 TOTAL
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
697 424 111 1232
702 352 110 1164
556 379 105 1040
725 342 113 1180
756 370 109 1235
716 350 123 1189
604 306 106 1017
623 379 111 1113
839 448 143 1430
806 506 156 1468
657 617 155 1429
1988-89
1979-89
-1% 20 1 6%
1% -4 -3 -1%
a Includes plant growth regulators, b Includes rodenticides, soil conditioners, and fumigants. c Includes dithiocarbamates. Source: International Trade Commission
Paints and coatings shipments Millions of gal 1100
1000
COATINGS: Decline in major uses drops overall volume below 1989 level
1980 81 82 83 84 85 86 87 88 89 90 Annua1 change
Shipments Millions of gal
1990a
1989a
1988
1987
1986
1985
1984
1983
1982
1981
1980
1989-90
Architectural Product5 Special purpose TOTAL
517 324 161 1002
552 358 159 1069
536 366 154 1056
527 340 145 1013
501 350 136 987
477 317 145 939
457 336 145 938
433 294 130 857
374 280 129 783
417 312 129 858
439 316 135 890
-6% 10 1 -6%
1980-90
2% 0 2 1%
a Preliminary, b For original equipment manufacturers. Source: Department of Commerce
AEROSOLS: Production growth of 1980s has stalled Annual change
Production 1981
1980
1989-90
Millions of units
1990
1989
1988
Personal products Household products Automotive and industrial products Paints and finishes Insect sprays Food products Animal products Miscellaneous TOTAL
1050 680 415
1015 680 475
1100 650 440
964 640 379
952 635 375
879 630 342
832 603 337
747 586 303
628 556 286
645 575 302
637 580 310
3% 0 -13
350 190 175 8 15 2883
350 197 175 8 12 2912
331 190 157 8 31 2907
307 190 140 22 80 2722
297 193 136 22 18 2628
290 190 140 15 23 2509
307 184 138 16 15 2432
300 180 132 19 15 2282
295 166 131 19 13 2094
313 173 145 14 28 2195
310 150 130 15 30 2162
0 -4 0 0 25 -1%
1989-90
1987
1986
1984
1985
1982
1983
1980-90
5% 2 3 1 2 3 -6 -7 3%
Source: Chemical Specialties Manufacturers Association
CHLOROFLUOROCARBONS: Production for all major types falls sharply Annual change
Production Millions of lb
1990a
Chlorodifluoromethane (F-22) Dlchlorodlfluoromethane (F-12) Trichlorofluoromethane (F-11) All other ffluorinated hydrocarbons'5 TOTAL
306 209 135 na
343 392 192 385
333 414 249 379
275 335 198 354
271 322 202 344
235 302 176 306
254 337 185 337
na
1312
1374
1162
1139
1019
1113
1989
1988
1987
1986
1985
1984
1980-90
1982
1981
1980
236 290 215 279
174 258 140 na
252 325 163 na
227 296 158 na
-11% -47 -30
3% -3 -2
—
—
1020
na
na
—
—
1983
a Preliminary, b Includes other fluorohalogenated hydrocarbons, na = not available. Source: International Trade Commission
June 24, 1991 C&EN 37
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^
I Finances of the U.S. Chemical Industry
Chemical earnings, profitability decline Last year brought few surprises for the chemical industry. It was expected that 1990 would be a continuation of the lackluster second half of 1989, and that is just what it turned out to be, although there were some extras that perhaps made the year somewhat worse than some industry observers predicted. Chief among these was perhaps the r u n u p in raw materials costs brought on by the Middle East situation. This was coupled with already w e a k e n i n g capacity u t i l i z a t i o n caused by softening in such end-use markets as housing construction and automobiles and other durable goods, and by new plants coming on stream. The result was increased pressure on profits in the chemical industry and a classic cost-price squeeze. Combined earnings for the 30 major chemical companies regularly surveyed by C&EN dropped 22% in 1990 from the year-earlier level. This is the fourth earnings contraction since 1980, with the others occurring in 1981, 1985, and the small drop-off registered in 1989. But the 22% drop is the largest since earnings fell about 35% in 1981. Spurred in part by exports and by price increases, sales at the 30 companies held up, however. Sales in 1990 rose about 7% from their 1989 levels, making it yet another record year. Naturally, 1990 profitability followed earnings on the downward course. Return on year-end stockholders' equity fell to 14.0% in 1990 from 20.2% in 1989. And the average profit margin for the 30 chemical firms dropped to 6.3% last year from 8.6% the year before. This, however, is not quite so bad as it seems since both measures are still reasonably good on a historical basis. Although during the past few years the industry has gotten fairly spoiled by high returns, profitability in 1990 was still higher than any
year during the past decade (except for 1987 through 1989). Thus far, the current year is a continuation of 1990. Earnings are continuing on their downward slide from year-earlier levels, causing profitability also to continue downward. Chemical producers are hoping for an upturn in the second half of this year and, indeed, there are some signs that this may be more than wishful thinking. First-quarter earnings and profitability were both
higher than they had been in the fourth quarter of 1990, showing some increased business activity. And some markets, such as residential construction, have in the past couple of months shown some signs of strengthening. Others, however, are still in the doldrums. However, even if producers are correct in forecasting a better second half, the best they can hope for is that 1991 will be flat when compared with the previous 12 months. June 24, 1991 C&EN
39
TOP 100 CHEMICAL PRODUCERS; Profits fall substantially for many of the largest firms Chemical Change sales 1990 from ($ millions) 1989
Rank 1990 1989
1 2 3 4 5
1 2 3 4 5
6 7 8 9 10
6 8 7 9 10
Hoechst Celanese General Electric Occidental Petroleum BASF Amoco
5,499 5,167d 5,040 4,366 4,087
-2.8 4.8 -2.4 -2.1 -4.4
11 12 13 14 15
11 12 13 15 14
Mobil Shell Oil Eastman Kodak W. R. Grace Chevron
4,084 3,718 3,588 3,570 3,325
Arco Chemical Rohm & Haas Allied-Signal Air Products6 Bayer USA
2,830 2,824 2,786 2,614 2,380
Du Pont Dow Chemical Exxon Union Carbide Monsanto
Chemical sales as % of total sales
$15,571 2.1% 38.9% 14,690 3.6 74.3 11,153 5.6 9.6 7,621d - 0 . 4 100.0 5,711 - 1 . 2 63.5
Industry classification
Chemical operating Change profits3 from ($ millions) 1989
- 2 8 . 9 % 40.1% -45.7 68.3 -54.1 8.1 -17.0 100.0 68.6 -32.8
12.6% $13,788 13,604 13.1 8,548 6.6 13.6 7,613 10.9 4,831
36.2% 14.3% 56.8 14.2 9.7 8.6 87.2 13.6 52.3 12.9
105.4 13.2 23.4 na 6.4
7.8 19.7 12.6 na 6.2
na 7,973 5,494 na 3,646
na 5.2 27.8 na 11.5
na 12.8 11.6 na 6.9
-47.1 -44.8 -6.4 6.9 -91.7
7.6 26.6 21.2 77.9 0.9
9.7 14.0 16.8 12.1 1.3
3,265 3,952 3,952 2,756 2,622
7.8 13.9 16.4 44.3 7.5
12.2 13.1 15.2 15.6 1.7
469 351 287 441 91 f
-19.1 22.3 -19.2 3.6 -24.9
100.0 100.0 39.3 108.0 61.2
16.6 12.4 10.3 16.9 3.8f
3,739 100.0 2,414 100.0 1,896 18.1 3,132 80.3 na na
12.5 14.5 15.1 14.1 na
Specialty chemicals Basic chemicals Petroleum Basic chemicals Petroleum
na 195 70 167 448
na -15.0 -45.3 22.8 -31.3
na 62.2 21.1 69.0 21.3
na 8.7 3.1 7.6 21.1
na 1,832 856 1,860 1,797
na 36.0 16.7 50.3 14.8
na 10.7 8.2 9.0 24.9
52.0 73.8 79.7 100.0 29.1
Specialty chemicals Basic chemicals Basic chemicals Basic chemicals Petroleum products
na 242 129 152 na
na -42.7 -50.4 11.6 na
na 95.1 85.2 100.0 na
na 12.4 6.7 8.0 na
na 2,235 1,521 na na
na 69.4 64.3 na na
na 10.8 8.5 na na
Diversified Basic chemicals Petroleum Basic chemicals Basic chemicals
$1968 1925 737 1033 624
93.5 8.8 23.2 81.1 12.9
Basic chemicals Diversified Petroleum Basic chemicals Petroleum
427 1017 636 na 252
-25.9 -3.8 -39.8 na -66.1
1.1 -3.0 1.9 10.8 9.1
7.7 15.2 19.0 52.9 8.0
Petroleum Petroleum Photo equipment Specialty chemicals Petroleum
397 519 602 431 44
6.3 6.1 -6.9 5.3 3.6
100.0 100.0 22.6 90.3 40.0
Basic chemicals Basic chemicals Diversified Basic chemicals Diversified chemicals
21 32 Rhone-Poulenc 22 22 American Cyanamid 6 23 23 Ashland Oil 24 30 Hercules 25 20 Phillips Petroleum
2,278 42.4 2,255 0.6 0.7 2,245 2,193 3.6 2,120 -13.4
100.0 49.3 25.0 68.5 15.6
26 42 Ciba-Geigy 27 24 Quantum Chemical 28 25 B. F. Goodrich 29 31 Akzo 30 26 Lyondell Petrochemical
1,976 1,959 1,940 1,893 1,889
10.0 -6.9 -1.9 1.0 19.6
16 17 17 18 18 16 19 19 20 21
Chemical Chemical operating Identifiable assets Operating profits as Operating chemical as % of return on % of total profit assets total chemical profits marginb ($ millions) assets assets0
31 32 33 34 35
29 27 33 34 35
Alcoa Texaco Dow Corning National Starch FMC
1,842d 5.7 1,723 - 5 . 2 1,718 9.1 6.4 1,670 1,624 5.4
17.2 4.1 100.0 100.0 43.6
Nonferrous metals Petroleum Specialty chemicals Specialty chemicals Machinery
1319 60 171f 254 192
11.5 -85.0 5.1 12.3 -15.1
121.3 2.5 100.0 100.0 45.4
71.6 3.5 10.0f 15.2 11.8
2,855 25.0 1,308 5.0 na na 1,448 100.0 1,469 49.6
46.2 4.6 na 17.6 13.0
36 37 38 39 40
36 28 56 45 42
Ethyl Atochem Degussa Lubrizol Huntsman Chemical
4.7 1,591 1,540 -13.4 1,435 61.9 1,335 18.8 1,300 8.3
100.0 100.0 75.3 91.9 100.0
Basic chemicals Basic chemicals Specialty chemicals Specialty chemicals Basic chemicals
308 na na 398 na
9.0 na na 24.1 na
100.0 na na 90.8 na
19.4 na na 29.8 na
1,383 100.0 na na na na 887 79.5 na na
22.3 na na 44.9 na
41 42 43 44 45
40 38 39 48 44
Tenneco Olln Unocal Nalco Chemical PPG Industries
1,298 1,269 1,236 1,212 1,150
6.0 -1.2 -3.1 13.2 -2.1
8.9 49.0 10.5 100.0 19.1
Diversified Basic chemicals Petroleum Specialty chemicals Glass products
167 45 115 211 231
40.3 -74.1 -47.0 16.3 -10.1
11.5 30.6 23.7 100.0 25.4
12.9 3.5 9.3 17.4 20.1
1,409 7.5 945 50.6 671 6.9 1,037 100.0 1,076 17.6
11.9 4.8 17.1 20.3 21.5
46 47 48 49 50
52 41 61 67 54
Cabot6 IMC Fertilizer9 Great Lakes Chemical Imcera Group9 Morton International9
1,107 1,106 1,066 1,025 1,021
16.3 -9.5 34.6 54.7 9.2
66.2 100.0 100.0 71.9 62.3
Basic chemicals Agrochemicals Specialty chemicals Specialty chemicals Specialty chemicals
147 171 290 104 140
32.1 -33.5 43.7 99.2 -3.4
89.6 100.0 100.0 92.5 58.0
13.3 15.5 27.2 10.2 13.7
1,100 63.5 1,585 100.0 1,406 100.0 1,090 51.1 na na
13.4 10.8 20.6 9.6 na
40 June 24, 1991 C&EN
Chemical Change sales 1990 from ($ millions) 1989
Rank 1990 1989
Chemical sales as % of total sales
Industry classification
Chemical operating Change from profits3 ($ millions) 1989
Chemicali Chemical Identifiable assets Operating operating profits as Operating chemical as % of return on % of total profit assets total chemical profits margin" ($ millions) assets assets0
na na na na na na 8.7% $412 25.3 1129
na na na na na na 30.4% 20.4% 100.0 21.5
na 100.0 100.0 100.0 17.2
pa 24.5 27.7 5.4 6.3
na 457 1967 801 880
na 100.0 100.0 100.0 24.5
na 50.1 12.8 6.1 5.9
15.7 2.4 3.8 12.8 363.7
61.8 100.0 71.0 100.0 66.9
19.7 13.4 12.4 6.6 10.7
523 1178 874 490 477
18.4 100.0 66.2 100.0 40.5
30.6 9.2 11.4 10.6 17.2
151 123 104 48 68
-32.7 -1.6 19.0 17.0 14.5
100.0 33.8 100.0 100.0 2.6
20.9 19.2 17.4 8.6 12.3
na 658 427 489 510
na 18.9 100.0 100.0 6.4
na 18.7 24.4 9.7 13.3
Drugs Specialty materials Basic chemicals Drugs Basic chemicals
29 10 88 na -17
-26.2 -48.2 -43.4 na def
2.5 14.5 100.0 na 100.0
5.3 2.0 17.5 na def
418 288 352 na 221
4.6 42.0 100.0 na 100.0
6.9 3.5 25.1 na def
3.7 52.2 100.0 16.2 83.2
Petroleum Specialty chemicals Specialty chemicals Diversified Specialty chemicals
na 164 na 22 104
na -4.4 na 66.2 14.3
na 88.8 na 6.1 94.1
na 34.0 na 4.9 23.5
na na na 352 485
na na na 8.0 88.7
na na na 6.4 21.4
-0.1 -9.7 -4.9 12.5 10.7
48.3 100.0 37.0 100.0 79.7
Specialty chemicals Basic chemicals Nonmetallic minerals Specialty chemicals Specialty chemicals
38 68 72 21 43
23.3 -29.1 -16.2 83.1 19.6
90.7 100.0 39.3 100.0 72.2
8.7 16.1 17.7 5.5 13.9
280 544 na 247 239
36.7 100.0 na 100.0 84.5
13.7 12.4 na 8.7 18.1
295 285 283 275 253
-4.1 12.4 2.9 -0.9 21.1
59.3 100.0 94.2 45.9 100.0
Agrochemicals Basic chemicals Specialty chemicals Specialty chemicals Farm cooperative
23 62 17 23 5
-14.8 10.1 -9.4 -38.6 -89.6
97.4 100.0 93.3 56.3 100.0
7.8 21.9 5.9 8.5 1.9
173 285 209 139 289
33.9 100.0 82.8 42.4 100.0
13.3 21.9 8.0 16.9 1.7
Georgia-Pacific Quaker Chemical Sequa Corp. Sherex Lawter International
247 201 201 177 150
-2.4 10.9 42.4 -5.9 10.3
2.0 100.0 10.8 100.0 100.0
Wood products Specialty chemicals Diversified Specialty chemicals Specialty chemicals
na 22 30 na 28
na 17.6 54.4 na 23.0
na 100.0 20.2 na 100.0
na 10.7 14.7 na 18.5
na 152 112 na 154
na 100.0 5.9 na 100.0
na 14.1 26.5 na 18.0
LeaRonal1 Cambrex Corp. Eagle-Picher Aceto9 Sybron
141 134 123 122 120
-10.5 2.0 -19.4 8.1 na
100.0 100.0 17.5 100.0 100.0
Specialty chemicals Specialty chemicals Diversified Specialty chemicals Specialty chemicals
14 4 16 7 na
-10.4 -32.3 7.4 -2.4 na
100.0 100.0 33.3 100.0 na
10.0 3.3 13.0 5.4 na
81 na 76 68 na
100.0 na 18.2 100.0 na
17.3 na 21.1 9.6 na
na na na na na na - 7 . 0 % 52.5% 11.8 100.0
Specialty chemicals Basic chemicals Basic chemicals Agricultural supplies Specialty chemicals
na na na $84 243
100.0 100.0 100.0 100.0 52.2
Agrochemicals Basic chemicals Basic chemicals Agrochemicals Agrochemicals
na 229 251 49 52
na -23.6 -18.6 78.5 -52.3
22.8 0.4 -0.7 5.2 0.4
21.1 100.0 27.4 100.0 47.1
Petroleum Specialty chemicals Diversified Specialty chemicals Specialty chemicals
160 108 100 52 82
719 642 597 555 551
-7.7 8.4 15.5 17.2 11.9
100.0 17.4 100.0 100.0 7.2
Basic chemicals Petroleum Specialty chemicals Specialty chemicals Drugs
Pfizer Ferro Sterling Chemical6 Hoffmann-La Roche Nova
548 513 506 500 489
7.5 5.5 -12.9 0 -27.9
8.5 45.6 100.0 20.8 100.0
73 68 — 83 84
Sun Co. GAF Huls Union Camp Sigma-Aldrich
486 481 465 460 440
-4.6 -19.8 3.6 12.8 22.6
81 82 83 84 85
81 78 82 85 87
Dexter Borden Chemicals Vulcan Materials Stepan Crompton & Knowles
438 421 409 390 311
86 87 88 89 90
86 90 89 88 92
First Mississippi9 Calgon Carbon Petrolftek Chemed Mississippi Chemical9
91 92 93 94 95
90 94 — 93 98
96 97 98 99 100
95 99 97 — —
51 52 53 54 55
— 50 51 55 57
Reichhold Chemicals Solvay America Aristech Farmland Industries'1 International Flavors
56 57 58 59 60
53 47 49 58 46
Terra Chemicals Georgia Gulf NL Industries CF Industries Freeport-McMoRan
961 932 907 903 825
1.3 -15.6 -9.4 5.5 -25.3
61 62 63 64 65
66 60 59 65 64
American Petrofina Uniroyal Chemical Engelhard H. B. Fuller' Witco
813 808 807 792 769j
66 67 68 69 70
62 69 72 79 76
Vista Chemical6 Kerr-McGee Betz Laboratories Loctite Merck
71 72 73 74 75
74 77 70 75 63
76 77 78 79 80
$1000 997 974 965 963
na 100.0% 0%100.0 - 2 . 2 100.0 9.2 28.6 10.7 100.0
a Operating income is sales less administrative expenses and cost of sales, b Chemical operating profit as a percentage of sales, c Chemical operating profit as a percentage of identifiable chemical assets, d Chemical sales include significant amounts of nonchemical products, e Fiscal year ended Sept. 30. f Chemical net income, g Fiscal year ended June 30. h Fiscal year ended Aug. 31. i Fiscal year ended Nov. 30. j Does not include all chemical sales, k Fiscal year ended Oct. 31.1 Fiscal year ended Feb. 28, 1990. na = not available, def = deficit.
June 24, 1991 C&EN
41
FINANCIAL ANALYSIS: Decline evident in many chemical company performance measures
Profit margin3
Return on investment"
Debt as % of debt plus equity
% total sales abroad0
% total assets abroadd
Sales per employee6
Dividends as % of net income
CAPITAL SPENDING' as % as% of of net plant sales
R&D as % of sales
Sales as % of assets
Net plant as % of gross plant
SALES OVER $1 BILLION Air Products9
1990 1989
7.9% 8.4
3.9% 4.3
36.1% 37.1
24.5% 23.6
35.5% $207 187 30.8
American Cyanamid
1990 1989
2.4 6.1
1.7 5.0
13.1 16.5
39.6 38.6
27.2 24.6
143 136
118.9 41.1
8.2 8.2
19.7 22.6
10.1 8.4
89.8 97.1
51.5 51.4
Cabot9
1990 1989
4.2 0.9
3.4 1.0
45.7 44.1
41.8 32.8
36.0 12.7
279 352
41.8 166.1
10.4 9.9
19.9 25.9
2.1 1.8
96.6 136.7
57.3 56.1
Dow Chemical
1990 1989
7.0 14.1
5.1 10.1
37.4 32.6
52.0 54.1
45.4 44.9
318 283
51.4 23.2
10.7 9.6
25.7 22.2
5.7 5.0
82.5 79.4
43.1 44.1
Ethyl
1990 1989
9.2 14.4
12.5 13.2
39.5 35.6
21.2 31.3
4.9 3.8
441 276
108.0 26.3
6.0 7.8
22.4 20.5
2.6 4.0
37.6 27.0
50.8 48.8
B. F. Goodrich
1990 1989
4.8 7.1
4.3 6.3
13.2 18.5
24.7 26.7
18.6 18.6
165 203
53.8 34.6
10.0 9.9
21.9 24.2
3.0 2.7
102.8 106.4
60.3 59.6
W. R. Grace
1990 1989
3.0 4.2
2.8 3.9
50.7 48.6
36.9 34.8
34.1 31.0
138 132
59.5 46.6
7.6 7.9
20.9 21.8
2.2 2.0
108.5 108.8
50.2 49.6
Great Lakes Chemical
1990 1989
13.2 15.5
11.5 13.2
9.2 16.1
53.1 40.1
42.7 49.6
na na
11.5 11.1
4.6 5.1
13.3 14.7
2.7 3.4
75.8 72.2
59.5 56.6
Hercules
1990 1989
3.0 def
2.4 def
23.6 23.3
27.8 25.4
18.6 17.0
161 133
109.4 def
8.5 9.5
18.8 20.7
2.9 2.5
86.5 84.6
47.3 48.4
Imcera Group
1990 1989
4.1 11.2
3.7 7.1
47.8 44.5
34.4 25.8
17.0 27.3
133 148
def 43.8
9.5 6.0
20.7 14.6
2.5 5.3
84.6 66.9
48.4 69.2
Lubrizol
1990 1989
13.2 7.7
12.2 6.9
6.8 7.4
56.8 52.4
43.7 40.3
280 230
27.5 54.8
5.4 5.3
21.9 20.4
5.2 5.7
129.6 127.1
39.0 39.0
Monsanto
1990 1989
6.1 7.8
4.9 6.7
28.8 27.2
36.8 35.6
32.4 28.5
219 206
44.3 32.5
8.3 7.0
21.5 19.1
7.7 6.9
97.4 100.9
45.8 45.7
Morton International*1
1990 1989
8.2 6.9
7.4 6.5
20.6 4.6
30.4 31.1
25.6 26.4
169 167
30.7 na
6.8 9.4
17.2 23.8
2.9 2.7
90.4 103.1
59.7 59.7
Nalco Chemical
1990 1989
10.8 11.2
10.5 10.8
38.3 32.5
28.2 27.1
20.4 19.4
207 195
48.2 47.9
9.5 8.1
27.4 24.6
3.7 3.8
116.9 114.1
49.9 48.7
Olin
1990 1989
3.2 4.9
2.8 4.2
39.5 36.1
7.8 7.2
10.9 9.3
171 163
58.3 34.7
7.2 5.7
22.6 18.2
2.5 2.6
138.9 131.8
36.1 36.0
PPG Industries
1990 1989
7.9 8.1
5.8 6.2
31.1 33.3
34.3 30.9
33.5 29.7
172 162
37.0 35.6
6.9 9.4
12.8 17.9
3.6 4.1
98.6 101.6
54.3 55.2
Quantum
1990 1989
0.8 4.3
0.6 3.4
104.2 107.9
na na
na na
na na
0 1121.1
17.3 21.8
22.7 33.2
1.8 1.7
82.4 88.9
69.5 70.0
Rohm & Haas
1990 1989
7.3 6.6
5.5 5.2
32.7 21.5
43.7 43.2
32.4 32.1
219 204
38.2 43.8
14.6 14.5
29.6 33.5
6.3 6.6
104.5 108.4
50.2 47.9
Union Carbide
1990 1989
4.0 6.6
2.6 4.7
49.6 46.6
36.4 33.7
32.3 40.7
202 190
44.8 24.4
9.8 9.0
17.2 17.1
2.5 2.1
87.3 102.3
48.5 48.1
Wltco
1990 1989
4.2 2.2
4.4 2.3
28.2 29.2
19.8 18.9
20.2 16.4
225 216
56.4 103.3
5.6 4.4
19.3 16.9
1.6 1.6
138.4 139.4
48.8 48.3
5.5% 7.0
4.4% 5.7
34.4% 32.6
34.4% 31.3
32.3% $205 193 26.4
8.3% 8.7
20.4% 20.6
2.9% 93.5% 50.2% 102.0 49.2 3.1
MEDIAN 1990 MEDIAN 1989 42
June 24, 1991 C&EN
33.4% 16.2% 15.7 31.2
44.6% 34.7
18.8% 18.7
2.5% 2.7
74.2% 49.6% 49.9 78.5
Finances of the U.S. Chemical Industry
Profit margin3
Return on investment6
Debt as % of debt plus equity
% total sales abroad"
% total assets abroadd
Sales per employee6
Dividends as % of net income
CAPITAL SPENDING' as % as% of of net plant sales
R&D as % of sales
Sales as % of assets
Net plant as % of gross plant
SALES LESS THAN $1 BILLION. Betz Laboratories
1990 1989
11.0% 10.8
11.3% 12.1
Calgon Carbon
1990 1989
13.9 13.9
12.4 13.3
Chemed
1990 1989
3.1 4.9
Crompton & Knowles
1990 1989
First Mississippi*1
56.2% 55.4
9.6% 10.2
24.6% 30.7
3.9% 3.7
139.7% 57.9% 54.6 139.9
190 191
15.4 12.5
16.7 10.4
33.0 25.8
2.0 1.9
99.9 108.4
76.4 75.5
13.7 11.8
87 93
122.4 70.6
2.5 2.7
19.7 21.4
0.6 0.6
161.7 158.1
55.2 56.5
18.7 17.3
19.2 21.5
218 212
31.2 27.9
4.2 3.8
21.3 26.4
2.2 2.2
138.0 163.3
62.1 56.1
39.7 30.6
24.0 17.7
na na
na na
135.0 34.6
13.0 24.7
20.8 38.2
na na
97.2 90.8
45.0 44.8
3.7 3.1
30.9 35.1
46.3 44.9
54.2 50.8
142 140
25.7 34.9
4.0 5.4
15.6 21.9
2.0 2.1
161.9 165.5
61.3 63.5
10.2 17.4
17.9 35.3
263.9 66.1
na na
na na
868 818
0 12.5
6.2 4.9
27.1 25.9
na na
204.1 233.5
68.0 69.7
1990 1989
16.3 15.9
11.4 11.9
0.0 0.0
70.1 69.2
46.6 47.0
230 206
52.5 52.6
4.3 3.8
15.5 14.1
6.0 6.0
85.3 89.7
51.7 53.1
Loctite
1990 1989h
12.1 11.9
13.0 14.0
9.8 13.8
55.0 57.9
65.5 62.0
151 130
31.2 26.4
5.1 3.5
27.4 22.8
3.9 3.8
113.5 126.1
55.6 53.7
Petrolite1
1990 1989
4.4 2.4
3.4 2.0
2.3 1.1
31.3 30.5
37.5 35.0
na na
96.7 178.1
5.8 6.5
14.8 18.0
4.1 4.1
118.9 121.5
44.5 44.0
Quaker
1990 1989
7.0 7.1
8.4 8.9
5.2 5.9
41.1 43.4
35.0 32.1
187 185
30.5 29.8
6.3 4.2
27.3 20.7
na na
132.2 138.2
55.3 53.0
Sigma-Aldrich
1990 1989
13.5 14.5
11.3 12.0
16.1 17.1
28.1 21.9
29.0 26.4
129 116
14.3 14.3
6.1 11.7
16.9 29.3
na na
96.9 93.4
66.2 71.3
Stepan
1990 1989
3.7 2.3
3.8 2.3
48.3 49.2
11.7 na
13.6 na
297 301
22.0 37.2
9.8 9.8
26.8 27.8
3.4 2.9
157.7 160.8
49.6 48.7
Sterling Chemical9
1990 1989
11.7 17.9
14.8 28.6
37.1 37.6
35.4 35.0
na na
na na
93.6 42.5
3.9 9.9
9.2 26.6
na na
143.8 176.5
78.8 84.7
10.2% 10.8
10.4% 11.2
16.1% 29.4
33.4% 35.0
31.2% 34.9
5.8% 5.4
21.3% 25.8
3.0% 2.8
132.2% 55.6% 138.2 54.6
19.0% 17.8
22.0% $162 151 18.9
5.3 9.9
39.2 37.3
43.5 30.7
6.3 9.8
42.2 41.5
12.2 11.0
7.7 6.9
10.4 11.2
37.4 29.4
1990 1989
0.9 3.8
0.5 2.1
H. B. Fuller'
1990 1989
2.7 2.1
Georgia Gulf
1990 1989
International Flavors
MEDIAN 1990 MEDIAN 1989
31.0% 35.2
33.6% $189 188 32.1
Note: Net income is from continuing operations, excluding extraordinary and nonrecurring items where possible, a Net income as a percentage of sales, b Net income as a percentage of current assets plus gross plant, c Consolidated sales only, d Foreign identifiable assets as a percentage of total assets, e Thousands of dollars, f Actual spending on construction of new facilities and purchase of land and new equipment in consolidated businesses, g Fiscal year ended Sept. 30. h Fiscal year ended June 30. i Fiscal year ended Nov. 30. j Fiscal year ended Oct. 31. na = not available, def = deficit.
June 24, 1991 C&EN
43
2
Finances of the U.S. Chemical Industry
Chemical capital spending continues to rise Capital spending by U.S. chemical producers continued to rise in 1990. In a year when earnings and profitability were both down, the 25 major chemical firms that C&EN tracks still increased their capital spending budgets a healthy 12% over already respectable 1989 spending levels. The 1990 hike is much lower than the 23% increase in capital spending that these companies posted in 1989 or the 29% hike of 1988. Nevertheless, it's a good deal higher than the 4%o annual compound growth rate
during the past 10 years for the companies whose plant outlays are tabulated by C&EN. As a percentage of sales, capital spending by the 25 companies continued to rise in 1990, reaching 10.6% and making 1990 the first year since 1982 when this figure topped 10%. Capital spending as a percentage of sales in 1989 was 9.9%. For much of the mid-1980s this value hovered around 8%. The Department of Commerce's much wider survey of the chemical
industry found a similar rise in capital expenditures in 1990. Their measure was up 11%. And, as of the first quarter of 1991, chemical companies planned to continue increasing capital spending in 1991, according to Commerce Department data. Plans for 1991 called for a 5% increase in capital outlays to reach $21.6 billion this year. A separate survey by the Conference Board, meanwhile, shows that the backlog of unspent funds ticketed for plant expansions by chemical
INDUSTRY CAPITAL SPENDING: Holding steady for 1991 following three years of big gains $ Billions
1990
1983
Chemicals Iron and steel Nonferrous metals Paper
$ 21.63 7.20 2.88 13.10
$ 20.54 7.81 2.88 16.72
$ 18.47 7.87 2.64 15.58
$ 19.25 6.16 2.77 11.23
$ 16.42 4.69 2.16 9.01
$ 16.81 3.32 1.93 8.77
$ 16.44 4.12 1.88 8.59
$ 15.32 3.54 2.13 7.21
$ 12.96 3.25 1.74 5.92
$ 12.66 3.78 1.90 5.60
$ 13.11 3.48 2.51 6.11
Petroleum Rubber Stone, clay, glass All manufacturing
38.45 3.44 3.19 193.39
34.46 3.48 3.31 192.78
30.08 3.79 4.00 183.80
19.93 3.86 3.59 165.70
17.12 3.52 3.37 145.90
17.92 3.89 3.14 142.69
26.71 3.86 3.40 153.48
25.53 3.11 3.09 138.82
23.14 2.46 2.77 116.20
26.39 2.16 2.90 120.68
25.98 2.15 3.41 126.54
a Estimate. Source: Department of Commerce
Chemicals and petroleum sectors lead industry in unspent capital appropriations $ Billions
1990
1984
1983
1981
1980
Chemicals Iron and steel Nonferrous metals Paper
$ 12.6 2.4 2.1 14.6
$ 11.9 2.9 2.3 17.4
$ 10.6 2.7 1.6 12.3
$ 7.0 1.4 1.7 6.3
$ 6.2 0.5 1.6 4.4
$ 8.0 1.1 2.3 4.3
$ 7.8 2.1 2.5 5.9
$ 7.5 2.2 3.2 4.0
$ 7.4 2.7 3.2 5.1
$ 9.4 5.4 3.7 5;1
$ 9.8 3.9 3.7 4.0
Petroleum Rubber Stone, clay, glass All manufacturing
23.4 3.9 2.5 106.3
17.1 3.5 2.7 114.2
14.6 2.8 2.8 101.7
15.2 1.7 2.4 76.8
16.7 1.9 1.8 69.7
26.2 3.1 2.0 95.0
24.7 1.6 2.2 94.4
22.3 1.1 1.5 73.7
22.9 1.0 1.6 70.8
29.7 0.9 1.9 92.7
26.7 1.0 2.0 91.9
$ 2.4 1.0 14.1 13.6
$ 2.3 0.9 15.9 13.6
$ 2.8 0.9 19.7 16.8
$ 3.0 0.8 15.8 19.2
Note: Figures are for fourth quarter of each year. Source: Conference Board
Capital spending by chemical firms abroad continues to rise strongly $ Billions3
Chemicals and allied products Metals, primary and fabricated Petroleum All manufacturing
$ 6.6 1.3 18.6 29.8
$ 6.2 2.1 1.56 27.4
$ 5.3 1.5 14.4 23.4
$ 4.7 1.1 13.3 20.8
a By majority-owned affiliates of U.S. companies, b Planned. Source: Department of Commerce
44
June 24, 1991 C&EN
$ 3.7 0.8 9.8 17.2
1986
1985
$ 3.1 0.9 9.6 16.4
$ 2.7 0.9 13.7 14.9
Chemical capital spending has more than doubled since 1983, and continues to grow faster than sales $ Billions3 121
Capital spending as % of sales3
121
io[
J 1980 81 82
L 83 84
J 85
86
I
I
8
I
6
I
h
Ol
L
87 88 89 90
1980 81 82 83 84 85 86 87 88 89 90
producers was 6% higher at the end of 1990 than a year earlier, rising to nearly $13 billion. The hectic rate of increase in capital spending abroad by U.S. chemical companies continued in 1990, though Commerce Department data suggest the pace will slow in 1991. Overseas affiliates of U.S. chemical producers increased their outlays 17% in 1990, compared with a 13% rise in 1989. For 1991, they plan only a 6% rise in overseas expenditures.
a Worldwide data for 25 major chemical producers. Source: Company data
CHEMICAL CAPITAL SPENDING: Tops $11 billion in third straight year of strong growth $ Millions
1981
1980
$ 347
$ 323
$ 364
171 152 4 3
181 194 4 7
196 137 4 10
630
829
1276
1300
1176 1420
1184 1297
85 115 353
92 144 560
141 205 657
156 184 658
29 218 10 30 614
20 168 9 25 560
29 174 9 52 673
47 167 11 75 668
21 229 14 92 781
60 154 452 24 6
53 165 315 11 4
41 123 450 9 2
56 129 452 24 2
59 186 376 15 1
35 172 401 17 5
102 179 14 466 60
76 159 19 649 76
116 124 12 670 85
71 72 10 761 55
126 16 1179 54
44 182 12 1186 83
49 93 9 1129 73
$5923
$6374
$6172
$5333
$6643
$7420
$7310
1985
1984
1983
$ 367
$ 392
$ 263
$ 246
263 80 9 4
203 184 7 3
200 505 9 3
165 80 5 2
1989
1988
1987
468
$ 414
$ 409
$ 323
376 298 13 16
398 233 14 13
374 214 15 7
268 83 9 4
2,119 3,142
1756 2563
1264 2029
995
890
806
781
1674
1587
1515
1319
Ethyl B. F. Goodrich W . R. Grace
166 243 514
119 240 485
151 181 418
139 143 243
134 144 199
90 202 348
103 153 380
Great Lakes Chemical Hercules Loctlte Lubrizol Monsanto
49 273 29 77 750
40 293 24 65 607
47 251 15 55 590
35 205 17 42 505
18 257 11 41 520
21 234 9 40 645
Nalco Chemical Olin P P G Industries PetroIKe Quaker Chemical
115 187 415 18 13
86 142 537 19 8
62 147 410 20 5
57 115 426 19 4
64 128 356 25 5
Quantum Chemical Rohm & Haas Stepan Union Carbide Witco
459 412 38 744 91
589 385 34 726 70
334 338 20 608 72
154 222 26 452 69
$11,025
$9860
$8036 29 S
$6229
Air Products American Cyanamid Cabot a Chemed Crompton & Knowles
D o w Chemical
Du Pontb
TOTAL ANNUAL CHANGE
1990
$
12%
23%
16%
-20% -10%
2%
25%
Note: Figures are for worldwide spending on construction, equipment, and land in consolidated businesses. Where possible, acquisition costs and investments in nonconsolidated businesses are excluded, a Includes acquisitions and investments, b Excludes Conoco. Source: Company data
June 24, 1991 C&EN 45
Finances of the U.S. Chemical Industry SHIPMENTS: Like all manufacturing, chemical products make modest gains in 1990 Annual change $ Billions
1990
All manufacturing industries Chemicals and allied products Industrial chemicals3 Drugs, soap, and toiletries Petroleum and coal products Rubber and plastic products Paper and allied products
1989
1988
1987
1986
1985
1984
1982
1983
1981
1980
1989-90
$2860.3 $2781.4 $2611.6 $2390.0 $2260.3 2279.1 $2254.4 $2054.9 $1960.2 $2017.5 $1852.7
1980-90
3%
4%
265.7
255.5
240.5
212.7
197.1
197.3
198.2
183.2
170.7
180.5
162.5
4
5
70.4 87.3
68.9 82.0
67.8 73.1
59.5 67.1
54.1 65.8
59.6 60.9
61.5 57.5
56.6 54.4
53.2 50.7
62.7 46.9
57.3 41.9
2 6
2 8
169.6
138.5
124.2
124.5
124.9
179.1
189.0
192.6
208.9
224.1
198.7
22
-2
90.1
95.8
91.1
80.5
73.4
71.3
69.5
60.3
55.4
53.2
47.3
-6
7
131.2
130.4
124.2
110.3
97.9
93.4
94.8
84.6
79.9
80.2
72.8
1
1981
1980
1989-90
6
a Excluding pigments. Source: Department of Commerce
PRICES Chemical products stagnated while other commodities rose last year Annua I average
Annual change
1990
1989
1988
1987
1986
1985
1984
1983
1982
All commodities
116.3
112.2
106.9
102.8
100.2
103.1
103.7
101.3
100.0
98.0
89.8
4%
3%
Industrial commodities
115.8
111.6
106.3
102.6
99.9
103.7
103.3
101.1
100.0
97.4
88.0
4
3
Finished goods
119.2
113.6
108.0
105.4
103.2
104.7
103.7
101.6
100.0
96.1
88.0
5
3
Chemicals and allied products Industrial chemicals Prepared paint Paint materials Drugs and pharmaceuticals Fats and oils, inedible Agricultural chemicals and chemical products Plastic resins and materials Other chemicals and allied products
123.6 113.2 124.8 136.3 170.8 88.1 107.4
123.0 114.8 119.5 129.1 160.0 95.5 108.7
116.3 106.8 112.2 115.7 148.4 110.9 104.5
106.4 95.5 108.1 107.3 139.1 92.7 96.4
102.5 91.5 107.0 104.4 129.9 80.5 94.2
103.7 96.0 105.3 109.5 122.2 110.6 96.2
102.9 96.8 103.7 108.2 114.2 139.1 97.4
100.2 97.3 100.7 100.3 107.7 106.2 96.0
100.0 100.0 100.0 100.0 100.0 100.0 100.0
98.4 103.0 95.0 98.5 92.1 110.7 97.5
89.1 91.9 89.5 89.9 83.1 111.6 87.9
0 -1 4 6 7 -8 -1
3 2 3 4 7 -2 2
124.1 118.9
133.4 117.3
132.4 111.9
110.3 107.0
104.4 105.8
107.5 105.2
108.9 102.7
102.4 101.3
100.0 100.0
102.0 94.1
98.5 83.1
-7 1
2 4
Rubber and plastic products
113.6
112.6
109.3
103.0
101.9
101.9
102.2
100.8
100.0
96.4
90.1
Producer price indexes, 1982 = 100
1980-90
Source: Department of Labor
Chemical shares have partially recovered from deep plunge in mid-1990 Stock price index, 1954 = 100' 700 k- 1
600
ft
1 High 1- Close
J_
1 Low
500
T^|rK:
1 rft 1
400
300
200
LfLL r | rr
L 'r ' T
HJ »-Lr L. ~
;Hfcr
r
1h
h •
100 1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
a C&EN stock price index of American Cyanamid, Dow Chemical, W. R. Grace, Hercules, Monsanto, Rohm & Haas, and Union Carbide, weighted according to number of shares outstanding for each company.
46
June 24, 1991 C&EN
1991
R&D spending made healthy rise in 1990 in real terms and as a percentage of company sales $ Billions1 4
1980
81
R&D spending as % of 5
82
83
84
85
86
87
88
89
90
1980 81
87
82
88
89
90
a R&D spending by 15 major chemical producers. Sources: Company data, Battelle Columbus Laboratories
R&D SPENDING: Most companies made significant increases in 1990 $ Millions
1990
1989
1988
1987
1984
1985
1986
1982
1983
1980
1981
CHEMICAL COMPANIES Air Products8 American Cyanamid Dow Chemical Ethyl W. R. Grace
$
72 460 1136 65b 148
$
71 406 873 61 b 125
$
72 365 772 59b 119
$
57 314 670 50 107
$
61 278 605 47 94
$
51 251 547 47 92
$
44 232 507 40 81
$
40 208 492 39 73
$
37 185 460 39 64
$
32 166 404 37 57
$
30 148 314 34 45
Hercules International Flavors Lubrizol Monsanto Nalco
92 57 74 612 45
79 52 70 598 41
74 50 65 648 37
74 45 62 615 35
71 39 51 596 33
76 34 44 470 32
72 32 33 370 32
74 32 37 290 30
74 31 36 264 33
65 30 33 233 30
57 29 28 208 28
Olln Petroltte PPG Industries Rohm & Hass Union Carbide
66 12 218 178 191
66 12 233 175 181
58 12 232 156 159
62 12 227 142 159
56 12 204 133 148
53 12 176 124 275
52 12 150 109 265
49 13 127 100 245
45 10 127 92 240
38 8 119 77 207
31 7 103 67 166
$3426 13%
$3043 6%
$2867 9%
$2631 8%
$2428 6%
$2284 12%
$2031 10%
$1849 6%
$1737 13%
$1536 19%
$1295 17%
TOTAL ANNUAL CHANGE
PHARMACEUTICAL & DIVE:RSIFIED C()MPANIES. Allled-Slgnalc Du Pont Eastman Kodak Eli Lilly FMC Merck & Co. Morton International0 d Pfizer Upjohn TOTAL ANNUAL CHANGE
$ 721 1428 1329 703 158
$ 603 1387 1253 605 150
$ 647 1319 1147 512 144
$ 667 1223 992 466 132
$ 734 1156 1059 427 146
$ 470 1144 976 370 149
$ 389 1097 838 341 121
$ 383 966 746 294 102
$ 177 879 710 267 105
$ 152 718 615 235 94
$ 105 591 520 201 81
854 48 640 427
751 38 531 407
669 35 473 380
566 31 401 356
480 29 336 314
426 34 287 284
393 28 255 247
356 21 230 218
320 7 199 185
274 6 179 162
234 6 162 139
$6308 10%
$5725 7%
$5326 10%
$4834 3%
$4681 13%
$4140 12%
$3709 12%
$3316 16%
$2849 17%
$2435 19%
$2039 17%
Note: Prior years not restated to reflect company revisions, a For fiscal year ending Sept. 30. b Adjusted to reflect spin-off of Tredegar Industries, c Includes all company-financed R&D but excludes contract R&D. d Fiscal year ends June 30; data for Morton Thiokol prior to 1985. Source: Company data
June 24, 1991 C&EN
47
The Last Three Generations Ifour Lab Has Three Weeks ' O U R TESTING H A S T O BE D O N E QUICKLY. A N D ACCURATELY. A N D IT H A S T O BE R I G H T THE FIRST TIME. XX — Dan
Vollmer
J K V a n Vollmer is the lab ^ ^ ^ ^ ^ ^ ^ d i r e c t o r for Waste Stream Technology in Buffalo, New York. Vollmer and his team support Waste Stream's remediation operation by performing critical point-in-time analysis on soil samples from prospective remediation projects. Old industrial sites and landfills contaminated by crude oil, coal tar, benzene, and other volatile aromatics. Waste that has been ^"fc, buried — and often ^ ^ reburied — for decades. "When we remediate a site, we don't just haul it away," Vollmer says. "We eliminate it. And the method we
use means that we just can't afford downtime. Ever." Testing is done with PerkinElmer gas chromatographs. Waste Stream performs the remediation by spraying the site with bacteria which use the contaminant as their carbon source. The bacteria "eat" the contaminant. "But some 'bugs' work better than others," Vollmer explains. "So first, we do a treatability study. We introduce different bacteria to soil samples, and test the samples at seven-day intervals for three weeks. Then we compare those data to see what kind of degradation rates we're getting. Data handling is the crux of the matter." Data handling is done with a PE Nelson data station. In a sample treated with bacteria, the contaminant concentration changes constantly.
Testing complex soil samples for aromatic hydrocarbons contributes to a heavy sample schedule.
Timing is critical. You can't stop the bugs.
Have Buried The Problem. To Uncover The Solution,
%: Chemical exports
5
n 1980
i
i
i
i
i
81
82
83
84
85
i
i
i
i
87
88
89
90
Source: Ministry of International Trade & Industry
INDUSTRY TRENDS: Plastics lead growth Production index, 1985 = 100
All manufacturing All chemicals Inorganic chemicals and pigments Alkalies and chlorine Organic chemicals Petrochemicals Aromatics Cyclic intermediates and dyes Plastics Synthetic fibers Synthetic rubber Fertilizer Textile materials Medicinals and drugs
1989
1988
1987
125.6 134.4 114.3
120.0 128.7 114.4
113.1 120.4 108.4
103.2 111.1 100.9
5% 4 0
120.9 131.7 136.7 137.3 143.2
114.7 128.1 129.1 133.2 135.3
110.5 115.9 118.1 115.9 121.2
103.6 105.4 107.6 107.1 110.9
5 3 6 3 6
139.6 101.2 123.1 85.2 126.8 154.8
130.7 97.5 116.7 86.6 118.7 147.3
120.6 95.4 112.2 88.5 117.8 136.2
109.9 94.6 102.9 91.6 110.7 123.1
7 4 6 -2 7 5
Source: Ministry of International Trade & Industry 74
June 24, 1991 C&EN
Change 1989-90
1990
Acetaldehyde Acetic acid Acetone Acrylonitrile Benzene3 Butadiene Butanol Caprolactam Cyclohexane Dioctyl phthalate Ethylene Ethylene dichloride Ethylene glycol Ethylene oxide Methanol Octanol Phenol Phthalic anhydride8 Propylene Propylene glycol Styrene Terephthalic acid Toluene Toluene diisocyanate Urea Xylene PLASTICS
a 'Petroleum-based product only. Source: Ministry of International Trade & Industry
Despite strong sales increase, profitability is declining for Japanese chemical firms Sales index, 1980 = 100 130 I First half Second half
Net income index, 1980 = 100 350
Net income as % of sales 5
ouu
4
120
-r
250 3 110
200 2 150
100 1
100
1986
1987
1988
1989
1990
50
1986
1987
1988
1989
1990
0
i
1 .
1986
1987
1988
1989
1990
Note: Based on results of 12 leading Japanese chemical companies: Asahi Chemical, Dainippon Ink & Chemicals, Hitachi Chemical, Mitsubishi Kasei, Mitsubishi Petrochemical, Mitsui Toatsu Chemicals, Sekisui Chemical, Showa Denko, Sumitomo Chemical, Takeda Chemical Industries, Teijin, and Toray Industries. The fiscal year for most, but not all, of these companies ends March 31. Source: Toyo Keizai Shinposha
COMPANY RESULTS: Earnings drop for many Japanese chemical companies $ Millions
Net sales
Net income
Asahi Chemical Industry5 $262.4 1990 $6699 1989 6377 241.0 1988 6384 219.4 1987 5357 141.0 Mitsubishi Kaseic 1990 $5321 1989 5307 1988 6132 1987 4360
Profit margin3
3.9% 3.8 3.4 2.6
Total assets
Employees (thousands)
$6895 6468 6410 5241
15.3 15.1 15.4 15.6
Employees (thousands)
2.0% 2.6 1.9 1.3
$5439 4455 4299 3881
5.3 5.1 5.1 5.0
1.6% 1.8 1.8 1.5
$4052 3999 4074 3366
7.2 6.9 6.7 6.6
69.1 87.3 83.5 43.5
2.3% 2.9 2.7 1.7
$4301 3963 3936 3004
5.5 5.4 5.4 5.6
Mitsubishi Petrochemic a l 5 $178.5 1990 $3000 227.8 2795 1989 160.0 2654 1988 64.7 2022 1987
6.0% 8.2 6.0 3.2
$4220 4376 3493 2843
3.3 3.0 2.9 2.8
Teijin5 1990 1989 1988 1987
Net sales
Showa Deii k o d $3934 1990 3811 1989 3679 1988 2908 1987
Net income
$ 78.2 97.1 71.3 38.8
Profit margin3
5
$128.1 130.8 124.9 90.4
2.4% 2.5 2.0 2.1
$6851 6621 6973 6002
9.1 8.9 8.8 8.9
Dainippon Ink & ChenHeals $ 57.3 1990 $3489 62.4 3407 1989 62.2 3440 1988 43.7 2923 1987 Mitsui Toatsu Chemic als $ 1990 $3039 2997 1989 3082 1988 2543 1987
5
Sumitomo Chemical1 _ 1990 $4950 $114.5 145.7 1989 4363 1988 4341 116.4 1987 3609 78.6
2.3% 3.3 2.7 2.2
$5587 5730 5806 4615
7.8 7.7 7.7 7.7
Takeda Chemical Industries5 1990 $3833 $265.9 1989 4262 271.7 1988 4567 269.4 1987 3777 219.6
6.9% 6.4 5.9 5.8
$5020 5280 5358 4628
11.0 10.9 10.8 10.8
Sekisui Chemical5 1990 $4144 1989 4018 1988 3936 1987 3089
4.3% 4.3 3.6 2.7
$4238 3414 2919 2555
5.6 5.4 5.2 5.3
Toray Industries5 1990 $4040 1989 3982 1988 4317 1987 3789
Total assets
$ Millions
$179.6 171.6 141.4 84.6 $193.4 227.7 134.7 113.5
4.8% 5.7 3.1 3.0
$5189 5362 5528 4854
10.3 9.6 10.0 10.6
$2279 2217 2438 2167
$138.1 154.9 136.5 109.3
6.1% 7.0 5.6 5.0
$4023 4015 3823 3391
5.7 5.7 5.8 6.2
Hitachi Ch smical5 $2099 1990 2052 1989 2158 1988 1748 1987
$ 30.7 31.7 28.2 20.7
1.5% 1.5 1.3 1.2
$1394 1279 1261 1056
5.3 5.1 5.0 4.9
Note: Monetary statistics are converted from yen to U.S. dollars on the basis of $1.00 equals: 1990, 144.8 Y; 1989, 137.9 Y; 1988, 128.1 Y; 1987, 142.9 Y. Year-to-year changes in sales, net income, and assets are affected by these fluctuations in the currency exchange rate, a Net income as a percentage of sales, b Fiscal year ends March 31. c Fiscal year ends March 31 for 1990, 1989, and 1988, Jan. 31 for 1987. d Fiscal year ends Dec 31. Sources: Toyo Keizai Shinposha, Nihon Keizai Shimbon America
June 24, 1991 C&EN
75
6
Foreign Chemical Industries -— C a n a d a
Sales and profits of Canadian chemical companies slipped last year as the country's recession ate into volume, and prices for many chemicals dropped. Inorganics were especially hard hit. Some of the trouble spots included chemicals that move into the fertilizer, pulp and paper, and construction markets. But it could have been worse. These rough spots were more than offset by advances in petrochemical and plastics production. In some cases, the advances were substantial. Total polyethylene output, for instance, was up a healthy 14%, while high-density polyethylene production registered a strong 20% gain. New capacity that came on stream last year explains some of the increase in production. But only some. Strong export markets are the other explanation. Canadian chemical exports increased 7.7% (in Canadian dollars) last year to $6.6 billion (U.S.). Chemical shipments to the U.S., which account for almost 70% of Canadian chemical exports, were especially strong. They were up 13% (in Canadian dollars) to $4.6 billion (U.S.).
Note on currency conversion: Monetary statistics in this section have been converted from Canadian dollars to U.S. dollars on the basis of $1.00 U.S. equals: 1990, $1,667 Canadian; 1989, $1,184 Canadian; 1988, $1,231 Canadian; 1987, $1,322 Canadian; 1986, $1,391 Canadian; 1985, $1,362 Canadian.
COMPANY RESULTS: Most profits dip $ Millions (U.S.)
Celanese Canada. $ 1990 1989 1988 1987
Sales
Net income3
Profit margin"
Capital Employees expenditures (thousands)
11.3% $ 20.7 14.5 12.2 19.9 12.0 16.1 8.1
312.5 335.0 330.8 265.5
$ 35.4 40.8 39.7 21.5
Du Pont Canada. $1209.4 1990 1196.9 1989 1119.6 1988 1021.4 1987
$ 53.5 66.4 81.2 68.5
4.4% 5.6 7.3 6.7
$154.6 91.3 86.6 47.9
4.3 4.1 4.0 4.2
Nova Corp. of Alberta 1990 $4059.2 1989 4088.3 1988 3202,1 1987 1755.4
$158.7 157.1 321.8 170.1
3.9% 3.8 10.0 9.7
$822.8 621.7 356.7 151.2
9.5 13.0 11.3 7.0
Union Carbide Canada 1990 $ 419.1 1989 436.0 461.3 1988 318.4 1987
$-4.0 36.0 34.3 19.4
na 8.3% 7.4 6.1
$ 56.5 41.7 45.0 26.2
2.5 2.6 2.8 2.3
1.8 1.9 2.1 2.1
a Excludes extraordinary gains and losses, b Net income as a percentage of sales. na = not available.
76 June 24, 1991 C&EN
Chemical output barely inches upward Production index, 1986 = 100 140
120
100
1981
82
83
Source: Statistics Canada
PRODUCTION: Inorganics weak, plastics do well Thousands of metric tons
1988
1987
Change 1989-90
INORGANIC CHEMICALS Ammonia Ammonium nitrate Ammonium phosphate Carbon black Chlorine Hydrochloric acid Nitric acid Phosphoric acid, 100% P205 Sodium chlorate Sodium hydroxide Sulfuric acid Zinc oxide
3602 1031 803 178 1542 187 965 402 658 1651 3311 31
4054 1056 952 190 1592 180 1027 470 593 1679 3560 41
4012 990 986 181 1664 180 919 475 503 1720 3805 62
3512 844 941 249 1635 164 900 464 432 1770 3437 44
-11.2% -2.3 -15.6 -6.0 -3.1 3.8 -6.0 -14.4 11.0 -1.7 -7.0 -24.4
ORGANIC CHEMICALS. Benzene Butadiene Butylene Ethylene Formaldehyde Methanol Propylene Toluene Urea Xylenes
765 192 176 2425 106 1884 766 427 2490 514
670 175 151 2317 112 2015 719 397 2402 432
695 182 148 2346 123 2101 672 417 2372 399
720 167 156 2140 122 1627 628 396 2142 345
14.3 9.8 16.7 4.7 -4.8 -6.5 6.6 7.6 3.7 18.8
PLASTICS Polyesters, unsaturated Polyethylene, high density Polyethylene, low density Polystyrene3
36 364 1167 215
37 303 1039 196
43 311 1105 216
47 269 1021 197
-1.3 20.4 12.3 9.4
a Includes acrylonitrile-butadiene-styrene resins. Source: Statistics Canada
SHIPMENTS: Chemical shipments were weak last year, particularly for inorganics $ Millions (U.S.)
All manufacturing Chemicals and chemical products Industrial chemicals, inorganic Industrial chemicals, organic Plastics and synthetic resins Pharmaceuticals and medicinals Adhesives Paint and varnish Soaps and cleansers Toilet preparations Printing ink Synthetic fibers Plastic products
Change 1989-90a
1990
1989
1988
1987
1986
$252,188 19,650 1,998 4,589 2,648 3,161 178 1,265 1,413 957 216 907 4,975
$256,099 19,471 2,064 4,446 2,547 3,022 177 1,313 1,401 994 238 853 5,175
$234,446 17,808 1,949 4,869 2,034 2,528 168 1,220 1,239 863 208 791 4,401
$203,013 15,020 1,780 3,676 1,681 2,121 150 1,061 1,111 759 182 700 3,686
$182,154 13,401 1,570 3,128 1,488 1,790 136 894 1,084 679 192 610 3,149
$182,526 13,409 1,605 3,456 1,445 1,637 95 885 1,002 644 177 572 2,834
-3% -1 -5 2 3 3 -1 -5 -1 -5 -11 5 -5
a In Canadian dollars. Source: Statistics Canada
TRADE BALANCE: Back to a surplus . . .
CHEMICAL IMPORTS: Post a sliqht qain $ Millions (U.S.)
Inorganic chemicals Organic chemicals Fertilizers and fertilizer materials Synthetic and reclaimed rubber Plastic materials Plastic film and sheet Other plastic shapes and forms Dyes, except dyeing intermediates Pigments, lakes, and toners Paints and related products Other chemical products TOTAL Imports from U.S. U.S. share
1990
1989
1988
1987
$1122 1781 189
$1190 1646 156
$ 910 1559 197
$ 396 1270 158
241
232
228
202
1299 435 421
1238 427 425
1094 392 430
831 372 261
93
96
86
71
115
117
115
115
254
233
195
176
1148 1155 951 857 $7096 $6878 $6158 $4708 $5335 $5060 $4330 $3609 75.2% 74% 70% 77%
CHEMICAL EXPORTS: Recover nicely
Chemical elements Other inorganic chemicals Organic chemicals Fertilizers and fertilizer materials Synthetic rubber and plastic materials Plastics, basic shapes and forms Other chemical products TOTAL Exports to U.S. U.S. share Source: Statistics Canada
Total exports Total imports Trade balance
1988
1990
$120.9 $113.0 $109.3 116.5 114.1 107.0 4.4 -1.1 2.3
1987
1986
$91.9 87.9 4.0
$83.9 81.3 2.5
1987
1986
. . . as chemical trade deficit narrows $ Millions (U.S.)
Chemical exports Chemical imports Chemical trade balance
1990
1989
1988
$6628 $ 6 0 6 3 $6262 $4639 7096 6878 6158 4708 -468 -815 -104 -69
$3961 4200 -239
Source: Statistics Canada
Source: Statistics Canada
$ Millions (U.S.)
$ Billions (U.S.)
1990
1989
1988
1987
$ 179 1045 1702 1422
$ 171 1112 1542 1237
$ 198 1145 1528 1351
$ 167 908 1029 960
1290
1176
1276
859
473
404
383
380
517
423
380
338
$6628 $6063 $6262 $4639 $4604 $4026 $3927 $2938 69.5% 66% 63% 63°/
PRICES: Many chemical prices drop Price index, 1986 = 100
All commodities Chemicals and chemical products Inorganic industrial chemicals Sulfuric acid Chlorine Ammonia Organic industrial chemicals Benzene-toluene-xylene Olefins Synthetic resins Polyethylene3 Polystyrene Thermosets Synthetic fibers Agricultural chemicals Mixed fertilizers Pharmaceuticals Paint and varnish Soaps and cleansers Toilet preparations Pigments, lakes, and toners Inks
1990
1989
109.7 113.8 103.8 111.1 93.0 78.4 118.3 126.0 133.1 111.3 115.7 127.6 119.7 106.6 106.9 104.7 125.2 114.5 116.0 112.9 106.7 103.1
109.4 166.8 105.8 108.6 101.4 84.3 135.0 125.5 161.2 123.0 134.9 140.7 125.9 105.5 102.4 110.8 119.0 111.1 111.9 112.9 105.8 101.5
1988
Change 1989-90
107.2 0.3% 115.3 - 2 . 6 102.6 - 1 . 9 106.8 2.3 101.7 -8.3 88.7 -7.0 135.2 -12.4 98.3 0.4 158.3 -17.4 130.8 - 9 . 5 151.7 -14.2 155.9 - 9 . 3 121.5 - 4 . 9 103.4 1.0 101.3 4.4 111.0 - 5 . 5 114.0 5.2 105.3 3.1 107.3 3.7 109.5 0.0 106.1 0.9 100.9 1.6
a Includes both high- and low-density polyethylene. Source: Statistics Canada
June 24, 1991 C&EN 77
6
Foreign Chemical Industries — Eastern Europe
In 1990, industrial production plummeted 18% in East Europe and 1.2% in the Soviet Union—the worst performance in more than four decades—as centrally planned command systems collapsed much faster than market elements could be introduced. Chemicals did worse than industry overall: Output sank 26% in Romania and Bulgaria, 25% in Poland, and 9% in Czechoslovakia. The malaise continues, with Soviet industrial output down 5% in this year's first quarter, fertilizer output down 8%, sulfuric acid 9%, and plastics 5%.
PRODUCTION GROWTH: Chemicals, like all industry, faced major drop in 1990
MAN-MADE FIBERS: Down substantially for both cellulosic and noncellulosic fibers Production, thousands of metric tons
1990
1989
1988
1987
Change 1989-90
NONCELLULOSIC FIBERS Bulgaria Czechoslovakia
na
61
67
61
143
148
147
142
Hungary
26
32
33
30
Poland
113
169
168
162
Romania
138
170
189
184
U.S.S.R.
na
973
954
904
TOTAL
na
1745 1736 1644
-3% -19 -33 -19 —
CELLULOSIC FIBERS Bulgaria Czechoslovakia Hungary
na
5
5
33
57
60
58
55
4
4
4
4
Poland
36
69
77
76
Romania
na
103
108
103 613
U.S.S.R. TOTAL
na
584
601
na
970
995 1029
-6% 0 -48
% annual change in gross output
1989
1990
1988
1987
1986
3
U.S.S.R. and East Europe
1.3%
3.8%
3.6%
4.4%
-14.1 -25.5
2.2 3.8
5.1 5.8
4.2 5.1
4.0 4.9
All industry Chemicalsb Hungary
-3.7 -9.1
0.8 0.7
2.1 2.1
2.5 3.2
3.2 4.0
All industry Chemicals13 Poland
-4.5 -5.4
-2.5 -3.1
-0.3 1.3
3.5 5.8
1.9 1.1
All industry Chemicals Romania
-23.3 C -24.7 C
-0.5 2.6
5.3 6.4
3.4 4.3
4.7 4.2
All industry Chemicals U.S.S.R.
-19.8 -26.0
-2.1 -3.1
3.1 3.2
2.4 -3.8
7.3 8.3
-1.2 -1.0 na na
1.7 1.4 0.2f -2.5 f
3.9 3.8 2.9 2.2
3.8 4.4 3.1 2.7
4.4 6.3 2.5 4.8
All industry Bulgaria All industry Chemicalsb Czechoslovakia
All industryd Chemicalsd All industry6 Chemicals6
-6.2%
a Includes East Germany, b Includes rubber industry, c Industrial sales of socialized sector, d Figures based on official Soviet statistics, e Figures based on Central Intelligence Agency estimates, giving lower results because of postulated upward bias in official figures. f Preliminary figure, na = not available. Sources: United Nations Economic Commission for Europe and state central statistical bureaus, Central Intelligence Agency, PlanEcon Inc.
AGRICULTURAL CHEMICALS: Fertilizer supplies continue to fall in Soviet Union
na = not available. Source: PlanEcon Inc.
Thousands of metric tons
Soviet chemical output declined in 1989 as that of all industry faltered % annual change in gross output 6
1990
1989
1988
1987
1986
Bulgaria Fertilizer supply3 Pesticide supplyb Czechoslovakia
na na
na na
781 26.3
745 28.5
808 36.5
na
1,565
1,594
1,562
1,702
Fertilizer supply3 Poland
na
1,302
1,418
1,373
1,383
Fertilizer supply3,0 Pesticide supplyb Romania Fertilizer supply3 U.S.S.R.
na na
3,625 21.0
3,277 23.4
3,583 18.4
3,413 14.5
na
1,194
1,426
na
1,386
21,500 24,482 8,900d 9,918 7,000d 8,175 5,600d 6,381
27,196 11,587 8,556 7,044
27,412 11,787 8,564 7,052
26,514 11,475 8,354 6,677
Fertilizer supply3,0 Hungary
1979
80
81
82
83
84
a Preliminary. Source: Central Intelligence Agency
Fertilizer supply3 Nitrogen3 Phosphate3,6 Potassium3
a Nutrient content basis, as N, P 2 0 5 , or K 2 0. b On basis of active substance, c For year ending June 30. d Estimated value, e Includes ground phosphate rock, na = not available. Sources: Department of Agriculture, Central Intelligence Agency, official national statistics from state central statistical bureaus 78
June 24, 1991 C&EN
PRODUCTION: Further declines for most countries' chemical products in 1990 Thousands of metric tons
1989
1988
1987
1986
Thousands of metric tons
1989
6
1988
1987
1986
U.S.S.R. Sulfuric acid
419
587
574
667
655
27,300a
28,276
29,372
28,531
27,847
Phosphate6
94
215
238
283
267
Mineral fertilizers6
31,700a
34,254
37,138
36,334
34,737
Potassium66
180
101
136
117
118
13,500a
14,355
15,815
15,743
15,221
Synthetic ammoniad
576f
681
691
784
763
8,800a
9,657
10,013
9,693
9,279
Plastics
603
638
590
545
426
9,400a
10,233
11,300
10,888
10,228
Sodium hydroxide'
193
204
202
201
202
19,422
20,330
19,931
19,590
Ethylene
234
262
264
270
269
24
38
35
38
35
1850f
3114
3154
3149
2966
1854
2725
2719
2622
2526
1302
1643
1622
1543
1445
Phosphate6
467
945
962
942
948
Potassium6,6
85
137
134
137
133
1768f
1941
1923
1791
1747
Nitrogen
Nitrogenb Phosphate60 Potass ium
b
Synthetic ammoniaJ
na
Plastics6
5,500a
5,763
5,675
5,488
5,345
Sodium hydroxide
3,000a
3,185
3,323
3,288
3,229
Ethylene
na
3,137
3,175
2,977
2,799
Methanol
na
3,331
3,211
3,284
3,219
f
Synthetic rubber
na
2,400
2,435
2,366
2,320
Pesticides9
na
276
317
327
332
BULGARIA Sulfuric acid
na
Mineral fertilizers6
846
840
na
724
588
571
580
na
555
588
443
448
na na 231
169 1,326 328
179 1,342 363
128 1,070 322
132 1,091 420
Sodium hydroxide
na
118
124
104
138
Synthetic rubber Pesticides9
na na
25 19
25 18
24 15
25
Nitrogen6 Phosphate6 Synthetic ammonia' Plastics
CZECHOSLOVAKIA _ Sulfuric acid Mineral fertilizers6 Nitrogen
6
688
807
15
1,033
1,142
1,249
1,264
1,292
877
1,008
1,025
984
1,041
514
604
596
596
614
Pesticides9 POLAND Sulfuric acid 6
Mineral fertilizers Nitrogen6
Synthetic ammoniad Plastics
624
721
723
641
632
Sodium hydroxide
397
434
444
422
427
Ethylene
308
322
328
276
279
Methanol
155
162
168
172
169
Synthetic rubber
103
125
128
117
116
na
11
11
9
8
9
Pesticides
, ROMANIA Sulfuric acid
1112
1687
1825
1693
1971
Mineral fertilizers6
1742
2805
2994
2897
3278
1225f
2035
2130
2096
2315
425f
648
725
665
849
1974f
2744
2804
2784
3037
Nitrogen6 6
Phosphate
60
257
296
313
277
307
Synthetic ammoniad
Potassium6,9
106
108
116
111
120
Plastics
520f
Sodium hydroxide
556
640 763
653 821
638 817
664 846
Ethylene
243
332
335
319
312
Synthetic rubber
102
149
161
152
173
f
34
39
39
47
Phosphate
d
Synthetic ammonia Plastics Sodium hydroxide
na
797
774
781
765
1,174
1,186
1,192
1,150
1,140
335
337
337
332
335
Synthetic rubber
70
75
79
76
76
Pesticides9
17
18
19
18
20
HUNGARY Sulfuric acid
244
482
512
573
540
Mineral fertilizers6
693
903
921
1,067
1,040
9
21
Pesticides
a Approximate figures, b Nutrient content basis, as N, P 2 0 5 , or K 2 0. c Including production of ground phosphate) rock for direct applications and phosphate animal feeds. d Nitrogen content, e Including resins for man-made fibers, f Estimated, g On basis of active substance, h Imported potash added to domestically produced nitrogen and phosphate to form multinutrient fertilizer. I Including regenerated NaOH. na = not available. Sources: Central Intelligence Agency, Department of Agriculture, PlanEcon Inc., official national statistics from state central statistical bureaus
SOVIET FOREIGN TRADE: Rapidly rising trade deficit also affects chemical trade $ Millions
1987 6
Exports
1986
1985
1984
1983
1982
1981
1980
$ 79,380 $ 76,437
$87,196
$91,495
$91,652
$87,168
114,372
114,698
107,316
95,971
88,874
83,315
80,409
80,445
77,846
73,194
-16,200
-5,399
3,424
11,693
8,179
3,881
11,086
11,207
9,322
6,186
7,964
Chemical exports6
na
3,592
3,559
2,979
2,770
2,837
2,707
2,307
2,203
2,275
2,025
Chemical imports6
na
5,404
4,924
4,516
3,990
3,744
3,256
3,216
3,028
3,211
3,275
Chemical trade balance
na
-1,812
-1,365
1,537
-1,220
-907
-549
-909
-825
-1,651
-1,250
Imports6 Trade balance
$ 98,172 $109,299 $110,740 $107,664 $ 97,053
68,473
a Preliminary values, b Free on board, na = not available. Sources: Central Intelligence Agency, U.S.-U.S.S.R. Trade & Economic Council, based on official Soviet statistics and exchange rates for the Soviet foreign exchange ruble
June 24, 1991 C&EN
79
6
Foreign Chemical Industries — Pacific Basin
SOUTH KOREA. INDUSTRY TRENDS: Chemicals up strongly Index, 1985 = 100
1990
1989
1988
Change 1989-90
1987
Chemicals, petroleum, coal, rubber, and plastic products Production 172.9 154.8 150.7 127.6 Shipments 174.4 152.7 146.8 124.5 Inventories 176.1 155.4 128.6 114.2 Industrial chemicals. Production 188.6 156.6 149.3 128.0 151.6 146.1 128.2 184.7 Shipments 107.1 164.6 117.6 183.0 Inventories Other chemical product s Production 205.5 183.0 171.3 133.1 209.4 186.5 170.0 135.6 Shipments 234.6 195.5 159.5 121.7 Inventories Rubber products Production 144.7 128.1 151.1 140.1 143.8 128.1 Shipments 150.9 139.2 122.3 123.1 131.2 119.4 Inventories Plastic products Production 158.9 156.9 159.5 138.1 151.2 145.5 148.3 133.4 Shipments 225.9 193.3 148.3 143.5 Inventories All manufacturing Production 186.5 171.3 166.3 146.6 191.0 171.6 164.6 145.1 Shipments 190.7 162.1 137.6 120.7 Inventories
12% 14 13
Exports Imports'3 Trade balance
J
175 150
y^ y\
100 / ^
Chemicals and related products8
^ ^ 13 12 -1
75 50 1980
1 4 17 9 11 18
1990
1989
1988
1987
$65,016 69,844 -4,828
$62,377 61,465 912
$60,696 51,811 8,886
$47,281 41,020 6,261
2,511 7,434 -4,922
2,050 7,158 -5,108
1,879 6,282 -4,404
1,321 4,595 -3,274
Chemical exports 30 Chemical lmportsbc Chemical trade balance
100
125 12 12 20
FOREIGN TRADE: Imports far outpace exports 3
Production index, 1985 200
All manufacturing 20 22 11
Source: Korean National Statistical Office
$ Millions
Growth picks up in 1990 for South Korean chemicals production
a Free on board, b Includes cost, insurance, freight, c Includes chemicals and related products. Source: Korean Office of Customs Administration
i
i
i
81
82
83
i 84
i 85
i
i 87
86
i
i
I
90
a Includes petroleum, coal, rubber, and plastic products. Source: Korean National Statistical Office
PRODUCTION: Organics post biggest gains Thousands of metric tons
1990
1989
1988
1987
Complex fertilizers Ethylene Urea fertilizers Polyethylene Polyester fibers Propylene Polypropylene Polyvinyl chloride Polystyrene Benzene Synthetic detergents Sodium hydroxide
1926 1054 883 786 730 608 574 526 507 381 342 328
1985 663 888 637 654 375 530 464 434 305 297 295
2076 609 1000 572 593 351 518 455 341 308 278 311
2026 576 911 469 496 328 348 451 304 339 214 262
Change 1989-90
-3% 59 0 23 12 62 8 14 17 25 15 11
Source: Korean National Statistical Office
AUSTRALIA FOREIGN TRADE: Exports growing fastest
PRODUCTION: Plastics ease downward Thousands of metric tons, unless otherwise noted
1990a
1989a
1988a
1987a
Change 1989-90
1990a
1989a
1988a
1987a
3
$37,817
$ 35,465
$ 29,936
$ 23,745
0
Imports
39,510
38,404
29,592
24,568
Trade balance
-1,693
-2,939
344
-823
948
861
650
440
205
190
149
110
3,999
4,046
3,119
2,304
Organic chemicalsd
825
951
806
584
Medicinal products
631
566
472
337
-3,051
-3,185
-2,469
-1,864
$ Millions
Exports' Chemicals Superphosphate13 Sulfuric acid, 100% Ammonium sulfate Acetylene, thousand cubic meters Plastics and resins Detergents and soap Flexible plastic film, sheetsd Polyethylene6 Polypropylene
2659 1464 214 2654
nac 1904 165 nac
nac 1818 179 nac
nac 1678 165 nac
975 319 183 141 19
986 nac nac nac nac
990 nac nac nac nac
904 nac nac nac nac
-23% 30
Medicinal products -1
— —
a Year ending June 30. b Includes double and triple superphosphates expressed in terms of single phosphate (9% P equivalent), c Not available prior to July 1989 because of revised commodity classification, d Includes flexible plates, sheets, foil, and strip of plastics; excludes self-adhesive, floor, wall, and ceiling coverings, vulcanized fibers, plastic foam, and plastics reinforced, laminated, or supported with other materials, e Low and high density, na = not available. Source: Australian Bureau of Statistics
80 June 24, 1991 C&EN
Chemical exports'3 Chemical imports0
Chemical trade balance
Note: Monetary statistics converted from Australian to U.S. dollars on basis of $A1.00 equals: 1987, $0.6636; 1988, $0.7290; 1989, $0.8160; 1990, $0.7697. a Year ending June 30. b Free on board, c Values for customs purposes, free-on-board basis, d Includes organic-inorganic and heterocyclic compounds. Sources: Australian Department of Foreign Affairs & Trade, Reserve Bank of Australia
CHINA PRODUCTION: Big gains for plastics, fibers, and especially soda ash Thousands of metric tons
Synthetic ammonia Fertilizer3 Sulfuric acidb Sodium hydroxide15 Sodium carbonate Plastics
1989
1990
21,251 20,675 19,120 18,547 11,689 11,408 3,211 3,338 3,746 2,983 1,973 2,249
1988
1987
19,725 17,670 10,981 2,925 2,593 1,552
19,486 17,033 9,620 2,735 2,372 1,571
Change 1989-90
3% 3 2 4 26 14
Thousands of metric tons
1990
1989
1988
1987
Man-made fibers Synthetic detergents Ethylene Pesticides Pharmaceuticals Synthetic rubber
1625 1484 1572 229 172 316
1466 1431 1405 224 196 289
1284 1290 1231 202 194 251
1157 1192 839 157 154 218
Change 1989-90
11% 4 12 2 -12 9
a Nutrient content, b 100%. na = not available. Sources: State Statistical Bureau of the People's Republic of China, China Economic News, Central Intelligence Agency, China Statistics Monthly
CHEMICAL IMPORTS: Decline continues in 1990 $ Millions3
Organic chemicals Inorganic chemicals Dyeing, tanning, coloring materials Medicinal and pharmaceutical products Fertilizers'3 Plastic materials, resins, cellulose esters and ethers TOTALc
Change 1989-90
1990
1989
1988
1987
$1131 215 244
$1405 469 226
$1701 448 237
$ 998 422 202
395
311
384
229
27
2605 1498
2364 2206
2335 3558
1399 1470
10 -32
$6650
$7556
$9139
$5008
-20% -54 8
-12%
a Includes cost, insurance, and freight, b Manufactured, c For all chemicals and related products. Source: General Administration of Customs of the People's Republic of China
CHEMICAL EXPORTS: Growing strongly $ Millions"
Organic chemicals Inorganic chemicals Dyeing, tanning, coloring materials Medicinal and pharmaceutical products Essential oils, perfumes, cleansing materials Explosives, pyrotechnic products TOTALb
Change 1989-90
1990
1989
1988
1987
$ 838 842 366
$ 690 794 288
$ 575 762 229
$ 500 553 175
622
549
468
408
13
319
235
183
136
36
211
244
298
183
-13
$3730
$3201
$2897
$2235
21% 6 27
16%
a Free on board, b For all chemicals and related products. Source: General Administration of Customs of the People's Republic of China
TAIWAN. INDUSTRY TRENDS: Chemicals set the pace
PRODUCTION: Many plastics doing well
Industrial production indexes, 1986 = 100
Thousands of metric tons, unless otherwise noted
All manufacturing Chemical materials Basic chemicals Petrochemicals Fertilizers Synthetic fibers Plastics and resins Chemical products
1990
1989
1988
1987
117.3 119.6 114.8 96.0 114.1 142.7 139.1 139.8
119.3 110.3 102.9 92.9 111.3 126.7 126.1 129.1
115.4 108.0 94.4 98.8 113.4 113.5 122.8 125.7
111.2 103.6 96.5 97.1 102.9 109.7 110.6 114.8
Change 1989-90
-2% 8 12 3 3 13 10 8
Source: Taiwan Ministry of Economic Affairs
FOREIGN TRADE: Chemical exports up 6 % $ Millions
Exports" Imports" Trade balance Chemical exports30 Chemical imports"0 Chemical trade balance
1990
1988
$67,214 $66,201 $ 60,585 $53,612 54,716 52,249 34,957 49,656 12,498 13,952 10,929 18,655 5,711 5,397 4,844 3,741 7,621 7,408 5,150 7,051 -1,910 -2,011 -2,207 -1,409
Note: Statistics converted from NT$ to U.S. dollars on basis of $1.00 equals: 1990, NT$26.9; 1989, NT$26.4; 1988, NT$28.6; 1987, NT$31.8. a Free on board, b Includes cost, insurance, and freight, c Includes chemicals, chemical products and plastic and rubber products. Sources: Taiwan Council for Economic Planning & Development, Taiwan Ministry of Finance Department of Statistics, C&EN estimates
Polyester3 Polyvinyl chloride Terephthalic acidb Ethylene Vinyl chloride Sulfuric acid Ammonium sulfate Propylene Acrylonitrile-butadienestyrene Oxygen0 Polyethylene* Styrene Calcium superphosphate Ammonia, anhydrous Xylene Paints Hydrochloric acid Urea Dioctyl lactam Ethylene glycol
1990
1989
1988
1987
1290 921 798 776 665 658 509 398 384
1193 805 583 766 662 768 524 398 311
1100 779 495 852 708 664 484 441 301
1076 773 500 823 699 742 485 442 208
370 360 355 354 263 254 239 234 229 188 178
352 344 301 352 246 239 214 217 237 179 216
350 390 331 315 339 164 247 255 306 167 197
261 375 310 342 296 235 229 251 244 192 195
Change 1989-90
8% 14 37 1 0 -14 -3 0 23 5 5 18 1 7 6 12 8 -3 5 -18
a Filament and fiber, b Pure terephthalic acid, c Millions of cubic meters, d Low and high density. Source: Taiwan Council for Economic Planning & Development
June 24, 1991 C&EN
81
