Foreign Trade - C&EN Global Enterprise (ACS Publications)

Nov 5, 2010 - Other major factors were the heightened tempo of industrial, agricultural, or other activity in western Europe and elsewhere, made possi...
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C&EN A N N U A L

REVIEW—^951

Despite a growing world market for chemicals and chemical products/ there has not been α free movement of goods in

Foreign Trade L. N. M A R K W O O D , Director, Chemical Office of international

A . HE emergency that began in Korea in 1950 was largely responsible for the high rate of activity in United States' foreign trade of chemicals during 1951. Other major factors were the heightened tempo of industrial, agricultural, or other activ­ ity in western Europe and elsewhere, made possible by U. S. government financing ( E G A ) , military assistance programs, the Point IV program of economic develop­ ment sponsored by the U. S. in under­ developed areas, and health programs throughout the world. Wherever activities of these types were carried on, they in­ evitably aroused a larger market for chemicals and chemical products because these materials represent indispensables in the wide gamut of commodity production. Obviously, exporters of chemicals would like to handle a larger volume of business, and, in certain lines, an upward trend in

Division,

Trade, U. S. Department

of Commerce

exports could b e discerned as the year progressed. T h e r e were factors, however, that hindered t h e free movement of goods from the U. S. to foreign destinations, for good and sufficient reasons. These factors were short supply and security considera­ tions. T h e supply-demand relationship will im­ prove in 1952 in the case of a n u m b e r of chemicals and worsen for others. But the security factor will remain with us as long as t h e world stands divided. T h e prime job of the Office of International T r a d e is to exercise surveillance over commercial shipments leaving this country, whether control is needed for supply or security reasons or both. OIT and its predecessors have engaged in this work continuously for t h e past decade. They have found that the ever-changing scene requires new ap­ proaches to n e w problems. As far as pos­

united

sible, the policy is t o allow private trackto be carried on iininipedetl by govern­ mental regulation, a n d moreover to give extra stimulus to t h e traditional function of the D e p a r t m e n t of Commerce for the promotion of trade. O I T has the added policy of keeping t h e public informed of its methods of operations, consistent with national s e c u r i t y considerations. T h e ac­ count t h a t follows compares t h e foreign trade picture d u r i n g nine months of 1951 with the c o r r e s p o n d i n g period of 1950 and discusses various chemicals in detail b e ­ cause of their timely interest or special significance. Statistical Review The r.-^r-all picture of U. S. exports of chemical a i d allied products shows a rather consistent g a i n for January through September 1951 over the corresponding

S t a t e s Exports of Ch emicals and Allied P r o d u c t s b y Commodity G r o u p s , ( T h o u s a n d s of d o l l a r s )

1

N o r t h Arnrrica Canada Cuba Mexico South America Argentina Brazil Colombia Venezuela Europe

J

Belgium

I 1 J 1 J I 1 J ] 1 1 1 1 I 1

Ι 1 J 1

26

France Germany Italy Netherlands Switzerland United Kingdom Asia China Hong Kong India Japan Korea Philippines Rep. Oceania Australia Africa U n i o n So. Africa Total

C o a l - T a r 1' • « d u c t s ' J a n . S» pt. 11» 5 1 1 950 13.818 18.849 9 . 9 2 fi 13.677 443 623 3 031 4 . 169 6.355 1 1 .386 286 3.083 3.385 4.41 0 1 .343 1 .218 344 463 10.334 17.378 1. 1 0 5 1 .641 1 , 099 2 .099 446 626 1 ,690 i . 577 909 895 583 2 . 205 1 ,193 4.519 6, 8 6 3 9 . 238 554 0 3,220 68 631 2 . 530 558 2 . 242 1 46 351 670 255 644 157 361 358 1.031 180 661 58.526 37,983

M e d i c nal a n d 1Muirriiuceuticftl P r é p a r â t ionJ a n . -Sept. 1H 5 1 1900 48.048 37,418 10.261 14.0O4 9.332 10.566 11,21 6 13.327 49,449 73.775 8,768 14,S42 14,020 26,483 10,000 8,661 7,712 9,736 39,731 24,176 3,882 1.908 4,611 1 .812 2,229 1,1 3 9 0,376 8,566 29 6 1.049 2,206 5,453 2,432 712 42,520 3 3 . r,07 0 745 10,810 792 5,186 8,303 1 ,164 4,114 60 484 8.085 11,502 041 1,187 421 869 4.827 8,035 3,253 2.140 150.018 "213,296

Chemical Specialties1 Jan. -Sept. 1950 1951 63,461 90,606 40,312 32.071 6,144 6.485 14.727 23,733 23,237 40,198 3,231 5,453 5,588 13.878 5,680 4,004 8,780 7,129 37.373 28,641 4,744 3.122 4 . 684 2.475 832 2 ,466 4 , 563 4 , 181 1 , 64!) 1 ,430 2,467 3,501 8,723 11.611 14,908 22.321 186 0 198 1 ,483 1 .789 702 2,722 1,199 1 113 4,009 5.959 1,190 1 ,960 890 1 .436 6,109 2,655 2.662 1 ,165 134.092 198.567

I n d u s t r i a l Chemical*·4 Jar*. S e p t . 1951 1950 43,897 30,819 18,702 25,836 2,210 2,806 13,127 8,680 37,503 1 l .015 6.428 3.061. 20.470 2 . 9 IS 3,042 1 .86-1 1,813 1 , 1 60 19.1 60 29,429 1 ,291 2.137 2.2411 3,572 3,082 2.321) 2,428 1 .643 3.533 1 ,028 3.183 1 ,542 8,25f> 0,543 12,079 7.133 342 υ 1 .102 168 543 2,592 713 2,48.5 35 3,444 2.38» 1,801 1 ,032 1,494 947 2,524 1 ,327 505 1.610 ' 70.48Γ»* * 127.233

P i g m e n t s , P a i n t s 0 1951 18.601 22,885 10.235 12,420 2.204 2,754 3,159 4,075 i), 2 1 8 14. 560 674 2,824 2,340 3,682 2,359 2.720 2,720 3,335 20.179 25,244 1.324 2,605 4,220 5,772 114 436 2.208 2,512 476 844 737 1,017 8.O02 8,596 5.71-3 9.572 125 207 259 39 628 1 .089 449 1.424 22 5 2,688 4,394 1,967 2,679 1,571 1.859 1,848 2,894 1,397 2,200 577526 "77.834

α

Preliminary. T o l u e n e r e m o v e d from grouρ a n d placed in Special C a t e g o r y , effective J u l y 1950. J e t fuels, a l l t y p e s , a n d e x p o s i v e s r e m o v e d f r o m g r o u p a n d p l a c e d i n S p e c i a l C a t e g o r y , effective J u l y 1950. * M i l i t a r y g a s e s a n d h y d r o g e n p e r o x i d e or d i o x i d e r e m o v e d from g r o u p a n d p l a c e d i n S p e c i a l C a t e g o r y , effective J u l y 1950.

l s

C H E M I C A L

AND

ENGINEERING

NEWS

DEVELOPMENTS IN THE CHEMICAL A N D PROCESS INDUSTRIES nine months of 1950, rising from $590 million to $787 million. The only excep­ tion to this general trend occurred in the Asiatic market, where security controls reduced our exports to Hong Kong from $20 million to $1 million. The obvious purpose in reducing exports to Hong Kong is to prevent transshipment of strategic and other important chemicals to Communist China The developing Japanese chemical industry explains the loss of an additional $5 million in exports to Japan. From an examination of world figures, it is obvious that the recovered European industrial potential and advanced world industrialization have had, in general, a very stimulating effect on our export trade. This trend has developed despite the com­ petition arising out of the export surpluses in the industrialized countries. With the proper stimuli, total U. S. chemical exports should maintain and even surpass its 1951 rate, which exceeded $1 billion on the tabulated nine-month basis. The billion-dollar level sets a landmark for the American chemical industry. Sulfur Stocks Decline U. S. producers stocks of crude sulfur are expected to continue the decline be­ gun in 1942, reaching a new low of 2.1 million long tons by the end of 1951 and a dangerously low working level of only five months. To cope with this trend, Ν PA, beginning with June 1951, restricted consumption to the 1950 rate. Limitations were also placed on manufacturers' inventories. Sig­ nificantly, the sulfur industry had insti­ tuted its own restrictions on U. S. con­ sumption even before Washington deemed it necessarv to exercise official controls.

On the export side, crude sulfur alloca­ tions, with the exceptions of Canada, were limited for 1951 to 970,000 long tons, amounting to 90% of 1950 shipments. Refined sulfur exports were limited to 30,000 long tons. Efforts to break the sulfur shortage in­ clude ( 1 ) accelerated exploration and de­ velopment of new sulfur and pyrites de­ posits, (2) better recovery from smelter fumes, petroleum, and natural gas. (3) greater recovery and re-use of sulfuric acid, (4) a return to utilization of pyrites, especially in European countries, and ( 5 ) the planned treatment of anhydrite ( CaSO, ) in the United Kingdom for an addi­ tional 130,000 long tons a year of sulfur equivalent. However, no significant im­ provement in the over-all sulfur position is expected in less than two years of inten­ sive developments along these lines. The balancing of demand by supply will be conditioned to a large degree by the rate of general economic progress and military' requirements. A forward step in meeting the sulfur crisis occurred early in 1951 through the world allocation of crude sulfur by the international Materials Conference Com­ mittee on Sulfur. This body makes its recommendations quarterly for the equit­ able distribution of sulfur among the free nations of the world, using the output of the U. S., Italy, Norway, and Mexico (re­ cently) as sources of supply. Alkalies Recover The alkali industry in the U. S. has staged a remarkable recovery from the de­ bilitating and costly strike of 1950. Paced by the apparently unending demand for chlorine, the output of caustic soda has

Areas, and Princ ipal Countries of Destination, January-September Fertilize Jan.-Sept.

North America Canada Cuba Mexico South America Argentina Brazil Col ο in bi a Venezuela Europe Belgium France Germany Italy Netherlands Switzerland United Kingdom Asia China Hong Kong India Japan Korea Philippines R e p . Oceania Australia Africa Union So. Africa Total

1 WÔ0

1 ί » Γ» 1

1 4.502 8,047 8.428

17,023 ί). 147 4,694 1 ,092 4.029'

Naval Stores, Gums and Resins Jan.-Sept. 1951 1950 4.616 6.237 4.453 3 .551

S ilfur .Jan. -Sept. 1951 1950 7,384 5,615 4.764 6,498

164 324

567 289

800 656

5,529

1 .975

1.732 I .445

1 ,532

2 ,996

1 ,453

726

885 261

60 11

152 839 23 10

3.872

1 3,280 1 .306

19,998 1,737

544

46 907

2,481 4,298 1,480

11,846 1 ,161 1 ,513

1 , 225

1 ,968 3,173 1 ,664

11.880 1 ,187 1 ,785

41,718

8,720

1 .965 1 .650

7,903 3,080

13

5 939 667 496

7,939

488 27 649

237 76 194 481

3.229

763

0 6 0

2,014

3.764

17,942 7,948 2,647

97

4,112

10 4 87 0

1 1 973 726

39

24

704

73 47 34 331 5 262 919 750 574 492

419

430 212

183

700

0 22 53 879 0 417

1 ,551 1,283 1,206 1,063 37,601

219 359

423

548

' *9

374

7,198 1 ,483

1,082

381 0 12 414

7,547 1 .137

5 37 5

0 0 819 4 0 1

2,284 1 ,065 1,745 1,308 24,982

2, 707 1,387 1 ,497 1,076 25,653

81 28

1 .027

Carbon Black Hits New Peak The year 1951 marked a new peak in carbon black manufacture, achieving for the first nine months a total production of 1.2 billion pounds. This figure exceeded 1950's corresponding performance by 244 million pounds. Comparable export sta­ tistics show an increase of 33 million pounds in 1951 over the 1950 nine-month export total of 300 million pounds. Overseas, 1951 saw the recovered Ger­ man carbon black industry producing at an annual rate of 85 million to 90 million pounds. This quantity not only satisfies by far the greater part of their domestic needs, but also left an export residue in the neighborhood of 33 million pounds. German imports of carbon blacks appear to b e limited to relatively small amounts of United States highgrade and specialty

1950-1951"

3 .304

878

2, 198

again reached the surplus stage, all too common in prewar years. Since mid-1951, the alkalies have been freely licensed, with India figuring most prominently in the distribution. Pakistan and Indonesia also take an active position in this trade. Perhaps the most significant news of the year was the voluntary dissolution of the l'. S. Alkali Export Association, which for many years carried on the exportation of alkalies for a group of American producers, under the Webb-Pomerene Act. Not all producers were in the association, but most of them were represented. A combination of circumstances accounted for the action taken. It is felt that those producers who individually continue to engage in alkali exports will be able to keep up the level of alkali exports and meet successfully the competition of other world suppliers.

Miscellaneous 4 Jar» - S e p t . 1951 1950 8, 1 16 4,915 2,286 2,371 1 ,304 1 ,381 930 I , 150 1 .797 3,611 82 219 897

53 336 499 470

2,094 6.366

5,081

1 .008 2,607

1 ,307 1 ,612

4 ,539

2.218

228

341 937 419 584

7

1 ,310 6,827 1 ,010 2 989 215 168 597 114

281

137 718 380 401

0 32 136 568 0 592 322 241 506 465

Total

1951 260.044 128,633 29,855 61,653 189,859 33,267 74,832 23.625 25,545 189,952 18,425 23,817 12,417 24,180 11,405 16,899 52,171 110.885

VOLUME

3 0,

NO.

1

24,343

JANUARY

7,

1952

1

ο

1,058 17,311 18,202

1

31,091 12,861 8,934 23,889 12,990 787,490 626,950 160,540

f 1 [ I j I I 1

640

14,839 23,444 Men tioned countries Others * Covers crude drugs, herbs, leaves and roots , linseed, essential and perfume-flavor oi Is, and dyeing and t a n n i n g extracts. * Less than S500. S O U R C E : Compiled in Chemical Division, Office of International Trade, D e p a r t m e n t of Commerce from d a t a supplied by Bureau of the Census. 3~4~,341 '

67,391

|

J a n .-Sept.

1950 197,026 99.928 26,269 43,278 110,362 1 6.569 32.394 22,579 21,927 141,955 11,959 14,699 11,722 23,223 7,512 9,032 35.464 117,514 2,113 20,323 15.578 23,366 8,218 21,425 8,504 5,970 14,904 8,027 590,265 481,575 108,690

1

27

C&EN ANNUAL

REVIEW-1951 U. S. CRUDE SULFUR

(Native)

P r o d u c t i o n , Shipments, Stocks I "ait

: M illion L o n g

s±}±> m e n t > Domestic Total Production Year 1.6 1 2 1 .6 193." 1 4 1 9 2.0 193H 1 .S 2. 5 2 7 1937 1 0 1 6 2. 3 1938 1 .6 2 2 2 0 1939 1 . S 2 ") 2 7 1940 2 7 3 4 3 1 I94i 2 5 3 1 3 4 1942 2 .'·! 2 '.J 2 5 1943 2 8 3 5 3 2 1944 3.7 2.9 3 S 194.=) 2 9 4 0 3. S 19 46 4.4 3 5 4 8 1947 3 7 4 9 4.S 194S 4.7 4.7 3 3 1949 5.4 4 0 5 2 1950 4.2 5.4 oil 1951 · • Estimated S o u r c e s : B u r e a u c>f M i n e s .a n d O I T Ρ re par» • d h y : Chi ' i n i c a l I)ii v i «ion. O I T

Ta

nada . 1 . 1* .2 . 1 . 1

K \ ports Kx-( ' a n a d a

Kx p o r t s a s P e r e - n t of Prod-n-tion

.3 .3

.5 .5 "i

2 2 !.3

. ', . Λ",

.2

•J

. ."»

.7 1[ 0

.2 2 .3 .3 2 !.3 .3

ink and r u b b e r blacks. This German industry a p p e a r s to be virtually independent of foreign sources for its raw m a t e rials. G e r m a n carbon black exports, while still not a serious threat to United States exporters, show signs of developing into a strong contender for a significant part of t h e world carbon black market, especially in France. The U n i t e d Kingdom is n o w in a position to p r o d u c e well over 5 0 r r of its d o mestic n e e d s with its n e w production of furnace-type blacks. This degree of selfsufficiency represents a significantly large reduction dollarwise in t h e future U. S. export m a r k e t inasmuch as our 1951 exports to the United Kingdom for J a n u a r y through September totalled 85,668,000 pounds. As the FAS price of furnace blacks averages close to 7.5 cents a p o u n d , t h e new United Kingdom operation is expected to free considerable dollar exchange for other purchases. T h e Japanese produce slightly more than half of the carbon black required for their consumption and depend chiefly upon the U. S. for t h e b a l a n c e . The trend, however, is for J a p a n to achieve a greater degree of self-sufficiency d u r i n g 1952. T r a d e reports indicate that a 20-millionp o u n d plant is about to be built in C a n a d a . Despite t h e rapid increases in world rubber goods production, mainly in tires a n d tubes, an adverse effect on U. S. exports of carbon black is expected to result from increased foreign production. This will b e further emphasized b y t h e relatively h i g h export shipments m a d e late in 1951 in an effort to b r i n g inventories a n d pipelines into reasonably .safe b a l a n c e w i t h consumption. Security export controls are expected to b e continued on all grades of carbon black —channel as well as furnace. It is hoped, however, t h a t controls for reasons of short supply can b e relinquished as the p r o d u c tion of various furnace grades of carbon black is increased d u r i n g 1952.

28

l\m>

]1 . 0

.9 1I . 2 1l . 1 .μ

1.* 15 19 21 25 18 16 9 20 16 19 26 22 19 26 21 IS

Stocks End

Year 3. 1 3 2 3.4 4.2 4.0

4 2 3.9 4.3

3 8 3 5 3. ô

Monthly Equivalent Stocks To Total Shipments 23 20 16 31 21 20 14 16 15 12

1 1

3.2 2.8

9 7

2 2. 2 2.

61.'; 6 » /j ô'/l

7 7 6 1

5

Fertilizers Stable T h e r e were comparativeK minor fluctuations in t h e dollar level of U. S. fertilizer exports to North and South America, E u r o p e , and Africa during t h e first nine months of 1951. However, there was a $ 3 3 million decline in the total export figure, which was accounted for p r a c tically in full by the decrease in exports to Asia. Exports to Asia dropped from $41.7 million to $8.7 million. This can b e explained by the fact t h a t Japan has stepped into world markets as a substantial s u p plier and at t h e same time is filling t h e needs of its natural market. O r g a n i c Chemicals Active Acetone was in fairly tight supply during the first part of 1951, b u t easing b e -

c a m e q u i t e noticeable i n the last 3 to 4 months. By D e c e m b e r , acetone was fairly plentiful. Advance contracting for 1 9 5 2 consumption in t h e U. S. was reported "easy" b y major producers. Export d e m a n d continued heavy, not only b e c a u s e of t h e general increase in economic a c tivity abroad but b e c a u s e the major E u r o p e a n supplier, the U n i t e d Kingdom, w a s running into serious production difficulties. U. S. exports to countries ( o t h e r t h a n C a n a d a ) , which c a m e to only 7.5 million pounds in 1950, rose to 11 million for t h e first six months of 1951. At the end of 10 months, t h e 11 million figure was d o u b l e d , a n d it is expected that b y the e n d of t h e year at least 3 0 million pounds will h a v e b e e n exported. Exports t o Canada m a i n tained a quarterly rate of approximately 1 million pounds as against 1.8 million for all of 1950. Indications arc that this export r a t e may fall as Canadian p r o d u c tion develops in 1952. P h t h a l a t e esters (primarily dibutyl a n d dioctyl phthalates) followed the same p a t tern as plastics materials. N a p h t h a l e n e , the raw material, has continued in t i g h t supply, despite strenuous efforts to increase production and imports. In the latter p a r t of 1951, domestic pressure relaxed s o m e what, a n d it b e c a m e possible to license exports a t a better rate. Thus, while t h e first-quarter total of D B P exports ( e x Canada) amounted t o some 136,000 pounds, the export figure was 329,000 in t h e second q u a r t e r a n d 384,000 in t h e third. Other phthalic esters rose from 693,000 pounds in the first quarter t o 1,250,000 and 2,425,000 in the second a n d third quarters, respectively. F o u r t h - q u a r ter shipments w e r e expected to show s u b stantial improvement, although less for D B P because of efforts t o substitute D O P to the extent feasible, as a means of conserving phthalic a n h y d r i d e .

,ANTIBIOTICS—PRODUCTION, SALES. EXPORTS Antibiotic P e n i c i l l i n :in«l s a l t s

9 - m o s Clan t h r u S e p t . )

1945 1946 1947 194S 1949 1950 1951

U . S. P r o d . » Trillions Oxford-Units 7. 5 27. 42.

92 9 138. 1 219 9 22S.5 Kilos

Streptomycin and D i h y d r o - s t π* μ t o ­ rn v e i n

8-mos ( J a n . t h r u Aim ) Di h y d r o - s t r e p t o m y c i n 8-mos (Jan. t h r u Aug.)

1945 1946 1947 1948 1949 1950 1951

1,179.7 10,254.1 37,159.7 86,704.1 92,332.0 91,209.

1949 1950 1951

62,067.1 71.597.0 78,689

1947 1948 1949 1950 9-mos. ( J a n . t h r u Sept.) 1951 Antibiotics, other

Sales» _ Trillion Oxford-Units

Million Dollars 46. 90 87. 108

7.1 20. 37.

64.6 110. 183.

93. (4)

Kilos

M i l l i o n D o l hi r a

(only very small a m o u n t s 952.8 9,210.5 31,760.4 76,305.7 94,691.4 51,860.2 74,546.2 (4)

99.8 (4)

(4) (4)

69.4 (4)

. 12 (4> (4)

33.9 68.7 64.4 Kilos

produced) (4) (4) (4)

6.

24.8 40.4

63,411.7 66,421.1 62,292.3

41. 31. (4)

26.5

(4) (4) (4)

24. (4)

(only very small a m o u n t s p r o d u c e d ) (4) (4)

(4)

87.5

(4)

(4)

U . S. E x p o r t s ' Trillion Ox ford-Units

Millier* U o l î a r e

(4) (4) 90. (4)

(4)

6.054 20,725 30.233

1 3 3 4

Synthetic Organic Chemicals. U. S. Production and Sales, U. S. Tariff Commission Journal of International Economy, April 6, 1946 (Jan. & Mar.—only 2r mos. e*-\. ..rts were permitted) U. S. Exports of Domestic & Foreign Merchandise, Bureau of the C .fctv.Jiu Not available. (Prepared b y : Chemical Division. OIT

CHEMICAL

AND

ENGINEERING

NEWS

DEVELOPMENTS IN T H E CHEMICAL A N D

PROCESS

INDUSTRIES

Pigments, etc., Nearly Double Pigment, paint, a n d varnish exports came within I0r/c of doubling their 1950 rate, rising to $ 1 2 7 million for January to September. The increase in South American trade, both dollarwise and percentagewise, led the pace. Despite negligible shipments to H o n g Kong and China, Asia as a whole showed a $5 million increase, reaching a nine-month total of $12 million in 1951. Plastics Polystyrene m a d e t h e most radical turnabout from the point of view of supply during the 12-month period ending Oct. •31. Early in the period, supplies were so short that there was a mass of protest from moklers unable to secure even their minimum needs. Serious consideration was given to allocations on a national scale. Exports were restricted to only the most essential cases. However, as t h e rubber program eased in its d e m a n d s on available styrene supplies and as styrene monomer became more plentiful from increased production, export licensing was also eased. From the monthly rate of 1.2 to 1.3 million pounds to which exports ( e x - C a n a d a ) were depressed in April to J u n e , they h a d risen to a 1.5 to 1.6 million level b y October. This rise took place despite increased polystyrene production overseas. T h e export level of polyethylene is expected to continue rising in 1952. But as long as production is unable to meet total I". S. demand, exports will remain relatively low. Eventually, however, the d e velopment of. n e w facilities, plus the d e sirability of polyethylene from t h e point of view of price and utility, should result in an important addition to our list of export giants. At this writing, t h e 1952 rate of exports is expected to vary between 250,000 and 300,000 pounds p e r quarter for virgin polyethylene. T h e greater availability of scrap polyethylene has brought this product i n t o t h e export picture in substantial quantities because there are certain uses for which scrap is acceptable. Foreign military and essential civilian requirements for polyethylene are also r e ceiving a sympathetic ear. Nylon, Teflon, a n d vinyls are, i n varying degrees, showing similar upward tendencies on the export graph. Medicinals Set Pace The medicinal and pharmaceutical group showed the largest dollar volume for exports for the first nine months of both 1950 and 1951, rising from $150 million to $213 million and practically equalling the increase shown by the chemical specialties group. Export increases w e r e even more consistent in this group countrywise t h a n in other groups, although exports declined to China and H o n g Kong. T r a d e Brisk in Antibiotics In 1944, U. S. antibiotics export t r a d e started with a mere 29 billion units of VOLUME

3 0,

NO.

1

»

»

Petroleum chemicals plant o f Petrochemicals, Ltd., at Partington, E n g land, typifies the growth a n d recovery of the E u r o p e a n chemical industry penicillin, valued at perhaps S100.()(>!> or less. Today this trade averages 8 trillion units ol penicillin alone per month», with a value of $7,641,416, which is approximately 75r'r of the total value of antibiotics* exported. In 1950, the value of penicillin exports amounted to $46,408.521^. more than 18 times the value of all d r u g s and medicines shipped from the United States in 1938. U. S. antibiotics production is still somewhat less than domestic demand. Nevertheless, the export market takes abolit 30' V of total production. Despite our t r e m e n dous increases in production and oxports. there still exists an extreme shortage of antibiotics throughout t h e world. However, a major factor in relieving p a r t of the export demand on the United Suites for antibiotics (penicillin, in particular) has been the n e w western European p r o d u c tion in ECA-financed plants. At t h e present time, F r a n c e produces enougH penicillin to satisfy its own n e e d s . The United Kingdom and Italy are also making rapid headway and are even beginning to export penicillin in small amounts. Italy is now producing chloramphenicol in quantities large enough not only to supply domestic Italian needs b u t to compete t o some extent with t h e U. S. p r o d u c t in foreign markets. Nevertheless, d u e to the current unlimited world demands and because of the phenomenal expansion in domestic output, U. S. exports continue to s h o w an upward trend. Reductions in t h e unit cost of penicillin production in t h e U. S. have followed t h e continuing improvement of t e c h n o l ogy. In 1947, combined domestic a n d export sales w e r e 37 trillion units, a n d t h e corresponding value was $87 million. I n 1949, sales were 110 trillion urôts, b u t

J A N U A R Y

7,

1952

the dollar value remained virtually u n chan