I/EC MARKET OF T H E
REPORT M O N T H
Clip and file for your PERSONAL REFERENCE file on production, sales, technology, uses of key commercially important industrial chemicals.
LEAD-ZINC Smoother Road Ahead Troubled industry gains strength, as government import quotas have effect, consumption rises
P R I M A R Y LEAD PRODUCERS American Smelting Refining Co.
&
Anaconda Co., including International Smelting & Refining Co. Bunker Hill Co. St. Joseph Lead Co. United States Smelting, Refining & Mining Co.
PRIMARY ZINC PRODUCERS American Smelting Refining Co.
&
American Zinc Co. of Illinois Anaconda Co. Athletic Mining Smelting Co.
&
Blackwell Zinc Co. Bunker Hill Co. Eagle-Picher Co. Matthiessen & Hegeler Zinc Co. National Zinc Co. New Jersey Zinc Co. St. Joseph Lead Co.
The lead-zinc industry is looking forward to a happier new year than it has had in a long time—thanks in large part to import quotas placed on the materials in October 1958. Prices are holding firm, but while the current picture is brighter, the future is still hazy, mainly because of world oversupply, uncertain government policies, and strikes that have had an effect on the industry. In late summer, it appeared that as a result of the quotas, domestic lead mine production in 1959 would increase around 2% to 270,000 tons, while zinc would jump 7% to 430,000 tons. Matched against this were expected consumption increases of about 10% for lead and 22% for zinc. However, strikes both in and affecting the industry are holding production back, and output may be no better than in 1958. It could possibly decrease . But such a setback is somewhat temporary, and basically the industry is gaining strength. In September, major zinc producers hiked the price of zinc 1 cent per pound to 12 cents, East St. Louis, where it was holding firm in October. Lead, likewise, was holding at 13 cents a pound, New York. Helping to brighten the picture is a decrease in mining layoffs. The import quotas that are now having their effect are the latest measures designed to help out an industry which has been beset by a history of troubles for the past several decades. In 1925, domestic mining production reached an all—time high. Since then it has been steadily trending downward. World War II and the Korean War temporarily stemmed the decline, but mine production dipped to a new low in 1954. The Government stepped in in 1955 and 1956 and eased the slide with stockpiling. But with the end of stockpiling, the industry again hit the skids and reached a new low in 1958. Imported materials were flooding the markets. During the Korean War, the Government, worried about adequate supply, used loans and long-term contracts to boost production both in the U. S. and abroad. Foreign producers expanded, and U. S. importing began in earnest. Lead imports went from 250,000 tons in 1951 to 628,000 tons in 1952. Zinc climbed from 391,000 tons in 1951 to 748,000 in 1953. Imports continued, building up oversupply and depressing the domestic industry, until the Government clamped down in October 1958. Quotas on ore and metal were set at 80% of the average commercial imports during the 5-year period 1953 to 1957. World oversupply is affecting the lead-zinc picture. However, relief here is in the offing. An international study group is being formed to work out ways of limiting world producVOL. 51, NO. 12 • DECEMBER 1959
29 A
I/EC
MARKET
CONSUMPTION OF LEAD (Short Tons) 1955 1956 1957 1958 1959 (7 mo.)
1,212,60C 1,209,700 1,138,100 986,400 630,500
CONSUMPTION OF SLAB ZINC (Short Tons) 1955 1956 1957 1958 1959
(7 mo.)
1,119,800 1,008,800 935,600 868,300
583,600
IMPORTS OF LEAD Pigs, Bars, Base Bullion, Ores, Matte (Short Tons)
1957 1958 1959 (7 mo.)
532,000 577,000 267,300
IMPORTS OF ZINC Ores, Slab (Short Tons)
1957 1958 1959 (8 mo.)
794,800 657,200
REPORT
OF
THE
MONTH
tion (Canada, Mexico, Peru, and Australia are among the world's big producers). Meanwhile, a lower world market early in 1959 dragged the New York lead price down to 11 cents per pound, temporarily offsetting benefits from the quota program. However, the program is now having a stabilizing effect on the industry, despite cries from some quarters that domestic consumers are getting around quotas by importing lead and zinc in forms not covered. The outlet pattern for lead is shifting somewhat. Rubber, plastics, and metals are encroaching upon some of lead's traditional outlets, such as cable sheathing. On the other hand, some uses, such as for tetraethyl lead, are increasing. Metal products take the biggest share of lead, some 441,000 tons (39%) in 1958. Batteries are the second largest consumer with about 32% of the market. Chemicals account for 16% and pigments 10%. Some new uses should be shaping up for lead in a few years. Producers from the U. S., Canada, Mexico, Great Britain, Australia, South America, and Africa are engaged in a research program to increase the metal's use. Some of the projects now under way include studies of electrical cable sheathing, alloys, organolead compounds, heat emissivity, ceramics, paint formulation, powder metallurgy, lead coatings on metals and plastics, sound and vibration attenuation, and others. The bulk of zinc still goes for galvanizing and die casting. Galvanizing for steel sheet is a growing market. So is die casting. The auto industry takes most of this output. And with an auto industry trend toward zinc taking over spots now held by aluminum, chromium, and steel, the metal should find increased use here. Zinc-base alloys took 376,000 tons (40%) of the zinc output in 1957. Galvanizing picked up 39%, brass products 13%, rolled zinc 4%, and zinc oxide 2%.
462,300
DOMESTIC PRODUCTION DATA Millions of Short Tons
30 A
INDUSTRIAL AND ENGINEERING CHEMISTRY
