MARKET REPORT OF THE MONTH | Industrial & Engineering Chemistry

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As W e Go t o Press . . .

At the Corporate Level Subject to stockholder approval, A. E. Staley Manufacturing Co., Decatur, 111., will merge with UBS Chemical Corp., Cambridge, Mass Allied Chemical Co. has completed negotiations with B. F. Goodrich Co. for the acquisition of Harmon Colors. The move marks Allied's move into the field of organic pigments Rockets and ramjets team up in this merger—Thiokol Chemical Corp. with Marquardt Air Craft Corp Another chemical-aircraft merger—Foster Wheeler and North American Aviation, Inc. Foster Wheeler is a builder of petroleum, chemical, and other industrial plants.

/^Skeaâ^cc^cÛie^ Now you can spray high-density polyethylene coating on metals or glass. Developed by Koppers Co., the new polyethylene liquid dispersion may be applied at room temperature, then heated to about 400° F. for a few minutes to bond it to the surface. Applications include process equipment, tanks, drums, pipe coatings, and appliances Combine a spectrophotometer with a computer, and you get automatic color control. Monsanto Chemical Co. uses such a system in producing styrene molding compounds. The system detects and corrects variations unnoticeable to the eye.

Strictly Personal Chemists and chemical engineers just out of college should be given responsibility for a specific assignment soon after they are employed by a company. This idea stems from a study made by the University of Michigan's Bureau of Industrial Relations. After the new employees become familiar with their company and their work, self-development programs should be started. For example, semiannual or annual reports should be encouraged, so the individual can state his goals, summarize his work, and indicate experience he would like to have.

HVC^RKIET R E P O R T

O F THEE HVCOUSTTHI

B e t t e r Balance for Caustic Caustic soda, like many chemicals, felt the recession's effect last year. On the basis of preliminary figures for 1958, caustic production just barely topped 4,000,000 short tons in 1958 as compared to over 4,300,000 in 1957. But the break in caustic's production rise should not prove disturbing to producers. Caustic's demand picture has changed over the past several years. A decade ago chlorine had a growth rate over 10%, while caustic's growth rate averaged 6 to 7%. Now more evidence appears to show chlorine's growth rate has slowed and caustic's speeded up slightly. In short, a better balance between demand for each of the two VOL. 51, NO. 6 · JUNE 1959

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As W e Go to Press . . · chemicals becomes less a dream of producers and research staffs looking for more uses of caustic and more a reality as compared to the situation just five years ago. Another brighter aspect of the pictuie for caustic itself is its broad range of uses. In chlorine's case, over 80% is used in some form of chemical manufacture; hence any market adjustments are quickly felt. But caustic's demand is more stable. Interestingly, because of a drop in chlorine demand in 1958, production of caustic by the older lime-soda route spurted up, halting at least temporarily a decline in manufacture of caustic by this method which has occurred for some years. A few people suggest the balance between caustic and chlorine demands has arrived as of this spring. But they, as well as others, point out that this balance as a permanent part of the chemical industry may not have yet arrived. Now business resurgence from the recession—one example, rebuilding inven-

Principal Uses Chemicals manufacture Pulp and paper Cellulose film and rayon Metals processing Petroleum refining Textiles

Principal Producers Allied Chemical Corp. Columbia-Southern Chemical Co. Diamond Alkali Co. Dow Chemical Co. Food Machinery & Chemical Corp. Hooker Electrochemical Co. Jefferson Chemical Co. Monsanto Chemical Co. Olin-Mathieson Chemical Co. Pennsalt Chemical Corp. Stauffer Chemical Co. Wyandotte Chemicals 1954

Corp.

Exports (mill ionsof pounds) 1957 1958»

587.0 419.5

Imports (miII ionsof pounds) 1957 1958° u Preliminary revision

Chlorine Caustic Soda

0.824 7.062 subject

to'

•55

*56

•57

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'58*

tories—could be the cause for an abnormally large caustic demand. At the same time, new products may pull up the caustic demand. Changing end use patterns may explain why an in-and-out-ofbalance situation should be expected. Roughly two thirds of caustic produced goes to chemicals manufacture, lye and soaps, metallurgical use, rayon and cellulose film manufacture, petroleum refining, pulp and paper, and textiles. Of these categories, chemicals, metallurgical uses, film (but not rayon), and pulp and paper are predicted as faster than average in their demand rise. Rayon's use is leveling out. Some other categories, making soap and lyes, processing vegetable oils, and reclaiming rubber, and export caustic are expected to be slow gainers in demand or even register some decline. Metallurgical uses are cited as most promising to show significant demand increases. Some of this increased demand will be at the expense of soda ash. For instance, in the production of alumina, some of the newer ores require a stronger alkali than used previously. And caustic leaching of uranium ores also has proved to be a significant outlet for caustic. Even with these increased uses, caustic demand can be met without difficulty by present installed capacity. Last year the industry operated at slightly below 80% of capacity and is expected to exceed 80% in 1959 but not by much. And as more capacity is added this year and next, almost keeping pace with increased demand^ the operating ratio will rise a small amount or to about VOL. 51, NO. 6 · JUNE 1959

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