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Long Glycol Upturn Halted "Pipelines" for antifreeze finally filled . . . Oxide faces new competition TD ECENT sharp cuts of 2.5 to 2.75 " ^ cents in carlot prices for ethylene glycol and ethylene oxide resulted from two basic circumstances. One stems all the way back to the comparatively mild 1952—53 winter which resulted in a consumption setback for ethylene glycol antifreeze. The other is a somewhat involved competitive situation that has made its appearance in the market for the oxide. Carryover supplies of unsold packaged ethylene glycol from last winter made it necessary for large chemical producers to cut back preseasonal production during 1953. As a result, ethylene glycol output by industry will show first setback since 1946. For nine months ending September, ethylene glycol production was 495.9 million pounds, against 574.8 million in the same time last year, a loss of 13.7%. Barring slight interruptions in 1939, 1943, and 1946, output of the antifreeze from ethylene has engaged in a steep upward curve since about 1925. Few of the industry's chemicals can match it from an expansion standpoint. Production was 11 million pounds at rhe start of the expansion movement in 1932. It reached 761 million in 1952, a 70-fold increase. Price Trend for Glycol. As production of ethylene glycol was expanded b y companies like Carbide & Carbon, D u Pont, Jefferson, Commercial Solvents, Shell, and others, prices went lower, tank cars reaching 9 cents a p o u n d in war years. Quotations thereafter reflected rising costs, attaining a high of 17 cents in 1952 and 1953. Reductions announced earlier this month brought tank car prices to 14.5 cents, or back to levels prevailing in 1948-50. T h e new price for ethylene glycol in carlots is 16.25 cents, drums, and less than car quantities, 17.25 cents. These reductions have not yet been translated into lower quotations for packaged antifreeze at retail. The cuts may find reflection in these distributing channels for 1953-54 consuming season. Sale and distribution of antifreeze into retail outlets is distinctly a "future" business. Ethylene oxide was reduced somew h a t more than glycol; still, its prices remain materially above those for the derivative. New tank car quotation is 0.1635 cents per pound against 14.5 5402
cents for ethylene glycol. The two commodities invariably move in unison since a preponderant proportion of all ethylene oxide made in this country is processed into t h e antifreeze. In 1952, some 493 million pounds of oxide were required for production of ethylene glycol out of total oxide output of 682 million. Other Uses for Oxide. Other chemicals obtained from ethylene oxide are polyethylene glycols, acrylonitrile and acrylates, ethanolamines, and cyclic and acyclic nonionic surface active agents. Stanford Research Institute estimates yield of ethylene glycol a t 1.22 pounds, and polyethylene glycols 0.12 pound, from one pound of ethylene oxide. Oxide consumption for polyethylene glycols in 1952 is placed at 49 million pounds. ETHYLENE GLYCOL - CENTS1 PER POUND/TANK CARS
m p
t I i t OL 1945 '46 '47 '48 M9 '50
t i '51 '52
1
*53 '53 (JAN.) DEC.)
Oxide requirements for glycol and polyethylene glycols assumes all glycol is made through hydrolysis of ethylene oxide excepting quantities derived by Du Pont from formaldehyde, which is estimated by SRI. Attention of industry today is centered on acrylonitrile and its growing use in acrylic fibers. At least three large processors of ethylene have either utilized surplus oxide over and above glycol needs or marketed it for production of acrylonitrile. American Cyanamid's new project near New Orleans employing acetylene for acrylonitrile instead of ethylene oxide, as now conducted at New Jersey plant, may take that much out of annual market for ethylene oxide. But there are no definite indications that acrylic industry will be based entirely on acetylene as raw material. At worst, acrylonitrile for fibers, soil conditioners, and other new outlets will CHEMICAL
probably be based on both acetylene and ethylene oxide. Process changes in chemical manufacture move with the speed of an Arctic glacier. Output Cost Factor. T h u s some in t h e industry view the recent price slashes for ethylene oxide as more than a sympathetic reduction with ethylene glycol. Cyanamid's acetylene process for acrylonitrile is reported to have advantage of low costs. Reduction in ethylene oxide, of which some 40 million pounds entered acrylonitrile and acrylics in 1952 (probably much more this y e a r ) , hence is seen as a step to strengthen its competitive position. Other Products. Not entirely unrelated to ethylene chemical developments are reductions just announced for propylene glycol and propylene oxide. Price cuts for former amounts to three cents, and for the oxide 2.5 cents p e r pound. Quotation for propylene glycol in tank cars is down to 14.5 cents at present. Of even greater interest is a two-cent slash in prices for phthalic anhydride, upon which a good part of our coatings industry is based, bringing the tank car quotation to 19.5 cents. The reduction was initiated by Barrett and should serve to further expand markets for coatings of the alkyd type as well as for polyester resins. Polyesters meanwhile are going into a greater number of auto bodies. Auto plant schedules, according to trade reports, call for 25,000 cars with special bodies molded from polyester resin and fibrous glass. At same time, use of phthalic alkyds in coatings for regular auto models should b e stimulated by lower costs for base materials. This can also be said for alkyd finishes in general. Barrett expects to place another plant for phthalic anhydride in production at Philadelphia during first quarter which, together with other expansions, will bring it's phthalic output u p to more than 100 million pounds. Existing phthalic facilities in Philadelphia have been increased in the past, and a new phthalic plant at Ironton, Ohio, was p u t i n operation five years ago while a similar undertaking opened last June in Chicago. Other phthalate derivatives have benefitted from price reduction in basic material, including various esters and plasticizers. Dibutyl phthalate was given a one-cent reduction, establishing the carlot quotation at 34.75 cents per pound. Dioctyl phthalate, with major uses in vinyls, was lowered by the same amount, or to a carlot basis of 36 cents. Lower schedules were issued for diiso-octyl phthalate and butyl benzyl phthalate. AND
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