ORGANICS OUTPUT DROPS MORE THAN EXPECTED - C&EN

The full extent of the production decline has become apparent from data finally ... Over the same period earnings of the big chemical makers were down...
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The Chemical World This Week

ORGANICS OUTPUT DROPS MORE THAN EXPECTED Output of major organic chemicals apparently fell much more sharply this winter than sales and earnings figures for the chemical industry seem to have been indicating. The full extent of the production decline has become apparent from data finally released by the International Trade Commission for the first three months of 1975. These data usually come out every month. But they have been delayed recently by various problems within the commission and by tardiness among individual producers in supplying data to the commission. The newly revealed numbers paint a generally bleak picture. In the first quarter of the year production of some organics was only about half what it had been in the first quarter of 1974. Over the same period earnings of the big chemical makers were down by an average of only about 3%. However, the production numbers do offer a few encouraging signs. Output of some organics held up quite well all winter. And for others it is likely that the worst of the dropoff was over by March. Chemicals closest to consumer products were tending to show some modest improvement by March. But for more basic chemicals, production generally was being cut throughout the first quarter as efforts to reduce inventories continued. For instance, production of ethylene still was falling at the end of the first quarter. At 1.6 million lb for March, it was 8% below the January level. This continued the cutback in production started late last year. On the other hand, output of ethylene glycol has been quite strong and in March it was 10% higher than it had been a year earlier. Ethylene glycol and other ethylene oxide derivatives have been singled out by F. Perry Wilson, chairman of Union Carbide, as examples of chemicals whose production held up well in the first quarter. However, some other ethylene derivatives did poorly. Low-density polyethylene production was 28% lower in the first quarter of this year than it had been in the first quarter of last year. The corresponding drop of high-density polyethylene was 19%. 4

C&ENMay26, 1975

Organics production collapsed this winter o annual grmth rate*

M A M J J A S O N D J F M t«74 tare i Average running annual growth rate in production of $3 Wg-volume organics

Methanol production is faring even worse. Output dropped precipitously in February and March, according to the trade commission data. After a January total of 439 million lb, it dropped to 188 mil-

lion lb in February and 200 million lb in March. The total of 827 million lb for the quarter was little more than half of the 1599 million lb produced in first-quarter 1974. Other chemicals have been cut back almost as much. Vinyl acetate output in March was 69.8 million lb. This compares with 127 million lb in March 1974. Vinyl chloride output was down to 235 million lb this March, from 429 million lb a year earlier. And the drop for propylene oxide for the year was 29%, to 107 million lb from 150 million lb in March 1974. Aromatics production is at a very low rate. But for some there are signs of an upturn. For instance, benzene production has risen since January, although March output of 83 million gal is still well down from the 127 million gal produced in March 1974. Production of naphthalene shows a similar upturn. However, chemical grades of toluene and xylene showed no real production increase in the first quarter. D

New solvent for cellule se developed A new solvent for cellulose, a com- manufacture of nonwoven textiles. bination of dimethyl sulfoxide and The new solvent dissolves a variety paraformaldehyde, has been devel- of cellulosic materials including filoped at the Institute of Paper ter papers, cotton linters, and even Chemistry in Appleton, Wis. The long-fiber cottons having molecular solvent was discovered by Myron chains containing up to 8000 gluNicholson, a graduate student at cose units. An important considerthe institute, during work on his ation in any new technology utilizdoctoral dissertation. Nicholson's ing the new solvent is that the solfaculty adviser is Dr. Donald C. vent does not degrade the cellulose Johnson, who announced the dis- chains in solution. It also forms an covery. effective medium for modifying celOther solvents for cellulose have lulose through substitution of orbeen known for some time, accord- ganic and inorganic groups on the ing to Johnson. However, he says cellulose chains. that most of them are of the "exotIn some exploratory experiments ic" variety and none are inexpen- the new solvent selectively dissive enough to assume much impor- solved carbohydrates in the cellutance in most of the existing pro- lose of a high-yield pulping wood, cesses for making paper and paper leaving the lignin behind. This has chemicals. In contrast to the "exot- raised the prospect of a new pulpic" solvents, the new solvent is ing process that would be less exmade from readily available com- pensive and more environmentally mercial chemicals. Dimethyl sulf- acceptable than the present prooxide itself is a by-product of pa- cess. However, Johnson believes it permaking. would be premature to suggest any Among the processes for which revolution in pulping technology at the new solvent appears to offer this time, even though the first repromise are the manufacture of sults are encouraging. rayon and cellophane, processes for The detailed mechanism involved improving flame retardancy of cot- in the solution of cellulose in the ton and rayon fabrics, and the new solvent has yet to be elucidat-