BUSINESS
PROCESS
INDUSTRIES
OUTLOOK
Industrial chemicals output at new high . . . Stock market rise foretells better business . .. 3 0 0 * % gain in syn thetic fibers for 1953 forecast •«HE stock market h a s b e e n rising t o highs since 1930 w h i c h would indicate optimism on the part of t h e investing public. Among t h e influences may be hopes that the "right" candidates will b e n o m i n a t e d by t h e political conven tions and eventually b e elected. Possibly the more vigorous pursuit of the Korean w a r and b o m b i n g s of enemy power plants h a v e given more hope of an early peace in this "police action." However, b e t t e r outlook for business and industry is usually the backbone for stock market advances. Often the in vestors realize that it is " d a r k e s t before d a w n " a n d that t h e steel strike a n d other strikes will soon b e settled. At a recent meeting of the National Retail Credit Association it was predicted that a revival of consumer b u y i n g , already started, will restore 1952 retail business to last year's level or better. Those a t t e n d i n g looked for firmer price's* and fewer "soft spots," especially in house hold durable goods, with price stability extending well into 1953. It is believed that consumers, who already h a v e abun dant purchasing power, will soon become convinced that prices are n o w a t bottom, hence there is no point in postponing purchases.
Τ new
Textile P e o p l e Optimistic Leaving t h e credit men to t h e i r pre dictions and scrutinizing other factors and authorities, it is found, for instance, that conditions in t h e rayon gray goods market are improving steadily a n d prices rising from low points by 10 to 1 5 % generally. Still higher prices are predicted. Generally, t h e market h a s improved to a point w h e r e a n u m b e r of cloths can now be produced profitably, though others still cannot b e w o v e n profitably, such as 1O0 denier crepes and c u p r a m m o n i u m triple sheers. Production of the newer synthetic fibers will increase 3 0 0 % i n 1953 over 1950, C. W. Bendigo, American Cyanamid Co., told the American Society for Testing Ma terials, with total production capacity of 400 million p o u n d s a s against 145 million in 1950. He predicted that not only wool, but also cotton, will feel t h e impact of the new synthetic fibers. Since machine tools h a v e b e e n a bot tleneck in defense manufacture, it is heartening t o hear t h a t deliveries of tools, dies, jigs, fixtures, molds, and other spe cial machines are 1 5 4 % ahead for t h e year to date as against t h e corresponding 1951 period. Small business is still being ignored by Congress, a n d Army and N a v y Procure 2856
ment Services in a w a r d i n g defense contracts, i t was accused a t a r e c e n t N e w York meeting of t h e United Action for Small Business, Inc. There is no evidence of a t r e n d t o w a r d greater concentration of American indus try since the t u r n o f the century, accord ing to a study m a d e by four specialists
a n d reported by M. A. Adelman, Massa chusetts Institute of Technology. In fact since 1931 t h e r e h a s b e e n no further con centration whatsoever. Another contribution t o current thought is m a d e in t h e Guaranty Survey—that la bor unions m a y b e giving away their right to strike b y insisting on industry w i d e bargaining. Whereas production of industrial chemi cals was rising in April, total industrial o u t p u t was declining, as shown in t h e top a c c o m p a n y i n g graph. T h e index figure for April on chemicals was 567 as against 563 for March, comparing with 532 in April 1951. T h e April index for all production was 214 following 2 1 7 in March, comparing with 2 2 2 t h e year before. Thus chemicals
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CHEMICAL
AND
ENGINEERING
NEWS
have made substantial progress over the year, while total industrial production has fallen eight points. This is again a striking instance of the buoyancy of the chemical industry. In fact chemicals have risen to a new all-time peak. The high point in 1951 had been 558 in September. Chemicals "ran ahead of the ticket." Thus for nondurable manufacturers as a class, April declined to 181 index figure from 184 in March, as against 195 in April 1951. Other increases in April were in processed fruits and vegetables, and printing and publishing, other groups having declined. Durable goods as a class declined to 181 in April from 184 in March, comparing with 195 in April 1951. As to slab zinc, production is quite steady on the whole. In view of the current steel strike, production is doubtless considerably greater than consumption, since steel is the largest consumer of this coating metal. May production was 84,188 tons, following 83,011 tons in April, comparing with 80,430 tons in May last year. T h e old law of supply and demand cannot b e denied. Production is greater than consumption, resulting in recent price declines from 19.5 cents to 15 cents per pound, East St. Louis. The steel strike was the major influence in the declines; in part, the drop in the pig lead price influenced zinc marketwise. Alcohol Stocks Are High Stocks of ethyl alcohol remain large, April supplies having been 95.7 million proof gallons versus 71.0 million the year before. The postwar peak had been 1O6.0 million in August 1951. These large stocks doubtless had an important influence in reducing prices over the past several weeks. Production of ethyl alcohol in April was 33.9 million proof gallons, following 41.1 in March, comparing with 37.7 million in April 1951. Stocks in April this year consisted of 53.7 million gallons in bonded warehouses, and 42.0 million in denaturing plants. Though it is being claimed that new cars are being manufactured faster than new roads are being built, or widened and otherwise improved, and that traffic will soon become almost impossible, sales of cars are running under a year ago, or 529,585 units this April against 639,272 the year before. The lack of steel because of the strike is slowing down auto output considerably. Cigarette consumption gained i n April to 35.3 billion from 33.0 billion in March, comparing with 32.7 billion in April 1951. The recent peak was 41.0 million i n January this year. The April figures consist of 32.3 million tax-paid cigarettes and 3.0 million tax free. The high for 1952 to date was 41.0 million in January. CHART CREDITS: Industrial and Chemical Production—Federal Reserve ' Board; Cigarette Consumption—Bureau, of Internal Revenue; Industrial Alcohol—Al- \ cohol Tax Unit; Motor Vehicles—Department of Commerce; Zinc Production— American Zinc Institute. I V O L U M E
3 0,
NO.
27
»
»
»
K o p p e r s Resorcinol d e c o n t r o l l e d by Ν . Ρ . A .
Available Now...for unlimited use R
ESORCINOL·, u n d e r N a t i o n a l P r o d u c t i o n A u t h o r i t y a l l o c a t i o n s i n c e L J u n e 1, 1 9 5 1 , has b e e n r e l e a s e d e n t i r e l y f r o m g o v e r n m e n t c o n t r o l . T h i s m e a n s that y o u can order K o p p e r s Resorcinol N O W for all defense a n d c i v i l i a n uses. T o further a u g m e n t the a v a i l a b l e s u p p l y of Resorcinol, K o p p e r s w i l l put n e w plant facilities i n t o o p e r a t i o n b y the third quarter of this year. R e s o r c i n o l is a v e r y i n t e r e s t i n g c h e m i c a l — w o r t h y o u r c o n s i d e r a t i o n . T y p i c a l e n d p r o d u c t s are e x p l o s i v e s , m e d i c i n a l s , d y e s t u f f s , adhesives, t e x t i l e and leather c h e m i c a l s and c o m p o u n d s that m a k e rubber a d h e r e b e t t e r to f a b r i c s a n d c o r d s . T h e v e r s a t i l e nature o f R e s o r c i n o l s t e m s f r o m its m a n y u n u s u a l reactions. T h e s e are w o r t h i n v e s t i g a t i n g and m a y suggest n e w and u n d e v e l o p e d commercial applications. K o p p e r s Resorcinol is m a n u f a c t u r e d i n t w o grades. K o p p e r s Resorc i n o l , T e c h n i c a l , is p r o d u c e d i n flake f o r m w i t h a m i n i m u m purity o f 9 8 . 5 % . K o p p e r s R e s o r c i n o l , U . S . P . , for m e d i c i n a l a n d p h a r m a c e u t i c a l a p p l i c a t i o n s , is i n t h e f o r m o f fine crystals w i t h a m i n i m u m p u r i t y of 9 9 . 5 % . A request o n your letterhead will bring you complete information on Resorcinol as w e l l as an experimental sample. Ask for Bulletin C-2-124. It describes many of the interesting and unusual reactions of Resorcinol, as well as its physical properties, chemical properties and uses.
KOPPERS COMPANY, ÏNC.
KOPPERS
» JULY
7,
1952
Chenicai Division, Dept. CEN-7-7 Koppers Building, Pittsburgh 19, Pa.
2857
