Raw Material Costs Rising - C&EN Global Enterprise (ACS Publications)

Nov 12, 2010 - Raw Material Costs Rising. Chemical industry strives to offset increases with acquisition of sources, cheaper transportation. Chem. Eng...
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CHLOROMETHANES from Wichita, Kansas... •

METHYLENE CHLORIDE > CARBON TETRACHLORIDE • CHLOROFORM USP A N D TECHNICAL • GRAIN FUMIGANTS



MARKETS

Raw Material Costs Rising Chemical industry strives to offset increases w i t h acquisition o f sources, c h e a p e r t r a n s p o r t a t i o n C ^ H E M I C A L INDUSTRY is taking

in carload, truckJoad and drum lots

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Basic producers of Chloromefhanes, BHC (14 and 36 gamma). Chlorine, Caustic Soda, Muriatic Acid, Fine Grain Salt Executive Offices: Wichita, Kansas

Plants: Wichita, Kansas Denver City, Texas A DIVISION OF UNION CHEMICAL S. MATERIALS CORP.

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Leco No. 515 Conductomefric Carbon Analyzer with Leco Induction Furnace.

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L A B O R A T O R Y EQUIPMENT C O R P . 1513 Hilltop Road, St. Joseph, Michigan

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C&EN

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than an idle interest as t h e Administra­ tion's program to step u p minerals pro­ duction takes shape. T h e program may reach Congress any day and may contain some political precepts with a familiar ring: price supports, restric­ tions on imports, t a x concessions. Any plan which would increase o u r mineral supplies in the future will o b ­ tain the support of industry, chemicals included, unless trie price t o b e paid is too great. Some of t h e chemical industry's most important raw materials are mined—salt, limestone, phosphate rock, coal, fluorspar-and their costs have been rising. Charles A. Thomas, Monsanto chair­ man, shows that during t h e postwar period costs for chemical raw materials, hydrocarbons included, have gone u p materially. H e lbreaks down Monsanto ? s purchases of r a w materials on a dollar basis as follows: Hydrocarbons Salt Sulfur Soda ash Phosphate ore Other

61% 59c 3% 5% 37* 23%

prices in the markets for motor and aviation fuels and for heating. • Transportation. Chemical com­ panies not in a position to make such acquisitions, and those who do not find it necessary, are striving to slash their raw material costs in other direc­ tions. Barge transport is being used on inland waterways wherever possible. American Waterways Operators re­ cently listed 128 waterside sites acquired during t h e first quarter of 1957 for major n e w plant projects, a large number of which are chemical or chemical processing units. Tennessee River, serving a fast-grow­ ing industry, obtained 160 various new plants last year for a total plant in­ vestment of some $300 million. The petrochemicals industry has spent an estimated $2 billion on plant construc­ tion along t h e Houston Ship Channel, other industries about $500 million.

Minerals Production, 1955

(U. S. Bureau of Mines) Abrasive materials, short tons, artificial, U . S. and Canada 428,243 Price increases on the above r a w Antimony, primary, short materials have been as f ollows: hydro­ tons 15,800 carbons, 110%; salt, 70%; sulfur, 66%; Antimony, secondary, short tons 23,702 soda ash, 72%?; phosphate ore, 20%>; Arsenic, white, short tons 10,780 and others, about 50%>. • Hydrocarbon Contracts. F o r Barite, primary, short tons 1,117,704 Monsanto, a n d probably for other or­ Barium chemicals, sales, short tons 105,913 ganic chemical makers, hydrocarbons Bauxite, domestic, mine (61% of the total) are by far t h e most production, long tons 1,818,038 important. They also have shown t h e Bauxite, imports, long tons 5,228,054 greatest price increases. Monsanto h a s Beryllium ( b e r y l ) , U . S. been hit pretty hard a s a result. Its and Canada, mine ship­ long-term hydrocarbon contracts have ments, short tons 500 gone up continuously because of escala­ Bismuth metal, consump­ tion, pounds 1,548,000 tor clauses. An example is benzene, 216,685,852 vital to styrene, u p from 1 5 cents p e r Bromine, sales, pounds Cadmium metal, pounds 9,754,000 gallon in 1945 to a current 36 cents. all types, sold or These rising costs for essential r a w Clay,used, short tons 48,242,254 materials explain Monsanto's acquisi­ Kaolin, short tons 2,166,400 tion of Lion Oil, whose gas and oil re­ Bentonite, short tons 1,480,205 serves assure the company of a basic Fullers earth, short tons 369,719 source for its chief raw materials. For Feldspar, sales, long tons 570,577 the first time the company now has t h e Fluorspar, mine shipments, means t o offset hydrocarbon price in­ short tons 279,540 creases. Other o i l a n d gas produced (Continued on page 114) by Lion Oil will be sold at favorable

General Tire and Rubber Company This integrated plant for the production of 2 5 million lbs/yr. of monomer and polymer was the first American plant based on SD's vinyl processes.

Borden Company Located in Leominster, Mass.# this plant was designed by SD and constructed by SD Plants, Inc.

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Thompson Chemical Company This Hebronvilie, Mass. PVC plant was designed b y SD and went on stream in 1 9 5 6 .

^ Eleonora Chemical Corporation Completed by SD Plants, Inc. in 1 9 5 6 , this Passaic, N. J. plant is producing PVC a t the rate of 10 million lbs/yr.

Cary Chemicals, Inc. SD Plants, Inc. will finish this Flemington, N. J. plant during the summer. Production will be about 12 million lbs/yr.

Diamond A l k a l i Company SD is now designing a 50 million lbs/yr. vinyl chloride monomer unit to be located at Diamond's Deer Park plant, near Houston, Texas.

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Minerals Production, 1955

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