Recovery Trends in the Alcohol Industry - C&EN Global Enterprise

Nov 4, 2010 - AS INDICATED by government reports, the alcohol industry is sharing in the general business recovery, although in a somewhat conservativ...
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NEWS EDITION VOL.

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A N D ENGINEERING

Chemistry

JUNE

VOL. 26, CONSECUTIVE

10, 1934

PUBLISHED

NO. 20

BY T H E A M E R I C A N C H E M I C A L

SOCIETY

HARRISON E. HOWE, EDITOR

Recovery Trends in the Alcohol Industry Ethyl Alcohol and Refined Wood-Distilled Methanol Show Notable Gains in Output OTTO WILSON, 3025 Fifteenth St., N. W., Washington, D. C. As INDICATED by government reports, the alcohol industry is sharing in the general business recovery, although in a some­ what conservative manner. Synthetic methanol production soared during the latter part of 1933, but other branches of the industry enjoyed a less spectacular, though well-maintained, increase in activity. Monthly returns are published by the Government for synthetic methanol, crude and refined methanol distilled from wood, denatured alcohol, and ethyl alcohol. Pro­ duction figures were touched upon in the NEWS EDITION for May 10, 1934, and the story is continued in more detail here. MILLIONS OF GALLONS 30

still in evidence through the first quarter of the present year. Until September, 1933, monthly production was below even the low marks of 1932. But during the final quarter business came with a rush, and the three-months' total was greater by more than 80 per cent than in the last quarter of 1932, standing at 30,534,000 (wine) gallons as compared with 16,788,000. The high rate of output was not maintained into the present year, the total for the first three months of 1934 being 16,590,000 gallons. But this was well above the total for the corresponding quarter of 1933, 11,670,000 gallons, and that for 1932, 13,747,000 gallons. The decrease was seasonal, as the last three months of the year normally register a much heavier output than any other quarter. For the whole of 1933 the monthly average production of de­ natured alcohol stood at 6,151,000 gallons, which compared with 5,490,000 gallons in 1932, 6,803,000 gallons in 1931, and 7,625,000 gallons in 1930. REFINED WOOD-DISTILLED METHANOL

PRODUCTION OP R E F I N E D METHANOL ( W I N B GALLONS) FROM WOOD D I S ­

TILLATION.

(See Note in Text)

ETHYL ALCOHOL AND DENATURED ALCOHOL

During the first quarter of 1934 ethyl alcohol production reached a higher total than for any corresponding period in the past eight years, except in 1929. The three-months' output stood at 38,879,000 (proof) gallons, whereas in the first quarter of 1933 only 23,327,000 gallons were reported. No doubt the repeal of the eighteenth amendment helped to stimulate produc­ tion, but the increased activity was in evidence some months before repeal became effective, in December. There were also heavy withdrawals in the latter months of 1933 for denaturing. Production of ethyl alcohol reached its lowest point of the whole depression in December, 1932, and January, 1933. Returns for those two months, respectively, were 5,278,000 gallons and 6,014,000 gallons. From that time on there was a steady rise in figures of monthly output until the peak was reached in October, when 16,509,000 gallons were manufactured. The gradual decline from that peak continued through the rest of the year and the first quarter of 1934, the total for March of this year standing at 12,313;000 gallons. The monthly average for the first three months of this year was 13,293,000 gallons, which com­ pared with an average of 11,516,000 gallons for the full year 1933, 10/735,000 gallons for 1932, and 12,622,000 gallons for 1931. Withdrawals for denaturing reached their highest point last October and November, when 21,775,000 gallons and 20,624,000 gallons, respectively, were diverted to that purpose. Ware­ housed stocks stood considerably higher during most of 1933 and the early months of this year than in previous years. The manufacture of denatured alcohol was slow in feeling the stimulus of a generally quickened business, but once under way production picked up handsomely and the greater activity was

Over most of 1933 production of refined methanol from wood distillation was well above that of 1932. (No figures are avail­ able for the current year.) The greater activity indicated, how­ ever, was steady rather than pronounced. Average monthly production stood at 135,000 gallons, about 6 per cent above that of the preceding year, 127,000 gallons, but below that of 1931, 143,000 gallons. For earlier years the average output was much heavier, amounting to some 400,000 gallons monthly. . Shipments in 1933 were somewhat under those of the preceding year and heavy stocks were carried throughout the whole twelve months. Exports were uneven, but were unusually heavy in the ITHOU SANDS OP GALLONS eoo 500 AOO 300 200 100

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PRODUCTION OF ALCOHOL DENATURED(PROOF ALCOHOL (WINB1930-34 GALLONS) AND ETHYL GALLONS)

opening and closing months of 1933 and the first three months of the current year. Wholesale prices apparently were little affected by the stirring economic changes of 1933.

209

NOTE: For production data on crude wood-distilled and synthetic methanol see the N E W S EDITION, May 10. Figures for all methanol production are from the U . S . Bureau of the Census. They are approximate only, as changes in the industry have made it uncertain what proportion of the total output is covered by returns from the regularly reporting companies. Estimates run from 62 per cent, as indicated by the 1931 census, to as high as 95 per cent. The proportion will be known fairly accurately when returns from the 1933 census are available.