.BUSINESS
Textile Fiber Consumption Up World production at level in 1954; man-made fiber production increased to peak level, with U. S. f a r in lead XV7" ORLa> production of six textile fiv* bers held at about t h e record level of 1953 and equalled 24.37 billion pounds, according t o t h e Textile Organon. Man-made fiber production reached 4,983,000,000 pounds, an increase of 9% for an all-time high. Volu m e of business varied appreciably among countries. I n a general review of t h e situation by AKU, t h e D u t c h producer with subsidiary and affiliated companies in several countries, it w a s noted that most countries shared in t h e over-all increase. However, t h e AKU annual report observed that production was considerably below capacity i n such important producing countries a s the United States a n d Canada, whiïe i n most other countries output figures were very satisfactory. Threatening Japanese competition was cited as a n unfavorable factor in world markets. Rayon. World production of rayon ( a n d acetate) yarn was maintained at approximately 1953 levels even though U.S. production showed a considerable decrease. Tire yarn production fell off considerably in t h e U. S., b u t foreign output advanced over 2&%. T h e overall total showed a net decline of 9%. These d a t a m a y be correlated generally with activities in t h e motor vehicle tire industry, which was moving at a high level outside of t h e U . S. last year. World filament yarn production totaled 2,046,000,000 pounds, while staple a n d t o w production reached a peak of 2,461,000,000 pounds. T h e latter figu r e was an increase of about 18%, all of it attributed to viscose staple. For the current year, shipments in t h e U. S. of rayon and acetate are running well ahead of last year's pace partly hecause of improved tire business. Yarn production is not quite back t o the high level of the first quart e r of 1953, but a strong demand for rayon staple has materialized. Yarn a n d staple shipments in March approached 125 million pounds, a n d there is every indication that 1955 will better last year's poor results b y perhaps 1 5 % . if so, it would b e a welcome reversal of a continual downward trend in U . S. rayon consumption since t h e record year of 1950. Newer Fibers. World output of noncellulosic fibers gained 2 3 % t o a new record of 4 7 6 million p o u n d s , including for the U . S. alone its glass fiber production. T h e U. S. portion of 2776
t h e total was 7 3 % , a drop from 7 8 % In 1953. World capacity for t h e synthetic fibers is projected a t 9 0 1 million pounds b y t h e end of 1956. T h e A K U report noted that t h e company was active in fiber developments, not only polyamide types b u t also "acryl" a n d polyester types, i n The Netherlands, AKTJ increased production of Enkalon (nylon) and is expanding capacity, while a small unit for the manufacture
of polyester staple is under construction. Prices for Perion yarns produced by its G e r m a n affiliate fell, b u t notwithstanding, over-all sales of Perion roseAmerican Enka's synthetic staple, based o n caprolactam and known a s Nylenka, was introduced in t h e market on a limited scale, while production of Nylenka tire yarn is in its initial stage. T h e American plant w a s constructed with a capacity of 2.4 million pounds of nylon-type filament yarn a n d staple fiber at a cost of $3 million, a n d plans for construction of a 20-million-pound plant costing some $ 3 5 million were in process of development. T w o German plants were listed as having a com-
C&EN CHARTS _
I N D U S T R I
P R O C E S S
T R E N D S
ES
INVENTORIES & SALES ( C h e m i c a l ) INCLUDING ALLIED PRODUCTS, BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 3.5" CHEMICAL
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1955
TEXTILE FIBER
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ψ Cl CONSUMPTION Of RAYON, SILK, W001,
COHSUMPTIQN, SCOURED BASIS, APPARU & CARPET, MILLIONS OF POUNDS
" COHQN, MILLIONS OF POUNDS
MAR.
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PRODUCTION MILLIONS OF GROSS
EXPORTS CHEMICALS AND RELATED PRODUCTS MILLIONS OF DOLLARS
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bined capacity of 7.8 million pounds, while t h e Dutch plant at Emmen was rated a t 2.2 million pounds, all capacities as of May 3 1 , 1953. By the end of 1954, it was expected that members of the AKU group would have expanded aggregate capacities from 10 million pounds (as of the above date) to 16 million pounds. The AKU does about 1 2 % of world rayon business and is therefore a major textile fiber producer. Current U. S. production of noncellulosic fibers is running well ahead of last year and totaled 111.4 million pounds in the first quarter, u p 9v* over fourth quarter 1954 results. As was indicated in these columns last week, D u Pont was running nylon and Orion plants a t capacity, while Dacron yarn production w a s approaching plant capacity level. Chemstrand is improving nylon sales regularly and may not b e far from operating at plant capacity, now figured at 6 0 million pounds. With prospects for improving fiber sales s o bright, it w o u l d not be surprising to expect announcements of plans for n e w fiber plants, perhaps from American Enka, Eastman Kodak, or American Cyanamid. Certainly the list of nylon 6 producers is now swelled with t h e additions of Allied Chemical a n d Industrial Rayon as well as American Enka. T h e outlook for the acrylic fihers i n the sweater industry is excellent, as Orion, particularly, and acrilan to an increasing extent have made great gains a t the expense of wool. Charts. Sales of chemicals and allied products reached the $2 billion mark i n March and held at that level in April. Adjusted for seasonal factors, t h e sales reported by the Department o f Commerce were $1.9 billion, also a new high for the chemical industry. Inventories are a shade below $ 3 billion, unchanged from 1954 inventories. However, sales have risen almost 20% since the spring months a year ago, with the result that inventory to sales ratios h a v e dropped from 1.75 months to 1.5 months. The inference to be drawn from a reading of these data in. conjunction with previous experience is that some inventory rebuilding is in store. Whether manufacturers will find it difficult to serve customers is hard t o say, but there has been some evidence of tightening in chemicals' supply. Certainly the prese n t business situation suggests some pressures toward price increases all along t h e line.
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(Continued
from page 2771)
H. FESSENDEN WRIGHT, Ph.D. Chemical
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