Chemical world This week
The Top Stories The Commerce Department, in its second annual midyear look at the U.S. economy, looks for a full recovery, slowdown in inflation 3 Wisconsin effort will be first systematic approach to problems involved in converting fusion energy to useful electricity 5 Nitrogen nuclei have been boosted to 36 b.e.v. in the Bevatron, the highest energy ever achieved in the acceleration of heavy particles and the closest man has come to duplicating the heavy component of natural cosmic rays 6 There's a brand new industry on the horizon—synthetic natural gas. Interest in the industry is up for grabs among chemical, gas, coal, and oil companies 8 The economic slump in western Europe has resulted in a pretty dull year so far for the chemical industry there 12 Cosmic ray research reveals evidence of a new class of subatomic particles, existing in theory but never before confirmed 15
August 30, 1971
TOWARD ECONOMIC RECOVERY Spurred on by President Nixon's new economic plan, the U.S. economy has "enhanced prospects" for "full recovery" with a continuing slowdown of inflation capping what was "only the first stage of a sustained period of economic growth." That's the brief, optimistic forecast hastily added to the Commerce Department's second annual midyear look at the economy released late last week. What precise impact the new plan will have on the outlook for 1971 and 1972 for 23 industries, including plastics and fertilizers analyzed in the study "The Economy at Midyear 1971," isn't yet clear. Projections for these industries, however, as well as shipment estimates for 200 other industries, are being updated by Commerce analysts. Nevertheless, impact of the new program appears generally favorable. For fertilizers, for example, "It's a definite shot in the arm for the industry," says Commerce analyst William L. Amos. For plastics, another analyst sees "no dramatic changes, but beneficial results" re-
Commerce Department projects sustained growth through 1972 11 Industry shipments (millions of dollars) 1972 1971 1970
Industry
Alkalies and chlorine Industrial gases Cyclic intermediates and crudes Inorganic pigments Industrial organic chemicals
])
Industrial inorganic chemicals
A successful new route to acetic acid starting with carbon monoxide and methanol results from development of a new carbonylation catalyst 19 ACS survey of chemical sciences departments indicates a leveling off of new graduates entering j&b markets in the next few years 23
lated to the expected general upturn in the economy. A third specialist forecasts no appreciable change in the rubber industry's sales of tires and inner tubes despite predictions of increased domestic auto sales. Fertilizer output, sales, and profits in the first half of 1971 were the best since 1967, and industry shipments likely will total $1.9 billion for all of 1971, up 5% over 1970, based on an estimated 3°/o increase in volume. However, volume could jump 6 to 8% in the next year, Mr. Amos estimates. Exports should also be more competitive now while import prices rise. A big question, however, is how the price freeze will affect seasonal price increases. The investment tax credit could well spur a return to building new capacity, halted before 1970. Production of plastics materials and resins is up an estimated 4°o for the first half of 1971 from the same half a year ago, with the trend expected to continue through the year. Since prices apparently have stabilized recently, the price freeze
b
$ 726
$ 756
$ 787
758
807
859
1900
2050
2250
650
700
740
7852
8500
9400
4810
5050
5300
Plastics materials and resins
4100
4250
4700
Synthetic rubber
1030
1070
1100
Pharmaceutical preparations
6043
6600
7220
Soap and other detergents
3001
3181
3374
Paints and allied products
3140
3370
3680
Fertilizers
1810
1900
1995
Plastic packaging
1670
1805
1970
Tires and inner tubes
4675
5050
5290
a Estimate,
b Not elsewhere classified.
Source:
Department of Commerce AUG.
30, 1971 C&EN
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