Document 0Lbgd5GvLD819GwZYYnQny1Zb

In t e r n a t io n a l Sme l t in g a n d Re f in in g Co mp a n y East Chicago. Indiana Pigment Division September 29, 19*5 Mr. R. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Hew Tork *, S. T. Dear Mr. Dwyer: This Is a summary of the sales position of zinc oxide and white lead for the month of August, 19*5. Table Ro. 1 gives a comparison of zinc oxide sales for July and August of 19*5 and the corresponding months of 19**. TABU EO. 1 19*5 19** August July 1,713,190 Lbs. 2,10*,050 Lbs. 1,7**,750 Lbs. 1,666,*3.5 Lbs. The falling off of sales In August was due to the termination of our contract by CVS about the middle of August. The undelivered balance was *85,*00 pounds which, if added to the August sales, would have given us a figure somewhat over that for July. Ob September2*th we became eaoqwtltlve on prlee for lead-free zinc oxide. This will enable us to Increase our ssles but the length of time it will take to secure a substantial tonnage is unknown. Ve have also reduced our prlee on the East Helena and Tooele fumes which we have been selling as our Victory line of leaded zinc oxide. The reduction was approximately 3/*l per pound. Ve had been able to sell these at the regular market prlee due to shortages brought about by the war. The market dried up immediately after the war ended and we are uncertain as to what success we will have in the post-war period at this reduced prlee. Due principally to reconversion on the part of our customers using lead-free zinc oxide, sales for September will be down to about 600,000 pounds. This is a low for approximately three years. For October they will be up substantially over this figure. Total sales for 19*5 through August are 12,079*750 pounds. For the same period of 19** they were 11,667,233 pounds. Table Vo. 2 gives a breakdown according to paint, rubber, and miscellaneous Industries. L- p **Co o o o is 38 N10217 Mr. H. B. Dvyer -2- September 29, 19*5 TABU HO. 2 1?*5 Pounds AUGUST Value 19** Pounds Value Paint Rubber Miscellaneous CVS *86,7*0 209,600 302,250 71*.600 $ 36,722.*1 20,2*9.50 28,367.38 67.887.00 395,050 28*,950 26*.750 800,000 * 29,809.91 27,*86.63 25,*37.*5 78,250.00 1,713,190 * 153,226.29 1,7**,750 $ 160,983.99 Paint Rubber Miscellaneous CVS 19*5 Pounds JULY Value 19** . Pounds Value 5*3,950 195,550 16*,300 1,200.250 39,685.63 18,701.13 16,928.53 11*.023.75 217,350 *01,250 2*7,815 800,000 i 16,937.75 38,*83.88 2*,58*.95 77,500.00 2,10*,050 * 189,339.0* 1,666,*15 * 157,506.58 Table Ho. 3 give* a breakdown of cine oxide sale* for August according to the three classifications. TABLE HO. 3 U.S.P. Quality Seal Other Lead Free and Leaded 1*3,700Lbs. 55,290Lbs. 1,51*.200 Lbs. 1,713,190 Lbs. Table Ho. * glees the average sales price per pound far the past three months. TABU HO. * August July Jane Average Sales Price - Per Pound 8.9*M 8.991 9.2*8^ The average sales prlee per pound for August vss not as lv as estimated, 8.754. PF September It should be about 8.90<J. Table Ho. 5 gives a comparison of vhlte lead sales for July and August of 19*5 and the corresponding months ef 19**. TABU HO, 5 August July A2*S 515,927 Lbs. 516,878 Lbs. 12** 1,236,363 Lbs. 1,303,060 Lbs. PNYC00001539 Mr. V. X. Dryer -3- September 29, 19%'5 Iffectlve September 21at VPB eliminated ell restrictions <m the use of dry vhlte leed for the month of September only. Ve expect that os the first of October these changes rill be eliminated perman ently. This should substantially Increase our sales. Due to the restrictions ea the use of dry vhlte lead In pro ducing lead-ln-oll re hare sold all of our United production thin year against rated orders. Bor that ratings are practically out re rill be In position to resume shipments to our dealers for elrlllan sales. Vc hare accumulated about 600 orders since the first of the year. Ve are nor notifying our dealers that re are In position to make shipment and are asking them shat amount they rant us to ship against these orders. The rhlte lead plant resumed operation about September 15th. All of the production for this month rill be sent to the lead-ln-oll department. Ve are running tre shifts on lead-ln-oll grinding In order to use up all of our third quarter oil quota but re probably rill net be able to do this because of the late date on rhleh VTB released the restrictions on the use of dry rhlte lead for grinding lead-ln-oll. At Bast Chicago re bare practically ne dry lead in stock. Our rarehouses hare normal stocks. Ve do not hare any substantial accumulation of orders for dry Vhlte lead but the oil quota for the fourth quarter ras raised from 50 to 75 rhleh rill cause an Increased demand for dry rhlte lead. Our problem is that although re are pro ducing dry rhlte lead at a normal rate re are out of five grades and for this reason re are confronted rlth an Inflexible position. Ve have nothing definite from VPB as to rhat they rill do about production and use of dry rhlte lead for the fourth quarter. Although, re have been Informed verbally that all restrictions an the use of dry vhlte lead rill be eliminated. It la possible that the amount of pig lead ve ean use to produce dry vhlte lead rill be 551? of the amount ve used In the first six months ef 19%% or approximately llOjf annually. This rill enable us to operate the rhlte lead plant at about 20-22 tons per day for the fourth quarter rhleh Is the most satisfactory rate considering production costs and sales volume. Sales for September rill be about 900,000 pounds. Sales for 19%5 through August are %,820,521 pounds. For the same period last year they rere 7,234,871 pounds. Table Vo. 6 gives the average sales price per pound for dry vhlte lead for the past three months. TABU VO. 6 August July June Average Sales Price - Per Pound 8.389# S.%21# 8.%35# To summarize, sales of sine oxide rill hit a three-year lor during September but should be up substantially In October and for the long pull they should continue to Increase because re are nor competitive PNYC00001540 Mr. t. X. B*y 4- Septembor 29, 19%5 on price. Ve expect te prodace 20-22 tana of dry lead per day trot vlll not build ap oar stocks substantially because ve ha-re no stock at Bast Chicago at the present tls and the elimination of rostrlctlons on the use of dry vhlte lead and the Increase In the linseed oil quota should create a greater demand. Lead-ln-oll sales vlll be up substan tially because of the removal of restrictions <m the use of dry vhlte lead In producing lead-ln-oll. Tory truly yours. F.B.Surless:ho ec: Mr. Frederick Ialst ^ Mr. 0. I. Johnson PN,c<> 1su