Document 3NJbJVVZjLJbrxnkMByb586wn

jr International Smelting and Refining Company East Chicago, Indiana Pigment Division Mr. R. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Mew Tork 4, M. T. October 31, 1945 Dear Mr. Dwyer: This la a sumsary of tbe aalea poaItIon of cine oxide and white lead for the month of September, 1945. Table Mo. 1 gives a coarparlson of cine oxide aalea for August and September of 1945 and tbe eorreapondlng months of 1944. TABLE MO. 1 1945 1944 September Augnat 728,200 Lbs. 1,713,190 Lba. 1,721,900 Lba. 1,744,750 Lba. Salea continued to decline In September. Thin was due to two reaaona. One waa that In Auguat we aold CVS 714,600 pounda but had no aalea In Septeafcer alnee tbe contract waa terminated about the middle of Auguat. Tbe otber waa that moat of our customers In tbe rubber Industry were almost entirely on war orders and when tbelr con tracts were terminated It waa necessary for them to take considerable time to reconvert and they also found themselves. In most eases, vlth substantial stocks of cine oxide an band. Due to tbe additional health basarda in connection with unloading and packing Mast Helena and Tooele fumea we have temporarily discontinued selling tbe Victory line of leaded sine oxldea. Ve have small stocks at Saat Chicago and In warehouses wbleh we will liquidate to a considerable extent by October 31at. In seam months tbe Victory line accounted for almost 200 tons of our zinc oxide sales. During 1945 the paint industry was very bard hit by VFB restrictions. As a oonsequenoe a tremendous void has been created wblcb it will take sane time to fill. All restrictions have not been removed and paint manufacturers cannot get all tbe raw amterlals and labor they need but they are producing at a good rate at tbe present time. On tbe other band, most of the rubber Industry seems to be flooded with raw materials and production Is down considerably due to reconversion. For October sales should be about 1,000,000 pounds. Total sales for 1945 through September were 12,807,950 pounds. For the 1S10216 pNtCOOOO153A Hr. 1. X. Dvyer -2- Oetober 31, 19*5 period of 19** thay vara 13,389,133 panada. Tobl* Vo. 2 glvea breakdown aeeerdlng to point, rubber, and nlaeellaaeoua induetriea. TABLE VO. 2 Point Eubber Mlaeallaneoua CVS SEPTEMBER 19*5 Pouada Valaa 12** Pounda Value *8*,100 78,100 166,250 250 $ 36,670.90 7,639.75 16,697.53 23-75 387,600 355.000 179,300 800.000 $ 29,261.60 33,815.00 18,129.62 76,000.00 728,200 $ 60,98*.*3 1,721,900 $ 157,206.22 A0OTST 19*5 Poonda Valaa 19** Poonda Valaa Palat Rabbar Mlaeallaneoua 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 It vill bo noted that iom of tbo atotoaaata aado la preeeding paragrapha ara boraa oat by tbo breakdown la tobla Vo. 2 laaaaaob aalaa to tha palat ladaatry for 3aptaabr vara aboat tha aaaM aa thoae for Auguat bat tbsra vaa a vary aabatantlal foiling off la aalaa to tha rubbar ladaatry. Tobla Vo. 3 giroa a breakdown of zlaa oxide aalaa for September aeoordlag to tha tbraa olaaalflootloaa. TABLE VO. 3 V..P. Qaallty Stool Otbor Load Proa aad Loadad 136,350 Lba. 50,750 Lba. 5*1.100 Lba. 728,200 Lba. Tobla Vo. * glvea tha avarago aoloa prleo par pooad for tha poat throe areatha. TABLE VO. Boptoafcor Aagaat Jnly Avorago 8olaa Prlee - Par Pooad 8.375* 8.9*** 8.99* Hr. I. 1. Dwyer -3- Oetober 31, 19*5 It had been estimated that the average sales prise fer September would be about 8.90# per pound. To sene exteat the lover figure is aeeeumted fer by golag ees^etltlve ea prlee on September 2*th vhioh resulted la sales fer the last week of the month being at prlees up to 3# per pound less than they foraerly vere. The average sales prlee for Oetober vlll very likely be in the neighborhood of 7.50# per pound. Table He. 5 gives a ccaparison of white lead sales for August and September of 19*5 and the corresponding months of 19**. TABLE HO. 5 19*5 19* September August 1,033,121 Lbs. 515,927 Lbs. 1,50*,151 Lbs. 1,236,363 Lbs. ___ The substantial Increase la sales for September vas due to VPB eliminating all restrictions on the use of dry white lead on 8eptert>er 21st. Ve expect sales to continue at about the level for September. Our stocks at East Chleago are low and those in warehouses are somewhat below normal. Business is steady and sales In the last quarter should almost balance production. Despite general conditions we fool optimistis about the paint industry. This is due to the conditions mentioned in the first part of this letter. Actually, the average dealer has prac- tloally no exterior paint on his shelves and the manufacturer has no stocks. The paint that the dealer la carrying is usually interior paints of a somewhat inferior grade. The one unfavorable factor is the container situation as strikes have been limiting production fer some time. Our ova position is that ve have enough containers to take care of our fourth quarter oil quota and then ve vlll have to suspend grinding of lead-ln-oil as ve will have no more containers. The com pany that supplies these has boon on strike almee September 15th and there does not seen to be any possibility of a settlement. Sales fer Oetober vlll be approximately 1,000,000 pounds. Sales for 19*5 through Septestber vere 5,853,6*2 pounds. Per the same period of 19** they vere 9,223,358 pounds. - Bible Be. 6 gives the average sales prlee per pound for dry white lead far the past three months. TABLE HO. 6 September August July Average Sales Prloe - Per Pound 8.376# 8.389# 8.*21# PNYC00001536 Mr. R. X. Dvyer October 51. 19*5 To lumrite, Mies for September hit three-year lov due principally to the feet that our customers la the rubber Industry vers reeoavertlug and had substantial Quantities ef sine oxide la their Inventories. The paint Industry Is going alsag at a good rate and the net result vlll be that In October our sine oxide sales vlll he over those for Septeaber and should continue this trend through Kovenber although the Increase vlll be amderate. On the other hand, the fairly good rata of activity In the paint Industry seens to assure a fairly high level of sales of dry vhlte lead for the fourth Quarter. Stocks at Bast Chicago are lov end those In varehouses belov normal. The result very likely vlll be that Mies vlll be slightly under production for this period. Produe tlon vlll be at the rate of approximately 600 tons per nonth. Very truly yours. F.H.Hurless:ho ec: Mr. Frederick Lalst y Mr. a. B. Johnson PNYC00001537