Document 712OX3rnea9rXxg4MyEvvJLnj

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 Pigmimt Division Mr. R. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Hew Tork 4, H. T. October 31, 1945 Dear Mr. Dwyer: This la a susmmry of tbe aalea poaItIon of cine oxide and white lead for tbe month of September, 1945. Table Ho. 1 gives a comparison of clnc oxide aalea for August and September of 1945 and tbe eorreapondlng months of 1944. TABLE HO. 1 1945 1944 September Auguat 728,200 Lbs. 1,713,190 Lba. 1,721,900 Lba. 1,744,750 Lba. Salea continued to decline In September. Thle 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 euatomera In tbe rubber Industry were almost entirely on war erdera 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, with substantial stocks of sine oxide an band. Due to tbe additional health basarda in connection with unloading and packing Hast Helena and Tooele fumea we have temporarily discontinued selling tbe Victory line of leaded zinc oxldea. Ve have small stocks at Eaat Chicago and In warehouses which we will liquidate to a considerable extent by October 31at. In seam months the Victory line accounted for almost 200 tons of our zinc oxide sales. During 1945 the paint industry waa very bard hit by VFB restrictions. As a ooosequence a tremendous void has been created which it will take some time to fill. All restrictions have not been removed and paint manufacturers cannot get all the raw amterlals and labor they need but they are producing at a good rate at tbe present time. On the 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. Dwyer -2- Oetober 31, 1945 sans period of 19** they were 13,389,133 pounds. fable Vo. 2 gives a breakdown according to paint, rubber, and nlaeellaaeoua Industries. TABLE VO. 2 Paint Rubber Miscellaneous CVS SEPTEMBER 19*5 Pounds Value 12ii Pounds Value *8*,100 78,100 166,250 ^50 $ 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 APOTET 19*5 Pounds Value 19** Pounds Value Paint Rubber Miscellaneous CVS 486,7*0 209,600 302,250 71*.600 $ 36,722.*1 20,2*9.50 28,367.38 67.887.00 395,050 28*.950 264,750 800,000 29,809.9! 27,486.63 2 *37.*5 78,250.00 1,713,190 $153,226.29 1,7*4,750 * 160,983.99 It -will be noted that scan of the statenants node la preced ing paragraphs are borne out by the breakdown in table Vo. 2 Inasmuch as sales to the paint Industry for 3eptenber were about the saan as those for August but thore was a very substantial falling off in sales to the rubber Industry. Table Vo. 3 gives a breakdown ef sine oxide sales for September according to the three classifications. TABLE V0. 3 V.S.r. Quality Seal Other Load Free and Leaded 136,350 Lbs. 50,750 Lbs. 5*1.100 Lbs. 728,200 Lbs. Table Vo. 4 gives the average sales price per pound for the past three months. TABLE VO. 4 Septesfcer August July Average Sales Price - Per Pound 8.375* 8.9*** 8.99* Mr. I. 1. Dwyer -3- Ootober 31, 19*5 It had been estimated that the average sales prise fer September would be about 8.904 per pound. To seme exteat the lover figure la accounted fer by golag competitive ea prlee on September 2*th vhioh reaulted la sales fer the last veek of the aonth belag at prlees up to 34 per pound less than they foraerly vere. The average sales prlee for Oetober vlll very likely be In the neighborhood of 7.504 per pound. Table No. 5 gives a comparison of vhite lead sales for August and September of 19*5 and the corresponding months of 19**. TABLE NO. 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 Septeaber vas due to VPB eliminating all restrictions on the use of dry vhite lead on September 21st. Ve expect sales to continue at about the level fer Septeaber. Our stocks at East Chicago are lev aad these la varehenses are soaevbat belev aoraal. Business Is steady aad sales In the last quarter should almost balance production. Despite general conditions ve feel optimistic about the paint Industry. This is due to the conditions mentioned la the first part of this letter. Actually, the average dealer has practloally no exterior paint oa his shelves and the nanufaeturer has no stocks. The paint that the dealer Is carrying Is usually Interior paints ef a somewhat Inferior grade. The one unfavorable factor is the container situation as strikes have been limiting production fer some time. Our evn positleu Is that ve have enough containers to take care of our fourth quarter oil quota aad then ve vlll have te suspend grinding of lead-ln-oll as ve vlll have no mere containers. The com pany that supplies these has been on strike slaee Septeaber 15th and there does not seen to be any possibility of a settlement. Sales fer October vlll be approximately 1,000,000 pounds. Sales for 19*5 through Septeaber vere 5,853,6*2 pounds. Per the same period of 19** they vere 9,223,358 pounds. - Table Me. 6 gives the average sales prlee per pound for dry vhite lead fer the past three months. TABLE NO. 6 September August July Average Sales Prloe - Per Pound 8.3764 8.3894 8.*214 PNYC00001536 Mr. K. X. Dvyor October 51. 19*5 To suanarise, m1i for Septea&er hit a three-year lov da* principally to tho fact that our custoaers la tha rubber lnduatry vara raeonvartlng and had aubatantlal quantities of alne oxide la their lnventorlea. The paint lnduatry la going aleag at a good rate and the net reault vlll be that In October eur alne oxide aalea >111 be oxer tboae for September and ahould continue thla trend through govember although the lnoreaae vlll be aoderate. On the other band, the fairly good rate of activity in the paint lnduatry aeena to aaaure a fairly high level of aalea of dry vhlte lead for the fourth quarter. Stoeka at Saat Chicago are lov and thoae In varehoueea belov noraal. The result very likely vlll be that aalea vlll be allgatly under productlea for thla period. Produc tion vlll be at the rate of approxlaately 600 tons per aenth. Very truly youra. T.H.Hurleea:ho ec: Mr. Frederick Lalat y Mr. O. I. Johnson PNYC00001537