Document 99JJG1b3XgkMameBwm6Nyn08D

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 Hr. B. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Bew Tork *, B. T. February 28, 19*5 Dear Mr. Dwyer: This Is a sunnary of the sales position of zinc oxide and white lead for the month of January, 19*5. Table Bo. 1 gives a comparison of zinc oxide sales for January, 19*5 and December, 19**. Also a comparison for the sane months for the preceding years. The latter Is In the right-hand column. TABLE BO. 1 January December 869,110 Lbs. 1,090,*00 Lbs. 1,276,*0* Lbs. 9*5,850 Lbs. Sales for January were off due to lover sales of the U.S.P. Quality and muffle furnace grades. Sales of American process oxide were down slightly In January also. For February the sales of both U.3.F. Quality and muffle furnace oxide will be up. However, sales of American process oxide will be off quite a bit which should help our lncosM considerably. For February the total sales will be about 900,000 pounds. In comparing sales for January of 19*5 with those for January of 19** It should be taken Into consideration that last year sales for January Included *00,000 pounds of zinc oxide sold to C.V.S. Taking this Into consideration sales to regular customers for January of last year were practically the same as sales for January of this year. Sales to the rubber and miscellaneous Industries have been very good for February. However, the paint Industry Is very quiet due to the May restrictions Imposed upon It and also due to the fact that the paint Industry to a large extent Is dependent upon civilian require ments. At the present time the paint Industry Is operating on a 5o linseed oil quota. Titanium pigments and llthopone are almost Impossible to get unless they are to be used In war orders. The use of lead-free zinc oxide has practically been eliminated In the use of paints for civilian requirements due to restrictions Imposed by VPB. The dry white lead quota Is only l6j< of former use. PNrC0000I565 N10224 Mr. R. B. D(jr -2- Pebruary 28, 1945 Leaded sine oxide vas vary tight until about the first of 1945 due to the faat that denned vai In exoasa of supply, Mov It appears that the paint Industry aay not require all of the loaded zinc oxide that la produced. We have bad nueh less difficulty bolding don sales of leaded zinc oxide since the first of the year and our total sales voluae vlll be doen only because of this situation. Due to tbe fact that ve lose noney an leaded zinc oxides tbe lover voluae of sales for these grades is not necessarily unfavorable. Sales vlll be up for those grades vhera ve have a more favorable nargln of profit. Table >o. 2 gives a breakdovn according to paint, rubber, and ulscellaneous Industries. TABU BO. 2 Paint Rubber Miscellaneous CVS 1245 Pounds JABOART 1944 Value Pounds Value 322,360 385,950 160,800 23,959-31 36,853.63 15,827.13 3**,15* 323,100 209,150 *00.000 $ 26,037.52 30,877.26 20,667.5* 38,000.00 869,110 $ 76,640.07 1,276,*04 * 115,582.32 1944 Pounds OBCKMBRR Value 19*3 Pounds Value Paint Rubber Miscellaneous 372,900 5*8,650 168.850 1,090,400 27,7*6.75 52,895.88 $ 97,679.52 266.750 299.750 377,350 9*3,850 * 20,435.*6 28,791.64 36,283.23 85,510.33 Table Mo. 3 gives a breakdovn of zino oxide sales for January according to the three classifications. TABLE 10. 3 W.S.P. Quality Seal Other Lead Pros and Leaded 76,350 Lbs. 15,510 Lbs. TTIr-gy Lbs. 869.110 Lbs. Table Bo. 4 gives the average aales price per pound for the past three nonthe. PNYC00001566 Mr. R* * ~3~ February 28, 19*5 TABUS HO. 4 January December Hovember Average Sales Price - Per Pound 8.8l8# 8.9581 9.028^ The salea of the higher priced tl.S.P. quality and muffle furnace oxides vere off more than the lover priced American process lead-free zinc oxides. Hence there vaa a lover average sales price per pound for January. It la quite likely that for February the average sales price per pound vlll be higher than that for Hovember. Table Ho. 5 gives a comparison of vhlte lead sales for January of 19*5 and December of 19*4. Also a comparison of the corres ponding months for a year ago. The latter la on the rlght-hfnd aide. TABLB HO. 5 January December 2,281,266 Lbs. 1,537,0*3 Lbs. 855,002 Lbs. 658,430 Lbs. Sales for January reached a peak for several years. This vas due to advance buying by the paint Industry because they had heard of the action VPB vould take to restrict the production of dry vhlte lead. At the time these purchases vere made the paint Industry did not knov that the consumption of vhlte lead vould also be restricted and that moat of their stock vould be frosen. nevertheless most of our customers consider that they vere fortunate to get the lead because their experience In the past has been that vhea restrictions vere Imposed upon the production of a commodity It frequently la almost Impossible to pur chase It vhen the restrictions are eased or eliminated. Sales of dry vhlte lead as such and as lead-ln-oll vlll total about 125 tons for February. It is very likely that sales vlll remain at this level until present restrictions on the production and use of dry vhlte lead are eased or eliminated. The situation is such that the production of paints for civilian requirements is practically paralyzed and If these reatrletlosu continue for any length of time It vlll very likely put a good percentage of the dealer trade out of business. Table >0. 6 gives the average sales price per pound for dry vhlte lead for the past three months. TABLE HO. 6 January December Hovestoer Average Sales Price - Per Pound 8.342# 8.331# 8.313# To summarise, sine oxide sales for those grades cm vhleh ve have a better margin of profit vlll be up la February and the outlook continues to be good for them. On the other hand, the sales of those P^C0000X56? Hr. H. X. Beyer -4- February 28, 1945 grades of zinc oxide on which we do not have a favorable Margin of profit will be off and until VFB eaeea or eliminates wane of the restric tions an the paint industry this will continue to be the case. Sales of dry white lead as such and as lead-ln-oll will be off about 500 tons per month from what they have been averaging and the continuance of present restrictions on the paint Industry should maintain these sales at this extremely low level. ery truly yours. F.H.Hurless:ho cc: Hr. Frederick Lalst ' Hr. 0. B. Johnson PNYC00001568