Document B5woZ94p4KYE2wqpEev3nme4L

'r y LIA23638 '\ LEAD INDUSTRIES ASSOCIATION, INC. :tl MADISON AVCNUC NIW YOBK 17, N. V. March *, 19^3 SUBJECT: KEPRIOT OH LEAD To Urcbern of the Leal Industrie* Association, Inc.: Enclosed 1* a reprint of the article on lead frcn the annual review issue of "Engineering and Mining Journal," February, 1963- Extra copies are available as long as cur supply lasts. Very truly yours. RLE:na Enc. Executive Vice President r wy > Wr' . jwc.1 ! LIA23639 Annual Survey And Outlook LEAD-1962 / St-fcm L- ZirjfrU 1 irkutw N Kf PltwkM ltJ lrJw*trin Amk . Le^J price le**!* Jurinf '62 were d'iieppo;n::nc. Ho* nn, coruump:U>m rose 3A<>m/ t**, wcrt.d refiners' jlocii + cre reJut cd. tinJ manufacturer? remained Ur*. r. + trtrM I fro I V C--. Iw. 1M WM *3*4 t . York >4. HT. T.-. ' P"* ' / N 1900 LIA23640 *=;- : 1 - : - ' m aHi'm iebvii~fMT*r,anr.1f*i Lead. K L zw*wd AtTMOWH THt met ttvru foe strike. Thus, lead enters 196) In a supplies. As a result the jroup look Wad which prevailed throughout 1962 much srtonjer slatittkal position than no action on Wad with the feeling that were disappointing to lead producers, U bat enjoyed in a long time, with none was necessary at the tune and other factor* cannot he rrvkwed with- the price increasing moderately toward that the lead iituj(>oa was corrcclmj out a considerable feeling of Aplimitm. year-end acd consumption (a the final itself. Consumption of lead is estimated at a quarter of the year being well ahead Mine production of lead in the U.S. moderate iocrtase of about 6% over of any of the earlier quarters and in 1962 set a new tow since (he turn the two preceding yean. Rc/lnen* the fourth quarter a year ajo of the century at about 2)7.000 tool. stocks in both the U.S. and abroad in fact, statistics compiled by the This was tarjely due to a protracted were reduced tubstantUUy. a/vj manu United Nations Lead-Zinc Study strike at the southeast Missouri mines facturers* slock* nr^aioed low. Fro* Croup and considered at its last meet* of St. Joseph Lead, larjest domestic dunion was at ic extremely low WvH Inj io Geneva.is October 1962 pre Wad miner, which started io late July largely due to a major protracted dicted a small uceu of demand over and continued into 196). This strike Cost the industry some 10.000 loo* of Wad a month dunnj the last five months of the year. However. it did not U.S, Lead Supply and Demand* (short low Wad nwtfw) U.S. lad U (hcr| |o** vi Wad contra*) affect delis erics or consumption of Wad because of the larje stocks of metal in this and other producers* Su(^lr: inr* 1961 IHJ** 1961 hand*. 11.606 11.000Mine pnduiliM . .. 237.664 76.666 72.000Seeisfwlafv pri-)urth.>o 446,606 347,404 65.000Qaota impel* 261.600 419.600 White lead ... Ked Wit] and bthar^e Slura^r hallcrirs. . . Consumption, on the other hand, showed a moderate increase of about i 60.000 ions to an estimated 1.09- 55.504 37.500Ore. rrvosrraMr 134.606 150,000 CaUr....................... mdlion tons or nearly 65. This 56.606 47.200iNfl and Uin J22.C04 322.0O0 Bu>Uir>e ............... was about 40,000 tom higher than 1 172.606 60 00Other impel* Tetraefh' Wad I .g the jvcrsje consumption over the 47.006 45.100(maml) for Ammun>U<s . preceding fise years. Indicating that 4.066 3.000MiKkpiW)'. 1 17.006 17.500Or, frcmrraMe 6 .664 3 4 0 l*^i arwj bar* . . l,M4 53,444 15.000 J5.000 7237..000066 6276..470000Total i ,*h .*04 i.HJ.jtno F.,l fWari,^ rvtj. * SJ.lee T pr mrtal CaulWin*.................. J the higher consumption rale was d o flash in the pan is the fact that con .V sumption in every quarter ot the year exceeded consumption in the corre 21.606Oui-fn n sti^k* 1 Hra-- k IftA/r jo.inj sponding quanci of i96l and even in 7,366 6.0004 prir.iarv -nr!irr< Ca-lictc* .... the third quarter of 1962, which tra 12.606 11.200ar>{ rrfmrtes 54,464 49.400 GJUp-.Me t'j'je* . . ditionally is the lowest consumption 54.206 41,000(deer.) (.rw) MlC- UT* quancr because of the vacation Total . . Capets. . 6 7,006 1 027.200i.nt.644 1.064.400 46.60} .* M rf ^ I SIS SMMia |Mshr . month* of July anj August, consump tion was higher than m any quarter of J961 except the last quarter, the Total available. I.O57.0OO Demand: lodu*trial consump- tkm .................. I.M7.664 1.027,209 Cstinutrd stockpile shipments.............. U.M4 50.000 Consumers ird secondary smrltcr stork*...................... 7.604 l.wo tdecr.) fine) Uoacrounted fte ... -t.JS* -21-300 Quarterly (J.S. Lead Uie (dwei too*) 2* IH 1st quarter 2nd quaMrr . ... 3rd quarter.............. 4lb quarter............... 222296364J49,...755300006666 1961 225471..690000 J257J2..070000 I.6f7,646 1.027.200 last quarter traditionally showing the heaviest consumption. U seems logical to conclude that the lead consumption pattern h sta bilising itself on a slowly rising trend, barring major genera) business re versals, with each of the bit two scan showing increases. Jt appears that some of the heavy substitution in some uses of Wad have stabilized and that expansion of other uses is thu/ Total....................1,134.566 1,057.000 *--rd *r At Ml vtM m4 Lc*4 U+wtfWS A Ia H*Wtt wlllllinl World Stock Figurn (ASMS--summaty vf Wad rcftting sta tistic* io I'JJ. and vutside VJ ) Combinr| l`.S. and Outside C2L beginning to b feh. Imports <*f both pig Wad and ore and concentrates were again con trolled by quota and remained the same as n J96I at 1)0.000 tons of Knd of In abort ton* recoverable Wad in ore and 222.00C Lead Price Change* November IHJ........ l>reeiulef 1961.......... ....... 461.019 tons of pig Wad. However, an addi tional amount w^s imported for Gov (t per m n v.) Nov. Jan. Feb Ft> N.n. 9521,... 1111I9999966666JJ221.......... .. ............................._......._......_...*1.. 99|1000.7503200050 November IHJ... larmier 1961, November IHJ fVirmler 1H1. l`A 176.294 311.522 Outa.de VH 166.671 256.497 ernment stockpile and not for con sumption. and this w as outside the quota. Mint of it was the result of barter arrangements concluded in 1961 with Australia and Canada and amounted to about SOtKt tens of ore and 51.000 tons of metal in 1962 -rr^r pve7gu|<^gwii^j-,.r-,|l:*! yiSA'st.waww-i.1* '.u- ! -Iiww1 ygyBP ^r LIA23641 i.T iiTfrlr>TyfTri o compared with 15,000 and 55.000 loot, respectively in t *X> 1. Secondary le*J proJoctkm in 1962 is estimated at about 440,000 tons --only vlightly lower than 1961. The higher 1962 consumption in the U.S. combined with unchanged iroport*, slightly lower secondary pro duction. and substantial]) lower mme production to reduce inventories malenally. Stocks in the hand* o( pri mary refiners were reduced nearly 50.000 tons and in the hands of secondary smelters and consumers an other 7000. At the same time stocks of lead in the hands of refiners out side the U.S. dropped nearly 100,000 tool, leaving lead in the best statistical position in a long ume with total Mocks of some 525.000 tons in the hands of Free World refinerv Price*. As has been previously staled, prices were not attractive to produc ers in 1962. The year opened wth lead quoted at lOlif per Ih New York. It dropped to 10* on Jan. 5. tn 9'i 4 on Feb. 1. and to 9'ir on Feb. 9. There H remained until the greatly improved fall consumption and itnke-limited supplies moved it hack up to lOf on Nov. 2. the price pre vailing at >ear-enJ The general feel ing in the trade at the beginning of the new >caf was that the market w as exceedingly strong. The London price at year end was around . 54 to 55. to which it recoveuJ from several pounds lower earlier in the year. An other factor adJnj to the year-end market vtn.ig'.h was the December rioting at Cerro's Peruvian proper ty; plant damage resulted, aflcctmg production. The dock strike at At lantic and Gulf Coast ports at the end of the year may also have an effect on impixlv A constructive development of 1962 wav the First International Lead Conference bcid in London in Octo ber. Rather than deal with production problem^ and controls, as have the U.N. sponsored meetings, this con ference dealt with markets anJ new developments. Three day -long sessions of papers dealing with technical anJ market problems of Wad products, particularly storage batteries, cable sheathing and radiation shielding, were attcnJcJ by 250 kad people from 26 countries. IV conference, spon sored by the Luropean lead Devel opment Committee composed of the administrators of the kad avvoesa- > in `7re*r Britain and Continental Europe, wit such a success and re ceived va much publicity fjvurabk to kad that, at this writing, it is planned to make it a biennial affair. CoaMunptkxi. Europe's kad consump tion veems to be hoIJrng up very well. Even some kad proJoeis that are meeting severe competition, as in building comtrueOvKi. arc maintain ing their consumption levels evtremely well because of the high level of busi ness Activity and construction in most of western Furcpe The kaJ haitery, anti-knock and oxide businesses there ire all looking forward to annual increases of 10'f to 15C* in each of the not fi* years France has a well established business of some 50 years standing in kad-avbcvtos snti-vibratioo pasts for iwaiating machinery. Lead cable sheathing is maintaining a much larger share of the markcl in Europe than in the U.S. and new cable plants art installing kad cxtrusKwi equip ment. including com mmxiv kaJ rvtruvion presses recently perfected in the US. Germany has several hundred modern battery -powerej railroad cars used on lines where (rarftc docs nut justify electrification. and all western Europe is much more dependent on battery-powered industrial trucks and even vhort-Vul delivery trucks than is the U S. But kaJ consumption here, as al ready stated, gave an excellent ac count of itself. Storage batteries vNiw t J the Nfgot increase, using some 50.000 tens more than a year earlier a\ a result of a high rate of new equipment prod.xtxxi and a rec ord replacement battery year in which more than 2#min.on such batteries were proJuccJ Other uses of kaJ showing more nuxlest ipcrca*cs in kad consumptHsn were kad oxides, build ing construction and caulking Wad. tet raethyl kad. ammunition, foil. v*IJcr and collapsible tubes No use of kad showcJ any major decline, supporting an earlier statement that substitution for kaJ in w*me industries that has been going on in recent years has leveled off. Trends. A few brief comments oa trends in two of the most important individual uses of kad may be infor mative. Battery consumption appears not only to rettevt the high new car production rate and seseie weather conditions in much of the country. hot alxi a reversal of the trend vtarlcd a couple ol years ago to compact cars with imalkr batteries. It verms that the public once again is going for bigger, more powerful cars and even more glorified compacts Ibis appears also to be reflected in the kad anti knock compound figures. In 1962, the average amount of kaJ per gal lon of both regular and high octane gjxdrnc wav higher In each month of tl>e year than in each of the corrcv ponJmg months of 1961. 1l shook) be repeated, a* mentioned Last year, that actual use of kad prod ucts io the U S. iv not fully reflected in the statistics of VS. lead consump tion. This is because lead products imports are not subject to quota reitrx'tionv as h pig kad. Aho. in the cave of Mexico, kad products made there enjoy l>w pig kad price and escape the Mexican pig kad export tax. Thus, some 20.000 <r more tom of kaJ pnxlucts are imported into the U.S. anJ consumed here, Were these of domestic manufacture kad consirmptissn figures wrxiki he some 2O.t0O tons higher. This condition ha* only existed in a major way during the Iasi three or four years. Ibe ceramic industry is a gcod ex ample Statistics show that the use of kad in ceramics in the Uds. has remained fairly constant in recent years. However, this industry is now im;xHtmg 10.000 to 15.000 Ipy of lead uviJe ftsxn Mexico which it did rxH do five years ago. So instead of kad usage by the ceramic industry remaining static, as consumption figurcs wmld imply, use of kad by this industry has actually increased by a third or more. 1 he lame holds true to a lesser extent in the case of voider, pipe anJ other products. Outlook. As the kad inJustry enters the year |9M, everything points up the wisdvxn of its kaders m recent years in deckling to pick the industry up by its own bootstraps. Artificial supports for any industry are always ftxmj to have their drawbacks But n aggressive program to dcsct.vp mar kets. although costing a lot of money anJ energy, is paying off in healthy, though perhaps, slow improvement in kad consumption and creating a rec ognition of kaj'v capahil.ties armmg designers and others who are respon sible h*r selection of materials. xn rrwtq l*UU. : !i* f \' : : : , f f i a?,11 -ynj? 4 1