Document JryDvNbKOMg1jb0jrM22pYV5O

INDUSTRY & BUSINESS Vinyl Chloride Price Wilts Under Fire Drop in price of monomer--to 7V cents--is marketing device; costs not involved directly The latest reduction in the puce of vinyl chloude monomer--to 7*/j cents a pound--reflects competition gi owing in the industry at least in part because of overcapacity. Industi y sources feel that the new price is not lelated diiectly to cost. Rather, they say, it is strictly a marketing device. The piice of the monomer lias been as high as 11 cents a pound this year. Until the latest 1 eduction, it had held at 8j/2 to 9 cents for seveial months As a consequence of the new mono mer price, the smaller pioduceis of polyvinyl chloude will likely try to win some new markets. But the big pro ducers will probably make price con cessions to meet the competition. This includes even the granting of price re ductions on monomer being sold under contractual agreement. Just how long this new low price will remain effective is anybody's guess. But with the ex cess capacity for monomer, the price might stay down for some time. Vinyl chloride is used principally to make polyvinyl chloiide and, to a lesser extent, to make copohmeis with \inyl acetate or vinylidene chloride. Polyvinyl chloude is used to make film and sheet, flooring, wire and fabuc coating, phouogiaph records, and gar den hose among other things. PVC production in 1961 is expected to reach 950 million pounds. Capacity last year w as about 1.4 billion pounds. PVC, which is also beset by excess capacity, has been selling lecently at 16Vs to 17 cents a pound, down from 23Vj cents. Thus, what the new monomer price will do to the piice of the polymei is difficult to pi edict. Vinyl chloride is mode mostly from eitlier of two starting materials: acety lene or ethylene. Which one is chosen is generally decided on the basis of economics, including plant site and supply and cost of raw material. The so-called ethylene process, more widely used than the acetylene, is really an ethylene dichloride process. Here, ethylene,dichloride is vaporized, dried,.and reacted in the presence of a pumice or charcoal catalyst._^--Tem- 'V perature is between 900 and 950 F., pressure is 50 p.s.i.g. Hydiogen chlo ride is iemoved, and the vinyl chloude is condensed and stored. In the acetylene process, acetylene reacts exotheimicolly in the vapor phase with anhydrous hydiogen chloude in the presence of a meicuuc chlo iide catalyst to yield vinyl chloride. Sometimes a combination acetylene and ethylene process is used. Under these circumstances, by-pioduct hy drogen chloude from the ethylene process is ieacted with acetylene to make additional monomer. Vinyl chloride is frequently con vened to polyvinyl chloride near the point of production As a conse quence, many PVC makeis produce their own monomer. Merchant suppliei s of monomer can less easily gear their production to a continuous user. However, because vinyl chloride mono mer is not often bought on a "spot" basis, monomer merchants can alter production as the need arises. Also complicating monomer capacity figures is the ability of a manufacturer to use his monomer unit, slightly modi fied, to make other products, such as glycol. Thus, capacity figures for the industry can and do change abruptly. Changeability of canacity, general overcapacity, competition from other plastics, and foreign competition, prin cipally from Japan, all have played a part in exerting pressure on the price of the monomer. Vinyl Chloride Monomer Capacity Nears Producer Allied Chemical Moundsville, W.Va. American Chemical Watson, Calif. Cumberland Chemical Calvert City, Ky. Diamond Alkali Deer Park, Tex. Dow Chemical Freeport, Tex, Plaquemine, La. Ethyl Corp. Baton Rouge, La. Houston, Tex. General Tire Ashtabula, Ohio Annual Capacity (millions of pounds) 100 25 60 50 200* 210* 30 Source: C&EN estimate* * Expansions to be completed by 1962* Billion-Pound Mark Producer Annual Capacity (millions of pounds) Goodrich Chemical Niagara Falls, N.Y. Louisville, Ky. Calvert City, Ky. Goodyear Niagara Falls, N.Y. Monochem (Borden-U.S. Rubber) Geismar, La. Monsanto Texas City, Tex. Tennessee Gas Transmission Houston, Tex. Union Carbide South Charleston, W.Va. Texas City, Tex. U.S. Rubber Painesvilie, Ohio Total 240 70 150* 150 200* 260 70 1815 JUNE 2 6, 1961 C&EN 23 RSV0031352 Commerce Probe* Red Engineering Deal Hydrocarbon Research's actions in design of Romanian refinery and petrochemical plant are under study for possible export violations The Government has issued a consent order thnt temporarily requires Hydro* cm bon Research, Ino., to get prior specific apptoval of the Commerce Department's Bureau of Foreign Com merce before exporting any technical data arid commodities of U.S. origin to the Smo-Soviet bloc and Cuba. The order stems from the New Yoilc engi neering film's 1959 agreement with the Romanian government to design an oil refining and petrochemical plant in that Red satellite. The order is effective for 90 days, pending further investigation by the Department of Commerce, It makes no specific charges against Hydro carbon Reseat ch. The Bureau of Foreign Commerce wants to know whether, in fulfilling its contract, HRI violated the embargo on exporting unpublished technical data of U.S. origin to the Reds. Hydiocaibon Research says it has not done so. The company claims it has adheied strictly to the job proceduie that it ievie\ved specifically with Com merce befoie undei taking the Roma nian job. But HRI has agreed to the lestiaining older while the Bmeau of Foreign Commerce continues its study. Mechanical testing is under way at the plant, and operations will start shoitly. Under the Law, any unclassified technical data that aie published and generally available to the public may be exported to anybody under a geneinl export license. But exportation of any U.S. unclassified, unpublished, or not generally mailable technical data to Communist-bloc nations and Cuba is prohibited w ithout prior approval by Commeice. Also, since June 1959, the Govern ment has placed additional rest) ictions on certain petiolenm refining and petrochemical processes. Among them aie alk\ lation, aromntization, cracking, dehjdiogenabon, desulfuri zation, halogenntion, hydrogenation, isoinenzation, niti abou, oxidation, oxo process, ozonolysis, polymerization, re duction, and reforming, when use of unpublished U.S technical data is involved. Z4 C&EN JUNE 26, 1961 The Export Control Act deals solely with technical data of United Stjtes origin. Classified technical data can not be exported, but this aspect is not in Commeice's bailiwick. The Romanian government initiated contract negotiations for the plant with a number of U.S. engineeiing firms, the Bureau of Foreign Com merce says. And according to Hydro carbon Reseat ch, the Romanians ap proached at least one West German and one British company. The U.S, firms in turn approached the bureau for approval of a specific license to export the necessary unpub lished technology. But all were turned down on the basis that to ex port this know-how behind the Iron Curtain would not be in the best inteiest of die United States. But, BFC adds. Hydrocarbon Re search did not inquiie about a specific liceuse to export unpublished technical data. Instead, the company ap proached the buteau on the basis of die propriety of the job's being done by expoidug published technical data, plus using data not of United States origin. Tlie whole case rests on the Gov ernment's ability to prove that U.S.origin unpublished data were, in fact, used to fulfill the contract. With Romania behind die Iron Curtain, proving this will be difficult. But the Bureau of Foreign Commerce, under pressure from other engineering firms, has watched the proj'ect caiefully since its inception. It has decided that die results of die investigation to date warrant close scrutiny of all Hydrocaibon Reseaich's prospective tiansacbons with the Sino-So\iet bloc and Cuba. This means that die export restiaining cider also applies to HRI's affili ates, Hydrocarbon Engineering, Paris, France, and Hydrocaibon Mineraloel, Dusseldurf, Geimanv, and their offi cials and agents. It lequnes the Hydroembon group to obtain specific ap prox1^ from the buieau befoie engag ing in any future transactions involving the use of U S.-ongm technical data, published or unpublished, oi any com modity in the Sino-Soviet blcx; or Cuba. Violators of the Export Control Act face stiff consequences. The Com meice Department can revoke all ex port privileges and hence put violators out of the export business. From there, the case could go to the Justice Department for criminal action. Con viction here cames up to a $10,000 fine, or a year in prison, or both, for each violation. No Change for NPFI Budget cut won't alter National Plant Food Institute's program Rumors that the National Plant Food Institute is going to alter its pro gram of services during fiscal 196162 hax'e been squashed by John W. Hall, newly elected chairman of NPFI's board of directors. The lumois apparendy stalled as a lesult of some reduction in the association's budget, accoiding to Mr. Hall, president of die Potash Co, of America. The budget i eduction, however, will not impair the association's pro gram. It will not lesult in any deemphasis of its tiaditioiial support and cooperation with land-grant colleges, agricultuial woikeis, and others con cerned with a sound agrieultuie, Mi. Hall fold members attending the asso ciation's convention at White Sulphur Springs, W.Va. He said that NPFI will continue its woik m four major fields legislation and administrative work with fedeial and state agencies; publicity and public relations; market promotion; and maintaining liaison and service to its members Accoiding to Mr Hall, some reduc tion in personnel will be necessary under the smaller budget. However, the association's "regional approach to the problems of the industry and ag riculture will be continued, largely within the piesent operational fiamewoik," he said. New Officers. NPFI also elected new officers during its three day con vention. Besides new board chair man Hall, Elwood I. Lentz, vice presi dent and general manager of Western Phosphates, was elected vice chairman of the board. Re-elected officers, all of Washington, D C.: Paul T. Truitt, president; W. R Allstetter, vice presi dent, Louis H. Wilson, secretaiy, and William S. Ritnoui, treasurer. RSV0031353