Document L98BaRN040QXm39bRK89Zng3

2, - ' International Smelting and Refining Company East Chicago. Indiana Pigment Division A - September 29, 19*5 Mr. R. E. Dwyer. Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Hew fork 4, It. T. Dear Mr. Dwyer: This Is a summary of the sales position of zinc oxide and white lead for the month of August, 19*5. Table Eo. 1 gives a comparison of zinc oxide sales for July and August of 19*5 and the corresponding months of 19**. TABLE EO. 1 19*5 19** August July 1,713,190 Lbs. 2,10*,050 Lbs. 1,7**,750 Lbs. 1,666,*15 Lbs. The falling off of sales In August was due to the termination of our contract by CVS about the middle of August. The undelivered balance was *85,*00 pounds which. If added to the August sales, would have given us a figure somewhat over that for July. Ota September2*th we became easqwtltlve on prlee for lead-free zinc oxide. This will enable us to Increase our sales but the length of time It will take to secure a substantial>totaaage Is unknown. Ve have also reduced our prlee on the East Helena and Tooele fumes which we have been selling as our Victory line of leaded zinc oxide. The reduction was approximately 3Al per pound. Ve had been able to sell these at the regular market prlee due to shortages brought about by the war. The market dried up immediately after the war ended and we are uncertain as to what success we will have In the post-war period at this reduced prlee. Due principally to reconversion on the part of our customers using lead-free zinc oxide, sales for September will be down to about 600,000 pounds. This Is a low for approximately three years. Eor October they will be up substantially over this figure. Total sales for 19*5 through August are 12,079.750 pounds. For the same period of 19** they were 11,667,233 pounds. Table Ho. 2 gives a breakdown according to paint, rubber, and miscellaneous Industries. L- N10217 Hr. K. B. Dvyer -2TABU WO. 2 September 89, 19*5 Paint Rubber Miscellaneous CVS Paint Rubber Miscellaneous CVS 19*5 Pounds AUGUST Value 19** Pounds Value *86,7*0 209,600 302,850 71*.600 $ 36,722.*! 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 19*5 Pounds JULY -------Value 19** Pounds Value 5*3,950 195,550 16*,300 1,200,850 39,685.63 18,701.13 16,928.53 11*.023.75 217,350 *01,250 2*7,815 800,000 t 16,937.75 38,*83.88 2*,58*.95 77,500.00 2,10*,050 * 189,339.0* 1,666,*15 * 157,566.58 Table lfo. 3 gives a breakdown of sine oxide salee for August according to the three classifications. TABU! WO. 3 TJ.S.P. Quality Seal Other Lead Free and Leaded 1*3,700 Lbs. 55,890 Lbs. 1,514.800 Lbs. 1,713,190 Lbs. Table Wo. * gives the average sales price per pound for the past three months. TABU WO. * Average Sales Pries - Per Pound August 8.9**# July 8.991 Jane 9.2*8# The average sales prise per pound for August was not as lev as estimated, 8.75#. For September It should be about 8.90#. Table Wo. 5 gives a comparison of vhlte lead sales for July and August of 19*5 end the corresponding smiths of 19**. TABU WO, 5 August July 19*5 515,987 Lbs. 516,878 Lbs. 19*. 1,236,363 Lbs. 1,303,060 Lbs. PNVC00001539 Mr. V. B. Deyer -3- September 29, 19%!5 Effective September Plat VPB eliminated all restrictions on tha use of dry vhlte lead for the Month of Septesfeer only. Ve expect that on the first of Oetober theae changes vlll be eliminated peraanently. This should substantially Increase our sales. Due to the restrictions on the use of dry vhlte lead In pro ducing lead-ln-oll ve have sold all of our limited produetIon thin year against rated orders. Wov that ratings are practically out ve vlll be In position to resume shipments to our dealers for civilian sales. Ve have accumulated about 600 orders since the first of the year. Ve are nov notifying our dealers that ve are In position to make shipment and are asking then vhat amount they vant us to ship against these orders. The vhlte lead plant resumed operation about September 15th. All of the production for this month vlll be sent to the lead-ln-oll department. Ve are running tvo shifts on lead-ln-oll grinding In order to use up all of our third quarter oil quota but .ve probably vlll net be able to do this because of the late date on Vhleh VPB released the restrictions on the use of dry vhlte lead for grinding lead-ln-oll. At Bast Chicago ve have practically ne dry lead In stock. Our varehouses have normal stocks. Ve do not have any substantial accumulation of orders for dry vhlte lead but the oil quota for the fourth quarter vas raised from 50 to 75 vhleh vlll cause an Increased demand for dry vhlte lead. Our problem Is that although ve are pro ducing dry vhlte lead at a normal rate ve are out of five grades and for this reason ve are confronted vlth an Inflexible position. Ve have nothing definite from VPB as to vhat they vlll do about production and use of dry vhlte lead for the fourth quarter. Although, ve have been informed verbally that all restrictions on the use of dry vhlte lead vlll he eliminated. It is possible that the amount of pig lead ve eaa use te produce dry vhlte lead vlll be 551? of the amount ve used In the first six months of 19%% or approximately 110g annually. This vlll enable us te operate the vhlte lead plant at about 20-22 tons per day for the fourth quarter vhleh Is the most satisfactory rate considering production costs and sales volume. Sales for September vlll be about 900,000 pounds. Sales for 19%5 through August are %,820,521 pounds. For the same period last year they vere 7,234,871 pounds. Table Vo. 6 gives the average sales prlee per pound for dry vhlte lead for the past three months. TABLE VO. 6 . % July Juno Average Sales Prlee - Per Pound 8.389^ S.%21^ 8.%354 To suanmrlze, sales of sine oxide vlll hit a three-year lev during September but should bo up substantially In October and for the long pull they should continue to Increase because ve are nov competitive PNYC00001540 Nr. t. I. Dwyer 4- Septeaber 29, 19*5 on price. Ve expect te prodace 20-22 tana of dry lead per day bat will not build ap oar atocka substantially becauae we ha-re no ateck at Beat Chleage at the preaeat tlaw and the elimination of reatrlctlona on the uae of dry white lead and the lncreaae la the llnaeed oil quota should create a greater deaand. Lead-ln-oll aalea will be up substan tially becauae of the removal of reatrletloaa on the uae of dry white lead In producing lead-ln-oll. Very truly yeura. F.H.Rurleaa:ho ec: Nr. Frederick Lelat x Nr. 0. B. Johnaon PN'cooisu