Document ModXqpZk208LvBB3d9KQX2ywL

'"' fkr' StfilffttfiifeS^ r COMfTTITTVE POSITION Of L1AD e hjrj Robert Lindlry Zlegfeld, Secretary Lead Industrie* Association To the mrtp lead minor the only marketing prbblen with which be le directly Involved i* the disposition of his ores end concentrates* Tet the mlner't Interest goes far beyond that because it Is ths market for pl( lead and lead products which Is the eery foundation of the success or failure of his own business. Th- extent of the destand for pi* loaa Is w*at determines price and price* or at least the price-cost ratio* is r a uetermines wheth er you can operate a cine .it a profit or not* In today's cocplcx society producers of any on? ccsscodlty or article are not Just In coapelltlon with each other* but they are in competition with producers of other eoanoditiee or articles which way be used for the sane pur poses. In fact they compete with every other producer of foods or services for the consumer's dollar. The position of lead in t^e world's markets is particularly cocplex because I know of no other octal which Is used In eo margr different forms for such s wide variety of purposes. About s third of all the lead used Isn't even recognisable as lead since It Is employed In the form of chemical cost* pounds like white lead, red lead, litharge, tetraethyl lead, lead arsenate* .,: lead chromate and scores of ethers* i HEW PETELOPCSTS III RIXXXT TEARS 4 Th* pattern of usa^e Is constantly subject to c a i^e resulting from technological developments and economic conJitions. It hat been only about thirty years sines Charles Kettering first put s Ivad-acld storage battery to : Presented et the Convention of th* Colorado klnlnf Association* Denver, Colorsdo, February 6* l$l*8* .`eswp^pspwipybpfffs^rP.'jJF . Kaf t" wfyw!* !y,s> i : N 2040.01 ^ `-i ,, *,& *" * * ' -* - L .'_ ' 'Xv~~ ^ .._/ LIA23181 f ^ i j f l f a ytt.... a - ....... --* * - uiiM*viw ^ * * * * v * * i* * w ii^ u i..j , ,, -1 - use to etart and light an autonoblle. Today batterl'.e u n. About a third ef all 11 tha lead consulted In the United States, in feet, the consumption of lead In batteries about equals the 19h7 nine production of lead In this countr*. I think you can readily see that, even though you only narkst lead or* or con centrates it is vitally important to you shat happens to the Market for lead in batteries, " Likewise, it was only about TO years *o0 th-at Thomas Kid^ely. working under Kettering, founl tetraethyl lead to be the nost efficient to use as a cooaerlcial antiknock ingredient in gasoline. Ho*, even though only a few cubic centinetcrs of tetraethyl lead a* in~o a gallon ef gas, nearly 70,000 tons of lead arc censuses la nukln, utraethyl lead each year. Tint's mighty important to the lead dr* r. son aixn.^Ti ttsss On the other aide of tJu. lcdg-r *e hare lead fci. practically all cigarettes were at one tine wrapped in tin foil, vMc`. '-j ,*ust 1- ad foil with a thin coating of tic. Soc_ 10,000 to iO.OOO tuns of i^ad ware used to Bake foil before t^e war, but the use of l'.ad for cigarette packaging was prohibited by the Go t *notr.t during the war and row with aludnua sore plentiful and cheaper, lead has never regained thit market, Thus edy 3,000 or 1,000 tons of Iced a year are new used to taku fo' 1. about one-tenth of what it used to be. Then, there is white lead, for year* a big consuaor of lead and the finest plgoent for house paints. But rv.wer paint plgiaents that cost the Bane- feetarer lee* to put in his pal rt haee cone onto the market, This competition has resulted in lead consumption for t >e manufacture of white lead reaching a peak about ?0 years ago. Still an essential plgoent in good outside paint, nevertheless the amount of lead need today for white lead is such Ires than it was TO years ago. 1 have her* a table ehowlng eetlaa'ed lead eonr-r{tlby ueet in 191i7 aBMShee.wnea, e - e e ..w i i Im 1 .. : " ' . _. . _. ' _ LIA23182 VJ> 'j . ., '. ; ' ------- ' --" *** '-***e**xV.---- - . ^-= >g- ^ -3compered with 19??. I'd Ilk* to run over it to see what e'-'vngea have occurred and to Tlew the preeent competitive poeltion of lead In so*# of lte major appllcations. I hare chosen 1929 because per capita consuoptlon of lead In that year was 15.8 lb. or aljeost the sane aa In 191*7 when It was 15.9 lb. Total consuajw tlon In the former year was slightly under I.Oj O.OOO tons and In the latter it is estimated at 1,11*1,000 tons. STORAX BATfERItS Storaa* batteries are the bluest consumer anl Increased froa 210,000 tons In 1929 to 360,000 tons In 191*7. That Is to be expected when we realise that three-fourths of It goes Into automobiles anl that for automobile batteries lead as yet has no serious coopetitor. Wckel-iron alkaline batteries hare com peted with lead-acid batteries for years In the larger stand-by types or those used In locomotives, but they are much more expensive. A newer type It the cadmium-nickel battery but It Is doubtful If It will ewer be suitable for auto motive starting and lighting, or , if It were, whether thor^i be enough rvh.tuw-r to satisfy the demand. *e estimate It would require sor* J,M0 tons of cadalua to do the Job and peak production of calxinc in any one y. -r has been`only I*, 1*00 tons. mills batteries are lead's bluest consumer, they also supply about threefourths of the scrap each year from which secondary lead Is cade. About 85 per cent of the lead used In batteries comes back a^aJn In useful form, so actually batteries rusove from the market a much smaller am*u:it of lead than appears at first (lanM. CABLE SHtATfCX) Ths use of lead for cable sheathing, which In 1929 was tha biggest appli cation, has declined. There are probably several reasons, the most important of which la that in 1929 the public utility companies of this country were In tha midst of what war probably the greatest expansion program in the.r history. Long distance telephone lines were being greatly extended and power lints In j^gWWWwj.... i !mmm nr*sw i unnijjsi we lV :3 . .:: *' .;. _ ; ` - ; . : -- -v UA23183 j; **- v ___ -- -- "---- i i : $ * -1* cities were (sin* underground where they require lead sheathe. More recently the leed shortage hes reeulted In considerable research to find a substitute for lead ehesths but, with minor exceptions. I know of the development of noth ing so satisfactory as lead. For instance, neoprene is being used to seme axtent for small, low voltago cables but is by no means-a general substitute for lead. Aluminum is alto employed to a very limited extent but these substitutes are now used only to eke out the limited lead supply, and if moru laad were available, it would probably be used, TETRAETHTL HAD I have already mentioned the huge expansion in the use of tetraethyl lead as the antiknock ingredient in gasoil ne. Even more was used during the war when such tremendous quantities of hl^ tost aviation gasoline were employed. Tetraethyl lead for margr years waa marketed by only one comparer tat since the first of this yosr there are two marketers of thin prou.*et, Ihii Is at least an indication that further expansion in the us? of 1 ad lc tetraethyl lead Is a good bet, tHITE LEAD Shite lead in paint haa been the target for Intense competition for the last generation, Ktwor pigments, like titanium dioxide, have entered the field and this, plus the strict limitations placed by the Government on white lead daring the latter part of tho war, have resulted In \ marked decline in the use of lead to make white lead. But it rtlll la a virtual leporeltllity to make good outside paint without a generous portion of ahltc 1 ad, LEAD OITtCS Red lead also has had to meet new conpctltlon from such pigments as sine chromate, tat It le still the outstanding plgsvnt In the field of metal primers. Meanwhile litharge, for use other than In storage batt<-rles, has made rapid strides. For example, litharge le used to oak - 1 ad arsenate, and this insecti cide is being used by farmers In quantities great- r than ever. That Is despite n.V .K uy.is ,iiii wimeii 14; . -------- r mwii IIII.I^pppmppp LIA2318A f --" --J-rg"i^ - 5- * th* competition of such iv* lns.-ctleldts as LOT and wary others. m BUTUTUS Him ETJIfVEXT Order the classification of building arc Included th. lead pipe And ahoet used In plumbing And sheet wotal work, And the saw* products used to construct chemical procvJsing equipment, Tho competition with lead h.re is intense, 1 variety of piping And sheet *etal waterfall, sows old and sow* new, la need in th construction of hoexs and other buildings. In chemical equipment the lift of other material* Include* plastics, glass, ceraalca, atalnltaa ateel, rubber, Bonel netal. Th* Intense competition and tho obstacles to building construction < -'i today haw# resulted in some decline In the use of lead for these purposes. Calking lead la a building product that has shorn a substantial Increase over the years. Tet it Is always competing with various nonoetallie jointing ri sate rials such as sulpnur and sand caeoounds sal eensnt, BEaRtSSS Lead-base bearing metals have shown an increase but they, too, are subject to competition. There is tin-base babbit aweng the older competitors, and aluwl- nuw alloys among the newer. There are also different H . of bearings, like roller and ball bearings, that compete with lead-bast b- -'ns unier nary condi tions. Railroad freight cart, for instance, are the bl^ st consuasr of lead in bearings, but roller bearing manufacturer* are .ping after that wariest aggres sively. Tou've probably seen some of their national magazine advertising. DEYEbOPi:.~3 LIS P-CTLCtTUG KAR7IT3 X'w not going down tho whole list of leal's uses but these examples will serve to illustrate ay point. I hope that citing * doesn't leve you with ! dark impression of land's future, I aerul* want to irphasise that the use of lead by industry isn't Just automatic. Somebody oust be on guard to see that industry knows about lead and how thrj can use It to advantage. That is one of the big jobs that trade associations representing specific wsterials suat Jo, Tour great wining assoc5'*!-- nary fields of activity. .-mv m&m a jimwJ4i i i wiu.J1'^^ ,' Wl'JI'Jl^*UWgBB^|^ 3l^"'-:.';X'...'- .V-t ' > ' ''--~<7- ' : '- ' -' ' ,<- *--- r/ .7- ~i -_ - ****......... : :- j ... 3 o 1 -6common to >11 kind* of nlnlng, that are essentia. t-> vou. But they oin't ropre- sent one specific materlsl. Over the yein the text Industrie* Association h>* tried to perform that function for the lead mining Industry of the Test, Vo hare tried to help la the establishment of market* for lead that will make It profitable for yon to operate your mine*. V* have spent sooe t?,000,000 solely for education and promotion to develop anl protect those markets for your product. And I think that the load Industrie* Association Is unique anon* the metal associations In that sdners, smelt*rs and refiners - the producer* - hare banded tog th r with manufacturers - the consumers - to protect and promote their mutual lnt-rvst*. Thus, even thou Ja you Mil ore and concentrate* your interest* are the same as those who sell pig lied and lead products, the battle for markets never ceases. inuT or m k v iu r et But by rtvluwlna what has happrwd In lit , ast we can look to the future of lead with a considerable degree of ccnfiluncv. It naturally raises the ques tion of what, if anything, will be the important raw applications of the future. Will there be anything like the storb. natUry of 30 year* ago or tetraethyl lead of 20 years ago? Perhaps the use of lead as a prot.ctlv* material in atomic enercr may be ths answer. Vc know that that has already required *liable tonnages of lead in Juat the last few ytars. Or. perhaps, the use of lead corqounds, like the sill, cstes or salycilatea, as a stabillt. r in plasties may accent for larger tonnages than they do today. Or. trill the amount of lead used for co tln*s on steel sver approxisiit* the important tonnage* of sine us.d for galvanising? Or, maybe there will be tom. use as yet completely unknown that in the next generation will devel op as did batteries and tetra.tliyl l,*d? Or, what new raterlals or methods will i displace sosw. of today's established uses for l.a) Uumlnua has done in the cas* of lead fail? . .' A' I don't know, Rjt I do know that the **.-r .MilMlng scan# must be constant ly watched in the inti rests of a hi alt'y Uad mirjng Irvh'.atry. nms'njjs. auma.-m.B'gmi ;/ u- 7 o ^ ~ LIA23186 //