Document NeKwY1857aE7Vmwk0DEpj6r98

cm Cleveland DATS May 25, 1959 FOR Mr. R.D. Horner fUftJGCT GENERAL PURCHASING DEPARTMENT REPORT AHSWsftine urrrsft o f MAY 25 1959 While many businesses continue to run at near record rate*, there haa been enough capacity added over the laat aeveral year* that, with one or two exceptions, we are able to get aa much raw material as we need. An out* standing exception la the situation we are faced with on maleic anhydride. The demand for this material has been so great that in June our suppliers have put us on allocation and we have been having a difficult time getting as much material as our paint division needs. Among other uses this material goes Into polyesters and our business at Nubian has been so good on this that in four months they have used up their original estimate for the entire year. We have made considerable progress the last several weeks in lining up additional material for them and we are optimistic that ve can keep our plants running through June at which time we expect to see a tempo* ^ rary easing up situation because the polyester business is axnevhst seasonal. We are concerned, though, about the long range outlook for maleic anhydride as there are only three basic producers of the material and there is not much hope of increased capacity unless we can get someone else interested in getting into this business. We are working in several directions on this. There is also the possibility of Importing this item which ve are exploring. There Is also a tight situation on phthailc anhydride but it Is nowhere near as critical as the maleic anhydride. Here there seems to be plenty of capac ity and it is a question of business being exceptionally good at a time when most people are trying to build up their inventories In anticipation of steel strike. Even though our sales are particularly good at this time, we have been able to increase our inventories during the month of Hay and fael confident that we can Increase them during June so that If we have a stsel strike we will have adequate Inventories. Wo mentioned last month that our Paint Sales Department was getting con* sfderatlon by both American and Continental for some new type of can coatings which offered the can companies savings. Mr. Forbes came back from our last technical conference with the American Can people with s $750,000 order starting in August of this year and ending June 1st, 1960 for a new beer can coating made from "C" ol L. This is the culmination of several years of intensified work by a number of people in The Glldden Company ranging from <>.r tormulators up to and including Mr. Joyce* We do have a problem though the availability of "C" oil and while ve have been assured by Enjay of .enough material to handle this initial order from American our paint people -md Dr. Von Fisher are tnvrs*>gatlng the possibility of either manufacturlng this ourselves or getting lined up with someone like Firestone. GLD009958 % GKNKftAL PURCHASING DEPARTKF.Hr REP ORE p.8* 2. ' 1576 The new* from Continental i* also good. The first production run of our new vinyl beer can coating made from Fire*tone material waa very aucceaaaful and if aubaeqoent production teata are at good It look* aa if we can finally get out from under Stoner Mudge'a shadow and move in aa the number one aupplier on thla type of coating. DRYING OILS: There la no change in the linaced price which remain* at 12.5t/lb. Soybean oil price* have been firm and have advanced to #09-7/8 lb. We are protected with .09 oil through the aecond quarter and will buy epot for our third quarter requirement* or until auch time aa the market la conaiderably weaker than it haa been in the last month. Wood oil prices are firm: Domestic oil i* 22$/lb. FOB South and Imported oil 1* 23c/lb, FOB Port. NON-FERROUS HETALS: Demand for lead haa been excellent during the month and at a result the price firmed up to l?-c/tb. Zinc is steady and unchanged at llc/lb, Copper haa been firm and unchanged at 31-1/2C lb. There continue* to be a large surplus of cadmium and the price la weak at $1.10 lb. The nominal price for salenlum is unchanged at $7.00 lb. although we have bought some small lot* of imported material for aa cheap as $6.00 lb. PACKAGES: The paper industry la once again going full blast. During the past year competition has squeezed profits and there is considerable talk of a general price increase July 1st. Fine paper prices have already gone up and it may be we vlLl tee higher prices soon for shipping cases, multi-wall bags, folding cartons, etc. R. L. LUZON fw GLD009959 %