Document O1MOBEm4p3M8Vbj2L0z1840k1

J0r- /yL c- o .7 .o industry. The report notes .... . analysts often request more ir..w.-;.:;.tiou on segments o: divers: tdluen foM*Ay*es Genii: action removes cloud 4*-iwund if enough benzene-is- availabieM/w^he--aromatics stream 'tb-ftt'-a . over Webb-?5Vc--.me:ene Act companies when such ir.rormr.tio: is refiner's-marketing needs, then the re not included in published reports. mainder of the aromatics stream is put A federal court judge has cleared up a Financial reports could segment to- into the gasoline pool. tfitydmc). . legal cloud that has been hanging for till sales without much cuuicul ty, the j&jdatidW' units ?thcn 'are'' shuf-dowri.) three years over the 49-year-old Webb- ' board feels. Many diversified com In any case, about 80% of die toluene' ' IPomcrcnc Act and I'.ow U.S. compa panies with major ehemic.fi operations produced in reforming goes to gaso nies may use it to aid their export ef already do this. Examples include line. The exact amount of toluene forts. Judge Sylvester J. Ryan of the 3M and Union Carbide. Others--for produced in a year by reforming has U.S. District Court for the Southern ..sample, Oiir. M..t..ieson and National never been very accurately deter District of New York has dismissed an E isti/iers--report both sales and prof mined. antitrust suit charging that ike Con its by product type. Dividiaa up piontabilily into segis e.;n e..ase probici..s, however, Where blending needs for premium c.Violino can maka use of toluene lu~ ha'.p make a given octane rating eco centrated Phosphate Export Associa tion, .m export ns.suwiolion ierrr.eU u:.- der provisions of the act, had violated the report warns. This would be time . nomically, then toluene is recovered the Sherman. Act in connection with especially whore joint costs are in for blending. This year, auto gaso- " fertilizer sales to Korea under the U.S. volved nr arbitrary trar.ster prices are line will take about 80 million gallons foreign aid program. u-ed between segments of a company. ot toluene. Last May, the Agency for Interna The b,,r.rd plans to make a definitive . The gasoline pool, though, could be tional Development set up regulations pronouncement on the subject after. the big user of toluene several years barring Webb-Pomerene associations from now and be a measure of. how.: . from AID business in which procure loose the supply-demand situation 'is. ment of the goods must be within the . If there is a move to fully exclude U.S. AID can't tell yet how the deci- ' - r?-.---------it-.- lead alkyls from gasoline, toluene .sioa will affect this ruling. shori ov hejiss :or IS37 (along with other aromatics) would be in great demand to give needed oc Under the act U.S. companies may fix prices, allocate sales, and cooperate. tane values to gasoline economically. generally in the export market through Production of toluene for 1967 will not If, however, lead alkyls would be" join: ownership of an export associa come up to expectations. It probably merely limited, the demand could be tion--as long as such activities dor.': will not top 650 million g.d'.ons. .The__ only temporarily affected and prices .. interfere with domestic competition. maior_ factor in a dispumouitiag--ucis-- would move up slightly. The Department of Commerce encciar- formar.ee \yi_ b_e_ r. decline in use in Roughly, the firs; gram per gallon . ages industries to sec up such associa uyuibeeVwkylatioa units to m akeoen- of lead alkyls added to a gasoline tions. But such organizations have - zone. A row otr.er smaller uses--suen blend gives about 55% of dae total oc apparently long grated the Depart 'asTiTaviation gasoline--are not taking tane gain from lead alkyls. The sec ment of Justice. In 1950 the depart the volumes of toluene expected either. ond gram gives about 30% of the ment tried to break up one set up by . Lower prices for benzene, either di gain; the third about 15%. the abrasives industry. rect postings at 25 cents per gallon, Thus, comparatively high lead lim The Concentrated Phosphate Ex- . f.o.b. plant, or comparable discounts its will have little effect on need for port Association. (CPEA) was formed from 27 cents per gallon, have caused other octane-giving components. It ir. 1961. Members named in the suit a decline in toluene dealkylation. might increase toluene's value 1 cent were American Cyunamid Co., W. R. These new benzene postings tend to per gallon to a refiner. But if no lead Grace & Co., International Minerals A confirm rer.l prices for benzene of the should be permitted in gasoline, tolu Chemical Corp., Tennessee Corp., and puii rue*..v..n. , Part of the cause for tire lower ber.- ene's value may go to 30 cents per gallon. Such a move would push Socony Mobil Gil Co., Inc. IMG and Soeony Mobil have since left CPEA. zer.e prtces is new reformer capacity g on stream. Another part is prices on other aromatics up by simi In bringing the suit, which was filed lar amounts* . . . ir. 1934, the Government conceded ar.-expeetea growth in cemar.d that the fertilizer in question was ex r.zene tor some uses arm even a ported from Florida to Korea. But it o.._r.t cecnr.e tr*e p..st few mcr Toluene preduced with the added - tnzene trod action will go mostly to : .e gasoline poo. of petroleum refiners. Bel rase of its good octane rating, tol ashas r. relatively high value in g.oo.ir.e. This doesn't indicate much of .. potential decline in its prices even though demand for gasoline will be falling off now. To a typical refiner, toluene in his gasoline pool is worth about 17 cents-per gallon. - Most chemic.' rade toluene is re covered irom higu aromatics streams from catalytic reforming. It is sepa rated from the aromatics stream fol- .ewmg oes.z j.......s separable.., usually to a ..1 n purity, adds 2 to 6 Cents a gallon .. tts value, depending s # -. -' T: ib 7' ' M-i T J hr Lb %->';% !' L ... 1 ' -r. - ; :-Jyd redoz lkyiatier. ur.11 . Declining role in benzene contended that these sales were r.ot "export trade" within the meaning of ' the antitrust exemption. The Govern ment argued that such sales were paid for and closely controlled under a U.S. foreign aid program. In a second argumer.t the Government contended that the 1918 Congress, which passed the Webb-Pomerene exemption, never contemplated such sales. In his decision., handed down last month. Judge Ry.m rejected the Gov ernment's arguments, pointing out that, despite AID financing, it was the Korean government that bought the goods CPEA sold. He adds that the transactions were exports since the fertilizer was shipped to and used in Korea. He also rejected the second argument, finding no ambiguity in the statutory language. OCT. 2, 1367 C&EN 17 . DSW 200570 STLCOPCB4058634