Document YrarBzRvKdMRyOvqdR9ymKxBy

International Smelting and Refining Company East Chicago. Indiana Pigment Dieision Mr. B. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Hew York 4, B. Y. February 28, 19*5 Dear Mr. Dwyer: Thla la a summary of tbe aalea poaltlon of zinc oxide and white lead for the month of January, 19*5. Table Bo. 1 gives a coaiparlaon of zinc oxide aalea for January, 19*5 and December, 1944. Alao a comparlaan for the aame moatha for the preceding yeara. The latter la In the right-band column. TABLE BO. 1 January December 869,110 Lba. 1,090,400 Lba. 1,276,404 Lba. 9*3,850 Lba. Salea for January were off due to lower aalea of the U.S.P. quality and muffle furnace grades. Salea of American proeeaa oxide were down slightly In January alao. For February the aalea of both U.3.P. quality and muffle furnace oxide will be up. However, aalea of American proeeaa oxide will be off quite a bit which ahould help our lncoaM conalderably. For February the total aalea will be about 900,000 pounds. In comparing salea for January of 1945 with those for January of 1944 It should be taken Into consideration that last year aalea for January Included 400,000 pounds of zinc oxide sold to C.V.S. Taking thla Into consideration sales to regular customers for January of last year were practically the same as sales for January of thla year. Sales to the rubber and miscellaneous Industries have been very good for February, lowever, the paint Industry Is very quiet due to the many restrictions Imposed upon It and also due to the fact that the paint Industry to a large extent la dependent upon civilian require ments. At the present time the paint industry la operating on a 50% linseed oil quota. Titanium pigments and llthopone are almost Impossible to get unless they are to be used In war orders. The use of lead-free zinc oxide has practically been eliminated lm the use of paints for civilian requirements due to restrictions Imposed by VPB. The dry white lead quota la only of former use. PNrC00001565 N10224 Mr. It. t. Dryer -2- Pebruary SB, 1945 Leaded ilie oxide ni very tight until shout the first of 1945 duo to the fset thst denand uss in exoess of supply. low It spposrs that the point Industry nay not require all of the loaded zinc oxide that la produced. Vo have had nueh less difficulty holding don sales of leaded zinc oxide slnee the first of the year and our total sales volune vlll be down only because of this situation. Due to the fact that ve lose noney aa leaded zinc oxides the lover volune of sales for those grades is not necessarily unfavorable. Sales vlll be up for those grades vhere ve have a nore favorable nargln of profit. Table >o. S gives a breakdovn according to paint, rubber, and nlscellaneous Industries. TAILS SO. 2 W. Pounds JABOAXT Value Pounds 1244 Value Paint Rubber Miscellaneous CVS 322,360 385,950 160,800 23,959-31 36,853.63 15,827.13 344,154 323,100 209,150 400.000 * 26,037.52 30,877.26 20,667.54 38.000.00 869,110 $ 76,640.07 1,276,404 t 115,582.32 1944 Pounds OBCSMBSR Value Pounds i2*2 Value Paint Rubber Miscellaneous 372,900 548,650 168.850 1,090,400 $ 27,746.75 52,895.88 VT.10ai.83 $ 97,679.52 266.750 299.750 377,550 943,850 * 20,435.46 28,791.64 36.283.23 85,510.33 Table Mo. 3 gives a breakdovn of zino oxide sales for January according to the three classifications. TABLE 10. 3 V.S.f. quality Seal Other Lead Bros and Leaded 76,350 Lbs. 15,510 Lbs. 777.250 Lbs. 869.110 Lbs. Table >0. 4 gives the average sales price per pound for the past three nonths. PNYC00001566 XT. R. B. Dwyer -3- February 28, 1945 TABLK HO. 4 January December Hovember Average Sale* Price - Per Potuad 8.8l8# 8.958# 9.028# The sales of the higher priced U.S.P. quality and muffle furnace oxides were off more than the lower priced American process lead-free sine oxides. Hence there was a lower average sales price per pound for January. It la quite likely that for February the average sales price per pound vlll be higher than that for Hovember. Table Ho. 5 gives a comparison of white lead sales for January of 1945 and December of 1944. Also a comparison of the corres ponding months for a year ago. The latter la on the rlgbt-hfnd side. TABLE HO. 5 January Deceaiber 2,281,266 Lbs. 1,537,043 Lbs. 855,002 Lbs. 658,430 Lbs. Sales for January reached a peak for several years. This was due to advance buying by the paint Industry because they had heard of the action VFB would take to restrict the production of dry white lead. At the time these purchases were made the paint Industry did not know that the consumption of white lead would also be restricted and that moat of their stock would be frosen. nevertheless most of our customers consider that they were fortunate to get the lead because their experience In the past has been that when restrictions were Imposed upon the production of a commodity It frequently la almost Impossible to pur chase It when the restrictions are eased or eliminated. . Sales of dry whits lead as such and as lead-ln-oll will total about 125 tons for February. It Is very likely that sales will remain at this level until present restrictions on the production and use of dry white lead are eased or eliminated. The situation Is such that the production of paints for civilian requirements Is practically paralyzed and If these reatrletlcsu continue for any length of time It vlll very likely put a good percentage of the dealer trade out of business. Table 10. 6 gives the average sales price per pound for dry white lead for the past three months. TABLE HO. 6 January December Hovember Average Sales Price - Per Pound 8.3^12# 8.331# 8.313# To summarise, sine oxide sales for those grades cm which we have a better margin of profit will be up la February and the outlook continues to be good for them. On the other hand, the sales of those PNyC000l 01567 Hr. H. X. Bj February 28, 19*5 grades of zinc oxide on which we do not hawe a favorable Margin of profit will be off and until VFB eaaea or eliminates sane of the restric tions an the paint Industry this will continue to be the case. Sales of dry white lead as such and as lead-ln-oll will be off about 500 tons per month from what they have been averaging and the continuance of present restrictions on the paint Industry should maintain these sales at this extremely low level. ery truly yours. F.H.Hurless:ho cc: Hr. Frederick Lalat ' Hr. 0. B. Johnson PNYC00001568