Document byr92bzBp3gJzYbvvmkRqarMZ

International Smelting and Refining Company East Chicago, Indiana Pignwnt Division '"sypr-"' October 27, 19** Mr. R. B. Xhryer, Executive Ylce President, Anaconda Copper Mining Company, 25 Broadway, lev York *, 1. T. Dear Mr. Dvyer: This is a summary of the sales position of zinc oxide and vhlte lead for the month of September, 19**. Table lo. 1 gives a comparison of zinc oxide sales for August and September of 19** and the corresponding months of 19*3. TABLE 10. 1 12** 19*3 September August 1,721,900 Lbs. 1,7**,750 Lbs. 1,376,350 Lbs. 1,01*,735 Lbs. During September ve sold 800,000 pounds to CVS. Ve did not sell CVS anything in October and ve do not expeat to sell them anything during the balance of the year. CVS had been purchasing 2,500 to 3,000 tons per month. In October this dropped down to 700 tons of vhlch *00 vere a conmiltment made in September but vhlch the producer could not ship in that month. CVS vill not purchase any zinc oxide from any one during the months of lovember and December. One of the reasons for this falling off in buying by CVS 1s due to the fact that they have over-bought and have considerable quan tities of zinc oxide stacked at several arsenals. Ve also have informa tion indicating that smoke msy be made from vhlte phosphorous instead of the present ingredients. Including zinc oxide. I vish to point out, however, that ve have no information of a definite policy being adopted by CVS as regards vhether or not they vill purchase zinc oxide from us or anyone else in the future and it amy be that after the first of the year ve vill be doing business vlth then again. PNYC00001580 NI0228 Mr. R. B. Dryer -2- October 27, 1944 It le expected that eelee for October will be about 1,100,000 pounds. Sales through September, 1944 amounted to 13,389,133 pounds. For the sane period In 1943 they were 7,997,735 pounds. Table >0. 2 gives a breakdown according to paint, rubber, and sdecellaneous Industries. TABLE RO. 2 1944 Pounds SRmMBRB Value Pounds 1252 Value Paint Rubber Miscellaneous CVS 387,600 355.000 179,300 800.000 $ 29,261.60 33,815.00 18,129.62 76.000.00 512,750 406,000 457,600 $ 36,081.26 39,995.00 55,523.23 1,721,900 $ 157,206.22 1,376,350 131,599.49 1944 Pounds AtxnrsT Value Pounds 1943 Value Paint Rubber Miscellaneous CVS 395,050 284,950 264,750 800.000 29,809.91 27,486.63 25,437.45 78.250.00 512,735 176,150 325,850 37,941.20 17,144.00 37,911.62 1,744,750 * 160,983.99 1,014,735 92,996.82 Ve have confidential Information Indicating that the restric tions on the use of Aswrlean process lead-free sine oxide nay be lifted December 1st, or not later than January 1st, If CVS remains out of the market. For the past several months the stocks of lead-free sine oxide have Increased slightly. Vlth CVS out of the market, they vlll probably Increase by about 2,500 tans per month If the present production level Is maintained. 9mA action by FPB vould autossatlcally Increase the sale of our American process lead-free sine oxide. While ve need more tonnage, due to the price me pay for (treat Falls dross, this Item la a very unprofitable one for me. Ve have alvays tried to keep the sale of It as low as possible and ve sell It only to maintain our position In the paint Industry. Table Vo. 3 gives a breakdown of sine oxide sales for September according to the three classifications. TAM vo. t V.S.P. Quality Seal Other Lead Free and Leaded 156,450Lbs. 18,200Lbs. 1,547.250Lbs. 1,721,900 Lbs. PNYCQ0C01581 Mr. I. I. Dvyer -3- Oetober 27, 19%% Sales in each of tho ttaroo classifications vere about normal. Table >0. % gives the average price per pound for the paat three montha. TABLE WO. 4 1944 September August July Average Salea Price - Per Pound 9.1301 9.227^ 9.452^ Since the sine oxide aold to CVS haa been at a price of 9.50 and 10.251 per pound, it la expected that beginning vlth October the average price per pound vlll drop appreciably. A bigger percentage of our aalea vlll be the lover priced Aaerlean proceaa lead-free and leaded. Table Bo. 5 giroa a comparison of vhlte lead aalea for Auguat and September of 1944 and the eorreapondlng nontha of 1943. TABLB BO. 5 Septeaber Auguat 1255. 1,504,151 I>ba. 1,236,363 Lba. 1252 1,083,839 Lba. 1.014,232 Lba. Cry vhlte lead aalea for Septester vere better than expected. In fact, ve had the blggeat month alnce fcrch of 1942, vlth the excep tion of March, 1944 during vhloh month ve urged our cuatoawra to anti cipate their requlrementa becauae of poaalble labor trouble during April. Salea for October vlll be about 1,300,000 pounda. Through Septeaber, 1944 aalea have amounted to 9,223,358 pounda. Bor the aame period of 1943 they vere 7,850,778 pounda. The immediate outlook for dry vhlte lead la very encouraging. Thla la due ta the faet that the ahortage of titanium and llthopane, together vlth the reatrietiona an the uae of lead-free sine oxide, have eaueed eonalderable reformulation. Aa a reault, more vhlte lead and Aaerlean praeeaa leaded sine oxldea are being uaed. Xovever, the long-range vlev doea net look very bright. Thla la due to the altuatlaa on llnaeed oil. There vaa a very good vrite-up an llnaeed oil in the October 23rd leaue of the Aaerlean Balnt Journal vhieh I am {noting. "Qenerally apeaking, ve are ageinat long-term contraeta at thla time, but there are exeeptlona, and llnaeed oil la one of them. Our ovn flaxaeed erop of tventy-alx million buahels should be enough under normal conditional however, our government haa made eoMltawnta under the LendLease Act, and If these commitments are dravn upon to their full extent. PNVC00001582 r. I. X. ttryw * ,Oeteber 7 194% there will be om^ linseed oil to go around. Da our opinion, tussle la the greatest single factor in tbo picture. With the Skrelne and Vhlto tussle back In tusslan bando In tiaw to harvest tho orops, aba nap not draw on ws at all, as tbo Knsalaas profor banagrown suafloworsood oil to llnaood oil for odiblo porposos. Unfortunately, no on# knows tbo facta. Snsaia never did publish atatlatloal data, even In poaco tlnoa, and if abo should suddenly taka largo quantities of llnaood oil frcai our atook, our own cansuuptloa would ha to to bo cur tailed, or olao those without oontraets will bare to take what is loft. "Tbo western Xuropean situation does not loon up as dangerous as that of Bussia, because we oan supply soybean oil and other edible fats there to better adwantage. "There in plenty of flax in Argentina, but that country has put up its price to tbo VUlted States above present celling prices for oil, and new Canada has followed suit. 2b addition, Aawrloan boats have been forbidden to carry Argentine cargoes. "Our geveranoat will support flaxseed prices at the present level until the next crop is due, and therefore a sharp break in prices is inprobable. "In view of the above, it looks to us as if future oontraets for linseed oil are now la order. Tho situation is by no naans clear, and no one will deny that there is a rink involved. The greatest draw back, in our opinion, is that if a shortage develops, it will develop nost likely towards sunner, Just before the next crop cones in, and that naans contracting a long tins ahead. Zt would also be well to consider the possibility of a reduction in tho quota after the present quarter, and the uncertainty of general business conditions at the end of hostilities la Burope. "Considering all the proa and eons, we now suggest covering about 75 percent of your linseed oil requlresnnts 19 to April, and adding a proportionate ansuat every 30 days. In ease foreign counitneats should net bo drawn upon, or our relations with Argentina should lnprove, a oeseatlaw ef further purchases is indicated! on the other hand, if tntugu go wrung, it nay be advisable to juuqp into larger pur chases." Table Be. gives the average sales prise per pound for dry white lead fee the past three Months. IAU BO. 6 ------------- 1244 heptsaber Augyst six Average Sales Price - Per Pound 8.353# 8.379# 8.346# P*VC00001583 Mr. B. I. Dopor -5- Ostobor TT, 19*4 To ni up tho situation, our 1ms illa to proopoeto oro not too good os regards tine oxido but thep oro Tory encouraging vlth roopoct to white load. This la pretty nooh tho mm of uhat the situation has boon. P.B.Burlesatbo ee* Hr. Prodorlck Lalsty Hr. 8. B. Johnson orp truly pours. PNrC0000158<