Document gDpqxvomzwRegy3qEO1MmQDya

LIA22603 LEAD INDUSTRIES ASSOCIATION 0 CAST 4SMB STRICT NEW YORK 17, N. Y. B UM M i.n i .........ll March 6, 1959 SUBJECTi R5PR1KT OK LEAD To Members of the Lead Industries Association! Enclosed 'please find a reprint of the article on lead fro* the annual review issue of "Engineering and Mining Journal," February, 1959. Extra copies are available as long as our supply lasts. Very truly yours. Secretary. 't LIA2260A o Lead RoUrt L r^jltid ted Indutlri+s AuocUtio* . . . fc/4f yeor tkomoJ tSe fomnt mine production of lend for *> srmr Vv %*oam</ the turn of the crnfttrt. Quoin impoxitiom mnd impeded prion hcfpej the mmrlet mme op o ltitfe in the fofL \rm utet ore extremely in/wi/<t" p 110 RoWfl I. ZiuMtf Secretary I nd Injunct Auociatioc (prinfed from INGINiflING AND MINING JOURNAL Fbrv*r WJf t rrnrM INt w KH,n mm rWrt*M C. I*< , IM W*M M h. hr T>*4 i; K f N 1969.01 fi. cmi^i LIA22605 \ 5; llTS `itfBlrWMM II MAJOR METALS Lead lead durin| the year at quoted by I'.ngintering A Mining Journal: Robert L Ztegield Lead Industries Association Lewd Price Changes (Cents per lb N.Y.) IVc. 2, 1957 . . - 13.00 April , 1958 .. . 12.00 May 14 ............ 11.50 June 3.................................... 11.00 Th e ma j l k e t in c l in e that started in 1957 continued throughout a food part of 1958 at a result of continued world overproduction, cessation of U.S Government stockpiling and the general business reccesion. The New York price tumbled from 15c per lb to a low of 10'4 c The President At the same time, production in the Free World ouuide the U.S. showed declined of something less than 5% and refinery stocks outside the U.S. were reduced moderately during (he year. Secondary kad production in (hit country also underwent a substantial June 18 ......... 11.50 July 2 .. . 11.00 Aug. 13 . 10.75 Sept. 18 .............................. 11.00 Sept 30 1150 Oct 2........................................ 12 00 Oct 8 .....................................12.50 Oct 14 . 13.00 declined to act on the Tariff Com cut (about I5*"f) and is estimated at mission's recommendation for higher 470.000 tons for 1958. tariffs hut established a quoin system to limit lead imperil as of Oct. 1 Imports. Foreign kad wji again which served, along with some pick- imported into the U.S. in large quan up in consumption, to strengthen the tities despite the quota restriction* domestic market. At a resuh the which applied during the last quarter. domestic price recovered and closed Heavy imports earlier in liie year an the year again at 13c. ticipated the imposition of tome con For several yean U.S. Govern trols. Although imports of kad in ore ment stockpiling of domestically pro were off about 14.(M> tons to about duced lead had been a strengthening 184.000 tons, refined mclaj imports factor in the lead market. Another increased about 27.000 loos to a little such factor had been the barter of over 35ti.ouo tons. Total net imports surplus U V agricultural commodities for 1957 and 1958 were about lor foreign kad for stockpile. Stock 522.000 and 535.000 tons rcspcsiively. pile purchases of domestic lead ceased Alter the imposition ol qu<vtas late in the middk of 1958 alter am<Hinting in the year. offerings of kad products to about 35.000 tons or roughly 6.000 manufactured abroaJ began to make *ons in the first half of the year themselves Iclt m this country. This Likewise, such stringent restriciH*os Came about because the quotas only were placed on haricr deals that, applied io raw materulv and not to although they arrs,'*untcd to over mai.ufacturcd items With a spread 40.. *k k i i,mis >r fisughly 7,000 u ms in of around 4c a p*njnJ between the the first haft of the year. onlv a lew foreign and domestic price, the items thousand torn were bartered in the could be offered here substantially remainder of the year. Thus, while under the domestic price for similar shipments to stockpile in both cases articles and thus circumvent the quota totaled some 150,000 lorn m 1957, reductions. they were reduced to only about After the imposition of quotas the domestic price improved materially, aided by increased consumption. However, the London price remained in the area of 9c plus, resulting in a spread of about 4c per pound, far in excess of normal spread. Tariffs, subsidies aad qootws. With the conditions that prevailed in the domestic kad market during the early pari of the year, namely low coosumption. h>gh impv'rtv and the im minent end of stockpiling, and faced with substantial curtailment of domes tic pioductton. domestic producers sought relief in Wavhingion. Tbe Tariff Commission had held hcarinp Lie in 1957 on greater protection for domestic producers. On Ann! 24, 19*8. ,t finally reported its findingv Ihe CnmmivMOO split equally in its recommendations, three members fa voring the full tariff increase permis sible under the law, <o 2.55c per lb. or, pig lead from Pic then prevailing, and imposition of import quota*. The other three members favored increas ing the duly to (be ok* 1930 rate of 85.000 tom in 1958. most of this 2tic per lb but no quotas. being bought m the first si. months Uumemptio*. In the first half of A few days later Ihe Secretary of of (he year. 1958 consumption was running about the Interior presented a subsidy plan Production. Under the influence of the depressed price, U.S. mine pro duction took a further subdanhal cut *f over 70'; . This anxunicj to an average of about fi.UOO tons per month. alth<*ugh at the year end. with better prices, production haj recov ered somewhat liom the low. At 2<5.1XX) tons tho was the lowest VS, mine production of lead reported for any year since about the turn of the century. l>cspilc this substantial cut 20*5 behind 1957, but improved to a Senate Interior Committee In business in the fall brought the de tended to subdue kad at I4'ic up cline down to about I.V; for the to 350,0*30 tons of domestic produc year. Nevertheless, at an csbrnatcd tion. This w-as followed up in late 992.000 tons, consumption was under May by sending a draft bill to Con a million tons for the first time since gress providing for a maximum kad 1949 and was ihe lowest i.ncc that subsidy of 3Sc per lb. Various other year. The decline id consumption was bills and proposals were also submitted distributed pretty generally through to Congrcu and on Juoe 19 the out the mayor lead products with the President wrote Vo both Houses that exception of calking kad and ammu he was deferring action on the Tariff nition, whtch showed little change Commission's recommendations pend* Consumers' stocks of pig kad re mg consideration of Interior Depart m production, U.S. producers' Hocks mained at a moderate kvcl through ment's subsidy plan. Tbe Sena'c later i in all forms continued to increase and out the year and showed little change. passed the bill with sear modifica < at the end of 1958 were a little over tions and the House Interior Com 300.000 tons, an increase of ncuily Trice*. The following table shows mittee ckared a somewhat similar bill 125.000. 100t during the year. the New York poet changes for pig to tbe Rules Committee. However, rfh^yw'mi m r Congrex* adjourned without hiving passed this or similar legislation. In early September an interna sumption in any one development but to give some idea of how lead fits into modern technology. Recent re* U.S. lead Supply and Demand1 tional study group met in London to search has shown that treatment with discuss the problems ol the Wad and certain lead compounds can mate (Short tool) Zinc industries. Only a few days later rially improve some of the useful 1958 the President in Washington and properties of cotton. Lead zirconale* itlmsted 1957 Interior Secretary Seaton speaking titanate is at the heart of some of the Supply: before the American Mining Con much publicized stereophonic sound Mine production. 295,99# J 18,200 gress in San Francisco simultaneously pick-up devices A special Wad pig- Secondary produc announced the imposition of import quotas on Oct. 1 equaling the average imports for the yean 1953-1957. This met with severe criticism from for* eign producers but has been in effect since. A second international meeting under United Nations auspices was held in Geneva in November and, while there apparently was general agreement (hat world overproduction r.ient improves movie screens and is also used to produce articles with arti ficial mother-of-pearl finishes. The properties of Wad arc being used to control vibration in the most modern laboratories employing extremely sen sitive instruments. Lead alloys are finding use as non-sacrificial anodes for corrosion protection. For (he nearby future Wad wiU be tion..................... Imparts: Orr, matte, etc.. Pics and bars .., 42#,### 184,99# 151.999 489,200 197,900 324 J00 Total................... 1.229,99# 1^49,600 Changes in stocks at primary smellers and refineries____ 125,99* 57400* Total................... 1,995,999 1.292,400 Kipnm....................... 2,999 SJwO Tout availat4e.t,#93,9## 1487400 existed, no positive action was taken except that another meeting should be held after further study by individual countries. The next meeting is ex pected in March 1959. more dependent on general business conditions. Judging from the past year when Wad consumption showed substantial improvement in the second half, continued improvement in businew should bring about a better year for Wad in 1959. Demand: Industrial con sumption ......... Cst. stockp.'k shipments......... Consumers and secondary smelter stocks.. 992,999 85,999 9 1,158,100 148,000 5,500* Research aad market de\rk>pmc*t. If the predicted improvement in _TouI ...............1,977,99# l>?1.40d Meanwhile a group of Free World lead producers had been attacking the problem from a different angle. Realizing that there was one lclution which would make everybody happy, sales of new automobiles materializes, consumption of Wad in batteries wiU benefit. Another million cars pro duced could mean up to another 10.(00 tons of Wad consumed in bat 'American Bureau of Metal Statistics, U. S. Bureau U Mines and Lead Indus tries Ass-iciati m. Increase. namely increased consumption, this teries. Solder consumption would also group set about planning a greatly ex benefit. It is likely, too, that after a U.S. Lead Use* panded program for research to de disappointing J95H, sales of replace (Shan tons) velop new products and markets. This n now a reality and is being supported financially by lead producers in the U. S., Great Britain. Canada. Mexico, South America. Australia and Africa. During 1958 the market develop ment and research activities of the l.ead Industries Association were greatly expanded with further expan sion already approved for 1959. Be ment automobile batteries may im prove. Accelerated highway construc tion shoulJ continue to require more W-J paints. purlKulaily red Wad primers and the new Wad silicochromatc top coats. Alter an unbroken rive in WaJ con sumption since it wav introduced m the 1920`s, tetraethyl Wad has gone through two years of lower consump 1958 Estimated 1957 White Wad . 12.59# Red Wad and litharge .. 94.59# Sit* ige Iwllcrirs. . . . 324.799 Oal-l* .............. ... . 74.99# Building..................... .. 48,99# Tetraethvl Wid .... . 158,999 Amtrvumtwin............ .. 41,999 FmT ................ . 5.99# is.ron 7S,.mo 3M.000 108.200 52.2UD 177.000 43.500 4.**i ginning Sept. 1 the expanded research tion this wav largely due to a num Bearing mrial . . . 21.999 program, and that of the American Zinc Institute as well, was placed under a ocw research dirrcior for both organizations. Dr. Schradc F. Radtke. Already a number of research lx*r of new catalytic cracking plants that p.oduced a luger pool of high grade ha*e stock requiring lew ILL per gallon. Sooner or later the domanJ for high pclanc gasoline wiU SrJ.ler......... Tvi* metal . ... ('a)kinc Wad Othef uses . . 58.999 29.99# 94.99# . 91,49# 7u.:no iit.Tuo <it.7tl iur. mo 992.99# 1. 1 J8,.*un contravts have been placed with re catch up with this supply and use of *Basrd on I*. S. Bureau 14 Mim- search organizations, universities, pri tetraethyl Wad will again forge ahead. statistics, vate companies and clvewhere. The Abo. the use of Wad for cabW heath fact that lead is finding new applica tions in some of the most modem growth industries like ali>m*cv elec tronics and ihermo-ekvlncs irvdicatei a bright long term future. Ihc prop erties of lead are so unique and so useful to modern technology that wellplanned and u Unvivc research and market development are certain to open new Noizons in lime. Some of the new uses of Wad that excite the imagination are cited here as not necessarily implying Urge con rs continuing to meet strong competi tion. High Wvelt for h*m< builJmg indi cate good consumption in that inJusr\ but much will i 's o depend on what tbc chemical processing indus tries will do towafJ new plant eonsir us turn i*f new equipment One such new pLnt now planned will employ some l.'txj tons or n .* ol tlnvl Wad. and two tuniK'Is lsr the Niagara Power P inject. on which cvnstiucton has started, will require over 5iKt tons ol vhect Wad. Oik * prtwluvt which beatv watching, although M ctMiMinu> Uwv than torn of Wad a year at piovnt. r* Waded vied It o mij Uv voniaun onlv tt I 4 ui 0.55'i W*ad but iv now avail able and iv fving aggtevMvelv mof- ihanJix'd bv wwno 20 vitvl company r*q ivr.lv m the familiar bar and tube fivevtnk liev mavhmmg but jv furgingv and jud feccntlv av \bc\1 and plate 1 biv tie dcfi.utch hav a Night lulnte*