Document mv7Zo5dJo5N54E1r9ZjrOOKg
In t e r n a t io n a l Sme l t in g a n d Re f in in g Co mp a n y East Chicago, Indiana
Pigment Division
Mr. B. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, lev York 4, I. Y.
March 1, 19*6
Dear Mr. Dwyer:
This Is a summary of the sales position of sine oxide and white lead for the month of January, 1946.
Table Bo. 1 gives a comparison of zinc oxide sales for January, 1946 and Dscamber, 1945. Also a comparison for the same months for the preceding years. The latter la In the right-hand
column. TABLE 10. 1
January December
1,525,000 Lbs. 1,030,565 Lbs.
869,110 Lbs. 1,090,400 Lbs.
Sales for January, 1946 were up substantially over those for December, 1945* This Increase Is accounted for mainly by American process lead free made on Bo. 4 muffle furnace from secondary metal. The sale of oxide made from high grade metal, leaded zinc oxide and regular muffle zinc oxide sold to the rubber trade remained at satis factory levels but did not show substantial Increases.
Table Bo. 2 gives the sales year to date through January for 1946 and 1945.
TABLE B0. 2
1946
1945
Sales Year To Date - January
1,525,000 Lbs.
869,110 Lbs.
Table Bo. 3 gives the sale of zinc oxide by months beginning with September, 1945. It was during the latter part of this month that we became competitive on the price of lead free zinc oxide. Since then the sales for every month have been ahead of those for the
preceding months.
Ve are hoping that February, 1946 will show at least a alight Increase over January, 1946. February Is a short month and In some sections of the country two holidays are recognized. In addition to this labor unrest apparently had some Influence on our business as a
PNYC00001517
N10212
Mr. I. X. Dryar
8- Xnreh 1, 1946
few days before th* first *f February w* noticed omsld*r*bl slowii| up ud tb*r* was no pick-up until about th* 20th of February. Business during th* last reek of February ha* boon good.
W# are optinistie about sine oxide sale*. Zt looks a* though for March they rill be in the neighborhood of 1,800,000 pound*. The large rubber conpaaies are still out of th* aarket a* far as v* are concerned a*inly because of their large Inventories. If one or two of those companies should start buying it would nek* a substantial inprorenent In th* sales pietur*.
TAMJ.U no. ^
Soptenber October ovoaber Doceaber January February (Probable)
728,200 Lbs. 814,850 Lbs. 963,900 Lbs.
1,030,565 Lbs. 1.525.000 Lbs. 1.550.000 Lbs.
Table *0. 4 gives a breakdown of sales seconding to paint, rubber, and aiseellaneous industries.
TABU 10. 4
124
Pounds
JAXBABX
1945
Islss.
Issads.
Value
Paint Bubber Miscellaneous
7*2,200 283,600 499.800
$ 55.297.75 20,770.00
322,360 385,950
23.959.31 36,853.63 . 154.821-13
1,525,000
$ 116,461.61
869.110
t 76,640.07
1245 lands.
SBCmXB
Value
Pounds
1944
Value
Paint
619,000
Bubber
138,200
Miscellaneous . mM
*5.970.00
10,104.50
2^2Rt.42
372,900
5*8,650
IteaftSff
| 27,7*6.75 52.895.88 11mS2,-82
1,030,565
78,446.99
1,090,400
97,679.52
Sales to th* rubber industry for January were up soaewhat over Dseoabor but are still considerably below noraal. V* are ex pecting these sales to lavrove substantially in MarA.
Vhlle sales to the paint industry roaaia very good th* out look is far frea encouraging. Vhil* containers and plgpents such as
PNYC00001518
Mf, K. 1. Dwyer
-3
rah 1, 1946
titanium dioxide and llthopone are very tight the major factor la linseed all.
Z a* quoting Tram, an article that appeared 1b tha American Faint Journal in tha February 25* 1946 laaua.
"Faint nonufaeturers who have baan ao fortunate at to have oil on eontraot now find that whan these contracts expire they cannot be renewed; there are runors that sone of the paint plants asy have to close, but to date we have not heard of any one actually closing. About 440,000 bushels of flaxseed are expected fro* the Argentine In Marsh, which will only be a drop in the bucket; but crushers are doing their best to take care of their customers in a snail way."
Table Mo. 5 gives the average sales pries per pound for sine oxide for the past three nonths.
Average Sales Fries - Fer Found
I*f**.U 7*637#
Dtcenber 7.612#
svonbbr 7.56djf
The average sales price per pound has been going up gradually. For February this very likely will be about 7.75# per pound due to an Increase in the sale of the higher priced grades of sins oxide node fron high grade netal.
Table >o. 6 gives a comparison of white load sales for January, 1946 and Decanter, 1945. Also a comparison of the corres ponding nonths for a year age. The latter Is on the right-hand aide.
TAUMt WO.
January Decenber
1,478,688 Lbs.
955,136 Lbs.
2,28l,6l6 Lbs.
1,537,04? Lbs.
Sales fer January, 1946 are up substantially ever
De cosher,
This la due to cone extent to timing since all the
lead an mtmtt far sSlfannt In Decenber could net be shipped because
we did nehChnve- the proper grades due to the lew Inventory at last
Chisago. IM A result suae of the lead that should have been shipped
In Hnnisr was shipped In January.
Furthermore there Is seme speculative buying but nest of the Increase Is accounted fer by the shortage of leaded sine oxide. Most
paint manufacturers sonnet gst the amount of leaded sine oxide they need and are purchasing Alto lead and lead free sins oxide to get the equivalent, although their eest per gallon ef paint is Increased substantially. Vs restrict our sales of leaded sins oxide to about 125 tens per nenth because ef the shortage ef lead sulphate but we could very easily sell 500 tens per nenth If we had it. Considerable pressure Is being put upon us all the tins by ear regular custoners to
PNYC00001519
Mr. 1. X. Dvyer
-4-
rch 1, 1946
lumi the unit of loodod sine oxldo ve can famish then vhioh vo m not In position to do.
Solos of dry vhlto lood for February, 1946 vlll ho shout 1,500,000 pounds. Sloes our inventories st Bust Chleogo sro Tory lov end produotion Is lloltod hy CPA to spproxinstoly 550 tons por mouth, it is quits likely tbet vs vlll contlmis to soil our output of 550 tons monthly. Vo prohshly could soil eonsldorshly mors If it voro eTellable.
fable lo. 7 (Ives the sales of mite load year to date through January of 1946 and 1945.
TAHLK MO. 7
1946
194S
Sales Tear To Bute - January 1,478,688 Lbs. 2,281,616 Lbs.
The abnormally largo volume of sales shown for January, 1945 is accounted for by the advance buying on the part of the paint Industry due to probable restrictions an the production of dry vhite lead. These restrictions materialised but it vas not foreseen that there vould be restrictions on the consumption of dry vhite lead also. The result vas that the paint mnufUeturers bad to carry large inventories of dry vhite lead during most of the year 1945.
Table lo. 8 gives the average sales price per pound for dry vhite lead for the past three months.
t a m.v mo.
January
Queerer
Xovember
Average Sales Price - Per Pound
8.36I#
8.353#
8.362#
To summarise, sine oxide sales for January continued the upvard trend vhleh began vhen ve vent competitive cm the price of lead free alma oxide during the latter part of September, 1945. Vhlle sales far February nay not be over those for January they vlll be at least sfml vhleh is very encouraging considering that February is a short month and ve felt most of the result of the steel strike during that month. Far Marsh ve expect a continuation of the upvard tread and look far sales of approximately 1,800,000 pounds.
Dry vhite lead sales fer January vere up substantially. Ve expect than to be off soaevhat la February and in March they should reash a level of about 550 tana per month vhleh is the maximum produc
tion aliened by CPA. Ve expect to continue to sell the production of the vhite lead plant despite the unfavorable outlook fer linseed oil as vhite lead and lead free sine oxide are being used as a substitute
pNfC0000152o
Hr. B. X. Dwyer
-5- Msrch 1, 19*6
for leaded sine oxide which Is short sad will wery likely continue to be short for an Indefinite period.
Tory truly yours.
X.H.Xurlessiho ect Mr. Frederick Lalst /
Mr. X. 0. Case Mr. 0. X. Johnson
PNYC00001521