Document nkX5BZG8gMnBN6DmdZpMvgpYz

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 Pigmvnt Division October 27, 19** Mr. R. B. Dwyer, Executive Ylce President, Anaconda Copper Mining Company, 25 Broadway, lev York *, I. T. Dear Mr. Dvyer: This Is a summary of the sales position of sine 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 September August 12** 1,721,900 Lbs. 1,7**,750 Lbs. 12*2 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 coosltment made In Septesiber but vhlch the producer could not ship In that month. CVS vlll 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 amy be made from vhlte phosphorous Instead of the present Ingredients, Including zinc oxide. I vlsh to point out, however, that ve have no Information of a definite policy being adopted by CVS as regards vhether or not they vlll purchase zinc oxide from us or anyone else In the future and it may be that after the first of the year ve vlll be doing business vlth them again. PNYC00001580 NI0228 Hr. R. X. Dryer -2- October 27, 19M It le expected that eelee for October will be about 1,100,000 pounds. Sales through September, 194* amounted to 13,389,133 pounds. For the same period In 19*3 they were 7,997,735 pounds. Table >0. 2 gives a breakdown according to paint, rubber, and adscellaneoue Industries. TABU BO. 2 1944 Pounds SSPTRMBSg Value Pounds 12*2 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 *06,000 457,600 $ 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 27,486.63 25,437.45 78.250.00 512,735 176,150 325,850 37,9*1.20 17,144.00 37,911.62 1,7*4,750 | 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 may 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 will probably Increase by about 2,500 tans per month If the present production level Is maintained. 9mA action by WPB would automatically Increase the sale of our American process lead-free sine oxide. While ve need more tonnage, due to the price ve pay for (treat Falls dross, this Item la a very unprofitable one for us. Ve have always 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 aales for September according to the three classifications. t a m un. t V.8.P. Quality Seal Other Lead Free and Leaded 156,*50 Lbs. 18,200 Lbs. 1.5*7.250 Lbs. 1,721,900 Lbs. PHYCQ0C01581 Mr. I. X. Dij w -3- October 27, 1944 Sales in each of tbo throe classifications vere about normal. Table Mo. % gives the average price per pound for the peat three months. TABLE WO. 4 1944 Septeaber 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 P** pound, it la expected that beginning vith October the average price per pound vlll drop appreciably. A bigger percentage of cur males vlll be the lover priced Aaerlean proceaa lead-free and leaded. Table Bo. 5 gives a ccmparlson of vhlte lead sales for August and Septevber of 1944 and the corresponding months of 1943. TABLB 10. 5 1244 1252 September August 1,504,151 Lbs. 1,236,363 Lba. 1,083,839 Lbs. 1,014,232 Lbs. Dry vhlte lead sales for SepteAer vere better than expected. In fact, ve had the biggest month since hrch of 1942, vith the excep tion of March, 1944 during vhloh month ve urged our custoasers to anti cipate their requirements because of possible labor trouble during April. Seles for October vlll be about 1,300,000 pounds. Through Septeaber, 1944 sales have amounted to 9*223,358 pounds. Bor the same period of 1943 they vere 7*850,778 pounds. The immediate outlook for dry vhlte lead is very encouraging. This la due ta the fact that the shortage of titanium and llthopane, together vith the restrictions an the use of lead-free sine oxide, have caused considerable reformulation. As a result* more vhlte lead and American process leaded sine oxides are being used. Movever, the long-range vlev does net look very bright. This is due to the situation on linseed oil. There vas a very good vrite-up an linseed oil in the October 23rd Issue of the American Paint Journal vhich I an quoting. "Oenerally speaking, ve are against long-term contracts at this time, but there are exceptions, and linseed oil is one of then. Our ovn flaxseed erop of tventy-six million bushels should be enough under normal conditions; however* our government has made eoMltments under the LendLease Act, and if these cosmltmenta are dravn upon to their full extent. PNYC00001582  r. I. X. ftryw October >7. 19** there vlll bs nM|i> linseed oil to so around. Da oor opinion, Russia lo ttaf pwtoit single factor in tbe pietore, ntb the Herein* and White Bossis hack in Russian bands in tin* to harvest the orops, sbe nap not draw on ns at all, as the BusaIans prefer hensgross sna rl oeerseed oil to linseed oil for edible purposes. Unfortunately, no one knows tbe facts. Bnssla never did publish statistical data, eTen In peace tines, and if she should suddenly take large quantities of linseed oil frost our stock, our own consumption would have to be cur tailed, or else those without contraoto will have to take what is left. "The western Xuropsan situation does not loon up as dangerous as that of Russia, because we oan supply soybean oil and other edible fats there to better advantage. "There in plenty of flax in Argentina, but that country has put up its price to the Whited States above present celling prises for oil, and now Canada has followed suit. Xn addition, Aswrloan boats have been forbidden to carry Argentine cargoes. "Our government will support flaxseed prises at the present level until the next crop is due, and therefore a sharp break in prices is improbable. "In view of the above, it looks to as as if future contracts for linseed oil are now in order. The situation is by no moans 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 most likely towards swnner, Just before the next crop cnees in, and that means contrasting a long time ahead. Zt would also be well to consider the possibility of a reduction in the quota after the present quarter, and the uncertainty of general business conditions at the end of hostilities la Burope. "Considering all the pros and eons, we now suggest covering about 75 percent of your linseed oil requlreasrats 19 to April, and adding a proportionate smount every 30 days. In ease foreign eonsiltments should net be drawn upon, or our relations with Argentina should Improve, a oeseatlam af further purchases is indicated] on the other hand. If things go wrong, it nsy be advisable to jwnqp into larger pur chases." Mis la. gives the average sales prise per pound for dry white lead far the past three nontbs. IUU WO. 6 19* Averego Seles fries - far Pound 8.3534 *MBSl 8.379# fojJ- 8.3*6# P*VC00001583 Mr. . I. Dvyar -5- Ostebar rr, 19*% To sua up tha sltuatlca^ our 1--ill to prsspaets ara not too good as ragarda sins ozida but thay ara vary encouraging sith raspaet to ahlta load. This la pretty Mich tha mana of shat the situation has baan. .l.Burless tho ee* Mr. Frederick Lalst ^ Mr. 1. Johnson ary truly yours. PNYC00001584