Document oDLRVn8RvaG08KnzO0qddxw3R

ll-WIIJlIg.! IPglPljjlWWW11 wmmrnmm LIA164 3 8 m r' fcintgKrf.Wa -Vi-* |-f**^ti Jm--. ^ F I LEAD INDUSTRIES ASSOCIATION________ 4W LCONOTON AVCNUC new yomc it , m, r. iii | HOT It* PCSJCWIOi THB SKOTOWT LEAD IX3P3TKI* ' Bsuben Vlaner, Partner ifcnaen Vlener 4 Sosa la thia age of nem materials, new methods, and atm standards of value, the * Lead Indastry, In all Its phases, la confronted with shifting competitive forces# Onl/ by close adharsnea to sound and progressive principle of opsration, with prepar emphasis on research, can *e maintain and expand our markets} thereby per mitting Lead to carry its weight in the family of metals. ` One of the metals first known to mb . Lead has coos do*n to us through the ages with Increasing utility for the requirements of civilisation. Unique In mauy respects, the properties of Lead are nuaeroos and present always a chaUc* for new fields of service* > A singular attribute of Lead is its imperishable nature which is significant in enabling the metal to be returned end rm-procesaed for further use after hew ing fulfilled Its original purpose. Because of this essential characteristic, o the secondary Lead Industry has eaerged as an integral part of our total Lead structure. The Industry provides our econay with mineral wealth In a true font of conservation throui the utilisation of a raw material which gives bade to the original consumer a substantial monetary returns i In these dye of constant change and development, me hear expressed repeated ly, the term 'industrial revolution*. It la appropriate to employ this descrip r- tion in a discussion of the Lead Industry In this country, A survey of statis , tics will indicate the enormous shift experienced in Lead consumption since the ? Twenties*. In earlier years, primary production accounted for approximately seventy-five per cent with twenty-five per cent secondary. Qradually, the pri mary percentage declined with a corresponding increase in secondary, until in 1966, the secondary production In this country exceeded primary. Slnoe that f time, the secondary production has, with the exception of to years, equalled or exceeded primary output consisting of domestic end foreign ore. It will be reason able to anticipate a continuation of this relationship when consideration la given to the fact that approximately sixty par cent of the Leed consumed is reclaimed at later date* A related factor la our position in tbs world market. Formerly our Imports and exports were in reasonable balance. Beginning with World Mar II, Lead imports were Increased in large volume and our exporta decreased to a minor amount* 0t>fortunately In 1951, during a period in which our consumers required Lead, other world markets were more favorable and we lmsorted only 257,866 tons. Bcwevar, la 1952, this figure rose to 627,760 tons. This intake gn.ns added alqnliieans* wham applied to our mine production of 366,097 tens, cur secondary production of 670,000 tons and consumption of 1,160,000 tons la 1952# Presented at the 25th Annual Heating of th* Lead Induetries Association April 9-10, 1953, White Sulphur Springs, at the Panel Discussion of Lead Ptvduoers. p WWW- mmmymut n.jgiiii.' sail m iwfpawwwppiipii^ 'mmrnmm LIA16439 Jfcwn -A^su-a. ~,4*nama+A*M!.. -~^ II 0 THE SSC0K33T IM irourag -a- lnb Vlener In the deTelopoent of the> secondary Lead Industry, particular attention must ba given to the rsarketing fchvactorlstlee vith roletion to the raw tutorial eonausmd and tha sales of tha finished product!. The secondary smalt sr mist depend upon lta nine above ground and to tha elaborate Scrap Industry which serves to accuaulate, prepare, and segregate tha Lead scrap and residues essential for tha Balstenance of production. Ninety-five per cant of Lead scrap consumed la utlilied by tha approximate 26$ tacondary smelters, with tha major portion of this material obtained from aatabllahad scrap souroes* It la as Important for tha aeeondary smelter to secure and protset his rm material as It Is for tbs primary producer to establish his ora requirenacts, Procurenent becomes Increasingly cosplsx, ondsr examination, due to tha Busbar of enterprises engaged In the collection and sals of scrap, tha highly-ocmpetitlve price structure, veathor cycles, irregular disposition of stocks and tha uncer tainty which has becoas acre pronounced in recent years. i In purchasing, the secondary smoltor uses the primary Lead prloe as a base to which a sadting charge la applied. Under normal conditions, the charge *111 vary with tha strength of tha market, as reflected In demand or sales and tha position of tha individual saoltcr in relation to the market. Be have experienced, since borld War H, vast fluctuations in smelting schedules, suggesting an unhealthy market relationship in the Industry. We can attribute this situation to the elds pries variations of Lend, for oxaapls, vith sixtoen prloo changes in 1952, start ing at 194 and dosing at 1L-3A4, tha secondary saeltor is confronted witn the problem of purchasing raw material generally at fixed lords and possibly making sales In an entirely different Uarkot. Tho fluetuctione confuse the scrap dealer and prevent a steady flow of scrap essential to the sadtor. On the dovn market, scrap does not enter the usual channels of trade in normal vdumo. Collections are discouraged because accumulations may result in losses rather than profiles At high market levels, large stocks are releasod usually in excoss of samlter re quirement*. This Condition applies as wall to the original producer* of scrap- The uncertainty of the Lead prloe has affected tho purchaslig habile of the smelter's customers. Lo- stocks are calntalned vith buying strictly on a Ivnd-toaouth policy. The smelter rust anticipate tho requirements of his customer .and be prepared to supply his on short notice, thereby assuming an additional burden. Tha raw material for theta ordor* e-umot be obtained on demand, but cast be pur i chased vben available and sufficiently in advance to permit s production sche.tili. tie have witnessed, slnoe last October, the effect of the London market an our domestic price structure. The fluctuations have hod on increasing effect on the thinking of scrap processors and consumers of finished products. Therefore, In addition to tha problem of coping vith the determination of customer require ments, uo must maintain a weather eye on this world market, inasmuch as trading there, or lack of trading, my affect our entire program adversely. Although the coaoodlty market has been advocated for hodglng purposes, it Is a highly quostioo. able activity for the aeoondary smelter. $ The problems incident to the erratic price structure are coeplex but deserve the attention of the primary and secondary Load Industry. Through a cooperative approach and recognition of eutual necessity, progress toward nemal market fluc tuations might ba achieved kith resulting benefits to producer and oonsuner alike. The econoole laws of supply and demand, if permitted to operate without Interfer ence, would in time establish true market value. immmrn*M* ' LIA16AA0 i.iunumari.nm -V THS SBCOtOWT LXID DTCC3TRT J* Bsuben Vinner Assusing k m hapnr when tha prloe of Load will be settled *t a niMB> able levol In lino with its oconeraie value and nalntalnod within a consistent mgi, tha aocondary analtar* a operating poaltlon would bo iafroved lsmoasurahly. It la net In 17 province to gase at the atari and predict things to coao. However, current industrial activity lndieatoo a continuation of load oonsunptloa at tbs present rats. At this tins of world trial and uncertainty, It la <so*t dif ficult to forecast wore than a abort period ahead. Tbe production facilities, netallurglcal skills, experience and energies of tha seoondaxy Lead Industry, stead readT Lor whatever pert it nay be required to play. It has boon a privilege to address the lead Industries Association daring Its twenty-fifth anniversary nesting and It la hoped that the next t*raty-Lvw years will be as full of accoaplistasnt.