Document oeEXvn5pbaw037jYRpv1XLQyr

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. R. . Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Hew York 4, *. Y. February 5, 1946 Dear Mr. Dwyeri This Is a sunary of the sales position of zinc oxide and white lead for the month of December, 1945. Table Ho. 1 gives a comparison of zinc oxide sales for Hoveaber and December of 1945 end the corresponding months of 1944. TABLE HO. 1 1945 im December Hovember 1,030,565 Lbs. 963,900 Lbs. 1,090,400 Lbs. 766,900 Lbs. Sales for December were up somewhat over Hovember. This is more encouraging than is Indicated by the difference because consider able buying was held back due to the policy of establishing low in ventories on December 31st. Table Ho. 2 gives the sales year to date through December for 1944 and 1945. TABLE HO. g 1245 1244 Sales Year To Date - Deceafeer 15,617,265 Lbs. 16,373,783 Lbs. Table >o. 3 gives the sales by months beginning with Septem ber, during which month we became competitive on price for lead-free zinc oxide. Sales for each month show a moderate Increase over the preceding month with the exception of January which shows a rather substantial increase. A very encouraging factor Is that these Increases In sales have been established despite the fact that there have been practically no sales to the larger rubber coaqmnles. These companies have been out of the market because they are liquidating large Inventories which were on hand on V-J day. Ye expect some buying from these large rubber com panies to begin In February and we are estimating February sales to be PNYC00001522 N10213 Mr. I. E. Dwyer -2- Eebruary 5, 1946 lightly tbMd of thoae for January despite th fact that February la a short month. The principal unknown factor la the extent to vblch the preaent labor troublea may affect our aalea. TABLE MO. 5 September October Hovember December January (Probable) 728,200 Lba. 814,850 Lba. 963,900 Lba. 1,030,565 Lba. 1,500,000 Lba. Table Ho. 4 gives abreakdown of sales according to paint, rubber, and mlacellaneoua Industries. TABLE HO. 4 Paint Bubber Miscellaneous Pounds 619,000 138,200 .-..ap.3t$5 1,030,565 DECEMBER 1945 Value Pounds $ 45,970.00 10,104.50 22,372.49 372,900 548,650 168.850 $ 78,446.99 1,090,400 1944 Value 4 27,746.75 52,895.88 17,056.89 4 97,679.52 Paint Bubber Miscellaneous Pounds 559,400 141,800 282.700 963,900 HOVEMBER 1945 Value Founds 4 40,396.50 10,483.75 21,986.38 238,300 278,800 249.800 4 72,866.63 766,900 i2ii ,, Value $ 17,884.56 26,689.25 24.662.02 4 69,235.83 It will be noted tbat sales to the paint Industry maintained the fairly high level established In Hovember. On the other hand sales to the rubber industry for Hovember and December of 1945 are consi derably under thoae for the same months of 1944. The reason for this was mentioned previously. Table Ho. 5 gives the average sales price per pound for the past three months. TABLE HO. 5 December Hovenibor October Average Sales Price - Per Pound 7.612ft 7.560# 7.451# PNYC00001523 Nr. X. E. Differ -3- Pebruary 5, 1946 It had bees estimated that the average sales price vould be vlthln a range of 7.35 to 7.50^ per potind. There has been a gradual Increase In the average sales price vhlch Is due to the Increased sales of 0.3.P. and seal zinc oxides that carry a premium over the regular lead-free price. Table Xo. 6 gives a comparison of vhlte lead sales for November and December of 1945 and the corresponding months of 1944. TABLE HO. 6 1945 1944 December Hovember 955,136 Lbs. 1,132,733 Lbs. 1,537,043 Lbs. 1,242,395 Lbs. There vas a substantial decrease In the sale of dry vhlte lead for December of 1945 as compared vlth November of 1945. This Is due to a limitation of the sales of lead-ln-oll because of our inability to buy containers. The concern from vhom ve have purchased our containers has been shut dovn by a strike since September 15, 1945. Ve are attempting to get lined up on another source of supply for containers. Another and more Important reason for the decline in sales is due to the fact that our stocks at East Chicago are belov normal. This creates a somevhat Inflexible position since ve regularly market five grades of vhlte lead and ve do not alvays have the particular grade the customer vents vhlch necessitates holding up shipment until a run on that particular grade can be made. This will be reflected In the January sales vhlch should be about 1,300,000 pounds. The substantial decrease In the sales for Deceaiber 1945 as compared vlth December 1944 Is due to the fact that In December 1944 ve had considerable advanced buying due to expectation that VPB vould limit the purchase of dry vhlte lead. This situation actually materialized but many of our customers loaded up In December of 1944 vhlch accounts for the large volume of sales during that month. Table lo. 7 gives the sales year to date through December of 1944 and 1945. TABLE XO. 7 1945 1944 Sales Tear To Date - December 8,820,344 Lbs. 13,290,940 Lbs. The substantial reduction In sales of dry vhlte lead In 1945 Is due almost entirely to the restrletlona on the uae of dry vhlte lead, setahllahed by VPB. Prom January 15th to August 2nd, 1945 this vas 16 of normal consumption and from August 2nd until September 21st it vas 25% of normal consumption. PN7C00001524 Hr. 1. X. Dwyer -ik- February 5, 19*6 Table lo. 8 gives the average aales price per pound for dry white lead for the past three aontbs. TABLE HO. 8 PeceBber Korcaber October Average Salea Prioe - Per Pound 8.553|( 8.362ji 8.**2^ To suaaarize, zinc oxide aalea during Deceaber continued the upward trend. Thla upward trend was continued In January and ve expect It to continue In February unless unsettled labor conditions have too nuch effect on our aalea. Dry white lead sales for January will be up substantially over Deceatoer, during which month they were down soaewhat due to our inability to ship certain grades because of our low Inventory at last Chicago. Ve expect to sell the production of the white lead plant during the first quarter of 19*6 and we very likely could sell more If it were available but our production Is Halted by CPA to approximately 550 tons per aontb or a dally rate of about 19 tons. Very truly yours. F.K.Hurlesstho cci Nr. Frederick Lalst Nr. F. 0. Case Nr. 0. N. Johnson PNYC0C001525