Document pm7G8m9okz7bGDgQwpZJXyZxB

International Smelting and Refining Company East Chicago, Indiana Pigment Division Mr. R. E. Dwyer, Executive Vice President, Anaconda Copper Mining Company, 25 Broadway, Hew York A, H. Y. February 5, 1946 Dear Mr. Dwyer: This Is a summary of the sales position of zinc oxide and white lead for the month of December, 1945- Table Bo. 1 gives a comparison of zinc oxide sales for Roveaber and December of 1945 and the corresponding months of 1944. TABLE BO. 1 December Roveaber 1245 1,030,565 Lbs. 963,900 Lbs. 1244 1,090,400 Lbs. 766,900 Lbs. Sales for December were up somewhat over Hovember. Thla 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 BO. 2 Sales Year To Date - Decea&er i245 15,617,265 Lbs. 1244 16,373,783 Lbs. Table Bo. 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 tbe preceding month with tbe exception of January which shovs 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 ccwpanles. These companies have been out of the market because they are liquidating large Inventories which vere 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. K. E. Djr -2- Pebruary 5, 1946 lightly tbMd of those for January despite the feet that February Is a short month. The principal unknown factor Is the extent to which the present labor troubles may affect our sales. TABLE MO. 3 September October Hovember December January (Probable) 728,200 Lbs. 814,850 Lbs. 963,900 Lbe. 1,030,565 Lbs. 1,500,000 Lbs. Table Ho. 4 gives abreakdown of sales according to paint, rubber, and miscellaneous Industries. . TABLE HO. 4 DECEMBER 1255 Pounds Value 1944 Pounds Value Paint Bubber Miscellaneous 619,000 138,200 273,3.65 1,030,565 $ 45,970.00 10,104.50 22.i3I2.43 4 78,446.99 372,900 548,650 168.850 1,090,400 4 27,746.75 52,895.88 17,036.89 4 97,679-52 Paint Bubber Miscellaneous Pounds 539,400 141,800 282.700 963,900 HOVEMBER 1945 Value Pounds 4 40,396.50 10,483.75 21.986.38 238,300 278,800 249.800 4 72,866.63 766,900 1944 Value 4 17,884.56 26,689.25 24,662.02 4 69,235.83 It will be noted that sales to the paint industry maintained the fairly high level established In lovemiber. On the other hand sales to the rubber Industry for lovember and Decoder of 19*5 are consi derably under those for the sane months of 1944. The reason for this was mentioned previously. Table lo. 5 gives the average sales price per pound for the past three months. TABLE 10. 5 December Hovember October Average Sales Prioe - Per Pound 7.612ft 7.560^ 7.451^ PNYC00001523 Nr. X. . Dvyer -3- February 5, 19*6 It had bean estimated that the average sales price vould be vlthln a range of 7.35 to 7.50^ per pound. There haa been a gradual lncreaae In the average aalea price vhlch la due to the lncreaaed aalea of 0.3.P. and aeal zinc oxldea that carry a premium over the regular lead-free price. Table Xo. 6 glvea a comparison of vhlte lead aalea for November and December of 19*5 and the oorreapondlng montha of 19**. TABLE HO. 6 December November 12*5 955,136 Lba. 1,132,733 Lba. 12** 1,537,0*3 Lba. 1,2*2,395 Lba. There vas a aubstantial decreaae In the aale of dry vhlte lead for December of 19*5 compared vith November of 19*5. This la due to a limitation of the aalea 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, 19*5. Ve are attempting to get lined up on another source of supply for containers. Another and more Important reason for the decline in aalea is due to the fact that our stocks at Bast Chicago are belov normal. This creates a aomevhat 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 vlll be reflected In the January sales vhlch should be about 1,300,000 pounds. The substantial decrease In the sales for December 19*5 as compared vlth December 19** Is due to the faot that In Deceatoer 19** 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 19** vhlch accounts for the large volume of sales during that month. Table Vo. 7 gives the sales year to date through December of 19** and 19*5. TABLB XO. 7 19*5 19** Sales Tear To Dste - December 8,820,3** Lbs. 13,290,9*0 Lbs. The substantial reduction In sales of dry vhlte lead In 19*5 la due almost entirely to the restrictions on the use of dry vhlte lead, established by VPB. From January 15th to August 2nd, 19*5 this vas 16% of normal consumption and from August 2nd until September 21st it vas 25% of normal consumption. . PNTC00001524 Mr. 1. X. Dwyer -4 February 5, 1946 Table Mo. 8 gives the average sales price per pound for dry white lead for the past three months. TABU MO. 8 December Mpyeaber October Average Sales Prlo - Per Pound 8.353j( 8.362j< 8.442^ To sunaarize, zinc oxide sales during December continued the upvard trend. This upward trend was continued In January and v expect It to continue In February unless unsettled labor conditions have too auch effect on our sales. Dry vhlte lead sales for January vill be up substantially over Deceafcer, during which month they were dovn soaavhat due to our inability to ship certain grades be.cause of our low Inventory at last Chicago. Ve expect to sell the production of the white lead plant during the first quarter of 1946 and ve very likely could sell more If it vere available but our production Is Halted by CPA to approxlBately 550 tons per aonth or a dally rate of about 19 tons. Very truly yours. F.K.Hurless:ho cci Hr. Frederick Lalst Hr. F. 0. Case Hr. 0. I. Johnson PNYC0C001525