ARSENIC

                  (Data in metric tons, unless noted)

Domestic Production and Use:  All arsenic metal and compounds consumed in the United
States were imported, principally from China.  More than 95% of the arsenic consumed
was in compound form, principally as arsenic trioxide.  Three principal manufacturers
of wood preservatives consumed most of the arsenic trioxide for the production of
arsenic acid for formulation of chromated copper arsenate (CCA) wood preservatives. 
Arsenic acid was also consumed by one manufacturer of arsenical herbicides.  Metallic
arsenic was consumed in the manufacture of nonferrous alloys, principally in lead
alloys used in lead-acid batteries.  About 15 tons of high-purity arsenic was
consumed in the manufacture of semiconductor materials.  About 80% of all arsenic was
consumed in the production of wood preservatives; the balance was consumed in glass
manufacturing, agricultural chemicals, nonferrous alloys, and miscellaneous uses. 
The value of arsenic metal and compounds consumed was estimated at $24 million.

Salient Statistics--United States:       1991      1992      1993      1994      1995e/
Imports for consumption:
  Metal                                 1,010       740       767     1,330       800
  Trioxide1/                           27,100    30,700    27,500    27,500    31,000
  Compounds2/                             374        40        --         5       350
Exports, metal                            233        94       364        79       100
Consumption, apparent, arsenic content 21,600    23,900    21,300    21,500    24,000
Price, cents per pound, average:3/              
  Trioxide, Mexican                        25        29        33        32        33
  Metal, Chinese                           68        56        44        40        72
Net import reliance4/ as a percent of                                           
  apparent consumption                    100       100       100       100       100

Recycling:  Process water and contaminated run-off collected at wood treatment plants
are reused in pressure treatment.  Gallium arsenide scrap from the manufacture of
semiconductor devices is reprocessed for gallium and arsenic recovery.  Domestically,
no arsenic is recovered from arsenical residues and dusts at nonferrous smelters,
though some of these materials are processed for recovery of other metals.

Import Sources (1991-94):  China, 44%; Chile, 19%; Mexico, 12%; and other, 25%.

Tariff:Item        Number        Most favored nation (MFN)    Non-MFN5/ 
                                        12/31/95              12/31/95
Metal            2804.80.0000             Free                13.2/kg.
Trioxide         2811.29.1000             Free                  Free.
Sulfide          2813.90.1000             Free                  Free.
Acid6/           2811.19.1000             2.3%                  4.9%.

Depletion Allowance:  14% (Domestic), 14% (Foreign).

Government Stockpile:  None.

Prepared by Daniel L. Edelstein, (703) 648-4978.
                                
                                ARSENIC

Events, Trends, and Issues:  Domestic demand for arsenic in the wood preservative
industry increased for the second consecutive year.  In 1994 the growth corresponded
to strong growth in housing industry indicators-- both housing starts and building
permits issued rose by about 13%, and new home sales rose by about 6%.  While these
indicators are expected to decline in 1995 from the previous year's levels,
consumption for in-process construction, as well as restocking by distributors of
pressure treated lumber, accounted for continued growth in 1995.

In August, the Environmental Protection Agency (EPA) proposed treatment standards for
the land disposal of wastes from wood preserving operations.  Wastes from the wood
preserving industry had been listed as hazardous in 1990.  In the proposed standards,
EPA recommended the application of Universal Treatment Standards to these wastes.  At
the same time EPA was proposing these standards, it invited comments on wood
preserving industry concerns that wastewaters, including drippage reclamation, were
part of the production process, and therefore should receive a variance from proposed
regulation.

Tightness in the arsenic metal market, caused by supply disruptions reported in
China, resulted in the average December 1994 customs price for arsenic metal surging
to 92 cents per pound.  During the first half of 1995, the tightness eased and prices
declined--the customs price averaged 72 cents per pound during the first 6 months of
1995.

World Production, Reserves, and Reserve Base:

                              Production         Reserves and reserve base7/
                          (Arsenic trioxide)        (Arsenic content)
                             1994     1995e/
United States                  --        --
Belgium                     2,000     2,000
Chile                       6,300     6,300 World reserves and reserve
China                      13,000    13,000 base are believed to be about 
France                      6,000     6,000 20 and 30 times, respectively,
Ghana8/                       500       500 annual world production.
Kazakstan                   1,500     1,500 
Mexico                      4,400     4,400 
Namibia                     2,300     2,300
Philippines                 2,000     2,000
Russia                      1,500     1,500
Other countries             3,500     3,500
 World total               43,000    43,000 

World Resources:  World resources of copper and lead contain about 11 million tons of
arsenic.  Substantial resources of arsenic occur in copper ores in northern Peru and
the Philippines and in copper-gold ores in Chile.  In addition, world gold resources,
particularly in Canada, contain substantial resources of arsenic.

Substitutes:  Substitutes for arsenic compounds exist in most of its major uses,
though arsenic compounds may be preferred because of lower cost and superior
performance.  The wood preservatives pentachlorophenol and creosote may be
substituted for CCA when odor and paintability are not problems and where permitted
by local regulations.  A recently developed alternative, ammoniacal copper
quaternary, which avoids use of chrome and arsenic, has yet to gain widespread usage. 
Nonwood alternatives, such as concrete, steel, and vinyl or plastic lumber, may be
substituted in some applications for treated wood.  A South American hardwood, ipe,
which requires no chemical treatment, has been used in some localities in oceanfront
boardwalks.

e/Estimated.
1/Arsenic trioxide (As2O3) contains 75.7% arsenic by weight.
2/Almost entirely arsenic acid.
3/Calculated from Bureau of the Census import data.
4/Defined as imports - exports + adjustments for Government and industry stock
changes.
5/See Appendix B.
6/Tariff is free for Israel, Caribbean Basin Countries, and designated Beneficiary
Developing Countries.  For Canada, the tariff is 1.8/kg.
7/See Appendix C for definitions.  The reserve base for the United States was
estimated at 80,000 tons. 
8/Byproduct of gold ore roasting.  Excludes production of noncommercial grade material
estimated at 9,000 tons per year.

                              Mineral Commodity Summaries, January 1996