P. 1 

# OAR Box 1872 Prepped by Keeia Richards



## Document

Number: 

# 4 ) 11-1-5 3 Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:46

AM Sheet 4 of 204P. 2 

# A-90- 1 vayvvuLar ^ * 7 t^B ^

- . U i^l.* ? ^L. M , . M~T^ - ~a u *=t alue s o f thei r buyin g decision s o

n acompany' s : r US environmenta l record , envi - "Ther e ar e les s obvious , bu t no les s im pora - portan t

economi c consequence s associ lenta l ate dwith acompany' s environmenta l tij-ew performance, " Mr . Quanstro msaid .

"Polluter s ris k

destroyin g th e moral e • iron - o

f thei r employees , wit

h aresultin g dete e r R . rioratio n in jo b performance . An dsuc h -.omi c organization s will fin

di t increasingl y dif

ever e ficul t

t o attrac t

ne w employees . Simi onst - larly , investors ar e evaluatin g no t only a company' s balanc e sheet , bu t ar e weigh i s th e in g it s environmenta l recor da s well . Ji-es, " "Ther e i s als o amora l component, " Mr .

. : th e Quanstro msaid . "N o individual o r organi Engi - "zatio n ha s th e righ t t o deny other s th e inheritanc e o

f pur e water , clea n air v an d

. pol l uncontaminate dland . ^«-<^ % V\ V * ?ar t Continuecfc h P-tae-2 6 ' < , \

las t neti ery u o f .ID S nen t

. ha s 3 dto -ine . ent s i. tha t s . In eat - -.av e :P O an d ?ing ree jr3 - _n d ::o n'.polka .-•t h ife iul livan . Health*andjfaman Service s Secretary . EPO' s abiliVi o elevat e o r maintai n re d bloodcel l leve l productio n an dt o reduc e th e needfo r transfusion s i

n th e treatmen t

o f ane mi aassociate dwit

h chroni c rena l failur e led t o it s approva l for

tha t indicatio n in Jun e 1989 . Whil e th e protei n wa s bein g investigate d fo r a n AID S indication . FD

A i n Jun e 1989 permitte dth e dru g to b e mad e widely avail abl e i o patient s o

n AZ T throug h a"treatmen t IND " protocol . That i s an FD A progra mtha t

allow s pa tient s sufferin g fro mseriou s o r life-threaten in g condition s to receiv e experimenta l drug s that hav e shown significan t

promise . Las t week' s approva l o

f EP O wa s base do

n dat afromclinica l studie s involvin g 29 7 AID S patient s wh

o ha dexperience dsever e anemi a fro mAZT . Placebo-controlle dtrial s i n 11 8 o f thes e patient s wh

o ha dlo w EP O level s resulte di

n a 4 0 percen t reductio n in transfusion s fo r pa tient s treate dwit

h th e protei n durin g athre e month period . I t wa s conclude dtha t

patient s wit

h rela tivel y lo w level s o f naturally-occurrin g EP O ma y benefit fromthi s ne

w treatment . Ver y fe w advers e sid e effect s hav e bee n associate dwit

h th e us e o

f EP O for thi s indi cation , accordin g t o FDA . Th e mos t fre Continue do n Pag e 1 8 

### Althoug h feedstoc k cost s remai n un

- ' change dint o January , anumbe

r o f ob server s believ e th e styren e contrac t pric e ma y fac e cut s b

y mid-month . Whil e comin g i n fo r th e secon dmont h a t 4 4 V 2 cent s per

pound, styren e contrac t price s nevertheles s ar e vulnerabl e to a n eventua l driv e t o meet

spot price s be twee n 3 5 an d3 6 cents. . Producers , whil e lookin g t o maintai n fay - 'orabl e pricin g spread.? , are . sittin g tight . I n pointin g t o stabl e benzen e pricing , styren e producer s loo

k fo r continue dstyren e pricin g a t curren t levels . Styren e contract s hav e been lef

t unchange dfro mDecembe r t o Januar y followin g a n unchange dbenzen e contrac t a t $1.5 0 pe r gallon . On e produce r

note s tha t

wit h inventorie s belo w histori c levels , th e logi c follow s tha t pricin g shoul dremai n firm . But wit h 1990 finishin g ou t

wit h spo t price s belo w contrac t level s for th e firs t tim e i n th e year , i t

i s fel t tha t ther e i s no wa

y producer s wil l b e abl e t o maintai n such aglarin g cos t difference . "S o fa r ther e ha s not

bee n enough order s to mak e a n impact, " say s Houston-base d CJMAI' S Stev e Knight

referrin g t o th e proba bility tha t large-orde r

consumer s hadbeen workin g of

f inventorie s ove r

th e holida y break . "Consumer s haven' t ye t been ham merin g fo r

lowe r prices. "

. Mr . Knight

estimate s tha t

producer s wil l b e abl e t o holdof

f an y pric e reductio n a t

leas t for th e firs t half o f th e mont h becaus e o

f th e 

### Continue do n Pag e 1 3

STYREN E PLANT : Hoechs t a t Bay-town , ne wca pacit y comin g o n strea m i s expecte d t o weake n th e pric e structur e of th e monomer' s market .

advantages , only ahandful o f U S manufac turer s usedth e proces s before t ^ fjnrin p " f Arc o Chemica l Compan y ha s agree d t o pa y $3.4 8 millio n i n fine s a s par t o f a settlemen t

agreemen t

wit h Occupa tiona l Safet y an dHealt h Administratio n fo r allege dworkplac e violation s con necte dt o th e explosio n an dfir e a t Arco' s Channelview , Tex. , facilit y las t July , whic h resulte di n th e death s o f 1 7 work ers . Th e fine i s th e larges t

dollar-amoun t

set tlemen t i n OSHA' s history , an di t

represent s $10,00 0 eac h fo r 34 7 allege dwillful violatio n plu s $11,300 for

1 5 allege dseriou s violations . Actin g Secretar y o

f Labo r Roderic k DeArmen t said , "I n additio n t o Arco' s willingnes s t o pa y th e ful l $3,481,300 i

n penaltie s pro posedb y OSHA , th e compan y ha s agree dt o institut e corporate-wid e correctiv e actio n which certainl y indicate s determinatio n b y the'eompan y t o do it s utmos t t o preven t

an y simila r disasters. " Arc o agree dt o correc t

condition s which coul dlea dt o simila r

incidents , a t

Chan nelview ; Bayport , Tex. ; Pittsburgh , Pa. ; an d Painesville . Ohio . I n agreein g t o th e settlement . Arc o state d tha t i t doe s no t agre e wit

h al l o f th e OSH A citations , bu t

tha t i t feel s it s interest s ar e bette r serve db y focusin g on improvin g workplac e safety , rathe r

.tha n by contestin g o r litigatin g th e difference s i t ma y hav e wit

h OSHA. Th e compan y sai dtha t

it ha s cooperate d full y wit h OSH A i n its'investigation , andtha t i t i s takin g appropriat e action s t o addres s th e condition s cited . Arc o sai dtha t

i t is . deepl y saddene db

y th e acciden t an dth e los s o

f life , an dtha i i t

wil l tak e al l step s necessar y tominimiz e th e ris k o f recurrence . I n OSHA' s statement , th e agenc y sai dtha i althoug h employee s o

f severa l contrac t firm s wer e onsit e a t

th e tim e o

f th e explo sion . Arc o maintaine dtota l contro l o f th e sit e an ddictate dth e workin g conditions . Therefore , OSH

A ha s hel dArco , rathe r tha n contrac t

management , responsibl e for " th e safety o

f thes e workers , an dcite dA f c o accordingly . Th e explosio n occurre da s employee s wer e reinstallin g avent

compresso r

o n th e sid e o

f a40-foo t tal l tan k containin g causti c wastew ater , includin g hydrocarbons . Th e blas t destroye dan are aroughl y th e

4J LP.-3 . 

### & 

# 1

holida y shutdow n couple dwit h th e nor mall y slo w tim e o f

th e season . Bu t

h e say s there' s onl y a60/4 0 chanc e tha t price s wil l remai n unchange dafte r Jan ; uar y 15 . H e predict s expande dcapacit y comin g o n strea malon g wit h slac k derivativ e market s wil l promp t th e pric e cuts . A developmen t

tha t support s thi s vie w i s Arc o Chemical Company' s reporte drestar t o f it s 1.4-billion poundstyren e facilit y a t Channelview , Tex . Productio n wa s los t a t tha t plan t du e t o an explosio n a t

it s wast e wate r facility bac k

i n July . I t i s als o reporte dtha t

Chevro n Chemical Compan y i s ahea do

f schedul e in th e start-u p o f it s ne w 9b6-milIibn-poundfacility a t St . James , La . "Chevro n ha s begu n t o fee d ethylen e an dbenzen e int o it s E B unit, " re port s th e source , althoug h addin g tha t styren e productio n probably , won' t begi n unti l mid : Feb"ruary_ . Becaus e o

f slac k end-us e markets , thes e addition s ar e expecte dt o driv e dow n operat in g rates . Onc e se t

abov e th e 10

0 percentile ^ productio n i s expecte dt o fal l noticeabl y t o aroun d9 0 percen t o f nameplate . While stil l astron g rat e o

f production , Mr . Knight predict s tha t

oversuppl y wil l rul e th e day . "Whe n there' s on e truc k

tha t can' t finda hom e i n th e commoditie s market , there' s a conditio n o

f oversupply, " h e says . However , wit

h margin s currentl y strong , 

### Alr.@fljfli-.TDe

j BUL KPRICE S I N DEC . 199 0

Benzen e gal . Cumen e lb . Cyclohexan e gal . Pheno l lb . Styren e lb . Toluen e gal . CONTRAC T (USS ) 1.5 0 _!5'/ i 1.502-1.55 2 .32Vi-q6J4_ _ .44Vj Xylenes , mixed.. . gal . 1.05 SPOT

. (USS ) 1.46-1.5 1 .25V! ! Jtom.,32-,3

4 M-M Nitra . .87-1.0 5 Comm . .83-.9 S .96-1.0 5 ther e i s roo mto shrink

profitability fo

r com petition' s sake . Accordin g t o Mr . Knight , wit h ethylbenz e stabl e an dwit h benzen e a t

$1.5 0 pe r gallo n for

December , styren e producer s commande da14_cen

t pe r poundmargi n ove r th e cos t o f production . I

f styren e wer e t o dro p t o aroun d4

0 cent s pe r

poundmid-month , Mr . Knigh t calculate s tha t

margin s wouldstil l remai n healthy , maintainin g a n approxi mat e 1 0 Vi cent s pe r

pound . Eventua l compe titio n wiJUJampe

n thes e numbers. . "Airsupplier s concede daconditio n o f overcapacit y an dwill b e ver y competitiv e i n response, " say s Mr . Knight . H e goe s on to ' predic t tha t margin s ma y sa g by th e en do f th e year tQiQjFUMttteJ»£j>EAfiiJ&i>ii A Continue d fro m Pag e 5

pro dproducer s t o lowe r

prices . Wit

h styren e capacit y comin g on strea move r there , price s hav e softened . Currently , wit h styren e sell in g fo r $800 ametri c ton , plu s an 88 0 freigh t charge , Gul

f Coas t producer s ar e lookin g a t 32-cent-per-poun dprice s t o remai n competi 

# i j pmm jmmumi WEE KENDIN G JAN . 4,199 0 

### GHAN@ . Non e 

### s/y p

Non e Th e Aromati c Organic s inde xreflect s th e price s o f 1 4 representativ e material s i n thi s secto ran d th e quantit yo f eac h produce d i n 1988 . Jan . 4, 199 1 241.0 1 Dec . 21, 199 0 241.0 1 Dec . 7,199 0 258.0 1 Jan . 5,199 0 228.1 7 Chemical

Prices Start on Page 32 tive . "S o far , producer s hav e bee n unwillin g t o sen dit. " note s a n observer .

DOUGLASLOFFRED O BT X —As aresul t

o f slo w marke t

de mand , benzen e contract s remai n unchange d fo r Januar y a t

$1.5 0 pe r gallon . Spo t

prices , als o maintainin g pre-holiday lackluste r lev els , continu e t o chec k

i n a t o r nea r contrac t prices . Wit h littl e variatio n throug h December , th e spo t i s reportedl y continuin g t o saddl e contrac t prices , rangin g fro m$1.4 9 t o $1.5 1 pe r gallon . Producer s see thi s stabilit y pre cipitate dby slo w deman dan dminima l trade r interest . Bu t whil e market s appea r

soft , price s hav e nevertheles s kep t

pac e wit h contracts . Fo r December , th e spot , a t

it s lowes t

poin t only sank t o $1.4 6 pe r

gallon . A t adifferenc e o

f 4c . of f th e contract , producer s continu e t o gaug e th e spo t a s ahealth y reflectio n o f contrac t prices . As aresul t

o f reforme r outpu t cutbacks , benzen e pricin g ha s remaine dstabl e an d toluen e ha s see n price s firm . Commercia l grad e toluen e i s pegge da t 90c . pe r gallon , up fro mapreviou s sprea dbetwee n 87c . an d88c . pe r gallon . Nitratio n grad e toluen e ha s als o fel t aresurgence , tradin g betwee n 91c . an d 94c . pe r gallon , up fro mapreviou s peak a t 91c . I n th e mixe dxylene s market , no confirme d contrac t pric e ha s been reported , bu t on e trade r puts th e spo t

i n astron g positio n be twee n 97c . an d98c . pe r

gallon . Decemb t 

# n MSJ P



# row mm mM qy m Fo rinformatio n an d pric e quote , call : Caro l Apuzz i 1-800-325-8888 . O rwrite : Caro l Apuzzi , Aromati c Fluorin e Intermedia l Mallinckrod t Specialt yChemical s Compan y P.O . Bo x5439 , St . Louis , M O 6314 7 PHONE : 314-539-121 4 FAX : 1-314-539-125 1



## MclNTYR E GROU P LTD

. ? t 100 0 GOVERNOR S HWY . o UNIVERSIT Y °QW* > °Q»OhJ*.'tt ^ 'P. 4

"Compan y i s aheado

f schedul e in th e start-u p o f it s ne w 900-million-poundfacility a t St . James , La . "Chevro n ha s begu n t o fee d ethylen e andbenzen e int o it s E B unit, " re port s th e source , althoug h addin g tha t styren e productio n probabl y won' t begi n un ti l mid-February . Becaus e o

f slac k end-us e markets , thes e addition s ar e expecte dt o driv e dow n operat in g rates . Once se t

abov e th e 10

0 percentile , productio n i s expecte dt o fal l noticeabl y t o aroun d9 0 percen t o f nameplate . While stil l astron g rat e o

f production , Mr . Knight predict s tha t

oversuppl y wil l rul e th e day . "Whe n there' s one truc k

tha t can' t finda home i n th e commoditie s market , there' s a conditio n o

f oversupply, " h e says . However , wit

h margin s currentl y strong , 

## i s /^©rWF. a BUL KPRICE S I N DEC . 199 0

Benzene gal . Cumen e lb . Cyclorieian e gal . Phenol lb . Styrene lb . Toluene gal . Xylenes , mixed...gal . CONTRAC T (USS) 1.5 0 _!5V i 1.502-1.55

2 -)2'A-36'/ i .4 4 V : 1.0 5 SPO

T (USS) 1.46-1-5 1 •25' A Dom..32-J 4 J6-.4 0 Nftra . .87-1.05 Comm . .S3-.9 5 .96-1.05 ther e i s roo mto shrink

profitability for

com petition' s sake . Accordin g t o Mr . Knight , wit h ethylbenz e stabl e an dwit h benzen e a t

$1.5 0 pe r gallo n fo r December , styren e producer s commande da1

4 cen t pe r poundmargi n ove r th e cos t o f production . I

f styren e wer e t o dro p to aroun d4

0 cent s pe r

poundmid-month , Mr . Knight calculate s tha t

margin s wouldstil l remai n healthy , maintainin g a n approxi mat e 10'/ 2 cent s pe r

pound . Eventua l compe titio n wil l dampe n thes e numbers . "Al l supplier s concede daconditio n o f overcapacit y an

dwill b e very competitiv e i n response, " say s Mr . Knight . He goe s on t o predic t tha t margin s may sa g b

y th e endo

f th e yea r to 2 or 3 cent s o f profitability . Los s o f oversea s expor t market s ma yals o 

# AaoaiAT.e s ...sa x Th e Aromati c Organic s inde xreflect s th e price s o f 1 4 representativ e material s i n thi s secto ran d th e quantit yo f eac h produce d i n 1988 . Jan . 4,199 1 241.0 1 Dec . 21,199 0 241.0 1 Dec . 7,199 0 258.0 1 Jan . 5,199 0 228.1 7 Chemical

Prices Start on Page 32 tive . "S o far , producer s hav e bee n unwillin g t o sen dit. " note s an observer . ^ DOUGLA S LOFFRED O BT X —A s aresul t

o f slo w marke t

de mand , benzen e contract s remai n unchange d fo r Januar y a t

$1.5 0 pe r gallon . Spot

prices , als o maintainin g pre-holiday lackluste r lev els , continu e t o chec k

i n a t o r nea r contrac t prices . Wit h littl e variatio n throug h December , th e spo t i s reportedl y continuin g t o saddl e contrac t prices , rangin g fro m$1.49 t o $1.5 1 pe r gallon . Producer s see thi s stabilit y pre cipitate db y slo w deman dan dminima l trade r interest . Bu t whil e market s appea r

soft , price s hav e nevertheles s kep t

pac e wit h contracts . Fo r December , th e spot , a t

it s lowes t

point only sank t o $1.4 6 pe r

gallon . A t adifferenc e o

f 4c . of f th e contract , producer s continu e t o gaug e th e spo t a s ahealth y reflectio n o f contrac t prices . As aresul t

o f reforme r outpu t cutbacks , benzen e pricin g ha s remaine dstabl e an d toluen e ha s see n price s firm . Commercia l grad e toluen e i s pegge da t 90c . pe r gallon , u p fromapreviou s sprea dbetwee n 87c . an d88c . pe r gallon . Nitratio n grad e toluen e ha s als o felt aresurgence , tradin g betwee n 91c . an d 94c . pe r gallon , u p fro mapreviou s peak

a t 91c . I n th e mixe dxylene s market , no confirme d contrac t pric e ha s bee n reported , bu t on e trade r puts th e spo t

i n astron g positio n be twee n 97c . an d98c . pe r

gallon . Decembe r contrac t price s wer e $1.0 5 pe r

gallon . CYCLOHEXAN

E - Du e t o unchange d 

# AROMATA

© ©fl@M ©

lllPOi^fi s @CT©

^ CENSU S BUREA

UREPORT S O N

THE KE YAROMATICS . OCTOBE R QUANTIT YS VALUE Anilin e kilo s Benzen e liter s Bisphenol- A kilo s Benzoi c aci d kilo s Chlorobenzen e kilo s Cresol s kilo s Cumen e kilo s Cyclohexan e kilo s o-Oichlorobenzen e kilo s p-Oichlorobenzen e kilo s Dimethy l terephthalat e kilo s Ethylbenzen e kilo s Fumari c aci d kilo s Isophthali c aci d kilo s Malei c anhydrid e kilo s Melamin e kilo s Naphthalen e kilo s Pheno l kilo s Phthali c anhydrid e kilo s Styren e monome r kilo s Toiuen e liter s Toluen e diisocyanat e kilo s Xylen e kilo s o-Jtylen e liter s •Xylen e liter s 1,819,62 6 96,514,98 1 7,302,13 9 872,32 6 1,800,52 8 4,740,71 2 17,715,76 0 812,50 6 929.33 6 4,404,00 0 27,412,12 0 90,36 4 530.65 5 1,396,68 8 1,977,15 3 110.90 6 -15,496,89 8 S 1,608.61 2 38,473.94 9 76,618.04 5 8,112,74 3 18,204,11 5 8,139.92 9 44,614,61 9 1,742.88 2

47,373,05 6 8,346.46 2 1,097,32 6 3.551,82 1 3,027,99 2 11,285.36 6 854,88 8 794,49 6 2.252.00 0 19,821.41 3 124,17 8 623.37 2 1,063,72 7 3,198.37 4 170,06 1 11,349,49 3 1.097.71 3 40,877.11 3 37.1.8,70 8 9,044,56 3 7.674,77 2 3,568.24 7 17,660.02 5 CUM . '9 0 CUM . '8 9

QUANTIT Y QUANTITY 4,703,42 1 374.631.00 0 216,336.06 3 57,863,41 7 35,983,11 0 8,499,80 8 8,070,40 9 11,692.34 0 14,208,10 8 153,508,79 4 3,769.02 9 10,944.32 7 49,314,35 7 89,594.21 5 1,463,91 2 6,675,19 3 8,722,66 2 17,393,37 2 1,435,83 9 107,765,50 0 23,826.52 8 333.138,64 2 194.240,56 8 48.595.82 6 104.656.66 6 55,362.82 6 315,251,64 9 46,399,83 9

157.219,42 7 4,512,87 5 7,969,19 6 77.259,84 7 50.041,75 9 1,712,26 1 3,916,49 8 11,583.80 1 5,865,76 9 B,8G1,51 8 70,959,62 1 _16.067.52 5 533.010,97 3 327,891,99 2 51,551,98 9 383.983.68 6 41,803.67 8 420.416,56 2 afe«Wte-i---W_eriBBffi ^ <* s W»*SE <o>*AAtr*fi

^V»v<!m£>, I .--.' J iiii'iiliiii; ^ 

# ©©mmeraa . qu i Fo rinformatio n an d pric e quote , call : Caro l Apuzz i 1-800-325-8888 . O rwrite : Caro l Apuzzi , Aromati c Fluorin e Intermed i Mallinckrod t Specialt yChemical s Compa r P.O . Bo x5439 , St . Louis , M O 6314 7 PHONE : 314-539-121 4 FAX : 1-314-539-125 1

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# MclNTYR E GROU P LTD. 

# m

100 0 GOVERNOR S HWY . o UNIVER !



# fo r persona ] quat c 

# amp ] ethoxylate da

r amini sulfos i fatty-a t alkan c Ou rtechnolog ymee t Shere xChemica l Company , Inc. , P.O . Bo x