P.1 

OAR Box 1872 

Prepped by Keeia Richards 

Document Number: 

4) 11-1-53 

Docket Number: 

A-90-19 

Printed 11/26/2008 8:51:46 AM Sheet 4 of 204 
P.2 

A-90-1 

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alues of their buying decisions on a company's 

:r US environmental record, 

envi- "There are less obvious, but no less impora- portant economic consequences associlental ated with a company's environmental 

tij-ew performance," Mr. Quanstrom said. 

"Polluters risk destroying the morale 

• iron- of their employees, with a resulting deteer R. rioration in job performance. And such 

-.omic organizations will find it increasingly difevere ficult to attract new employees. Simionst- larly, investors are evaluating not only a 

company's balance sheet, but are weighis the ing its environmental record as well. 

Ji-es," "There is also a moral component," Mr. 

.: the Quanstrom said. "No individual or organiEngi- "zation has the right to deny others the 

inheritance of pure water, clean airvand 

. poll uncontaminated land. ^«-<^% V\V * 

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last 

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ents 

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that 

s. In 

eat-

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:PO 

and 

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ifeiullivan. Health*andjfaman Services Secretary. 

EPO's abiliVio elevate or maintain red 

blood cell level production and to reduce the 

need for transfusions in the treatment of anemia associated with chronic renal failure led 

to its approval for that indication in June 

1989. 

While the protein was being investigated 

for an AIDS indication. FDA in June 1989 

permitted the drug to be made widely available io patients on AZT through a "treatment 

IND" protocol. 

That is an FDA program that allows patients suffering from serious or life-threatening conditions to receive experimental drugs 

that have shown significant promise. 

Last week's approval of EPO was based on 

data from clinical studies involving 297 AIDS 

patients who had experienced severe anemia 

from AZT. 

Placebo-controlled trials in 118 of these 

patients who had low EPO levels resulted in a 

40 percent reduction in transfusions for patients treated with the protein during a three 

month period. 

It was concluded that patients with relatively low levels of naturally-occurring EPO 

may benefit from this new treatment. 

Very few adverse side effects have been 

associated with the use of EPO for this indication, according to FDA. The most freContinued on Page 18 

Although feedstock costs remain un- ' 

changed into January, a number of observers believe the styrene contract 

price may face cuts by mid-month. 

While coming in for the second month at 

44 V2 cents per pound, styrene contract 

prices nevertheless are vulnerable to an 

eventual drive to meet spot prices between 35 and 36 cents.. 

Producers, while looking to maintain fay-

'orable pricing spread.?, are. sitting tight. 

In pointing to stable benzene pricing, 

styrene producers look for continued styrene 

pricing at current levels. Styrene contracts 

have been left unchanged from December to 

January following an unchanged benzene 

contract at $1.50 per gallon. 

One producer notes that with inventories 

below historic levels, the logic follows that 

pricing should remain firm. But with 1990 

finishing out with spot prices below contract 

levels for the first time in the year, it is felt 

that there is no way producers will be able to 

maintain such a glaring cost difference. 

"So far there has not been enough orders to 

make an impact," says Houston-based 

CJMAI'S Steve Knight referring to the probability that large-order consumers had been 

working off inventories over the holiday 

break. "Consumers haven't yet been hammering for lower prices." 

. Mr. Knight estimates that producers will 

be able to hold off any price reduction at least 

for the first half of the month because of the 

Continued on Page 13 

STYRENE PLANT: Hoechst at Bay-town, new capacity coming on stream is expected to weaken 

the price structure of the monomer's market. 

advantages, only a handful of US manufacturers used the process before t ^ fjnrinp

 "f 

Arco Chemical Company has agreed 

to pay $3.48 million in fines as part of a 

settlement agreement with Occupational Safety and Health Administration 

for alleged workplace violations connected to the explosion and fire at Arco's 

Channelview, Tex., facility last July, 

which resulted in the deaths of 17 workers. 

The fine is the largest dollar-amount settlement in OSHA's history, and it represents 

$10,000 each for 347 alleged willful violation 

plus $11,300 for 15 alleged serious violations. 

Acting Secretary of Labor Roderick DeArment said, "In addition to Arco's willingness 

to pay the full $3,481,300 in penalties proposed by OSHA, the company has agreed to 

institute corporate-wide corrective action 

which certainly indicates determination by 

the'eompany to do its utmost to prevent any 

similar disasters." 

Arco agreed to correct conditions which 

could lead to similar incidents, at Channelview; Bayport, Tex.; Pittsburgh, Pa.; and 

Painesville. Ohio. 

In agreeing to the settlement. Arco stated 

that it does not agree with all of the OSHA 

citations, but that it feels its interests are 

better served by focusing on improving 

workplace safety, rather .than by contesting 

or litigating the differences it may have with 

OSHA. 

The company said that it has cooperated 

fully with OSHA in its'investigation, and that 

it is taking appropriate actions to address the 

conditions cited. 

Arco said that it is. deeply saddened by the 

accident and the loss of life, and thai it will 

take all steps necessary tominimize the risk 

of recurrence. 

In OSHA's statement, the agency said thai 

although employees of several contract 

firms were onsite at the time of the explosion. Arco maintained total control of the site 

and dictated the working conditions. 

Therefore, OSHA has held Arco, rather 

than contract management, responsible for 

" the safety of these workers, and cited Af co 

accordingly. 

The explosion occurred as employees were 

reinstalling a vent compressor on the side of 

a 40-foot tall tank containing caustic wastewater, including hydrocarbons. 

The blast destroyed an area roughly the 

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P.-3. 

& 

1 

holiday shutdown coupled with the normally slow time of the season. But he 

says there's only a 60/40 chance that 

prices will remain unchanged after Jan; 

uary 15. He predicts expanded capacity 

coming on stream along with slack 

derivative markets will prompt the 

price cuts. 

A development that supports this view is 

Arco Chemical Company's reported restart 

of its 1.4-billion pound styrene facility at 

Channelview, Tex. Production was lost at 

that plant due to an explosion at its waste 

water facility back in July. 

It is also reported that Chevron Chemical 

Company is ahead of schedule in the start-up 

of its new 9b6-milIibn-pound facility at St. 

James, La. "Chevron has begun to feed 

ethylene and benzene into its EB unit," reports the source, although adding that 

styrene production probably, won't begin until mid:

Feb"ruary_. 

Because of slack end-use markets, these 

additions are expected to drive down operating rates. Once set above the 100 percentile^ 

production is expected to fall noticeably to 

around 90 percent of nameplate. 

While still a strong rate of production, Mr. 

Knight predicts that oversupply will rule the 

day. "When there's one truck that can't find a 

home in the commodities market, there's a 

condition of oversupply," he says. 

However, with margins currently strong, 

Alr.@fljfli-.TDej 

BULK PRICES IN DEC. 1990 

Benzene gal. 

Cumene lb. 

Cyclohexane gal. 

Phenol lb. 

Styrene lb. 

Toluene gal. 

CONTRACT 

(USS) 

1.50 

_!5'/i 

1.502-1.552 

.32Vi-q6J4__ 

.44Vj 

Xylenes, mixed... gal. 1.05 

SPOT 

. (USS) 

1.46-1.51 

.25V!! 

Jtom.,32-,34 

M-M 

Nitra. .87-1.05 

Comm. .83-.9S 

.96-1.05 

there is room to shrink profitability for competition's sake. According to Mr. Knight, with 

ethylbenze stable and with benzene at $1.50 

per gallon for December, styrene producers 

commanded a 14_cent per pound margin over 

the cost of production. If styrene were to drop 

to around 40 cents per pound mid-month, Mr. 

Knight calculates that margins would still 

remain healthy, maintaining an approximate 10 Vi cents per pound. Eventual competition wiJUJampen these numbers.. 

"Airsuppliers conceded a condition of 

overcapacity and will be very competitive in 

response," says Mr. Knight. He goes on to' 

predict that margins may sag by the end of 

the year tQiQjFUMttteJ»£j>EAfiiJ&i>iiA 

Continued from Page 5 

prod producers to lower prices. With styrene 

capacity coming on stream over there, prices 

have softened. Currently, with styrene selling for $800 a metric ton, plus an 880 freight 

charge, Gulf Coast producers are looking at 

32-cent-per-pound prices to remain competiij pmm jmmumi 

WEEK ENDING JAN. 4,1990 

GHAN@. 

None 

s/yp 

None 

The Aromatic Organics index reflects 

the prices of 14 representative materials 

in this sector and the quantity of each 

produced in 1988. 

Jan. 4,1991 241.01 

Dec. 21,1990 241.01 

Dec. 7,1990 258.01 

Jan. 5,1990 228.17 

Chemical Prices Start on Page 32 

tive. "So far, producers have been unwilling 

to send it." notes an observer. 

DOUGLASLOFFREDO 

BTX — As a result of slow market demand, benzene contracts remain unchanged 

for January at $1.50 per gallon. Spot prices, 

also maintaining pre-holiday lackluster levels, continue to check in at or near contract 

prices. 

With little variation through December, 

the spot is reportedly continuing to saddle 

contract prices, ranging from $1.49 to $1.51 

per gallon. Producers see this stability precipitated by slow demand and minimal 

trader interest. 

But while markets appear soft, prices have 

nevertheless kept pace with contracts. For 

December, the spot, at its lowest point only 

sank to $1.46 per gallon. At a difference of 4c. 

off the contract, producers continue to gauge 

the spot as a healthy reflection of contract 

prices. 

As a result of reformer output cutbacks, 

benzene pricing has remained stable and 

toluene has seen prices firm. Commercial 

grade toluene is pegged at 90c. per gallon, up 

from a previous spread between 87c. and 88c. 

per gallon. Nitration grade toluene has also 

felt a resurgence, trading between 91c. and 

94c. per gallon, up from a previous peak at 

91c. 

In the mixed xylenes market, no confirmed 

contract price has been reported, but one 

trader puts the spot in a strong position between 97c. and 98c. per gallon. Decembt 

n 

MSJP 

row mm 

mM qy m 

For information and price quote, call: 

Carol Apuzzi 1-800-325-8888. Or write: 

Carol Apuzzi, Aromatic Fluorine Intermedial 

Mallinckrodt Specialty Chemicals Company 

P.O. Box 5439, St. Louis, MO 63147 

PHONE: 314-539-1214 

FAX: 1-314-539-1251 

MclNTYRE 

GROUP LTD. 

? t 

1000 GOVERNORS HWY. o UNIVERSITY 

°QW*> °Q»OhJ*.'tt ^ ' 
P.4 

"Company is ahead of schedule in the start-up 

of its new 900-million-pound facility at St. 

James, La. "Chevron has begun to feed 

ethylene and benzene into its EB unit," reports the source, although adding that 

styrene production probably won't begin until mid-February. 

Because of slack end-use markets, these 

additions are expected to drive down operating rates. Once set above the 100 percentile, 

production is expected to fall noticeably to 

around 90 percent of nameplate. 

While still a strong rate of production, Mr. 

Knight predicts that oversupply will rule the 

day. "When there's one truck that can't find a 

home in the commodities market, there's a 

condition of oversupply," he says. 

However, with margins currently strong, 

is /^©rWF.a 

BULK PRICES IN DEC. 1990 

Benzene gal. 

Cumene lb. 

Cyclorieiane gal. 

Phenol lb. 

Styrene lb. 

Toluene gal. 

Xylenes, mixed...gal. 

CONTRACT 

(USS) 

1.50 

_!5Vi 

1.502-1.552 

-)2'A-36'/i 

.44 V: 

1.05 

SPOT 

(USS) 

1.46-1-51 

•25'A 

Dom..32-J4 

J6-.40 

Nftra. .87-1.05 

Comm. .S3-.95 

.96-1.05 

there is room to shrink profitability for competition's sake. According to Mr. Knight, with 

ethylbenze stable and with benzene at $1.50 

per gallon for December, styrene producers 

commanded a 14 cent per pound margin over 

the cost of production. If styrene were to drop 

to around 40 cents per pound mid-month, Mr. 

Knight calculates that margins would still 

remain healthy, maintaining an approximate 10'/2 cents per pound. Eventual competition will dampen these numbers. 

"All suppliers conceded a condition of 

overcapacity and will be very competitive in 

response," says Mr. Knight. He goes on to 

predict that margins may sag by the end of 

the year to 2 or 3 cents of profitability. 

Loss of overseas export markets may also 

AaoaiAT.es ...sax 

The Aromatic Organics index reflects 

the prices of 14 representative materials 

in this sector and the quantity of each 

produced in 1988. 

Jan. 4,1991 241.01 

Dec. 21,1990 241.01 

Dec. 7,1990 258.01 

Jan. 5,1990 228.17 

Chemical Prices Start on Page 32 

tive. "So far, producers have been unwilling 

to send it." notes an observer. 

^ DOUGLAS LOFFREDO 

BTX — As a result of slow market demand, benzene contracts remain unchanged 

for January at $1.50 per gallon. Spot prices, 

also maintaining pre-holiday lackluster levels, continue to check in at or near contract 

prices. 

With little variation through December, 

the spot is reportedly continuing to saddle 

contract prices, ranging from $1.49 to $1.51 

per gallon. Producers see this stability precipitated by slow demand and minimal 

trader interest. 

But while markets appear soft, prices have 

nevertheless kept pace with contracts. For 

December, the spot, at its lowest point only 

sank to $1.46 per gallon. At a difference of 4c. 

off the contract, producers continue to gauge 

the spot as a healthy reflection of contract 

prices. 

As a result of reformer output cutbacks, 

benzene pricing has remained stable and 

toluene has seen prices firm. Commercial 

grade toluene is pegged at 90c. per gallon, up 

from a previous spread between 87c. and 88c. 

per gallon. Nitration grade toluene has also 

felt a resurgence, trading between 91c. and 

94c. per gallon, up from a previous peak at 

91c. 

In the mixed xylenes market, no confirmed 

contract price has been reported, but one 

trader puts the spot in a strong position between 97c. and 98c. per gallon. December 

contract prices were $1.05 per gallon. 

CYCLOHEXANE - Due to unchanged 

AROMATA© ©fl@M© lllPOi^fis @CT©^ 

CENSUS BUREAU REPORTS ON THE KEY AROMATICS. 

OCTOBER 

QUANTITY S VALUE 

Aniline kilos 

Benzene liters 

Bisphenol-A kilos 

Benzoic acid kilos 

Chlorobenzene kilos 

Cresols kilos 

Cumene kilos 

Cyclohexane kilos 

o-Oichlorobenzene kilos 

p-Oichlorobenzene kilos 

Dimethyl terephthalate kilos 

Ethylbenzene kilos 

Fumaric acid kilos 

Isophthalic acid kilos 

Maleic anhydride kilos 

Melamine kilos 

Naphthalene kilos 

Phenol kilos 

Phthalic anhydride kilos 

Styrene monomer kilos 

Toiuene liters 

Toluene diisocyanate kilos 

Xylene kilos 

o-Jtylene liters 

•Xylene liters 

1,819,626 

96,514,981 

7,302,139 

872,326 

1,800,528 

4,740,712 

17,715,760 

812,506 

929.336 

4,404,000 

27,412,120 

90,364 

530.655 

1,396,688 

1,977,153 

110.906 

-15,496,898 

S 1,608.612 

38,473.949 

76,618.045 

8,112,743 

18,204,115 

8,139.929 

44,614,619 

1,742.882 

47,373,056 

8,346.462 

1,097,326 

3.551,821 

3,027,992 

11,285.366 

854,888 

794,496 

2.252.000 

19,821.413 

124,178 

623.372 

1,063,727 

3,198.374 

170,061 

11,349,493 

1.097.713 

40,877.113 

37.1.8,708 

9,044,563 

7.674,772 

3,568.247 

17,660.025 

CUM. '90 CUM. '89 

QUANTITY QUANTITY 

4,703,421 

374.631.000 216,336.063 

57,863,417 35,983,110 

8,499,808 8,070,409 

11,692.340 

14,208,108 

153,508,794 

3,769.029 

10,944.327 

49,314,357 

89,594.215 

1,463,912 

6,675,193 

8,722,662 

17,393,372 

1,435,839 

107,765,500 

23,826.528 

333.138,642 

194.240,568 

48.595.826 

104.656.666 

55,362.826 

315,251,649 

46,399,839 

157.219,427 

4,512,875 

7,969,196 

77.259,847 

50.041,759 

1,712,261 

3,916,498 

11,583.801 

5,865,769 

B,8G1,518 

70,959,621 

_16.067.525 

533.010,973 

327,891,992 

51,551,989 

383.983.686 

41,803.678 

420.416,562 

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iiii'iiliiii;^ 

©©mmeraa. qui 

For information and price quote, call: 

Carol Apuzzi 1-800-325-8888. Or write: 

Carol Apuzzi, Aromatic Fluorine Intermedi 

Mallinckrodt Specialty Chemicals Compar 

P.O. Box 5439, St. Louis, MO 63147 

PHONE: 314-539-1214 

FAX: 1-314-539-1251 

•Qr° QC^J V ftpo *> G&*^Q?|QX7 5 -QPC9* •gfcQwfO-.1 o,J'cQ cT 

MclNTYRE 

GROUP LTD. 

m 

1000 GOVERNORS HWY. o UNIVER! 

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ethoxylated ar 

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fatty-at 

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Our technology meet 

Sherex Chemical Company, Inc., P.O. Box