Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-25
RAYON PRODUCERS
PLAN EXPANSIONS
Untitled Orders Large at Do
mestic Plants and Best
Quarter Is Expected.
BY ]. G.. ROYLE.

Special Dispatch TO The star.
NEW YORK. February 25:-The
rayon yarn producers Of the United
States today are working at the ni2nesc
rate Of production ever known In tne
industry Indications point inevitably
to the finest quarter the industry mas
ever known. The majority OF the rayon
producers have sold their entire out
put for the next two months and de-
mand is still expanding. Untitled
orders on the books are considerably
larger than a year ago. This has re-
suited in advances in the spot yarn
market. with dealers reported TO be
asking premiums of 2iz to 5 cents
pound on certain grades. Rayon waste
also has advanced in price.
The trade began 1923 with 10000 900
pounds less rayon on hand than year
previous. OF course, manufacturers
have announced their prices for the
quarter and these will not be changed,
but the sellers in the middle market
are in a position to demand premiums
This would indicate that prices will be
exceptionally firm both for manufac-
turers and In the spot market through
out the entire first half Of 1923.
Improvement Is Startling.
The improvement in the use of rayon
has been almost startling There was
about 100000 pounds consumed II
1920. By 1924 this consumption had
advanced to 335l0.000. In 1928 il
reached 51.098,990 pounds. in 1925
63356,O00 pounds and in 1927 IS, 600. 900
pounds. Unless there Is striking re-
action in the demand for rayon warns
1923 will see over 90.000.000 pounds 0:
rayon consumed. This was all doresti-
cally produced yarns. In addition
l6-2i1.160 pounds Of foreign rayon vas
imported With the imports to com"
in this year total consumption will
probably reach $4,000 900 pounds.
The effect of this terrific demand was
illustrated By the startling advance i.
the shares OF Courtaulds. Ltd, which
threw the London Stock Exchange into
furore this week upon an overnight. an
nouncement OF 10000 600 bonus tor
shareholders. This was also reflected in
the American markets where the stock Is
listed. Courtaulds. although essentially a
British company. obtained its main
benefits from the United States. since
il controls the ViscoSe Co. OF America,
which accounts for about so per cent
of the total United States production
Of the fiber. This latter company now
is oversold on its March and April cut
put.
Other Producers Expanding.
Other American producers are ex-
banding as fast as plants can be built
The Gu Pont Rayon Co. which IS
entirely controlled By the e I. 6u Pon..
de Nerlours & Co. Inc, began produc-
ton in 1921 and now ranks as the SEC
ond largest domestic producer. with ar
output Of 100000 pounds in 1927.
In 1928 It will turn out approximately
l9 900 900 pounds
The Tubize Artificial Silk Co. is plan
ming in 1928 a production of above
5000 900 pounds.
The Celanez Corporation Of America
does not make viscose fiber but confines
! itself TO the production OF ce.i1lose
acetate.
The Industrial Rayon Corporation Is
also expanding its output and plans a
huge factory some place IN the South.
which Will mean the doubling Of its
capacity.