Evening star., 1942-03-15
Chemical Production
Boosted by Vast
War Demand
Holds at Record Levels
Despite DisIoeotions
In Some Lines
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. Mar. 14.-Increased
production Of munitions and arma-
ments in this country and lease
lend shipments to Allied nations
have held chemical production at
record levels, despite dislocations
caused by the restricted use Of
chemicals in some lines, 1t is pointed
out In q survey just released by the
Standard IL Poor's Corp. As meas
ured by the chemical and metal
lurgical engineering index, industrial
consumption Of chemicals in Janu-
ary was slightly above that for De-
cember and about 10 per cent higher
than January, 1941.
The outlook for chemical demand
Is generally favorable, though sales
to some consumers. who have been
working at capacity for some time,
will show little further increase.
and business with some consumers
goods manufacturers will decline. Ex-
ports, which showed a good gain in
the first nine months of 1941 Qater
figures will not be reported, may
slacken moderately because OF the
increasingly difncult shipping situa-
ton.
New Demand Rises.
Shrinkage in sales to some mar
kets will be more than made up
by new demand resulting from the
increasing tempo of war materials
production. New plants. which will
soon be operating full time, will re-
quire huge amounts of many chemi-
Gals.
Chemicals for paints, varnishes,
lacquers, etc. will be in heavier de-
mand for protective coatings for the
rapidly expanding output Of ships,
tanks. military vehicles and air
planes.
Chemical companies will also sup
ply increasing quantities of materials
for plastics to be used as substitutes
for zinc. tin, and various types Of
steel in nonwar work. The chemi-
cal industry will supply large guam
titles Of ingredients for military ex-
plosives. Sales Of intermediates.
solvents and other processing chemi-
Gals will be bolstered by demand
from the synthetic rubber industry,
which Is now being sharply ex-
panded to offset the loss of natural
rubber
These new demands. together with
a continued high rate of consump-
tion in such major outlets as the
steel. rayon. paper, textile and glass
industries are expected to bring fur
ther gains In chemical sales during
coming months For the first half
Of 1912. chemical sales should be at
least IS per cent larger than in the
corresponding period OF l94l.
Priorities Extended.
Although production OF most
chemicals has been at virtual ca
pacity in recent months, the indus
try has been unable to keep pace
with the tremendous demand.
A long list Of chemical products
has been placed under mandatory
priorities to assure adequate sup
plies for military purposes Among
the most important chemicals now
controlled are the coal tar acids, in
cluding phenol and phthallic anhy-
bride: chlorine. ammonia. toluol
ethyl. butyl. methyl and isopropyl
alcohols and various related SOL
vents: acetic acid and acetic an
hydride and acetone. Others will
undoubtedly be added in the months
ahead.
New plant construction is ex-
pected to ease the supply situation
somewhat In the near future and
prevent critical shortages In all but
a few lines. For example. additional
producing capacity soon will be
ready for sulphuric. nitric and hy-
drochloric acids, for toluol. and for
intermediates used to make syn
thetic rubber.
Chlorine plant capacity will be
almost doubled this year and phenol
capacity will be expanded by about
80 per cent. AS part of the military
expansion program the Government
is financing construction which will
double the Nations ammonia pro-
ducing capacity. In addition, al
cohol output will be increased
sharply through conversion Of whis-
Ky distilling capacity.