Competitive conditions.

The commercial development and widespread application of surface coatings and finishes made from alkyd resins, in which phthalic anhydride and glycerin are the principal components, has resulted in a world-wide shortage of naphthalene, which is a raw material used in making phthalic anhydride. In recent years about one-half of domestic requirements of crude naphthalene have been imported (see table [46]) from Europe, principally Germany and the United Kingdom. Increased demand for the same purposes, in these countries, has so reduced the quantities available for export as to create a serious shortage in the United States. Germany placed an embargo on exports late in 1935 and continued it until late in 1937.

Table 46.—Crude naphthalene: United States production, imports, and apparent consumption in specified years

YearProduction1Imports2Apparent
consumption3
Percent
supplied by
imports
1,000 pounds1,000 pounds1,000 pounds
192353,32520,99274,31728
192753,6016,57760,17811
192939,26335,00774,27047
193120,93430,97151,90560
193213,59327,00240,59566
193330,62142,78673,40758
193437,92247,99585,91756
193547,65348,45596,10850
193689,53639,806129,34231
19374115,97952,664168,64331

1 From table [33].

2 From table [43].

3 Production plus imports.

4 Preliminary.

Vast quantities of naphthalene potentially available in this country were not recovered because of the low prices prevailing until 1936. Since then an increase in the price of crude naphthalene from 1.55 cents to 2.5 cents and 3 cents per pound has stimulated production and has led to additional recovery.