Synthetic resins and their raw materials / A survey of the types and uses of synthetic resins, the organization of the industry, and the trade in resins and raw materials, with particular references to factors essential to tariff consideration. Under the general provisions of section 332, title III, part II, Tariff act of 1930.

by United States Tariff Commission

Competitive conditions.

Before the World War our average annual consumption of phenol was 5 million pounds, of which about 80 percent was imported from Great Britain and Germany. These countries produced phenol in excess of their consumption, and phenol was on the free list in the United States.

In September 1916 phenol became dutiable. The demand was increasing rapidly because of the use of phenol in the manufacture of picric acid, an explosive. To meet the wartime demand at home and abroad large scale production of synthetic phenol sprang up in the United States. But the end of the war not only shut off the largest part of the demand but left the producers with large stocks on hand. The price dropped sharply and the production of synthetic phenol ceased.

Since 1922 there has been a gradually increasing demand for phenol in the United States, chiefly for use in the manufacture of synthetic resins, and production has increased to meet this demand as shown in table [66].

Table 66.—Phenol: United States production, imports, exports, and apparent consumption in specified years, 1918-37

[In thousands of pounds]
Year	Production1	Imports2	Exports3	Apparent consumption4
1918	106,794	285	6,478	(5)
1919	1,544	5	1,244	(5)
1923	3,311	372	233	3,450
1925	14,734	919	(6)	(7)
1926	8,691	220	(6)	(7)
1927	8,041	1	(6)	(7)
1928	10,227	2	(6)	(7)
1929	24,178	433	(6)	(7)
1930	21,147	1	(6)	(7)
1931	17,981	2	(6)	(7)
1932	13,965		(6)	(7)
1933	33,220	3	(6)	(7)
1934	44,935		2,623	42,312
1935	43,419	3	2,922	40,500
1936	48,724	71	1,258	47,537
1937	65,690	32	(6)	(7)

¹ From table [59].

² From tables [62] and [63].

³ From tables [64] and [65].

⁴ Production plus imports minus exports.

⁵ Not calculated because of importance of stocks on hand.

⁶ Not available.

⁷ Not available because of absence of export figures. Exports probably negligible up to 1929; substantial in 1933.

The manufacture of synthetic phenol was revived about 1923. Imports were quite small as compared with production, especially after 1927. At first this was probably due primarily to the protection given by the duty which had been increased in 1922.[22] But with the increase in volume of production in the United States the price decreased and since 1933 the United States producers have enjoyed a substantial export business. It may therefore be doubted that in recent years there would have been any substantial imports even if phenol had been free of duty.