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

United States production.

Crude naphthalene is produced in the United States by byproduct coke-oven operators, gas works that produce their own coal tar, and also by firms that purchase coal tar and distill it. Statistics of production by groups are shown in table [33].

Table 33.—Crude naphthalene: United States production, 1918-37

Year	By producers of tar			By purchasers of tar			Total production
	Quantity	Value	Unit value	Quantity	Value	Unit value	Quantity	Value	Unit value
	1,000 pounds		Per pound	1,000 pounds		Per pound	1,000 pounds		Per pound
1918				40,138	$1,281,440	$0.032	40,138	$1,281,440	$0.032
1919				12,612	327,201	.030	12,612	327,201	.026
1923	11,872	$201,824	$0,017	41,453	652,148	.016	53,325	853,972	.016
1925	9,239	92,389	.010	34,135	519,773	.015	43,374	612,162	.014
1926	7,747	100,709	.013	45,166	494,986	.011	52,913	595,695	.011
1927	8,303	91,331	.011	45,298	470,806	.010	53,601	562,137	.010
1928	112,182	146,186	.012	35,180	395,059	.011	47,362	541,245	.011
1929	119,761	316,182	.016	19,502	366,491	.020	39,263	682,673	.017
1930	112,640	151,681	.012	18,617	304,574	.020	31,257	456,255	.015
1931	17,623	76,229	.010	13,311	199,665	.015	20,934	275,894	.013
1932	14,632	41,690	.09	8,961	125,453	.014	13,593	167,143	.012
1933	16,618	66,181	.010	24,003	360,040	.015	30,621	426,221	.014
1934	110,743	139,665	.013	27,179	489,222	.018	37,922	628,887	.016
1935	112,937	168,185	.013	34,716	624,890	.018	47,653	793,075	.017
1936	137,552	600,836	.016	51,984	1,195,632	.023	89,536	1,796,468	.020
1937	160,797	1,215,942	.020	55,182	1,545,100	.028	115,979	2,667,522	.023

¹ Crude and refined. Refined naphthalene included here is probably small so that the figures here and those for total production are substantially accurate.

Source: Bureau of Mines and U.S. Tariff Commission.

Refined naphthalene is obtained from domestic crude, imported crude, and recently from petroleum cracking and hydrogenation. Table [34] shows the annual production and sales of refined naphthalene since 1916. The difference between the figures for the quantity produced and that sold represents the amount used by refiners in the manufacture of other products.

Table 34.—Refined naphthalene: United States production and sales, 1917-37

Year	Production			Sales
	Quantity	Value	Value	Quantity	Value	Value
	1,000 pounds	1,000 dollars	Per pound	1,000 pounds	1,000 dollars	Per pound
1917	35,343	2,334	$0.07
1918	28,112	2,163	.08
1919	17,625	1,161	.07
1920	30,231	2,309	.08
1921	13,554			13,183	741	$0.056
1922	17,420			14,060	794	.057
1923	28,184			21,871	1,271	.058
1924	15,324			11,961	603	.050
1925	17,581			12,508	610	.049
1926	18,072			12,456	576	.046
1927	21,233			(1)
1928	24,992			(1)
1929	31,144			21,120	1,027	.049
1930	31,956			20,171	949	.047
1931	34,959			21,260	829	.039
1932	25,825			18,877	783	.041
1933	42,708			28,658	1,065	.037
1934	38,730			21,257	1,100	.052
1935	46,564			28,761	1,212	.042
1936	52,694			30,499	1,841	.060
1937	52,194			29,657	1,893	.060

¹ Not publishable.

Source: Compiled from annual reports of the Tariff Commission on dyes and other synthetic organic chemicals in the United States.

Organization of the industry.—There are 10 domestic producers of crude naphthalene, operating 52 tar-distilling plants in the following States: Ohio (7), Pennsylvania (6), Illinois and New York (5 each), Alabama, Minnesota, and New Jersey (3 each), Missouri, Rhode Island, Wisconsin, Utah, West Virginia (2 each), and Michigan, Massachusetts, Maryland, Kentucky, Oregon, Connecticut, Tennessee, Indiana, Virginia, and Washington (1 each). Although these plants do not all recover naphthalene as such, they are equipped to recover a crude mixture of naphthalene and tar acids for shipment to a central extracting and refining plant. The principal producing plants are located in Pennsylvania (2), New Jersey (2), Illinois (1), Indiana (1), and West Virginia (1).

The purchasers of tar produced 77 percent of the total output of crude naphthalene in 1935 and 58 percent in 1936.

There are 8 producers of refined naphthalene located in the following States: New Jersey (3), Pennsylvania (2), California, Indiana, and Ohio (1 each).

Trend of production.—Although the United States is the largest producer of coal tar, the limited demand for the main products of tar distillation (creosote oil and pitch) has tended to restrict the amount distilled, thereby reducing the output of naphthalene and the tar acids to a point where the domestic output was not sufficient to meet our requirements. As a result, large quantities of these products have been imported. In 1936 we produced 560 million gallons of coal tar, containing from 400 million to 500 million pounds of naphthalene.[17] In the same year we distilled about 300 million gallons of tar, containing 230 million to 270 million pounds of naphthalene,[17] and our actual recovery of crude naphthalene was 89,536,000 pounds.

Early in 1935 the price of crude naphthalene was about 1.5 cents per pound or 15 cents per gallon, at which level there was little incentive to isolate it from the various fractions of tar distillation. Late in 1935 and in 1936 a serious shortage in naphthalene prevailed, largely because of increased demand by synthetic resin makers but also because of restrictions on exports from certain European countries. The price of the crude then advanced in domestic markets to from 2.5 to 3 cents per pound, with the demand greatly exceeding the supply. Between 1930 and 1936 the apparent consumption of crude naphthalene (production plus imports) increased from 59 million to 129 million pounds, or more than 100 percent. During the same period production increased from 31 million to 89 million pounds; and imports increased from 27 million pounds in 1930 to 48 million pounds in 1935 but declined to 40 million pounds in 1936.

Domestic producers of naphthalene are increasing their output, and they state that continued prices of 2.5 to 3 cents per pound for naphthalene solidifying at about 75° C. or slightly higher will stimulate production sufficiently to meet all present and near-future requirements. Estimates obtained in the summer of 1936 from the large tar distillers and a petroleum refiner indicate that production was appreciably greater in 1937 than in 1935. These estimates included the potential output of two new tar distillation plants under construction, the topping of large quantities of tar (hitherto used as fuel without removing any of the products), the recovery of appreciable quantities of naphthalene by several petroleum refiners, and increased output by other producers.

Imports of crude naphthalene in 1937 amounted to 52,664,277 pounds valued at $1,133,157, or 2.2 cents per pound.

World production.

The output of naphthalene in the principal producing countries, in 1933 and 1935, is shown in table [35]. Most of these statistics were estimated from the output of tar or of other distillation products given in official reports of the countries or in consular reports.

The figures in table [35] indicate that the output in 1935 was an increase of about 100 million pounds over 1933 or 41 percent. Notwithstanding this sharp increase in world production, consumers had difficulty in obtaining their requirements. It is believed that the world output in 1937 substantially exceeded that in 1935.

Table 35.—Naphthalene (all grades): World production, by countries, 1933 and 1935

[In thousands of pounds]
Country	1933	1935
Germany	109,148	145,530
Great Britain	45,750	155,000
UNITED STATES	30,620	47,653
France	30,000	133,000
Netherlands	115,000	115,000
Belgium	11,025	125,000
Czechoslovakia	6,835	10,805
U. S. S. R.	110,000	115,000
Poland	15,000	18,000
Spain	11,250	12,000
Italy	12,500	13,000
Canada	12,000	13,000
Total	269,128	362,988

¹ Estimated.

Source: Official statistics of the several countries and consular reports.

Germany.—Germany is the largest producer of naphthalene and the third largest producer of coal tar. With increased production of coal tar and intensive efforts to recover the maximum of naphthalene there has been a larger output of naphthalene in recent years, but increased consumption has created a scarcity in Germany as in all other important producing countries. As a result, greatly reduced quantities are available for export, a situation that is in marked contrast to earlier periods when superabundant production created a marketing problem. The manufacture of phthalic anhydride for alkyd resins is requiring increased quantities of naphthalene.

The demand for alkyd resins has been given a marked impetus by the development of a new standardized linseed oil varnish substitute known as El Varnish, the use of which is required by the Control Board for Industrial Fats in Germany for certain interior and exterior painting (see p. [77]). Increased requirements for other important purposes such as intermediates, dyes, black pigments, and explosives have also contributed to the scarcity of naphthalene. In order to conserve domestic supplies, the Reich Government, from December 1935 until late in 1937 prohibited its export without special permit. The prospect of continued strong domestic demand apparently will curtail for an indefinite period the quantities available for export.

The international scarcity of naphthalene resulted in a sharp increase in its price in Germany as elsewhere. The export embargo augmented the domestic German supply, although a shortage still existed and large consumers found it difficult to secure adequate amounts. The shortage of foreign exchange greatly curtailed imports of naphthalene from nearby countries.

The German Government issued a decree requiring that beginning July 1, 1936, the entire national output of coal tar should be delivered to plants equipped for the recovery of tar products distilling up to 240° C. (naphthalene boils at 218° C.). This measure assured maximum recovery of benzol, toluol, xylol, solvent naphtha, phenol, cresol, xylenol, other tar acids, and naphthalene. The decree contemplated an official list of distillation units, and all tar producers were required to report to the official trade control board for mineral oil their monthly output, quantities distilled, and quantities delivered to other distillation plants.

German production, imports, exports, and apparent consumption of naphthalene are shown in table [36]. Production increased from 108 million pounds in 1928 to 146 million pounds in 1935; imports decreased from 9 to 4 million pounds; exports decreased from 48 to 22 million pounds; and apparent consumption increased from 69 to 128 million pounds in the same years.

Table 36.—Naphthalene: German production, imports, exports, and apparent consumption, 1928-37

[In thousands of pounds]
Year	Production	Imports	Exports	Apparent consumption1
1928	108,173	9,471	48,332	69,312
1929	124,362	8,032	39,739	92,655
1930	103,194	3,892	34,614	72,472
1931	92,169	2,403	39,077	55,495
1932	90,626	952	29,720	61,852
1933	109,148	7,483	31,842	84,783
1934	132,300	8,641	35,044	105,891
1935	145,530	4,246	22,169	127,603
1936	(2)	493	8,153	(2)
1937	(2)	33	24,966	(2)

¹ Production plus imports, minus exports.

² Not available.

Sources: Consular reports (production); Der auswartige Handel (imports and exports).

Imports of naphthalene into Germany in past years have been supplied by nearby countries, notably the Saar (which became an integral part of Germany in February 1935), Belgium, Czechoslovakia, Poland, the Soviet Union, and others. The United States has been the most important foreign market for German naphthalene, taking from 50 to 75 percent of the total quantity exported. Other important buyers were Belgium, Italy, Japan, and France. Table [92] (see p. [144]) shows the quantity and value of imports and exports by countries in recent years.

Great Britain.—The recovery and distillation of coal tar in Great Britain is highly developed. The annual output of tar, principally gas-works tar, is somewhat smaller than in the United States, although the quantities distilled for the recovery of separate components exceed the quantities distilled in the United States. In 1935 the tar distilled in England and Wales totaled 330 million gallons and in Scotland, 31 million gallons, or a combined total of 361 million gallons as compared with about 280 million distilled in this country.

Production of naphthalene in Great Britain is shown in table [37].

Table 37.—Naphthalene: Production in Great Britain, in specified years

Year	Production
	1,000 pounds
1924	13,730
1930	41,400
1933	45,750
19351	55,000
19361	70,000

¹ Estimated.

Source: Consular reports.

Table [38] shows exports of naphthalene from Great Britain in recent years. The United States has been the best customer, in most recent years taking 50 percent or more of the total exported. Our imports from Great Britain have been entirely crude naphthalene, duty-free.

Imports of naphthalene into Great Britain are not shown separately in official statistics. It is known that the Netherlands exported small quantities to Great Britain in 1929 and 1933.

Table 38.—Naphthalene: Exports from the United Kingdom

Year	Quantity		Value
	To all countries	To United States	To all countries		To United States
			Pounds sterling	Dollars1	Pounds sterling	Dollars1
	1,000 pounds	1,000 pounds
1928	5,132	(2)	20,607	100,278	(2)	(2)
1929	9,185	4,312	32,348	157,110	12,558	60,993
1932	11,132	7,514	26,869	94,205	14,274	50,046
1933	14,718	10,480	38,172	161,728	19,604	83,059
1934	11,955	6,492	35,226	177,514	13,025	65,637
1935	14,490	7,999	49,939	244,789	18,413	90,256
1936	26,332	13,412	120,372	598,357	46,158	229,447

¹ Conversion to dollars at annual average quotations of the Federal Reserve Board.

² Not available.

Source: The Trade of the United Kingdom, 1929 and 1936.

Belgium.—The distillation of coal tar is one of the oldest and most important branches of the Belgian chemical industry. Approximately 90 batteries of byproduct-coke ovens, with a total of 3,000 ovens are in operation. Practically all of the coal tar produced in these operations is distilled for the recovery of the several products. The output of naphthalene is shown in table [39].

Table 39.—Naphthalene: Belgian production, 1928-35

Year	Quantity
	1,000 pounds
1928	26,000
1929	26,500
1930	24,200
1931	22,000
1933	12,000
19351	25,000

¹ Estimated.

Source: Consular reports.

Belgian imports and exports of naphthalene, by countries, are shown in tables [93] and [94] (see pp. [146], [147]). Belgium is a net importer of crude naphthalene and a net exporter of refined naphthalene. In 1937, it imported 9 million pounds and exported 6.7 million of crude; it imported only 19 thousand pounds and exported 14 million pounds of refined.

Czechoslovakia.—The annual output of naphthalene in Czechoslovakia is shown in table [40].

Table 40.—Naphthalene: Czechoslovak production, in specified years, 1928-35

Year	Quantity
	1,000 pounds
1928	5,733
1930	6,174
1931	2,205
1932	1,543
1933	6,835
1934	9,040
1935	10,805

Source: Consular reports.

France.—Naphthalene is produced in France by a number of manufacturers, most of whom consume their production in their own factories. The French output is said to be insufficient to meet domestic requirements. Estimated production is given as approximately 30 million pounds annually. Appreciable quantities are imported from nearby countries. Imports from Belgium in recent years average between 1 million and 3 million pounds.

Poland.—Production of crude naphthalene in Poland is shown in table [41].

Table 41.—Crude naphthalene: Polish production, 1928-36

Year	Quantity
	1,000 pounds
1928	4,708
1929	5,257
1930	3,925
1931	3,486
1932	3,704
1933	4,795
1934	7,705
1935	5,021
1936	2,836

Source: Consular reports.

The Netherlands.—Statistics of production are not available. Exports in recent years, however, have averaged about 10 million pounds annually. It is believed that the production of crude naphthalene exceeds 15 million pounds a year.

Table [95] (see p. [148]) shows Netherland imports and exports of naphthalene by countries in recent years. Imports in 1937 amounted to 2 million pounds and exports to 15 million pounds.

Canada.—Statistics of production are not available. The annual output of crude naphthalene is estimated at 2 to 3 million pounds.

Imports of refined naphthalene are usually about 1 million pounds (see table [96], p. [150]). Exports are probably small, although in 1929 and 1934 those to the United States alone were over 1 million pounds.

The Soviet Union.—Statistics of production of naphthalene in the Soviet Union are not available. The annual output has been estimated at 10 million pounds in 1933 and 15 million pounds in 1935. Exports have increased substantially in recent years, those to the United States from 1 million pounds in 1934 to 6 million pounds in 1935. Exports to Germany were 361 thousand pounds in 1933; 1 million pounds in 1934; and 531 thousand pounds in 1935.

Japan.—Japanese production of naphthalene has been small compared with the output of other tar products. The output of crude naphthalene in 1934 was reported to have been 381 thousand pounds. Expansion of the byproduct coking industry in Japan and Manchuria has increased the production of coal tar, byproduct ammonia, and benzol. Japan has imported large quantities of naphthalene in recent years, principally from Germany and Belgium. The increased consumption in Europe may so reduce supplies from these sources as to cause Japan to increase the recovery at home.

Japanese imports of naphthalene from principal sources, are shown in table [97] (see p. [150]). In 1936, 12.6 million pounds were imported.