DOMESTIC PRODUCTION. The production of zinc manufactures has been of slow growth, and up to 1914 was confined to two companies. When the European war removed German and Belgian competition, other concerns commenced to manufacture zinc goods, chielly sheet. No production statistics, other than those obtained by the War Trade Board in 1915, 1916, and 1917, have been published, because the operating companies considered the production data to be trade secrets and declined to furnish information which they feared might be used to their disadvantage. Raw materials.-Zinc slabs are used as raw material. It is important that the zinc be of good grade. A small percentage of lead is advantageous in zinc that is to be rolled, but all the other common impurities, e. g., cadmium, iron, arsenic, and antimony, detract from its value. Equipment. The domestic zinc-rolling machinery is all of home manufacture. More or less standard equipment is used everywhere. The foreign industry is as advanced as the domestic and foreign rolling-mill labor is skillful and efficient. Methods of manufacture.-Zinc may be rolled at a lower cost per unit of area than any other metal with the exception of iron and steel. Zinc is always rolled at a moderately high temperature (125° to 150° C.) so as to obtain the maximum ductility, but no annealing or pickling is required. The rolling mill is of standard pattern, similar to those used in the copper, brass, and steel industries. Male adult labor is used exclusively. The slab of zinc, heated to a suitable temperature, is passed through the rolls until the length of the plate is a little less than the width desired in the finished sheet. It is then turned 90° and cross rolled until the sheet is too long to handle or until it is deemed advantageous to cut. After cutting the unfinished sheet, the two halves are placed one on the other and rolled together, the operation being repeated until the desired gauge sheet is obtained. This process is in line with copper, nickel, steel, and brass rolling-mill practice, but differs considerably from the method used in rolling lead. Strips are rolled from a small bar and wound on reels, the process being practically continuous. Rolled plates are in fact unfinished sheets, and as they require less rolling they are sold at a lower price per pound. Organization. The production of zine manufactured products is in the hands of large zine smelting interests, and the rolling mills are always located close to the smelters, so as to save freight and all unnecessary handling. The capital outlay necessary for a zine rolling mill is heavy, and this fact tends to discourage small companies from entering the field. The capital invested in zine rolling plants is large, but no figures are available because the smelting industry is always carried on by the same companies, and at the same plants. The present zine rolling capacity in the United States is much greater than the domestic consumption, and unless the domestic industry is able to expand the domestic market or to hold the export business acquired during the war, some of the plants operating at present will be obliged to shut down. Geographical distribution.-The only States of importance in the production of zinc products are Illinois, Indiana, and Pennsylvania. History. The zine rolling industry was started over 40 years ago, but has been of slow growth, due to the limited market and to European competition. The abnormal export demand during the war caused a large increase in production, and present capacity and production are far in excess of the prewar domestic consumption. Domestic production and consumption.-Prior to the war the production of the domestic zinc manufacturing industry was equal, approximately, to the domestic consumption of zinc products. There was some material exported, but in general this was balanced, or nearly so, by the imports. The location of the zinc smelting and rolling centers behind the German lines caused the allied nations, early in the war, to turn to the United States for their supplies. The war demands played a large part in the market during 1914, 1915, and 1916, and at one time standard zinc sheet sold for 12 cents per pound more than the cast metal. The prewar price difference was about 2 cents per pound. EXPORTS. During the five years, 1910 to 1914, exports were valued at $639,951 and imports at $535,854. In 1912 the imports exceeded the exports, but in every other year the exports predominated. During the war the United States supplied practically all the domestic market and exported zinc products to the value of $19,938,557. The export peak of over $7,500,000 was reached in 1916. Exports have been somewhat less since that time. During 1919 (fiscal year) they totaled $6,580,914, of which $5,846,736 was in plates, sheets, and strips and the balance in miscellaneous products. Prior to the war Canada, Mexico, and Great Britain were our best customers. FOREIGN PRODUCTION. Germany and Belgium are the only foreign nations that normally export zinc in the manufactured forms. The other nations do not produce sufficient quantities to satisfy the domestic markets. IMPORTS. Prior to the war Belgium and Germany were the most important exporters of zinc products to the United States. The value of the imports was small and varied considerably from year to year. The largest volume of imports was in 1912, when zinc manufactures to the value of $300,000 were entered. During the war imports decreased to an insignificant value. In 1918 imports were $564 and during 1919, $7,339. PRICES. Prices of zinc sheets (the only product on which quotations are available) depend, normally, on the price of slab zine. Before the war sheets sold for 7 to 74 cents per pound, or a little more than 2 cents above the price of slab zinc. During the war the price of both slab and sheet zíne rose rapidly, the difference between the prices of the two forms increasing at the same time because of the scarcity of rolling-mill equipment. Early in 1917 the difference in price reached 12 cents per pound, spelter selling for 8 cents and sheets for 20 cents per pound, but prices have dropped steadily from this peak, and in June, 1919, the price of sheet zinc had decreased to about 10 cents per pound, or only 3 cents above the price of cast zinc. TARIFF HISTORY. Under the tariff act of 1883 zinc sheets were dutiable at 2 cents per pound, and pig zinc at 1 cents. The difference of 1 cent per pound was decreased to three-fourths cent in 1890, when zinc pigs were made dutiable at 14 cents per pound and sheets at 24 cents, and in 1894 to one-fourth cent per pound, when the duty on spelter was reduced to 1 cent per pound and on sheets to 14 cents. In 1897 the duty on pigs was increased to 14 cents per pound, and on sheets to 2 cents per pound. This difference of one-half cent per pound was lowered in 1909 to one-fourth cent per pound, the duty on pigs being cut to 13 cents and that on sheets to 13 cents per pound. In 1913 the rate was made the same-15 per cent ad valorem-on sheets and pigs. This was equivalent to a reduction in the duty on pig zinc to 0.9 cent per pound and on sheet zinc to 0.735 cent per pound, the value of pigs during 1914 being 4.9 cents per pound, and sheet zinc, 6.1 cents per pound. COMPETITIVE CONDITIONS. The location of a large part of the zinc rolling industry in Illinois and Indiana is favorable to the domestic industry, at least as far as the central market is concerned. Imported zinc products, in order to compete in that market, must be able to absorb the cost of transportation from New York or other Atlantic ports to the Middle West. This freight rate was about 35 cents per hundred pounds during 1920. In the northeastern and southeastern markets the domestic roller of sheet zinc is at a disadvantage because the domestic sheet must be shipped by rail from points in the Middle West, or from Pennsylvania, whereas the foreign sheet can be shipped direct by water to the nearest port of entry to the consumer. Prior to the war the foreign price of zinc was generally enough higher than the domestic price, less duty, to prevent the selling of foreign zine stocks smelted here in bond. There was considerable variation at times, but only for short periods.' Prewar wages in Germany and Belgium were much less than the domestic scale, and domestic labor in the zine industry was little if any more efficient than the foreign. There is no accurate means for determining how far the war wage increases and depreciated foreign currency have affected or will affect the foreign manufacturing cost, but during the last half of 1920 considerable quantities of this metal were imported and competed with domestic metal when the price was less than 6 cents per pound. The slump in prices abroad forced large sales of metal held for speculation purposes and the imports consisted of this material rather than new European consump tion. 1 See zine metal survey for details. TARIFF CONSIDERATIONS. The increase in value of zinc and zinc products during the war reased the duty per pound of metal. During February, 1920, th pig zinc selling at 9 cents and sheet zinc at 12 cents per pound, duty was 1.35 cents per pound on pigs and 1.8 cents per pound sheets. This is equal to the duty on pigs and greater than the ty on sheets, under the act of 1909. The prices of zinc slabs in January, 1921, is practically equal to at ruling during 1913. It is claimed that this is below present mestic cost of production but as demand is poor, present indicans point to decreased production costs rather than to higher ces as a basis for the resumption of productive activity. The 1921 quotation for sheet zinc is 11.5 cents per pound, or more an 4 cents above the price of slab zinc. This is excessive, and doubtedly substantial discounts can be obtained from this figure large orders. mufactures of zinc, plates, sheets, etc.-Zinc rolled in the United States, 1915-1919.1 1 Press bulletin, Department of the Interior, Geological Survey, March, 1920. |