CHEMICAL AND ENGINEERING

NEWS the newsmagazine off the chemical world VOLUME 36, NUMBER 7 | FEBRUARY 17, 1958

Domestic U r e a Capaci ty Spurts A g a i n Thousands o f Tons

300 ^ΜΦφψ^^^^0^ί&^Μ-

1956 1957 1958 (e$t.) 1959 (est.} 1960

A n d Use T h r o u g h o u t t h e W o r l d Soars , Too Thousands o f Metr ic Tons o f N i t r ogen

r r 1 1 r~-—ι— Source: British Suïpîiate of Ammonia Federation

1948 Î950

Urea Booms Anew Expansions in domestic urea potential mean soaring capacity in coming years, keynote industry optimism

DOMESTIC UREA MAKERS agree that we're beginning another major expan­sion round which will throw out any supply-demand balance for the time be­ing. In recent days, both AUied and Grace have announced urea capacity buildups totaling 50,000 tons.

These come hot on the heels of a flurry of activity late last year. Hercu­les announced a West Coast plant and doubled capacity plans before construe-tion even began. Monsanto and Spen­cer began building urea units in Arkan­sas and Kentucky. These are just a sign of things to come. At least two major producers are today planning as yet unannounced urea expansions in the immediate future. In addition, several ammonia makers, not now in urea, are eyeing the field closely, waiting for the most opportune time to enter. One relative newcomer in ammonia opera­

tions admits privately that it will soon announce urea plans.

Three years ago, some were worried about "coming" overcapacity; there were some cases of oversupply, and do­mestic potential was pegged at 420,000 tons at the end of 1955. Since then, consumption has increased markedly, particularly in fertilizer applications, which today take about 50% of all do­mestic urea. Industrial uses (particu­larly for resins and plastics ) and animal feed supplements account for the rest, in that order.

• Urea's Fertilizer Spectrum. Urea finds its way into all facets of the fer­tilizer business: direct application solid, mixtures, and solutions. In solid form, urea contains 45% nitrogen, compared to 331 /2% for ammonium nitrate. For the farmer this means less handling and fewer refills of application equipment.

Urea's cost: $110 per ton, delivered, against $75 for ammonium nitrate. That price is at the point where urea can sometimes cost less than ammonium nitrate per pound of nitrogen in the ground. This is not today's general rule, however. At least one major urea producer says it doubts that urea prices can go low enough to make it a serious competitor of anhydrous ammonia in agricultural areas with large farm acre­ages and high nitrogen application rates. On the other side, another feels that as urea prices go down and capaci­ties go up, "it will definitely begin to take ove. the spotlight from other materials/9

For today's capacity-plagued am­monia manufacturer, an integrated urea works looks like a good way to upgrade any available synthetic nitrogen. Urea's high nitrogen content means both

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Feeds use nearly 80,000 tons of urea a year as a non-protein nitrogen source. U. S. Industrial Chemicals, for instance, sells one containing urea, ethanol, phos­phoric acid, trace minerals, and molasses. Ethanol promotes utilization of urea

lower freight and storage co>sts. Raw materials are usuaDy no problem. Be­sides ammonia, producers ne>ed carbon dioxide—generally available a s by-prod­uct from their hydrogen operations. But capital outlay is significant, and corrosion headaches and process prob­lems are not at all unusual. Most claim to have solved the difficulties, after some real troubles in a few cases.

• Production - Capacity Balanced. Now, urea supply and demand are in relative balance and, except for sea­sonal ups and downs, they'll stay that way for a year. Then capacity will out­strip production; early 1959 will see annual U. S. urea potential at least at 750,000 tons; a year later the figure will likely be 900,000 tons. Domestic pro­duction this year should total just over 550,000 tons (1957 output w a s around 485,000 tons, based on 11 month Tariff Commission data).

• Imports Weigh Heavily. Urea imports have been a major factor, par­ticularly on the West Coast. Last year, they totaled more than 60,000 tons. Significantly, this is a decline from 1956 (70,000) and 1955 (79,000) , and most authorities expect the decline in urea imports into this country to> continue. West Coast expansions will certainly cut them down. Another factor enters the picture: North American Cy-anamid's 66,000 ton plant at Hamilton, Ont. (Canada), which goes on stream later this year. It should cu t deeply into overseas imports.

While almost no urea is used for fer­tilizer in Europe, a lot of it is produced for export to the United States or the Far East. Western European urea ca­pacity totals more than 450,000 tons per year. (Main U. S. urea imports come from W e s t Germany, United Kingdom, Norway, and Italy.) Typical urea price is $101 per metric ton, f.o.b. No major European expansion is fore­seen.

Japan plugs urea fertilizer all over Asia. India uses sizable amounts, but is planning its own plants. Red China and Formosa import heavily, while Korea is building one urea plant and planning others. Other worldwide ac­tivity is not as extensive.

Today, 12 urea plants operate in Japan, making it the world's second largest producer with 418,000 tons of annual urea capacity. Another plant (40,000 tons) is scheduled for 1958 op­eration; 3 others (92,000 tons total) in 1959. Ndontecatmi's process is widely used. The Japanese urea industry is dependent upon exports, and has some overcapacity problems.

• Future is Bright. In this country, most urea spokesmen feel that it will become anhydrous ammonia's biggest competitor. I t will certainly take sev­eral years before lower costs mean urea can compete vigorously. Some see the real urea boom coming between 1960 and 1962, at about the time the am­monia picture brightens and capacity and output fall in line.

Chiefs Confer on High level officials hash

out U. S. answer to Russia's science challenge — agree on major points

JL HE U. S. MUST START a new, sweep­ing education program at all levels if we are to meet Russia's menacing science challenge. And to do this, the public and the Government must take on a new attitude toward science and education.

These points drew virtually unani­mous agreement from key scientists, educators, industrialists, and govern­ment officials at the Yale conference on "America's Human Resources to Meet the Scientific Challenge," jointly spon­sored by the President's Committee on Scientists and Engineers and the Wil­liam Benton Foundation.

We cannot win a numbers race with the Soviets in turning out scientists and engineers, says National Science Foundation director Alan T. Water­man. Russia's greater population and growth rate rule this out. But quality— both of performance and of goals—is the essential thing. It's on this score that we must be tops. We must act now to repair the glaring deficiencies in our educational system. And this can come about fastest and most thoroughly by first conditioning the public to focus its attention on meeting this challenge, Waterman adds.

Presidential scientific advisor James R. Killian, Jr., joins Waterman in urg­ing that the U. S. raise educational standards at all levels, especially in science and mathematics. But, he emphasizes, top priority should be

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