At the end of 1937 the 15 superphosphate factories had an annual production capacity of 500,000 metric tons, and 3 of these made double superphosphate. No advance was made in the amount of potassium sulphate produced in 1937 and imports were about the same as in 1936. Calcium cyanamide continued to be imported and the factory remained closed. INDUSTRIAL CHEMICALS Phosphoric acid. The market for phosphoric acid remained about constant. The use of apatite from the Union of Soviet Socialist Republics was claimed to speed the Belgian process for making phosphoric acid. Sulphuric acid.-Sulphuric acid is made by 25 factories, 4 of which had been equipped by the end of 1937 to produce concentrated acid. Considerable difficulty was encountered in the early part of the year by the irregularity of arrivals of pyrites from Spain. On several occasions local factories were working with reserve supplies of raw materials sufficient for 48 hours only. Other sources of supply were located later on in the year and the existing supply was apportioned satisfactorily. Hydrochloric acid.-Belgian annual production capacity for hydrochloric acid is 100,000 tons. Judging from the improvement in exports of the consuming industries, the gelatin, glucose, and certain chloride industries, it was estimated that production increased. GELATIN AND GLUE Belgium is one of the principal producers of gelatins in the world, and it is claimed that the annual production of about 15,000 tons represents nearly one-third of the world consumption. Most of the production is for export. During 1937 there was activity and expansion in the industry which at the end of the year comprised seven large factories, employing 3,000 workers. Belgium is also one of the principal world producers of animal glue, and at the close of 1937 five important firms were employing more than 1,500 workers, with an annual output of about 3,200 tons. certed attempts were made to build up the local market for the different qualities of bone glue which is used principally in the match industry; in textile for dressing; sizing, and dyeing; in the furniture and wood-working industry; in milling; in the paper, molding, leather, and rubber industries; and in the manufacture of other products such as ropes, rugs, hats, and paints. The process for manufacturing dry glues from rabbitskins in 1937 proved to be successful. Most raw materials for this new industry are available locally. Previously this type of glue was imported from France, but now imports have almost ceased. INSECTICIDES AND DISINFECTANTS Considerable business has developed in locally manufactured fungicides, herbicides, disinfectants, insecticides, and agricultural sprays. The Ministry of Agriculture distributes insecticides direct to the farmers to combat a potato pest. About six factories specialize in the manufacture of copper sulphate and in 1937 produced approximately 35,000 tons. ALUMINUM POWDER A new factory for the manufacture of aluminum powder now supplies the domestic demand which was formerly supplied entirely by imports, and it also supplies some for exporting. On the local market, it is used in paint and lithography. Bronze powder likewise is made in this factory. CONSUMING INDUSTRIES Almost without exception, the major consuming industries showed prosperity in the early part of 1937, not only in the domestic market, but also by larger exports. Belgian glue and gelatin were shipped in rather large amounts to South America. Belgian printing establishments demanded more inks. The essentially local construction industry expanded, and larger quantities of paints and varnishes were consumed than in preceding periods. A general recession of activity affecting almost all major consuming industries was noticed toward the end of the year. The decrease in construction was seasonal, and, because of State support of agriculture, the recession at first hardly affected the local agricultural chemical market. Those industries which were most contributory to and dependent upon foreign demand were most seriously affected. Of these, the glass industry appeared to be affected considerably. At the beginning of 1937, the Belgian plate-glass industry still had orders from America. At the end of December, however, the abnormal accumulation of stocks at the plants necessitated the closing down of glass plants which had been employing 10,000 workers. This measure, although only temporary, caused the year 1938 to open under unfavorable market conditions for the local manufacturers of alkalies. NEW DEVELOPMENTS The outstanding development during the year was the establishment of new glue and gelatin factories controlled by the Société Anonyme Colle et Gelatines de la Buissiere at La Buissiere. During the last few years, especially, because of the construction and present activity of the large manufacturing unit connected with the Carbonisation Centrale de Tertre, the region around Tertre has become one of the more important chemical areas of the country. Although certain areas, such as Tertre and La Buissiere, developed during 1937, or maintained their positions, other centers were in part idle. The two large nitrogen plants, Centrale du Centre pour la Fabrication de l'Ammoniaque Synthetique et Derives, Brussels, and S. A. Pour la Fabrication des Engrais Azotes, Houdeng-Geognies, continued to remain closed under the provisions of the cartel. There were no changes in the other producing or consuming areas. Likewise, there was no enlargement of plants and no substantial increase in the number of laborers from foreign countries. During 1937, a deposit of pyrites located at Vedrin was again being worked after having been inactive for a long period. The quality of the local pyrites is very good because it does not contain arsenic, an advantage for the manufacture of acid in the contact process which is used in the newer Belgian factories. CONTROLS, RESTRICTIONS, AND CARTELS According to a representative of the industry, the Government made no significant change affecting, controlling, or restricting imports of chemicals. Certain regulations concerning the protection of workers in the heliogravure section of the printing industry forbids imports of printing ink that contains more than 1 percent of benzol, toluol, xylol, or similar chemicals. There were no controls or restrictions of exports except through the operation of cartels. Cartels were effective in decreasing the exports of raw bones through protecting the source of materials for the glue industry. The nitrogen cartel limited production of ammonium sulphate and other nitrogenous fertilizers. The control exercised over the domestic match market by the Union Allumettiere continued to be practically absolute, since the Union controls 93 percent of the production of matches. The Comptoir de Vente de Superphosphates, which formerly controlled to a large extent the price, production, and exportation of superphosphates, was reorganized and included new concerns. The association of manufacturers of liquid and solid carbon dioxide applied to the Minister of Economic Affairs for restriction of output and obtained a royal decree forbidding any producer to manufacture more than 60 percent of annual production capacity as of February 11, 1937. The Belgian trade agreement with the United States continued to function throughout 1937. It was claimed that Belgian exports of certain chemicals were affected adversely by the duties on these products in Brazil, Canada, France, Ireland, and Japan. TRADE ASSOCIATIONS The year 1937 was characterized by a general and important reorganization of the local trade associations within the Federation des Industries Chimiques de Belgique brought about because of new social legislation. The specific object of reorganization, which concerns primarily the employers' associations, was the need for a stronger grouping of manufacturers in order to meet the laborers' organizations. The opportunity was taken, however, to reorganize their associations to form new alignments in order to improve commercial relations and to a certain extent to control prices. Another object was to develop fixed specifications as to quality in order to meet competition upon a fairer basis. The employers' new organizations have the advantage of representing more accurately the various chemical industries than had the former groups. By the reorganization superphosphates were added to the mineralacids section; potash and its products were placed under alkalies and products not included by the Solvay soda group; wood impregnation was dropped; photographic products, ink, office paste, and cleansing materials were brought under the one section "maintenance materials and various chemicals"; soaps and fatty acids, were combined under "fats"; mineral oils were separated; and, in an effort to concentrate upon only those industries essentially chemical, rayon and cement were dropped. The final reorganization of the industry was grouped under 15 headings as follows: Mineral acids and byproducts and superphosphates; alkalies and byproducts; wood distillation; paints with lead base; other paints; nitrocellulose lacquers; varnishes; fatty materials; powders and explosives; matches, pharmaceuticals; glues and gelatines; rubber; mineral oils; cleansing products; and various chemicals. Unlike similar groups in other countries, Belgian organizations are considered to be powerful associations. Recent negotiations between representatives and workers' groups have resulted in the drafting of conventions which eventually will affect the whole chemical industry. PRICES Measures were taken to stabilize prices of glycerin, soft soap, and nitrogen. The cartel governing the price of explosives maintained its prices at a fixed level. Prices generally rose more rapidly during the first 10 months of 1937 than during the corresponding period of 1936. The wholesale price index for tars and derivatives advanced more than 20 percent; that for industrial chemicals, 12; and for fertilizers, fats, and resinous products, less than 10 percent. FOREIGN TRADE Foreign trade in chemicals and allied products continued the upward trend evident for the last 4 years; imports were valued at 1,353,742,000 francs ($46,027,000) in 1937, an increase of 11 percent over 1936, and exports were valued at 1,885,821,000 francs ($64,118,000), an increase of 23 percent. The forecast on page 29 of World Chemical Developments in 1936 was justified. Imports of prepared paints from the United States increased in value from 442,000 francs in 1936 to 1,091,000 francs in 1937; varnishes and lacquers, from 5,797,000 to 9,567,000; dyes, from 15,700,000 to 17,200,000; perfumery and toilet preparations, from 1,206,000 to 1,761,000; carbon black, from 6,818,000 to 9,065,000; and soaps, from 206,000 to 246,000. The only item on which the forecast of improving business failed to be vindicated for American sales was phosphate rock. Belgian factories utilized more phosphate rock in 1937, having imported 353,123 tons as compared with 309,398 tons in 1936, yet imports from the United States declined from 5,768 to 3,969 tons, and from Tunis from 105,269 to 70,673, whereas receipts from the Soviet Union increased from 112,409 to 186,666 tons. Foreign Trade in Principal Commodities in 1937 The outlook for 1938, although less promising than at the beginning of 1937, was by no means as unfavorable as during the depression years preceding 1935 and 1936. Relations with the United States continued close, an advantage to both countries. It is probable that within the limits of a carefully selected list of products, including in particular ready-mixed paints, lacquers, varnishes, perfumery and toilet preparations, carbon black, borax, and soaps, American sales in Belgium will continue to show improvement. CONCLUSION Dependence of the Belgian chemical industry upon foreign trade remained important in 1937. Based on an old established organization in which the transforming process is the principal function, the industry depends on foreign sources for its raw materials and exports finished products, which, as in the case of glue, gelatin, fertilizers, and certain industrial chemicals, find very widely distributed and important foreign sales. The bulk of the foreign trade is carried on with European countries, as shown in the following table. Trade by Countries in Chemicals and Allied Products 1 |