January 1954

Federal Reserve Bank of Richmond

Rayon and Acetate

a y o n and acetate producers in the United States year in comparison with the same period last year. The sold 1,080 million pounds of yarn in the first eleven figures are for filament yarn and the total shipments for months of 1953, a gain of 2.8% over the same period of nine months show an increase of 9.2% over a year ago, 1952. From these indications it might appear that the compared with a gain of 4.9% in eleven months. Ship­ rayon and acetate industries did well last year. Actually, ments to the broad woven goods trade in the first nine total shipments (eleven months of 1953) were 1.7% months of 1953 rose 2.3% , while those to knit goods below similar months of 1951 and 5.1% below the same producers dropped 0.9%. Miscellaneous textile users period of 1950. were shipped 60.2% more, while all textile yarn users The total shipment figures conceal much that has were shipped 4.3% more. Shipments to tire and rub­ happened in these industries in recent years. The ber companies rose 14.8% over the previous year while highest level of shipments ever attained came in the exports dropped 2.6%. first eleven months of 1950. The drop between 1950 A little clearer picture of the current trend may be and 1953 of only 5.1% fails gained by comparing third to disclose the fact that ray­ quarter shipments in 1953 on high tenacity yarn ship­ CHANGES IN RAYON AND ACETATE DEMAND with those of the same quar­ ments in this period were ter in 1952. In this period up 49% , whereas rayon tex­ FILAMENT SHIPMENTS - 9 MONTHS 1953 OVER 1952 knit goods shipments were tile yarn shipments were down 24%, woven goods down 34% and acetate fil­ E xports down 32%, miscellaneous ament yarn shipments were Warp Knit Goods uses up 45% , tire and rub­ down 30% , while staple and Knit Goods ber co m p a n ie s’ uses up tow shipments were down Hosiery 7.5%, and exports down Circular Knit Goods 3% . Here again the changes ] 23% . Total shipments in 8road Woven Goods in total staple and tow fail □ this period were down Woven Goods to reveal actually what has □ 13.9%. Total Textiles Uses happened. B etw een 1950 Totol Shipments In the first nine months and 1953, eleven months, Total Domestic of 1953, rayon and other rayon staple and tow ship­ I Tires and Related Uses synthetic fibers lost ground ments were up 9% , where­ "1 Narrow Woven Goods in men’s Summer weight as acetate staple and tow Miscellaneous Uses suits, sport d resse s and shipments were down 22%. sport trousers, women’s un­ -to Perhaps a better idea of Percent trimmed coats, women’s the current position of the suits, u n it-p r ic e d dresses, industry can be had by re­ dozen-priced dresses, lating November production figures to capacity. Rayon blouses, waists and shirts, and skirts. Again the most textile yarn plants were operating at 74% of capacity prominently mentioned factor responsible for the shift while acetate yarn plants were operating at 42% of in consumer demand from rayon and acetate to wool or capacity. Rayon tire cord producers, operating at 79% cotton or other synthetic fibers was washability. of capacity in November, have for the first time in their history run into a period where they have been subject Utilization of rayon in the manufacture of carpets and to the seasonal and cyclical requirements of demand. rugs rose to 37.1% of the total fibers used for these pur­ Rayon staple and tow producers were operating at poses in July 1951. It declined consistently to the 64% of capacity in November, whereas the acetate staple figure of 9.6% in July 1952 and has since risen to a and tow operators were at 38% of capacity, with the figure between 13% and 15%. industry over-all operating at 62% of capacity. In 1950 and 1951 new synthetic weaving facilities in In the first eleven months of 1953 production ex­ this District wrere constructed in substantial volume. ceeded shipments by nearly 20 million pounds and pro­ During 1953 only two instances of expansions in this ducers’ inventories during 1953 rose by this amount. In November production was cut back below shipments type of facility have been noted and these were designed and stocks were reduced nearly 7 million pounds, but to spin both wool and synthetics in combination. In they are still not far below the high point established recent weeks it has been announced that the Industrial in the Spring of 1951. Rayon Corporation will expand staple fiber facilities at The accompanying chart shows the yarn shipments Covington, Virginia, with a new plant costing $5 mil­ to the various users during the first nine months of the lion.

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