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Why
Do Some Restaurants and Clubs Put Ice in the
Urinals?
While we were not able to come up with a
defnitive answer to this question, we did
generate a lot of theories. In America, as
opposed to Europe, many urinals require a
manual flush. Since very few men will actually
bother to do this, the melting ice acts as a
slow, continuous flush. Moreover, the ice
cools the air in and around the urinal. Since
cool air sinks, the ice serves to contain the
smell. The melting ice also dilutes the urine
reducing the concentration and thereby
controlling the odor. The traditional method
for containing the smell is to use toilet
cakes. But ice is a lot cheapter to use than
toilet cakes as most restaurants have ice
making machines linked to a water tap. Toilet
cakes also have to be replaced on a regular
basis while ice just has to be dumped into the
urinal. It is an input only system. Since many
toilet cakes use camphor oil, they have an
odor of their own which becomes stronger as
patrons forget to flush. Some people find the
smell somewhat offensive. And ice does a
better job than toilet cakes of masking the
smell of other liquids like beer and vomit.
Another theory is that ice makes bathroom
cleanliness more enforceable. If the manager
sees that the ice has melted, they know that
the bathroom attendant has not been there to
clean. Conversely, if the patrons see that the
urinals are full of ice, the implication is
that the bathroom is getting periodic
attention and that they are being cleaned. And
let's not forget the entertainment value of
the ice. Men can't write their names in the
ice but they do report playing other games
trying to melt the ice in different ways.
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Export
Duty on Petrochemicals to Rise Again in Russia
Beginning August 1, 2005, Russia's export duty
on petrochemicals will increase by 2.4
percent. Chemicals affected include Benzene,
Butadiene, Butene, Ethylene, Propylene,
Toluene, and Xylene, among others. The duty
will apply to all countries that have not
signed customs union agreements with Russia.
Since January 1, the export duty has climbed
from $57/tonne to $106.6/tonne.
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Chemtura
Launched
Shareholders finalized the merger of Crompton
Corporation and Great Lakes Chemical to form
Chemtura, a new company with revenues of $3.7
billion (Euro 3.09 billion) that began trading
on the New York Stock Exchange (CEM) as of
July 5, 2005. According to the company,
Chemtura has leading positions in plastics
additives, petroleum additives, flame
retardants, and pool chemicals. Savings of as
much as $150 million are expected to be
achieved through synergies, according to
president and CEO Robert Wood. Approximately
600 positions will be eliminated globally over
the next year.
Chemtura will focus on organometallic
specialties as a growth opportunity, and has
formed a new business unit under the name OMS
encompassing this activity. The business,
formerly part of Crompton's operations,
manufactures organotin and metal alkyls used
in a wide variety of applications. Nearly half
of OMS' sales are attributed to catalysts used
for olefin polymerization. The company plans
to grow its other market segments,
particularly pharmaceuticals and fine
chemicals. Increasing its position in Asia is
also a goal.
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Phthalates
Banned from use in Toys in Europe
The use of phthalates in toys and childcare
articles has been permanently banned by the
European Parliament through a recent vote
which is expected to be formally approved
later this year. A temporary ban has been in
place since 1999. The European Council for
Plasticizers and Intermediates (ECPI)
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Andrew Ritchie, currently vice president of
Total Petrochemicals China, has been appointed
to replace the retiring David Gresham as
managing director of Total Petrochemicals UK.
Ritchie will take the position at the end of
2005. He has worked for Total Petrochemicals
since 1980 when he joined Ato Chemical
Products, which ultimately became Total.
In the first five months of 2005, Russia had
$4.52 billion (Euro 3.77 billion) of chemical
exports, an increase of 23.7 percent compared
to the same period in 2004. According to the
federal customs service, chemicals accounted
for 5.8 percent of Russia's total exports. Key
chemical products included potash ($406.5
million), Nitrogen fertilizers ($556 million),
synthetic rubber ($419 million), and Ammonia
($207 million).
The People's Bank of China revalued the
Chinese Renminbi to 8.11 to the U.S. dollar,
up over 2 percent from 8.28. Other Asian
currencies are expected to appreciate in
response to the revaluation. A slight decline
in the international competitiveness of some
Asian exports is expected. On the flip side,
the cost of raw material imports will decline
for Chinese chemical companies. Further rises
in the value of the Chinese currency are also
likely. Many predict appreciation to take
place over the next several years. According
to the American Chemistry Council, a 10
percent rise in the value of the Chinese yuan
could result in an increase of American
chemical exports to China of as much as $350
million (Euro 246 million) by 2006-2007.
Although China has signed the World Trade
Organization (WTO) agreement on Trade-Related
Aspects of Intellectual Property Rights
(Trips), many say the country is not enforcing
the standards. The country has amended laws
covering trademarks, patents, and copyright
issues, and introduced the provision of
injunction orders to comply with the
agreement. Problems arise because local
governments play a significant role in the
legal system, and enforcement and regulations
vary widely from province to province.
Discrimination against foreign companies is
also an ongoing problem.
Jubilant Organosys agreed to purchase a 65
percent stake in U.S. generic drug firm
Trinity Laboratories, including subsidiary
Trigen Laboratories, for $12.5 million.
Jubilant expects to increase its holding in
the company to 75 percent by the end of 2006
through an additional $8.4 million investment.
Trigen manufactures dosage forms of generic
drugs. Bulk manufacturing will continue in
India, and drug finishing will take place at
Trigen.
Solvay announced that it has agreed to
purchase Fournier Pharma for approximately
$1.9 billion (Euro 1.6 billion). The company
will pay an initial $1.43 billion (Euro 1.2
billion), with additional payments of up to
$470 million (Euro 400 million) based on
future developments and milestones. Solvay
received approval from the European Commission
(EC) for the transaction. The deal is expected
to be completed in the third quarter of 2005.
Monsanto filed a lawsuit in Denmark seeking to
prevent Argentina from exporting soybeans to
the European Union because it has not yet
received royalty payments from growers that
used the company's Roundup Ready seeds. The
Argentine government is unlikely to approve
Monsanto's application for its genetically
modified Bacillus thuringiensis (Bt) 10 corn
seed because of this action. Agriculture
officials in the country are opposed to the
charging of royalty fees on crops. Monsanto
says the royalties are necessary because many
farmers obtain the seed illegally or use
second-generation seeds without permission.
The European Chlor-alkali producers
association Euro Chlor reported that
inventories of Caustic soda in the European
Union (EU), Norway, and Switzerland have
declined to their lowest recorded level. June
inventories are down nearly 15 percent as
compared to June levels in 2004. Chlorine
production fell slightly during the first half
of 2005, according to the group.
Methanol producers in India are cutting back
on production in response to weakened demand
and reduced margins. Deepak Fertilizers and
Petrochemicals Corp. is producing more Ammonia
to make Ammonium nitrate and has reduced its
operating capacity for Methanol from 70-80
percent in June to 50 percent at the end of
July. Prices of Methanol are down by 6-10
percent from early June levels. Monsoon season
often causes a reduction in the Methanol
market in July and August.
Stabilizing prices and expected positive
demand growth are combining to make the
outlook for U.S. Citric acid very attractive.
Both spot and contract prices have steadied
over the past six months after an extended
period of decline. The increasing demand for
beverages during the summer combined with the
shift of Chinese producers from the North
American market to Europe has improved
conditions. It is possible that a shortage of
supply could occur if Canadian oil producers
begin using Citric acid to increase oil
recovery, a potential new application for this
chemical. The high oil prices are making it
economically attractive to pursue the recovery
process. One Canadian company has committed to
using the process, and four or five others are
investigating its potential. Demand for this
application could reach as much as 50,000
metric tons annually.
