Balance prices

The more the organic farming system is connected to the international market, the higher is the number of players involved in the production chain and the higher is the risk for dependency on decisions made externally. Because the establishment of a natural resource management and of a certification is costly, additional income is necessary in order to afford it. A balanced price-costs relation is ensured also if Fair Trade rules are considered/respected. However, with the establishment... 

The purchaser expects a balanced price-performance ratio. This arises both from the costs involved in producing the product and from the value, quality, performance, shelf life and prestige. In other words, the extra utility (value added] that a product must have. 

Organic pigments are synthesized from different petrochemical intermediates therefore, thousands of molecules are possible due to wide latitude in selection of petrochemicals, but only a few hundred are commercially produced that have balanced price and performance. Discussing all the pigments individually is outside the scope of this book therefore, selected important organic pigment families are briefly discussed here. 

Gas reservoirs are produced by expansion of the gas contained in the reservoir. The high compressibility of the gas relative to the water in the reservoir (either connate water or underlying aquifer) make the gas expansion the dominant drive mechanism. Relative to oil reservoirs, the material balance calculation for gas reservoirs is rather simple. A major challenge in gas field development is to ensure a long sustainable plateau (typically 10 years) to attain a good sales price for the gas the customer usually requires a reliable supply of gas at an agreed rate over many years. The recovery factor for gas reservoirs depends upon how low the abandonment pressure can be reduced, which is why compression facilities are often provided on surface. Typical recovery factors are In the range 50 to 80 percent. 

There are large concentrations of proven reserves ia specific areas of the globe such as the Middle East, North America, and the Confederation of Independent States. Thus the future of natural gas, worldwide, is dependent on the flow of natural gas across international boundaries on a long-term basis. This future is also dependent on the maintenance of an economic balance between the price of oil and the price of natural gas. 

If the total alkyds consumed in recent years is classified by their dibasic acid component, about 50% belongs to the unmodified phthaHc type, about 28% modified phthaHc type, about 13% based on isophthaHc, and the balance based on polybasic acids other than phthaHc or isophthaHc. The top alkyd resin manufacturers in the U.S. are Cargill, Reichhold, a subsidiary of Dainippon Ink Chemicals, Inc., and Spencer KeUog, now a part of NL Industries, Inc. The median price (52,53), of general types of alkyd resin, soHds base, was 1.98/kg in Nov. 1990 compared to about 440 in 1955, about 660 in 1975, and about 1.54 in 1983, reflecting the increases in raw material cost. 

Aniline prices in the past have been sensitive to the balance between supply and demand in the industry and this trend is likely to continue in the next decade. List prices in the early 1980s began at 0.97/kg, but declined to a low of 0.64/kg as a result of industry overcapacity. By the end of 1987, prices had reached 1.30/kg, and the price has remained firm due to strong demand for aniline. 

The commodity nature of the product and the easy access to the Hcensed processes enable new producers, particularly in developing countries, to enter the global styrene merchant market with Htde experience in styrene technology. Access to ethylene, which caimot be easily transported by means other than pipelines, is a key factor in considering new styrene faciHties. Timing, or luck, is even more important because the supply and demand of styrene are seldom in balance and the price fluctuates broadly and rapidly as a result. Most of the time, the producers either suffer losses (1981—1985, 1991—1993) or enjoy handsome profits (1987—1990, 1994—mid-1995). Investments in styrene plants are known to have been recovered in less than a year, but prosperity encourages over-investment and lean years may foUow. 

The recent (since 1993) tightness of the chlorine market, which was accompanied by rising chlorine prices, sparked interest in alternative sources of chlorine, ie, HCl and EDC, where these are available. Some plants no longer operate in a strictly balanced mode, but instead operate with more than half of thek EDC made from oxychlorination (owing to importation of HCl or EDC as a chlorine source, thus bypassing dkect chlorination). The ideal situation is one in which the plant can adapt to any feed combination, allowing operation at the optimum mix of feedstocks as determined by minimization of the sum of raw material and operating costs. 

Strong growth in demand during the period 1985—95 from existing and new appHcations led to firm pricing and expansion of world capacity. Total world demand in 1995 was estimated to be approximately 60,000 metric tons. Balance of capacity and demand at that time resulted in a selling price of 16.00/kg. More recently (ca 1997), prices have dropped to less than 10/kg. 

Production and Consumption. About 80% of the world s barite production is used as a weighting agent for the muds ckculated in rotary drilling of oil and gas wells (see PETROLEUM, DRILLING FLUIDS AND OTHER OIL RECOVERY CHEMICALS). Table 2 shows the U.S. production—consumption balance. The 1988 demand for barite increased nearly 40% over that recorded in 1987. However, by the end of 1988, oil prices had declined and renewed economic uncertainties depressed exploration and development activity. Barite demand fell accordingly and imports of lower cost foreign product exceeded domestic production. 

Of the worldwide ethyleneamines capacity, over 50% is EDC-based the balance is rnonoethanolarnine-derived. A complete breakdown of the ethyleneamines capacity by product is not feasible siace most manufacturers can vary production mix to meet market demand. A rough estimate is that EDA represents about 40% of the total production of the family of ethyleneamines. In Europe, the product mix is skewed somewhat more toward EDA. Prices of the principal commercial polyamines ia 1992, ia the United States, are given ia Table 4. 

Raw material costs should be estimated by direct computation from flow rates and material prices. The flow rates are deterrnined from flow sheet material balances. The unit prices are obtained from vendors, company purchasing departments, or the Chemical Marketing Reporter. For captive raw materials produced internally, a suitable transfer price must be estabHshed. Initial catalyst charges can be treated as a start-up expense, working capital component, or depreciable capital, depending on the expected catalyst life and cost. Makeup catalyst is frequendy treated as a raw material. 

Concept 4. Cost means that the assets are normally shown in the balance sheet at cost price together with their subsequent depreciation. Some assets such as land may be considerably more v uable than when originally purchased, but no indication of this is given in the balance sheet. However, some governments now require a note giving the current estimated value of the laud. 

From this table the most efficient unit can be selected and balanced against price. It is apparent that for 300 hp the 28-in diameter achieves no gain over the 22-in diameter because of the increase in horsepower loss. For 22 in versus 18 in the gain is small and may be offset by the higher price. 

Rarely is a balanced o-ring cartridge seal supplied as standard equipment with a new pump. It s thought that they cost too much and will raise the sale price of the pump. 

Composites fabricated with the smaller floating catalyst fiber are most likely to be used for applications where near-isotropic orientation is favored. Such isotropic properties would be acceptable in carbon/carbon composites for pistons, brake pads, and heat sink applications, and the low cost of fiber synthesis could permit these price-sensitive apphcations to be developed economically. A random orientation of fibers will give a balance of thermal properties in all axes, which can be important in brake and electronic heat sink applications. 

Recent uses for natural gas storage include utilizing storage to provide transportation balancing seiw-ices, to take advantage of variations in prices, to maintain wellhead production and to meet new sales commitments by marketers. 

Interruptible contract. There is an obligation for the user to provide an alternative standby fuel to be used at the request of the gas supplier. The maximum period of interruption is one of the conditions agreed in the contract. The advantage to the user is that he or she can obtain a more favorable gas price. The advantage to the supplier is that at times of peak demand, such as a cold winter, he can balance supply and demand without investing in excessive storage capacity. 

For the noble metals used in oxidation, the loading is about 0.1 oz per car, with calls for a million ounces per year. The current world production rates of platinum, palladium, and rhodium are 1.9, 1.6, and 0.076 million ounces respectively the current U,S. demand for platinum, palladium, rhodium, and ruthenium are 0.52, 0.72, 0.045, and 0.017 million ounces respectively (72, 73). The supply problem would double if NO reduction requires an equal amount of noble metal. Pollution conscious Japan has adopted a set of automobile emission rules that are the same as the U.S., and Western Europe may follow this creates a demand for new car catalysts approaching the U.S. total. The bulk of world production and potential new mines are in the Soviet Union and South Africa. The importation of these metals, assuming the current price of platinum at 155/oz and palladium at 78/oz, would pose a balance of payment problem. The recovery of platinum contained in spent catalysts delivered to the door of precious metal refiners should be above 95% the value of platinum in spent catalysts is greater than the value of lead in old batteries, and should provide a sufficient incentive for scavengers. 

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