Sulfur prices declined to the lowest point in more than 20 years, reaching distress levels for the Frasch industry, the basic source of U.S. supply. This was the result of a worldwide oversupply, the principal causes being very large increases in Canadian production recovered from sour natural gas, increased Polish Frasch production, and worldwide increases in byproduct sulfur production. The oversupply situation was assessed as being basic in nature, rather than cyclic, and was expected to continue over both the short- and longterm ranges.

The U.S. production of sulfur in all forms increased slightly. Production of Frasch sulfur registered a small decline as a result of adverse market conditions and increased producers' stocks, while there was an increase in the nondiscretionary production of recovered elemental sulfur. The production of sulfur in other forms declined somewhat. Exports of sulfur increased in the face of strong competition in foreign markets but at the expense of

much lower unit and total values. Imports decreased, both from Canada and Mexico, despite lower prices for sulfur from these sources. The apparent domestic consumption of sulfur in all forms increased slightly. Shipments of sulfur in all forms by domestic producers increased substantially because of increases in exports and domestic consumption and a decline in imports. However, the total value of shipments of sulfur in all forms decreased from $218.5 million in 1970 to $176.6 million in 1971, reflecting a continued deterioration of the sulfur price structure. The average net shipment value f.o.b. mine or plant for Frasch and recovered elemental sulfur, which accounted for 90 percent of the total shipments of sulfur in all forms in 1971, was $17.50 per long ton in 1971, $23.15 in 1970, $27.38 in 1969, and $40.14 per ton in 1968.

1 Mining engineer, Division of Nonmetallic Minerals. 2 Chemist, Division of Nonmetallic Minerals.

Native Sulfur.-Native sulfur accounted for 73 percent of the domestic production of sulfur in all forms. All of it was produced from Frasch mines in Texas and Louisiana. No sulfur ore production was reported during the year.

In 1971, 14 Frasch mines produced sulfur; one of these was closed during the year. The producers and mines in Louisiana were Freeport Minerals Co. at Garden Island Bay, Grand Isle, Grande Ecaille, and Lake Pelto; Jefferson Lake Sulphur Co. at Lake Hermitage; and Texas Gulf Sulphur Co. at Bully Camp. The producers and mines in Texas were Atlantic Richfield Co. at Fort Stockton; Duval Corp. at Pecos; Jefferson Lake Sulphur Co. at Long Point Dome; Pan American Petroleum Corp. at High Island (closed in May); and Texas Gulf Sulphur Co. at Boling Dome, Fannett Dome, Moss Bluff Dome, and Spindletop Dome.

Production of domestic Frasch sulfur continued to decline during 1971, being 1 percent less than in 1970, and 6 percent lower than the alltime peak production in 1968. This reflected the efforts of producers to overcome the current oversupply of this product.

Approximately 74 percent of domestic Frasch sulfur production was for domestic consumption, and 22 percent for export. The remaining 4 percent was accounted for by increases and adjustments in producers' stocks.

There was a continuing tendency to con

centrate production in the larger low-cost mines to counteract the adverse effects of low sulfur prices. During 1969, nine producers operated 21 mines. By yearend 1971, this was reduced to five producers operating 13 mines. Based on their production during the calendar years prior to closing, these eight closures (two in 1969, five in 1970, and one in 1971) represented an ap parent reduction in production potential of 985,000 tons per year, or 14 percent of the average annual production rates for all mines during 1969-71.

The 13 mines remaining in operation at the end of 1971 increased their production over that of 1969 by 640,000 tons, or 10 percent; and over that of 1970 by 202,000 tons, or 3 percent. Five of the mines showed increases in their production rates over those during 1970, and the other eight registered decreases. The five largest mines, with production rates in excess of 1⁄2 million tons per year each, accounted for 71 percent of the total Frasch sulfur output for the year. Four medium-sized mines, with production rates of more than 250,000 tons per year each, contributed an additional 20 percent of the year's production. The remaining 9 percent of the output came from five smaller mines, one of which closed during the year.

Ten mines, operated by the Duval Corp., Freeport Minerals Co., and Texas Gulf Sulphur Co. accounted for most of the production. Only a relatively small portion of the output was obtained from the other

1 Hydrogen sulfide and liquid sulfur dioxide.

three producers, operating four mines. By yearend, this was reduced to two companies with three mines.

Producers' shipments of Frasch sulfur increased by 5 percent over those in 1970 as a result of improved demands for domestic consumption and export. However, the total value of the shipments, f.o.b. mine, decreased by 22 percent because of a worldwide oversupply and price-cutting by foreign producers, both abroad and in the domestic market. The average reported shipment value, f.o.b. mine, was only $17.50 per ton as compared with $23.65 per ton in 1970, an abrupt decrease of 26 percent.

Recovered Sulfur.-Elemental recovered sulfur accounted for 17 percent of the total domestic production of sulfur in all forms. It was produced at 106 plants in 24 States. The 10 largest of these plants accounted for 67 percent of the total, and the combined production of the five leading States amounted to 78 percent of the total. Statistics on shipments of recovered sulfur and value for 1971 are as follows:

tively, over those in 1970. However, the total value of the shipments decreased by 11 percent because of the depressed state of the Frasch sulfur market and competition from Canadian sources in the northern areas of the Nation. The average reported shipment value, f.o.b. plant, was only $17.47 per ton as compared with $21.00 per ton in 1970, a decrease of 17 percent.

The five largest producers of recovered sulfur were Amoco Production Co., Getty Oil Co., Gulf Oil Corp., Shell Oil Co., and Stauffer Chemical Co. Together, their 23 plants accounted for 47 percent of recovered sulfur production.

Byproduct Sulfuric Acid.-The contained sulfur in byproduct sulfuric acid produced at copper, lead, and zinc roasters and smelters during 1971 amounted to 5 percent of the total domestic production of sulfur in all forms. It was produced at 18 plants in 13 States. Six acid plants operated in conjunction with copper smelters, and 12 plants operated as accessories to lead and zinc roasting and smelting operations. The five largest acid plants accounted for 62 percent of the production, and the combined production of five States amounted to 75 percent of the total.

Total production was 4 percent less than in 1970 because of strikes and other adverse conditions affecting the nonferrous smelting industry. The total value of shipments was approximately $21.3 million, or 10 percent less than in 1970, reflecting difficulties in the marketing of this product.

The five largest producers of byproduct sulfuric acid were American Smelting and Refining Co., Kennecott Copper Corp., New Jersey Zinc Co., Phelps Dodge Corp., and St. Joe Minerals Corp. Together, their 10 plants produced 74 percent of the production during 1971.

Pyrites, Hydrogen Sulfide and Sulfur Dioxide. The contained sulfur in these products accounted for 5 percent of the total domestic production of sulfur in all forms during 1971. Pyrites was produced at six mines in five States; hydrogen sulfide at five plants in two States; and sulfur dioxide at one plant. Output was 8 percent less than in 1970. The value of these combined products was approximately $95 million, or 22 percent less than in 1970. Both of these decreases reflected the distressed state of the sulfur industry.