Fluorspar Producers Must Cut Costs - - Or Else.

The problems of the domestic merchant fluorspar producers are more or less common with those of many other producers of metallic and non-metallic minerals. For more than ten years the American fluorspar producers have seen an ever lowering price in the market-place for the fluorspar product, while their labor and material costs-continue to mount steadily. This cost-price squeeze has forced out of business all but a few of the merchant producers, and only two captive producers continue to operate, and one of them has announced early curtailment. The prices of domestic fluorspar, of all grades, have declined because of the competition from cheaper foreign imports, principally from Mexico, Spain and Italy. Tariff protection on fluorspar, particularly on the highest or acid grade, has never been sufficient to cover the production cost differential between foreign and domestic fluorspars. Low ocean and barge freight rates have also contributed to the barring of the product of domestic mines from, the major consuming centers along the Gulf and East Coast. Because of the freight disadvantage, all but one or two fluorspar producers in the western states have had to suspend business. More than 80% of the domestic fluorspar is being produced in Illinois and Kentucky fluorspar districts which adjoin on both sides of the Ohio River.