
Gypsum industry news
Nigeria: State governor Muhammad Inuwa Yahaya opened the Gombe State Investment Summit in the northeastern state of Gombe on 12 October 2022. The summit aims to attract investors from within and outside of Nigeria. The state government hopes that local mineral reserves and the state's strategic location will appeal to investors from new industries to the state, including the gypsum wallboard industry.
The This Day newspaper has reported that Yahaya said “We have the largest deposits of gypsum in the country." He continued “Gombe is also blessed with huge commercial deposits of coal, oil, and gas."
Update on gypsum supplies, August 2022
31 August 2022Earlier this month the German Gypsum Association (GIPS) gave its approval for an inventory of natural gypsum deposits in Germany that was presented at the Conference of Economics Ministers that took place in early July 2022. The Federal Commission on Geosciences (BLA-GEO) had previously been given the job of taking an inventory of deposits and this was then put in front of the policy makers. The association’s stance was all about securing future supplies. In its view there will be no large-scale alternatives to natural gypsum supplies in the foreseeable future due to low recycling rates and falling production of flue gas desulfurisation (FGD) gypsum as coal power plants are shut down. So a list of where natural gypsum might be found is the start of conversations about which ones might be mined. Readers who are interested can download the inventory of German gypsum deposits here.
Security of supply of raw materials has been in the air since the end of the coronavirus lockdowns started to cause supply chain disruption around the world and the Russian invasion of Ukraine further exacerbated this and rocked energy markets. Part of the reaction to this new reality could be seen in a conference that the Federal Institute for Geosciences and Natural Resources (BGR) and the German Resource Research Institute (GERRI) ran, also in early July 2022. The state of German gypsum supplies was presented at this event too. The BGR-GERRI conference came up with a ten-point plan to strengthen the supply of raw material. Some of these recommendations were to grow domestic raw material extraction, expand recycling and the circular economy and keep supply chains closer internationally, ideally within Germany and Europe.
A focus on gypsum supplies isn’t restricted to Germany though. The issue arose in late July 2022 during an earnings call for US-based Eagle Materials’ first quarter results. These kinds of questions from analysts about supply of raw materials are common for a public company but it reinforces the general declining trend around the world of synthetic gypsum supplies. Craig Kessler, the chief financial officer of Eagle Materials, mentioned that a scarcity of synthetic gypsum might be creating cost pressures for other gypsum wallboard producers. Although he was quick to describe his company as a “natural gas or natural gypsum oriented business.” The wider picture in the US is that the ratio of natural to synthetic gypsum production has grown over the last decade. United States Geological Survey (USGS) data shows that it was 37% / 49% in 2011 compared to 53% / 32% in 2021, with the remainder imported in each year.
One more point to make here is that many of the new gypsum wallboard plant projects announced in the over the last few months have involved recycling in one form or another. For example, Siniat’s forthcoming wallboard plant in Bristol in the UK aims to achieve 30% post-consumer gypsum recycling. CertainTeed’s current upgrade plans for its Palatka plant in Florida are also recycling-based. Similarly, the subsidiary of Saint-Gobain also completed an upgrade in June 2022 to allow more recycling at its Nashville plant in Arkansas.
Finally, some of the thinking in Germany and elsewhere has been influenced by the current geopolitical situation in Ukraine. However, one potential consequence of prolonged disruption to European energy markets could be a delay to the decline of coal power plants as plant lifespans are elongated or even new ones built. This in turn could mean more synthetic gypsum supplies in Europe in the short to medium term. How all of this plays out in the placement of new gypsum wallboard plants in Europe over the next few years will be interesting to observe.
Germany: The German Gypsum Association (GIPS) has welcomed the publication of a government report that took an inventory of natural gypsum deposits. It supports the work as it allows its members to make qualified decisions about future planning. The Federal Commission on Geosciences (BLA-GEO) has created a register of gypsum supplies in the country. The association added that it believes there will be no large-scale alternatives to natural gypsum supplies in the foreseeable future. This is due to low volumes of gypsum recycling and falling production of flue gas desulfurisation (FGD) Gypsum as coal power plants are shut down.
US: Gypsum wallboard companies sold 629Mm2 of gypsum wallboard in the first quarter of 2022, in line with first-quarter 2021 sales, according to US Geological Survey (USGS) figures. They exported 16.9Mm2, up by 6% year-on-year from first-quarter 2021 volumes. Canada received 15Mm2, 94% of exports. The US Census Bureau recorded gypsum wallboard imports of 22.2Mm2, up by 28% year-on-year. Mexico supplied 19.1Mm2 (86%), while Canada supplied 2.89Mm2 (13%).
In the first quarter of 2022, national natural gypsum production was 5.33Mt, up by 2.1% year-on-year from 5.22Mt in the first quarter of 2021.
Azerbaijan: Azerbaijan’s total production of construction gypsum was 17,100t in the first eight months of 2021, up by 33% year-on-year from 12,900t in the corresponding period of 2020.
On-going large-scale state construction projects the new territories East of Zangazur and Karabakh are anticipated to increase full-year gypsum production in 2021 and into subsequent years.
US Geological Survey publishes first-half gypsum and gypsum wallboard production and export data
21 September 2021US: The US Geological Survey (USGS) has reported a 13% year-on-year increase in national calcined gypsum production in the first half of 2021 to 9.57Mt from 8.5Mt in the first half of 2020. The country’s gypsum mines produced 10.1Mt of natural gypsum, down by 3.8% from 10.48Mt in 2021. Synthetic gypsum production remained in line with first-half 2020 levels at 7.2Mt. In total, the US exported 17,900t of natural and synthetic gypsum, up by 8.2% from 16,600t. It exported 49,000t of calcined gypsum, up by 10% from 44,500t.
In the second quarter of 2021, the US exported gypsum wallboard to 29 other countries. Volumes totalled 19Mm2, up by 40% year-on-year. Canada accounted for 95% of gypsum wallboard exports. The US imported 20.9Mm2 of gypsum wallboard during the quarter, up by 54% year-on-year. All imports came from Mexico and Canada, of which Mexico supplied 16.7Mm2 (85%).
US: The United States Geological Survey’s (USGS) Gypsum in the First Quarter 2021 report has shown a 2% year-on-year increase in sales of gypsum-based board products to 624Mm2 in the first quarter of 2021 from 609Mm2 in the same period in 2020. Calcined gypsum used by board producers rose by 3% to 5.6Mt from 5.5Mt. Natural gypsum production fell by 4% year-on-year to 5.0Mt from 5.2Mt, synthetic gypsum production remained level at 3.6Mt and gypsum imports rose by 14% to 1.6Mt from 1.4Mt.
British Gypsum signs five-year deal with PD Ports
06 December 2018UK: British Gypsum has signed a five-year contract with PD Ports to process its natural gypsum imports. The deal will bring raw materials from Europe into the country via Teesport every two weeks where it will be stored in a new bulk storage unit. The gypsum will then be dispatched by rail to British Gypsum’s plants at Kirkby Thore in Cumbria and Sherburn-In-Elmet in Yorkshire. No value for the deal has been disclosed.
UK: British Gypsum has released plans to use natural gypsum instead of synthetic gypsum at its Sherburn-in-Elmet wallboard plant in North Yorkshire. The company wants to extend its mill building to aid the conversion as well as make some minor logistical changes at the site. The details were released as part of a planning application made to the local council, according to the York Press. If approved, British Gypsum says that the conversion will safeguard 130 jobs at the plant.
According to the planning statement, the current forecast for synthetic gypsum supply to the Sherburn plant projects that in late 2017 or early 2018, the plant's ability to continue manufacturing would be under threat. The plant is currently unable to grind natural gypsum rock on-site and operates solely on the use of desulphurised gypsum supplied from the Drax Power Station. The statement claims adequate and appropriate infrastructure is in place to meet the needs of the proposed development, including appropriate drainage to ensure there would be no increased risk of flooding from surface water run-off. It adds that the proposed development will be energy efficient and minimise energy consumption.