Gypsum industry news

UK: Matt Pullen, the managing director of British Gypsum, says that the company intends to loosen restrictions on wallboard sales in August 2020. “Whilst we continue to see high levels of demand, we have sufficient capacity to supply your wallboard requirements without formal supply restrictions,” said Pullen. He added that the company’s plaster manufacturing plants continue to, ‘operate consistently at maximum capability.’

Gypsum plaster-based products have been in short supply in the UK since the local coronavirus-related lockdown started in March 2020. The subsidiary of Saint-Gobain suspended operations in April 2020 and Knauf stopped production at its wallboard plants in the UK at the end of March 2020. British Gypsum reported in late May 2020 that its wallboard capacity was at ‘approximately’ 80% of pre-coronavirus pandemic levels following the scaling up of its ‘Covid-19 safe’ operations and distribution plan. Etex’s Siniat said it was ending product allocation controls in early July 2020.

Spain: The Port of Carboneras has reported the movement of a total of 350,000t of gypsum by importers and exporters in the first five months of 2020, up by 4% year-on-year from 337,000t over the corresponding period of 2019. Gypsum was the only product to experience an increase, with coal volumes over the period falling by 96% and cement volumes by 55% due to the impacts of the coronavirus outbreak on construction and other industries.

US: The Bureau of Land Management has approved American Gypsum’s proposal to expand its gypsum mine at Eagle, Colorado by around 40 hectares. The current quarry has been in operation since 1984. The mine and associated Eagle gypsum wallboard plant near Gypsum produce around 60Mm2/yr of wallboard and employ nearly 100 people. American Gypsum is the fifth largest producer of gypsum wallboard in North America, operating four wallboard plants.

Spain: The Port of Motril in Granada has resumed exporting gypsum from quarries in the province. A load of around 43,000t was despatched on the Desert Grace bulk carrier. Gypsum consignments from Motril started in late 2019 with two test shipments. The port hopes to export up to 0.4Mt/yr of raw gypsum.

US: GMS’ net sales from its wallboard products rose by 5% year-on-year to US$1.33bn in the financial year to 30 April 2020 from US$1.27bn in the same period in 2019. Its overall sales grew by 4% to US$3.24bn from US$3.12bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased slightly to US$300m. Wallboard sales were stable in the fourth quarter of its reporting year as coronavrius-related market declines in late March and April 2020 caused total company sales to decrease in the period.

“Through mid-March 2020 we experienced favourable end-market trends and generated robust volume growth. Even as disruptions from COVID-19 began to escalate in the second half of March 2020, construction and building products distribution were deemed essential in the majority of our markets, which enabled us to keep most of our locations open. However, demand weakened significantly in late March 2020 and in April 2020 as customers delayed orders and building projects were paused due to mandated shutdowns in certain markets or as they focused on responding to the effects of COVID-19 on their businesses,” said John C Turner, Jr, president and chief executive officer of GMS.