Gypsum industry news

Oman: Hilal bin Mohammed al-Busaidi, the chief executive officer (CEO) of the Public Authority for Mining (PAM), predicts that Oman is set to become the largest exporter of gypsum by the end of 2017. Its gypsum exports are expected to exceed 10Mt in 2018 from 4.6Mt in 2016, according to the Oman News Agency. So far the country has exported 6.1Mt in the first nine months of 2017.

PAM says that Oman has 1Bnt of reserves of gypsum. These are concentrated in the southern part of the country and in some northern regions notably in Al Shuwaimiyah, Thumrait, Sadah, Ghaba and Buraimi. The principal export markets for the product are India, Japan, Taiwan, Indonesia, Vietnam and Bangladesh.

Tanzania: Knauf plans to invest an additional US$5m in a production site in Mkuranga district. The German company has already invested US$10m into the unit, according to the Citizen newspaper. The company started operations in the country in 2014 and it employs over 150 people. It is its first unit in Sub-Saharan Africa.

Zachopoulos Georgios, the managing director for East Africa, said that the subsidiary sources most of its raw materials locally and that it mines gypsum in the south of the country. He added that the company is focusing on promoting regular gypsum boards of 9mm and 12mm and boards of 12.5mm for moisture-resistance and fire resistance for the East African region. It will also offer other products from its portfolio, including related powder, steel sections, screws and tape offerings. The company exports 8% of its production at present and it hopes to increase this to 20 – 30% in the coming years.

Oman: Exports of gypsum rose by 29% year-on-year to 3.29Mt in the first five months of 2017 from 2.55Mt in the same period in 2016. The boost in export volumes mainly arose in April and May 2017, according to data from the Oman Gypsum Association. Data from the Department of Primary Industries and Mines (DPIM) in Thailand suggests that gypsum exports have fallen from that country so far in 2017. Omani gypsum producers hope to take advantage of a growing supply deficit in Asian export markets.

Peru: Eternit Perú plans to spend around US$8.7m towards security, technology and plant productivity by 2020. Over half of this investment, US$4.4m, will be spent in 2017, according to the El Comercio newspaper. The building materials producer intends to double its gypsum wallboard business by 2020 and it has started a new marketing campaign to support this aim. It has recently won a government tender to build 2600 temporary homes using its wallboard system and it also plans to start exporting products to New Zealand in the short term.

Oman: The chief executives of the major gypsum mining companies have endorsed new regulations issued by the Public Authority for Mining (PAM) calling for a minimum export price for gypsum. The company leaders also agreed to establish the Oman Gypsum Association (OGA), an organisation intended to support the industry, according to the Oman Daily Observer newspaper. The decision follows the intervention by the PAM in December 2016 when it set minimum export freight on board (FOB) price for raw gypsum at US$12.50/t.

Following the intervention, local gypsum exporters are barred from exporting raw gypsum below this price. Those found in breach of this regulation will be denied export permits, while repeat offenders could have their mining licences removed.

Oman: Growing demand for gypsum, mainly from cement and wallboard manufacturers, should see exports from Oman reach 10Mt/yr by 2018, nearly double the present level, making it the fourth largest gypsum producing country, according to industry experts. Gypsum production is expected to hit 12Mt/yr by 2020.

Gypsum exports from Salalah Port rose from 4.15Mt in 2014 to 4.8Mt in the first 10 months of 2015. Exports are expected to reach 5.5Mt for the entire of 2015. Oman is the 10th-largest gypsum producing country in the world and is expected to become the sixth-largest in 2016, according to Zawawi Minerals' CEO Ramachandran. The US Geological Survey has estimated gypsum resources of around 950Mt in the southern part of the country. The gypsum demand growth is mainly from Asian countries like India, Japan, Indonesia, Vietnam and Bangladesh. There was a supply crunch from Thailand, where mineral mining had become heavily-regulated.

Zawawi Minerals partnered with United States Gypsum Corporation in 2012 and with Australia's Boral to launch the largest gypsum mining facility in the country. The US$16m, 3Mt/yr facility exports gypsum rock to India, Japan, Taiwan, Indonesia, Vietnam, South and East Africa, the UAE and Bangladesh. Zawawi Minerals also set up the Middle East's first Sheetrock brand gypsum wallboard plant in the Salalah Free Zone for US$37m. It has a production capacity of 10Mm².

"Oman has emerged as the single most important source for high grade natural gypsum for cement and gypsum wallboard manufacturers across Asia and South and East Africa. With higher production and little significant change in domestic consumption, Oman may continue to export the majority of its gypsum," said Ramachandran.

Georgia/Azerbaijan: The value of imported construction materials from Azerbaijan to Georgia fell by 50% from January 2015 to September 2015, according to a report issued by the National Statistics Office of Georgia.

The country imported 64,870t of gypsum plaster and other anhydrites worth a total of US$8.7m from Azerbaijan during the period. Further, the volume of imported construction materials from Azerbaijan to Georgia decreased by 39.7% compared to the same period in 2014. Officials noted that Georgia imported 107,630t of construction materials, worth US$18.5m, from Azerbaijan during the period. Construction materials accounted for 2.2% of the total volume of Azerbaijani exports to Georgia in the first nine months of 2015. In total, Georgia imported US$392m in products from Azerbaijan in January 2015 – September 2015, or 13.7% less than in the same period in 2014.

Bhutan/Bangladesh: Gypsum exports from Bhutan to Bangladesh have declined substantially after a 5% duty was levied on the mineral in July 2015.

Figures from RSA Private Limited in Phuentsholing revealed a drastic drop in the last two months. RSA exported gypsum worth US$12,049 in August 2015 and US$24,781 in July 2015. In January 2015, RSA had recorded exports worth US$111,952. RSA is the principal company that exports gypsum to Bangladesh from Bhutan. There are about four manufacturers in the country that route their gypsum to Bangladesh through RSA.

According to the bilateral trade agreement signed between the two countries, gypsum is one of the 18 products from Bhutan that is exempted from paying tax in Bangladesh. However, the new tariff schedule the government of Bangladesh published for 2015 - 2016 specified that only importers registered as a supplier for agricultural products were exempted from this tax. All other establishments that imported gypsum from Bhutan for other purposes were levied a 5% tax. Since the gypsum exported from the country is not used as fertiliser, the number of importers has decreased in Bangladesh, disrupting demand and supply. Gypsum from Bhutan is imported mostly by cement manufacturing companies in Bangladesh.

The general secretary with Bhutan Exporters Association (BEA) Tshering Yeshi said that the harmonised system code notified by Bangladesh in July 2015 contradicted the existing code as per the bilateral trade agreement. "We discussed this issue during the joint sitting customs commission meeting in July 2015," said Yeshi, adding that the representatives from Bangladesh said that they would look into the matter immediately. However, there has been no developments to date. The bilateral trade agreement between the two countries allows 90 products from Bangladesh free of tax, while 18 products from Bhutan are duty free in Bangladesh.

US: The Port of Monroe in Michigan has been busy exporting gypsum since 4 September 2015, according to Paul C LaMarre III, port director. Five consecutive gypsum loads will leave the port in less than two weeks. Most of the activity takes place at night. The first four loads for USG Corp will be shipped to Port Colborne, Ontario, while the fifth load, for Lafarge, is headed for Alpena.

"Last year, we shipped two loads and this year we will have shipped 10, with more on the horizon," said LaMarre said. The port is also 'very close' to executing a gypsum management agreement with DTE Energy, in which the port will manage and market the gypsum produced. "This would be the first such agreement of its kind between a public port and a public utility," said LaMarre. The Port of Monroe moved more than 2.4Mt of cargo through its shipping channel in 2014, shattering the record for the second time in a row.

Oman: As the Omani national rail network currently under development connects mining sites with the Sultanate's maritime gateways, gypsum exports and other minerals will increase massively.

Oman Rail's general manager stressed that the switch from outdated truck-based shipping of minerals to rail-based freight, along with the deployment of high-capacity ship-loading systems, has the potential to send export volumes soaring. A 60,000t ship can take around 4 - 6 days to load using traditional transportation and loading techniques, so with the new system the goal is to advance that significantly by using high capacity methods of loading.

As the rail network becomes fully operational, the transportation capacity is expected to increase from an approximately 10 – 12Mt/yr to nearly 20Mt/yr.