Gypsum industry news

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.

Indonesia: Semen Baturaja has signed a memorandum of understanding with Huadian Buket Asam Power. Under the agreement, Semen Baturaja will supply the power company with limestone for its flue gas desulfurisation (FGD) process in exchange for gypsum, fly ash and bottom ash. The agreement will last for two years until March 2023.

The cement producer’s managing director Sumsal Saifudin said “This collaboration is a form of synergy between the two companies to improve competitiveness, which is much-needed in facing an increasingly competitive industrial environment, by taking advantage of opportunities for the creation of new revenue streams and cost transformation.”

US: Data from the United States Geological Survey (USGS) shows that national natural gypsum production was 20.5Mt in the US in 2020, down by 5% year-on-year from 21.5Mt in 2019. Synthetic gypsum production remained constant at 14.4Mt and calcined gypsum production fell by 2% to 17.2Mt from 17.5Mt. Crude gypsum exports fell by 13% to 32,200t from 37,000t and calcined gypsum exports fell by 21% to 89,400t from 113,000t.

Domestic calcined gypsum consumption totalled 17.2Mt, down by 1% from 17.4Mt. Calcined gypsum imports rose by 8% to 29,000Mt from 26,900Mt. Crude gypsum consumption also fell, by 3% to 40.9Mt from 42.0Mt. Crude gypsum imports fell by 2% to 6.03Mt from 6.14Mt. Mexico overtook Spain as the leading exporter of crude gypsum to the US in 2020.

India: BTL EPC, a division of engineering firm Shrachi Group, has been awarded a US$51m synthetic gypsum, limestone and coal handling equipment contract for Telangana State Power Generation Corporation’s proposed 5X800 MW Yadradri Thermal Power Station Thermal Power Station, according to the Economic Times newspaper. The contract includes the provision of a 21.8km-long conveyor.

US: The American Coal Ash Association (ACAA) has criticised a proposed revision of coal ash regulations by the Environmental Protection Agency because it will restrict the recycling of coal ash.

"EPA's proposals related to the definition of coal ash beneficial use are the opposite of a regulatory roll-back," said Thomas H Adams, ACAA Executive Director ahead of a hearing with the EPA. "Without any damage cases or scientific analysis to justify its actions, the agency is seeking to impose burdensome new restrictions that will cause millions more tons of material to be disposed rather than be used in ways that safely conserve natural resources and energy."

Adams and the ACCA argue that previous EPA rules concluded that beneficial use of coal ash should be exempt from regulation and encouraged to contribute to sustainability. However, the ACCA has taken exception with a 2015 definition of beneficial use, which was intended to prevent ‘disposal activities masquerading as beneficial use.’ By expanding the scope of this definition the ACCA says that more coal ash will be landfilled instead of being recycled.

Coal is the fuel source for approximately one-third of electricity generation in the US and produces large volumes of solid coal combustion products - primarily ash and synthetic gypsum from emissions control devices. This family of diverse products is referred to as coal combustion residuals in a disposal setting and is often generically referred to as ‘coal ash.’

According to ACAA's most recent ‘Production and Use Survey,’ 64.4% of the coal ash produced during 2017 was recycled. By volume, 71.8Mt of coal combustion products were beneficially used in 2017 out of 111Mt that were produced. Coal ash production volume increased by 4% year-on-year from 2016.

Serbia: Elektroprivreda Srbije, a government-owned power company, has completed a Euro14m terminal on the River Danube for its Kostolac B coal-fired power plant. The unit will be use to transport 105,000t/yr of synthetic gypsum and 157,000/yr of fly ash. It will also process limestone. The terminal was built as part of the first phase of a credit arrangement between Serbia and China.

UK: Smithers Apex predicts that the global synthetic gypsum market is due to reach 220Mt/yr by 2027 from a 151M/yr in 2017. A new report by the market research company forecasts modest growth in the US, a decline in Europe and growth in China over the next 10 years. At present the current supply of synthetic gypsum is mostly based in theses countries and they accounted for 96% of worldwide supply in 2014.

"The synthetic gypsum industry is at a very interesting and dynamic point in time. The outlook for the next 10 years is positive, but not without threats. Opportunities abound for new applications, coupled with an increased supply. Innovation is coming in the form of research into the raw material," said Robert C Grupe, Jr, the author of the 'Future of Synthetic Gypsum: Market Forecasts to 2027' report.

An example of a major driver of the synthetic gypsum market is government regulations controlling coal-fired power plants. Sustainability requirements for the design and construction of new buildings can also encourage demand for products made with synthetic gypsum.

US: Gypsoil is stopping production at its pelletised gypsum fertiliser plant in Winona, Minnesota. The plant has been shut down due to poor market demand, according to the Winona Daily News. The US$5m plant opened in early 2016. It used synthetic gypsum from coal smoke stack scrubbers in Ohio.

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.

US: Headwaters Resources has announced it has entered into a definitive agreement to purchase 100% of the membership interests of Synthetic Materials based in Louisville, Kentucky. The acquisition, which is subject to the satisfaction of certain closing conditions, is expected to close in Headwaters current fiscal year. It is intended to complement the coal combustion product management operations of Headwaters.

Synthetic Materials handles synthetic gypsum processing and management. It has 21 years of experience providing services to the flue gas desulfurisation industry, including the design and construction of gypsum dewatering systems, gypsum marketing, landfill and pond management. At present it provides operations and maintenance services at 10 different utility sites and manages over 4Mt/yr of bulk synthetic gypsum, generating approximately US$25m in annual revenue. The expected purchase price will range between US$38 – 45m, depending upon certain conditions.