Demand for gypsum in North America to exceed 47 million tonnes in 2013

25 September 2009

Demand for gypsum and gypsum products in North America could reach 47.7 million tonnes in 2013, according to the latest study by US-based research company The Freedonia Group, Gypsum in North America.

With demand rising +2.7% annually through 2013 the market will be worth about US$ 5.3 billion, the report added.

Gypsum board, said the report, accounts for about 70% of demand and this is projected to rise by +3.2% annually through 2013 thanks to a recovery in the US housing sector.

Demand in the US had declined sharply in 2007 and 2008, added the report, as new housing construction collapsed in the wake of the global financial crisis. Looking ahead the report said the recovery of the US new housing sector from its depressed 2008 levels "will lead the industry back to positive growth."

Demand in Canada and Mexico will also show growth through 2013. In Mexico, demand will increase +2.1% annually, representing a "deceleration from the gains posted in the 1998-2008 time frame", said the report, which reflects slowing growth in both residential and non-residential construction activity.

Better prospects will emerge in non-building markets in Mexico, added the report, due to expanded infrastructure construction.

In Canada, demand will increase only marginally, reflecting a contraction in new housing construction and "decelerating growth" in residential improvement and repair spending, non-residential construction and non-building construction.

Synthetic gypsum, which accounted for 24% of crude gypsum supply in 2008, will continue to gradually increase its share of crude gypsum production. Synthetic gypsum, which is widely available in the US and Canada, is produced primarily as a by-product of the flue gas desulfurization process for reducing emissions at coal-fired power plants.

For more information on the report visit www.freedoniagroup.com.

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