Gypsum markets are about to stage a dramatic escape from the worst recession they have ever experienced. The 11th edition of Roskill's gypsum report, “Gypsum and Anhydrite : Global Industry Market and Outlook, 2014” draws on more than 30 years of independent research into this mineral from the world's experts in metals and minerals markets.
The dynamics of gypsum supply are changing according to this new report from Roskill. The report details how China is still the world's largest producer of natural gypsum, accounting for 26% of mined supply in 2013, but that mine production in the USA and Spain has collapsed. By 2018 Roskill forecasts that flue gas desulphurisation (FGD) gypsum could contribute an even larger proportion of world supply and the report quantifies natural, FGD, phosphogypsum, titanogypsum, fluorogypsum, citrogypsum and other synthetic sources.
The highest growth rates will be seen for gypsum used in plasterboard, with an average annual growth rate of 6% over the same time period. Some regions will enjoy double digit growth in plasterboard consumption and plasterboard manufacturers have positioned themselves to take advantage of this recovery. In January 2014 it was announced that Warren Buffett's company, Berkshire Hathaway, now owns nearly 31% of the world's largest manufacturer of gypsum plasterboard, USG Corporation. Berkshire has been a major USG shareholder for several years, but it gained 21.4M shares when USG offered to convert US$325M of senior notes Berkshire held into stock. Overall, Roskill forecasts that the gypsum market will increase by 5%py until 2018 and the report also outlines its predictions for the next construction cycle up to 2023.
World: Regional plasterboard capacity, 2013 (%)