Gypsum Products in North America

Transcription

1 Gypsum Products in North America US Industry Study with Forecasts to 2007 & 2012 STUDY #1700 August 2003 $3800 The Freedonia Group The First Choice In Industry Research 767 Beta Drive Cleveland, OH USA Tel: (US) or Fax:

2 Gypsum Products in North America US Industry Study with Forecasts to 2007 & 2012 Study #1700 August 2003 $ Pages By 2002, synthetic gypsum had increased to 20 percent of all gypsum consumed, and by 2007 the share of synthetic gypsum is expected to rise to over 30 percent Roller coaster ride at an end? Demand for gypsum products in North America is forecast to advance 2.1 percent per year through 2007 to 46.8 million metric tons. Gains as measured in dollar value will fare even better, rising 4.1 percent per annum to US$4 billion in Growth in product value will be stimulated by a recovery in gypsum board pricing, although the firming in pricing will primarily represent a stabilization as prices return to the levels of the mid-1990s. Gypsum board to remain dominant Gypsum board is the dominant gypsum product sold in North America, accounting for nearly three-quarters of total demand in 2002 as measured by weight. In this key product segment, demand is expected to advance 1.8 percent per year to 36.4 billion square feet (34.1 million metric tons). Among the different gypsum board products, specialized boards such as type X, water-resistant and mobile home gypsum board will fare particularly well. In addition to gypsum board, other gypsum products include building and industrial plasters, gypsum used as a cement additive, agricultural gypsum and gypsum fillers. Gypsum used as an additive for cement is expected to lead gains, advancing roughly three percent per year through 2007 to 7.5 million metric tons. Growth in cement markets will be supported by the rebound in nonresidential construction North American Gypsum Products Demand, 2002 (42 million metric tons) Gypsum Board 73% Plasters 4% Cement 15% Agricultural 5% Fillers & Other 3% in the US, as well as by continued infrastructure-building efforts in Mexico. Other gypsum products expected to show above-average growth through 2007 include building plasters and industrial gypsum used as a filler in manufacturing operations. Synthetic gypsum use expected to rise Manufacturers of gypsum products continue to rely on an increasing amount of synthetic gypsum -- as opposed to mined gypsum -- as a raw material. In 1992, synthetic gypsum accounted for only two percent of all gypsum consumed in North America. By 2002, synthetic gypsum had increased to 20 percent of all gypsum consumed, and by 2007 the share of synthetic gypsum is expected to rise to over 30 percent. Most of the synthetic gypsum used in North America is supplied by coalburning utilities who create the gypsum as a byproduct of the flue gas desulfurization (FGD) process. The use of FGD gypsum is particularly common in the gypsum board segment, with virtually all gypsum board plants built since 1998 using synthetic gypsum to fulfill all or part of their raw material requirements. Visit for complete text and table of contents

3 Table of Contents Letter From the CEO INTRODUCTION EXECUTIVE SUMMARY... 1 MARKET ENVIRONMENT General... 4 Demographic & Household Trends... 5 Macroeconomic Overview... 7 United States... 9 Canada Mexico Construction Trends Residential Building Construction Housing Starts Repair & Improvement Expenditures Nonresidential Building Construction Nonbuilding Construction Cement Outlook United States Canada Mexico Agricultural Overview United States Canada Mexico Market Trends Pricing Trends Crude Gypsum Gypsum Board Environmental Considerations Gypsum Mining & Manufacturing Operations Waste Gypsum Disposal & Recycling Synthetic Gypsum International Environment Latin America Europe Africa/Mideast Asia/Pacific GYPSUM SUPPLY & DEMAND North America Mine Production Synthetic Gypsum Production United States Mine Production Synthetic Gypsum Production Canada Mine Production Synthetic Gypsum Production Mexico Dear Colleague: If you are involved in the gypsum board industry, you generally need to be prepared for a roller coaster ride. And in challenging economic times, it is more important than ever to have credible industry information on which to base your business decisions. At Freedonia, it is our mission to provide you with an unbiased, reliable outlook for each industry that we study. We carefully examine available sources, separate the wheat from the chaff, and distill an ocean of data into a concise presentation of where an industry stands today... and where it is going. At Freedonia, it is our mission to provide you with an unbiased, reliable outlook for each industry... Each Freedonia industry study provides you with the information and analysis you need to make important decisions. How large is your target market? Which product segments are growing fastest? Which markets are growing fastest? Our analysts review the relevant secondary sources and talk directly to participants in the industry to find the answers. Our Gypsum Products study provides you with the equivalent of two studies for the price of one. The study first looks at crude gypsum and takes a good look at the ongoing replacement of mined gypsum with synthetic gypsum. The study then examines the myriad of gypsum products, from gypsum board to fillers. At 264 pages, this new update of our study also includes more than 40 pages of additional analysis relative to the prior version. I invite you to add the Freedonia Group to your team by acquiring our Gypsum Products study today. Very truly yours, Jeffrey Weiss, CEO GYPSUM PRODUCT OVERVIEW General Calcined Gypsum... 83

4 Table of Contents (cont.) Uncalcined Gypsum Outlook CALCINED GYPSUM PRODUCTS General Gypsum Board Manufacturing Process Demand by Country Demand by Type Regular Gypsum Board Type X Gypsum Board Water-Resistant Gypsum Board Mobile Home Gypsum Board. 110 Sheathing Gypsum Board Veneer Gypsum Board Ceiling Tiles Prefinished & Other Gypsum Board Demand by Market Residential Construction Nonresidential Construction Other Markets Building Plasters Industrial Plasters & Other UNCALCINED GYPSUM PRODUCTS General Cement Additive Agricultural Gypsum Fillers & Other MARKETS General Construction Residential New Repair & Improvement Nonresidential New Repair & Improvement Nonbuilding Industrial Agricultural INDUSTRY STRUCTURE General Industry Composition Gypsum Product Market Share Gypsum Board Capacity Vertical & Horizontal Integration Cooperative Agreements Mergers & Acquisitions Manufacturing Marketing & Distribution Marketing Distribution Company Profiles North America Gypsum Product Demand by Country, (million metric tons) Lafarge SA 61, rue des Belles Feuilles BP40 Cedex Paris France Lafarge North America Incorporated Worldgate Drive, Suite 600 Herndon, VA Sales: $13.7 billion (2002) Employment: 77,000 (2002) Canada Mexico United States COMPANY PROFILES Key Products: gypsum wallboard, specialty gypsum boards, exterior sheathing and veneer plaster boards The Company s Gypsum segment had 2002 sales of $1.1 billion, including $230 million to North America. The segment, which employed 5,320 in 2002, produces plasterboard systems, gypsum blocks and sprayable plaster for construction finishes, new buildings and renovation applications. According to Lafarge, it is the third largest gypsum manufacturer worldwide through this segment as of Lafarge is active in the North American gypsum industry through its 54-percent held Lafarge North America

5 Freedonia Study # GYPSUM PRODUCTS IN NORTH AMERICA North America Nonbuilding Construction Gypsum Demand (thousand metric tons) Item Canada Nonbldg Construction (bil 96 ) m tons gypsum/mil US$ cotr Nonbldg Constr Gypsum Demd Gypsum Board 500 The 600 Markets 725 Section 910 ana-116lyzes 2256 trends 2623 and considers Gypsum in Cement 1651 Building & Industrial Plaster US$/m ton Nonbldg Constr Gypsum (mil $) GYPSUM SUPPLY & DEMAND Crude gypsum output in Canada totaled 8.6 million metric tons in 2002, making the country the second largest producer of mined gypsum in North America and the third largest producer in the world. Mining of gypsum in Canada is projected to decline slightly through 2007 to 8.4 million metric SAMPLE tons. Growth PAGE will primarily be tempered by the supplantation Text sections of mined support gypsum each with synthetic gypsum. table s Canadian numbers use of & synthetic projections gypsum, which was negligible until the mid-1990s, is expected to show doubledigit gains through 2007, increasing to 1.2 million metric tons. The growing consumption of synthetic gypsum in the US, Canada s major trade partner, will also restrain Canadian gypsum mining over the forecast period. MARKETS the threats and opportunities in each major market Canada is a net exporter of crude gypsum, with a trade balance of 4.9 million metric tons in During that year, three-fifths of the gypsum mined in Canada North was America Mobile Home Gypsum Board Demand exported, almost entirely to the US. Imports (million play a square much feet) smaller role in the Canadian crude gypsum market, representing less than ten percent of total demanditem in The majority of Canadian imports originate in the US, with lesser amounts from Mexico. Net exports Total Gypsum of Board Demand crude gypsum in Canada are forecast to increase % slightly mobile home through 2007, reaching 5.2 million metric tons. Mobile Home Board Demand PRODUCTS 1445 United States The Products Section Canada provides demand for Mexico historical years and m tons/000 sq ft 0.69 forecasts 0.75 growth 0.75 to Mobile Home Board (000 m to) and US$/000 sq ft Mobile Home Board (mil US$)

6 Order Information About The Freedonia Group To order, fill out the coupon below and mail to The Freedonia Group, or place your order by phone toll free, (US) or , or by fax, , or Free Handling & Shipping There is NO charge for handling and UPS shipping in the US. Expect delivery in 3 to 5 business days. Outside the US, Freedonia provides free airmail service. If you require express delivery, Freedonia provides this to you at cost. Credit Card Orders You may charge your order to either American Express, MasterCard or Visa. Please include your credit card account number, expiration date, and your signature. Orders Outside of the US Checks must be made payable in US funds, drawn against a US bank and mailed directly to The Freedonia Group. Wire transfers should be sent to: Fifth Third Bank, Cincinnati, OH; SWIFT No. FTCUS3C; ABA # ; Account # (please include study number and/or invoice number with all wire transfers). Or you may use a credit card. Corporate Use License Now every decision maker in your organization can act on the key intelligence found in all Freedonia studies. For and additional $2000, you receive unlimited use of an electronic version (PDF) of the study. Place it on your intranet, it to coworkers around the world, or print it as many times as you like! Order it today. The Freedonia Group, Inc. The Freedonia Group is a leading international database business research company. Since 1985, Freedonia has published 2,000 multiclient industry studies that have proven to be outstanding aids to market and corporate analysis and strategic planning. Freedonia can save you time and money on research you would otherwise have to do yourself or contract out. Freedonia studies cover a broad range of industrial topics in many areas including the following: Chemicals Construction & Building Materials Energy & Power Equipment Industrial Components & Equipment Life Sciences: Biotech/Medical/Pharmaceutical Freedonia Methodology Packaging Plastics Security/Electronics/ Communications Automotive & Other Transportation Equipment World Studies Freedonia does not just collect and reprint data, Freedonia develops data. Our analysts thoroughly investigate an industry by interviewing key participants and analyzing information from sources such as associations, government and trade literature. Once this research is complete, Freedonia establishes one set of forecasts. All writing, editing and forecasting is done in-house to assure quality and Need analysis on a topic not covered by consistency. In cases where data Freedonia Industry studies? does not exist, Freedonia develops Call customer service for details on the data based on input/output Freedonia Custom Research ratios, bills of materials and flow charts. Order Form Title Name Gypsum Products in North America... $3800 Title Company Corporate Use License (add to study price) +$2000 Additional Print $400 each Total (including selected option) $ Division Street City/State/Zip Country Enclosed is my check (5% discount) drawn on a US bank and payable to The Freedonia Group, Inc., in US funds (Ohio residents add 7% sales tax) Bill my company American Express MasterCard Visa Online Access: The complete text and tables from our studies and reports can be purchased at our website, and through major commercial online hosts. Phone Credit Card Number Fax Expiration Date Signature F-SM.1700 The Freedonia Group, Inc. 767 Beta Drive Cleveland, OH USA Web site: Tel: (US) or Fax: info@freedoniagroup.com