Lime Market in the USA - Key Insights

IndexBox has just published a new report, the U.S. - Quicklime, Slaked Lime And Hydraulic Lime - Market Analysis, Forecast, Size, Trends and Insights. Here is a summary of the report's key findings.

The U.S. lime market stood at $2.3B in 2018, rising by +1.8% against the previous year. This figure reflects the total revenue of producers and importers. Prior to that, the value of the U.S. lime market remained relatively stable from 2012-2014, but then slumped over the 2015-2016 period, reaching an all-time low point the following year. 

In physical terms, U.S. lime consumption also increased tangibly in 2018, amounting to 19M tonnes. After a notable reduction in market volume from 2015 to 2017, it started to increase against the improved performance of the steel industry and the increasing number of projects in the oil and gas production and pipeline transportation sector. These industries, together with the chemical, environmental and construction industries, constitute major downstream markets in terms of lime as a product.

Production in the USA

In 2018, the amount of quicklime, slaked lime and hydraulic lime produced in the U.S. totaled 19M tonnes, growing by 6.7% against the previous year. In value terms, production totalled $2.3B in 2018, an increase of +1.5% against 2017. The trend pattern of U.S. lime production was largely conditioned by rising demand, thereby reflecting the trend of U.S. consumption.

Lime Exports

Exports from the USA

In 2018, approx. 348K tonnes of quicklime, slaked lime and hydraulic lime were exported from the U.S.; increasing by 8.5% against the previous year. In general, lime exports continued to grow robustly over the last six years; however, the volume of exports remains negligible in terms of the total output. In value terms, lime exports amounted to $65M (IndexBox estimates) in 2018.

Exports by Country

The majority of lime exports is supplied to neighbouring Canada (313K tonnes), which remains the major export destination for lime from the U.S., with a share of 90% of total exports in physical terms. From 2008 to 2018, the average annual rate of growth in terms of volume of exports to Canada stood at +12.1%. Besides Canada, a fraction of lime exports from the U.S. are also sent to Chile (25K tonnes, or 7% of the total exports in 2018) and other countries.

In value terms, Canada ($52M) remains the key foreign market for lime exports from the U.S., comprising 81% of total lime exports. The second position in the ranking was occupied by Chile ($8.3M), with a 13% share of total exports.

Export Prices by Country

In 2018, the average lime export price amounted to $186 per tonne, increasing by 4.9% against the previous year. In general, the lime export price continues to indicate a relatively flat trend pattern.

Export prices varied noticeably by the country of origin; the country with the highest export price was Chile ($328 per tonne), while the average price for exports to Canada stood at $167 per tonne.

From 2007 to 2018, the most notable rate of growth in terms of export prices was recorded for supplies to Chile (+5.9% per year).

Lime Imports

Over the last decade, the import share in total consumption remained negligible, which hardly boasts favourable terms for market entry. This can be explained by the fact that lime is not suitable for transportation over long distances due to its high reactivity and limited product life.

In 2018, lime imports into the U.S. amounted to 318K tonnes, declining by -1.9% against the previous year.

In value terms, lime imports amounted to $58M (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +2.2% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. Over the period under review, lime imports reached their peak figure at $60M in 2014; however, from 2015 to 2018, imports remained at a lower figure.

Imports by Country

In 2018, Canada (285K tonnes) constituted the largest supplier of lime to the U.S., accounting for a 89% share of total imports. Moreover, lime imports from Canada exceeded the figures recorded by the second largest supplier, Mexico (25K tonnes), more than tenfold.

From 2007 to 2018, the average annual rate of growth in terms of volume from Canada was relatively modest.

In value terms, Canada ($47M) constituted the largest supplier of lime to the U.S., comprising 81% of total lime imports. The second position in the ranking was occupied by Mexico ($5.8M), with a 10% share of total imports.

Import Prices by Country

The average lime import price stood at $181 per tonne in 2018, picking up by 6.2% against the previous year. Over the last decade, it increased at an average annual rate of +2.8%.

Average import prices varied somewhat amongst the major supplying countries. In 2018, the country with the highest import price was Mexico ($236 per tonne), while the price for Canada stood at $164 per tonne.

From 2007 to 2018, the most notable rate of growth in terms of import prices was attained by Mexico (+8.9% per year).

Source: IndexBox AI Platform