Lime Market Faces Oversupply From Downturn in Steel Industry.(Statistical Data Included)

Chemical Market Reporter, April, 2001 by Van SAVAGE, ELEANOR

THE LIME INDUSTRY is under growing pressure. Demand is off because of a downturn in the steel industry, which accounts for 40 percent of domestic lime consumption. In addition, new capacity has been added to the mature market, and margins are being squeezed by higher costs for coal, diesel and natural gas.

Most producers cite the downturn in the steel industry as especially harmful to the lime market. "The industry is in a state of overcapacity of between 15 to 20 percent excess production capacity. The downturn in steel, and that industry's Chapter 11 filings, have hurt the industry," says Bob Roden, vice-president of sales, Carmeuse North America. Carmeuse is the US lime market leader, with a nameplate of roughly 9 million annual short tons.

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