Roskill - Expanding The World's Knowledge of Metals and Minerals Markets

Table of Contents

  • 1. Summary
  • 2. Introduction
  • 3. Occurrences and reserves of diatomite
  • 4. Mining and processing of diatomite
  • 5. Health and safety factors associated with diatomite
  • 6. World production of diatomite
  • 7. Production of diatomite by country and company
  • 8. World consumption of diatomite
  • 9. Consumption of diatomite by application
  • 10. International trade in diatomite
  • 11. Prices of diatomite

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Diatomite

Filtration continues to be the largest market for diatomite

World production of diatomite has averaged 1.95Mtpy over the past five years, with higher output in China and Chile offset by lower production in the USA, Spain and the closure of the Kisilidjan plant in Iceland in 2004. The USA and China continue to dominate world production, with future expansion in diatomite production likely to be concentrated in China. Projects have been proposed in Algeria, Armenia, New Zealand and Zambia, but Chinese output is estimated to show the highest growth in the near term. However, Russia could emerge as a producer of high-grade diatomite in the second half of this decade as foreign investment has been sought for the development of a recently announced 6.6Mm3 deposit in the Republic of Mordovia. Prospects for the development will be helped by the existence of a large potential local market, in both beer filtration and construction. Worldwide, filter aids account for 55-60% of diatomite consumption. Although diatomite has lost market share to CFMF processes in the wine industry, it is still considered the most effective filtration medium in beer and edible oil production, with 95% of commercial breweries worldwide continuing to use diatomite filtration in 2005. Growth in diatomite consumption in filtration markets is forecast at 1-2%py through to 2010, led by demand from Chinese and Russian beer producers.

The key trends, issues and developments in the market are analysed in this major new report from Roskill. It provides a clear insight into the industry and its trends, and an authoritative analysis of the prospects for the future.

What the report gives you
  • Independent, in-depth research and analysis
  • Essential market intelligence for successful business planning
  • Detailed survey of production in 40 countries
  • Up-to-date profiles of over 38 producing companies and their activities, including Imerys, CECA, EP Filtration and Minerals, Showa Chemicals, Grefco and Dali Qingzhong Sci-Tech
  • Forecasts for end-use consumption and world supply and demand

Report highlights

The diatomite industry is undergoing restructuring in 2005. Imerys of France has acquired World Minerals, by far the largest diatomite producer worldwide, with operations in USA, Chile, China, France, Mexico, Peru and Spain. EaglePicher Industries, the parent company of the second largest producer, EPFM, filed to reorganise under Chapter 11 of the US Bankruptcy Code in April 2005. EPFM could be divested.

Although the market for diatomite is estimated to remain stable in the short-term, the longer-term outlook may be less optimistic. Potential EU-wide classification of spent diatomite as hazardous waste would necessitate disposal in registered sites and increase utilisation costs.

Offsetting the current growth in filtration markets, is the continued fall in demand for speciality diatomite fillers. Fillers currently account for 15-20% of world diatomite consumption. In paint, diatomite is the most cost-effective flatting agent, while in polyethylene, diatomite acts as an anti-blocking agent. Concerns over health and safety issues associated with the free crystalline silica content of calcined diatomite, and the costs of installing necessary handling and worker protection systems, have resulted in substitution of diatomite fillers by talc or ground calcium carbonate. Some paint manufacturers have switched to natural diatomite grades, but others have reduced consumption or plan to eliminate diatomite from new paint formulations.

Reflecting the market pressures, diatomite pricing is very competitive and leading producers have traditionally discounted list prices to retain market share. US list prices range from below US$200/t for concrete grades to over US$450/t for some filter aid material. Over the past two years, leading producers have raised diatomite list prices three times, primarily reflecting higher energy costs, but also to offset rising freight, raw material and environmental compliance costs. It seems likely that diatomite prices will continue to rise in line with energy costs in the near future.

Buy This Report Now

The Economics of Diatomite, 8th edition published 25/08/2005

148 pages, 85 tables and 24 figures.

ISBN 0 86214 889 8

Complete report price:

GBP 2100

EUR 3675

USD 4200

plus postage/packing.

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