Lime

Global Market Outlook on Lime 

MARKET OVERVIEW

Global Supply: 452 MMT (2023 E)

Global Lime Market Size: $47 billion Global(2023 E)

Market Growth: ~(2-3) percent (2022-2025)

• The APAC would continue to dominate the market, in terms of production volume, as well as growth prospects

• Market consolidation will continue to increase in North America and Europe in the coming years, as producers continue to optimize operating costs, as well as expand geographical footprint

Lime  Demand Market Outlook

• Demand in the CN market is expected to post a recovery in the upcoming months, the demand was hampered earlier on due to the spread of Covid in the region and potential closures by the steel mills who are already operating on negligible margins.

Lime Market Overview

• Lime is a calcium-containing mineral that is widely used in the steel and construction sectors. Lime is classified into quick lime and hydrated lime.

• Global lime market growth is expected to remain optimistic, underpinned by rising use of lime in metallurgical applications, primarily in steel production. Also, lime is extensively used in the production of aluminium and magnesium metal

• APAC will continue to remain as the fastest growing market in the near future, supported by the positive outlook for the construction industry

Market Size and Trend on Lime 

• The global lime market growth is anticipated to witnessed a steady growth in the latter half of the year 2023, in line with the firm demand from the downstream industries, particularly steel.

• In the first half of 2022, the demand for the mineral was volatile, underpinned by the global supply chain disruption and volatility in energy costs due to the onset of the Russia-Ukraine war. However, in the latter half of 2022, there has been relatively steady purchasing volume from the downstream industries. Demand from the steel mills is expected to increase in 2023, thereby bolstering the growth and the prices of both limestone and lime, globally. The potential growth in the construction and infrastructure segment considered to be another major driver for the growth of the lime market in the long term

Lime Market Analysis - Supply

• Over the last few years, lime supply across the globe remained severely hit due to the spread of the coronavirus pandemic. Major lime producers in China, US, and Europe were forced to reduce their output owing to unavailability of skilled labor, alongside a rapid plunge in demand from the downstream industries. Supply chains were disrupted once again due to the Russia-Ukraine war and the outbreak of Covid and associated lockdowns in China which persisted through 2022 and extending into the earlier part of 2023.

• Supply of the material remained disrupted due to the Russia Ukraine war in the early part of 2022. However, the resumption in mining activities across major countries in the latter half kept the supply at reasonable levels. The total lime supply is poised to increase by 6% in 2024 as compared to 2022 levels

• APAC will continue to remain as the major market in the growth of the lime industry, due to an anticipated healthy boom in construction activities, especially in nations such as Indonesia, China, Malaysia, and India

Market Trend and Impact on Lime 

• Lime suppliers are increasingly focusing on providing customers with new innovative products customized for specific applications, as well as value-added services, like technical and applications support, optimized transportation services, on-site material handling, inventory services, and collaboration with the customer in R&D activities.

Global Lime Demand Drivers and Constraints 

• Rapid urbanization and growth of construction industry is one of the major drives for the growth of lime market, globally. Rising demand for iron and steel are other prominent factors that aid in the demand growth of the global lime market.

Drivers

Global Steel Demand:

• Increasing demand for steel in the long term is expected to boost the demand for lime in the near future, as quicklime is used in the steel making process to neutralize the acidity of the slag

Growth in the Construction Sector:

• Construction sector will continue to dominate the market share of lime and is expected to continue the same trend in the near future

• APAC will continue to remain as the fastest growing market in the near future, supported by the positive outlook for the construction industry

Constraints

High Capital and Operating Costs

• Lime manufacturers face high operating costs as lime production is an energy intensive process

• They also face high costs associated with Environmental Compliance in North America and Europe. Environmental regulations with regards to GHG emissions require lime producers to include GHG control measures in plant upgrades and expansions, leading to increased time and costs involved

High Transportation Costs

• This significantly limits the scope for market expansion across new geographical locations for the lime producers

Cost Structure Analysis : Lime 

• Limestone is the key raw material for the manufacture of lime and it accounts for nearly 72 per cent of the total manufacturing cost in the global market

• Lime plants and facilities need to be located close to markets that have access to suitable transportation networks to allow for cost-effective production and distribution

Lime Cost Structure - USA

• Limestone is the key raw material for the manufacture of lime, and it accounts for nearly 72 per cent of the total manufacturing cost in the global market.

• Lime can be produced in different types of kilns. However, vertical kilns are considered as more energy efficient than the horizontal kilns.

• The quality of lime produced also depends on the efficiency of fuel that is being used. Efficient kiln insulation lining, optimized combustion processes, improved maintenance procedures are few measures that could aid in increasing the efficiency of the fuel.

• Significant steps to reduce consumption of electricity will also help in reducing the overall cost of production, as energy contributes to nearly 14% of the cost involved in lime production.

• Storage of lime involves transporting the material to a geographically suitable location and storing it underground. Currently, lime plants are typically located right next to the limestone quarry and are not clustered in large industrial agglomerations. Storage locations would need to be properly developed and maintained for an effective storage of the mineral.

• Another big challenge associated with lime production is carbon dioxide emissions. One possible way to reduce emissions is to switch to less carbon intensive fuels sources, such as natural gas or increase the use of biomass or waste materials.

Regional Market Outlook

This section of the lime market report details the lime market share, market size, demand, and market maturity of each geographic region. The regions studied are North America, the US, APAC, China, South America, Europe, and South Africa. The countries within each region are also classified based on market maturity.

Asia Pacific (APAC) will remain in the vanguard of the lime market owing to surging demand from various end-users. China is the leading producer of various metals such as aluminum, steel, and gold products. Furthemore, rising infrastructure development projects in India and other Southeast countries will drive the lime demand and supply.

Lime market in North America is primarily driven by the rising mining of limestone over the past few years. The US occupies the major chunk of the regional lime market share. Europe’s lime demand is receiving impetus from increasing steel production to support the resurrecting automobile industry.

Why You Should Buy This Report?

The lime industry report provides the market overview, drivers and constraints, regulatory and technological trends. It offers Porter’s five forces analysis of the global lime market.  The market research study offers an in-depth market assessment and highlights the important aspects including prominent players, lime price trends, and relevant sub-categories. Further, the report contains various factors impacting the market growth over the recent past.