LIME1/ 2/ (Data in thousand metric tons, unless noted)3/ Domestic Production and Use: In 1995, lime producers at 113 plants in 33 States sold or used 18.5 million tons (20.4 million short tons) of lime valued at about $1,190 million, an increase of about 1.1 million tons (1.2 million short tons) and $170 million from 1994 levels. Most of the increase was accounted for by commercial and captive producers reporting higher quicklime production. Ten companies, operating 28 plants, accounted for 66% of domestic output. Principal producing States, in decreasing order, were Ohio, Missouri, Alabama, Pennsylvania, Kentucky, Texas, and Illinois. These seven States produced 11.5 million tons (12.7 million short tons) or 62% of the total output. Based on monthly data, the leading markets were chemical and industrial, steel, environmental, and construction. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production4/ 15,700 16,200 16,800 17,400 18,500 Imports for consumption 158 193 201 204 290 Exports 47 59 69 74 75 Consumption, apparent5/ 15,800 16,300 16,900 17,500 18,700 Quicklime average value, dollars per ton at plant 55.04 55.48 55.02 56.43 62.70 Hydrate average value, dollars per ton at plant 69.78 72.15 67.84 67.71 77.10 Stocks, yearend NA NA NA NA NA Employment, mine and plant 5,500 5,500 5,500 5,500 5,500 Net import reliance6/ as a percent of apparent consumption <1 <1 <1 <1 1 Recycling: Large quantities of lime are regenerated by paper mills. Some municipal water treatment plants regenerate lime from softening sludge. Quicklime is regenerated from waste hydrated lime in the carbide industry. Data for these plants are not included as production in order to avoid duplication. Import Sources (1991-94): Canada, 91%; Mexico, 8%; and other, 1%. Tariff: Item Number Most favored nation (MFN) Non-MFN7/ 12/31/95 12/31/95 Quicklime 2522.10.0000 Free 0.2›/kg.8/ Slaked lime 2522.20.0000 Free 0.3›/kg.8/ Hydraulic lime 2522.30.0000 Free 0.2›/kg.8/ Depletion Allowance: 14% (Domestic), 14% (Foreign), for limestone produced and used for lime production. Government Stockpile: None. Prepared by M. Michael Miller, (703) 648-7716. LIME Events, Trends, and Issues: The deadline for phase I compliance with sulfur dioxide (SO2) emission regulations of the Clean Air Act Amendments of 1990 was January 1, 1995. After that date, it is unlawful for any affected utility unit to emit SO2 in excess of the tonnage limitation of the utility's emission allowances. To supply lime for this flue gas desulfurization market (FGD), the lime industry planned to install in excess of 1.8 million tons per year (2.0 million short tons per year) of new capacity by yearend 1995. Kilns are being added to existing plants in Kentucky, Nevada, Tennessee, and West Virginia, and a new plant is being built in Missouri. The surge in demand by the FGD and steel markets temporarily outstripped the construction of new production capacity. As a result, after an extended period of price stagnation, lime prices increased dramatically in 1995. During the period 1985-94, the value per ton of quicklime as prepared for sale, increased on average only 1.1% per year. But in inflation-adjusted constant 1994 dollars, the value per ton of quicklime decreased an average of 2.1% per year. Based on a sampling of producers, quicklime and hydrate values per ton are projected to be up 11% and 14%, respectively in 1995. The prices vary by region and are affected by regional shortages and long-term supply contracts. World Lime Production and Limestone Reserves and Reserve Base: Production Reserves and reserve base9/ 1994 1995e/ United States 17,400 18,500 Adequate for all Belgium 1,750 1,700 countries listed. Brazil 5,700 5,700 Canada 2,390 2,400 China 19,500 20,000 France 2,500 2,500 Germany 7,500 7,500 Italy10 3,500 3,500 Japan (quicklime only) 7,710 7,700 Mexico 6,500 6,500 Poland 2,500 2,500 Romania 3,000 3,000 South Africa, (sales) 1,600 1,600 United Kingdom 2,500 2,500 Other countries 34,000 34,000 World total (rounded) 118,000 120,000 World Resources: Domestic and world resources of limestone and dolomite suitable for lime manufacture are adequate. Substitutes: Limestone is a substitute for lime in many uses, such as agriculture, fluxing, and sulfur removal. Limestone contains less reactive material, is slower to react, and may have other disadvantages to lime depending on the use; however, limestone is considerably less expensive than lime. Calcined gypsum is an alternative material in industrial plasters and mortars. Cement and lime kiln dust and fly ash are potential substitutes for some construction uses of lime. e/Estimated. NA Not available. 1/Data are for quicklime, hydrated lime, and refractory dead-burned dolomite. 2/Excludes Puerto Rico, unless noted. 3/See Appendix A for conversion to short tons. 4/Sold or used by producers. 5/Stocks data are not available; stock changes are assumed to be zero for apparent consumption and net import reliance calculations. 6/Defined as imports - exports + adjustments for Government and industry stock changes. 7/See Appendix B. 8/Rates include weight of the container. 9/See Appendix C for definitions. 10/Includes hydraulic lime. Mineral Commodity Summaries, January 1996