There are good signs for Australia’s limestone segment, with the lime market expected to exceed $USD339.5 billion ($AUD510.8 billion) by 2027, according to a report by Coherent Market Insights.
An increase to lime’s demand in the agriculture and the steel industries is expected to drive profits up in the coming years.
“The Australia lime market was estimated to account for $USD290 billion ($436 billion) in terms of value in 2018 and is predicted to grow at a CAGR (compound annual growth rate) of 1.7 per cent during the forecast period (2019 to 2027),” the report stated.
Lime – or calcium hydroxide – is produced by heating limestone, and has widespread use across construction, industrial, chemical, environmental and metallurgical sectors.
Australia produces three types of lime products, including aglime (agricultural lime), quick lime and hydrated lime.
The steel industry, which contributes upwards of $16 billion to Australia’s GDP, requires lime for its activities.
While the nation faces a drop in construction activity, the use of lime in agriculture is expected to keep the market growing.
On basis of product type, in 2018, aglime accounted for the largest market share of 52.4 percent, with 778.5 kilotonnes, in terms of volume, the report stated.
“This is mainly due to increase in demand for aglime in farms as it is used to counter the high acidic content in soil and neutralise its pH factor to avoid any toxic contamination in plants.”
Major players in the Australian lime market include ADBRI (Adelaide Brighton), Boral, Sibelco, Omya Australia, Wagners and Lime Group Australia. New South Wales has the nation’s largest market share of lime at 31.3 per cent in 2018, with volumes predicted to reach 410.5 kilotonnes by the end of 2027.