Abstract
The Economics of Bentonite, 10th edition 2004
The new Roskill report on The Economics of Bentonite will be published in
January 2005 and will provide up-to-date analysis of resources, supply,
demand, trade and prices. More than 100 detailed tables and figures will give
you access to the data you need at a glance. In most of its high-volume
markets, such as foundry sands, iron ore palletising and drilling muds, the
consumption of bentonite and fullera??s earth is driven to a large extent by
macroeconomic trends, which determine the overall level of demand in end-use
markets, i.e. iron and steel, and petroleum products. Somewhat unusually for a
mineral commodity, however, non-economic factors are also important. Demand
for cat litter is governed, at least partly, by consumer marketing and even
the weather. Similarly, changes in consumer tastes are having a positive
impact on the demand for bleaching earths used in the production of edible
oils, notably palm oil. The demand for bentonite in drilling muds is
inextricably linked to the level of drilling activity. Traditionally, that has
been largely a function of the crude oil supply/ demand balance. In late 2004
the dynamics of the oil and gas industry appear to have changed, with the
long-term security of supply being a major issue. An upturn in drilling
activity and, thus, in the demand for bentonite seems almost inevitable.
Another peculiarity of the bentonite and fullera??s earth industry is that it
is often better defined in terms of application, as opposed to mineralogy. In
a number of cases, cat litter being possibly the most obvious, a variety of
materials can be used for the same purpose in either their natural or
chemically modified forms. That, coupled with the fact that resources of
various clay minerals are distributed very unevenly around the world, and that
transportation often makes up a significant part of the delivered cost, means
that national markets are typically supplied by clay produced locally or at
least regionally. Probably only 20-25% of world production of bentonite and
fullera??s earth enters international trade. Output of bentonite has averaged
about 12Mtpy since the mid-1990s, with that of fullera??s earth at around
4.4Mtpy. Production of both usually varies by no more than 5% per year. There
are, however, significant differences in the trends between regions. In the
large established markets, such as Western Europe, demand in the major
applications is either static or growing at only 2% to 3%py over the medium
term. In other areas, notably China, parts of Latin America and
eastern/central Europe, consumption is growing more rapidly, principally
because of faster rates of overall economic growth, booming construction and
civil engineering sectors and, to an extent, the migration of some industries,
such as ferrous castings, from high-cost countries to lower-cost production
centres. A wave of M and A activity in recent years means that much of the
production, processing and sale of bentonite and fullera??s earth is now
concentrated in the hands of small number of vertically integrated corporate
groups, such as Amcol, S and B, Sud-Chemie, Tolsa and Sepiolsa, that appear to
have adopted a strategy of becoming leaders in specific mineral/ market
segments both in their own regions and, increasingly, globally.
The key trends, issues and developments in the market are now analysed in this
major new report from Roskill. It provides a clear insight into all areas of
the industry and an authoritative analysis of the prospects for the future.
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