March 29, 2024
(press release)
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Cleveland, OH, March 29, 2024 — US gypsum demand is forecast to rise less than 1.0% per year in volume terms through 2028, according to Gypsum: United States, a report recently released by Freedonia Focus Reports. Real spending on residential building construction, the main market for gypsum board, is expected to register slower gains relative to commercial and nonbuilding construction due to strong housing activity during the pandemic-affected 2020-2021 period, limiting faster growth. Construction expenditures in real terms are projected to increase 1.7% annually to 2028, exceeding levels registered during the COVID-19 pandemic, supporting gypsum demand. For instance, the Infrastructure Investment and Jobs Act, enacted in November 2021, will support infrastructure spending and cement sales. Demand could see faster gains if new gypsum products are developed and used commercially. Examples include gypsum blocks, which are made of gypsum plaster and can be used to erect non-load bearing interior walls and partition walls. Crude and synthetic gypsum suppliers will continue to face competition from companies that recycle products such as drywall. Suppliers also face some substitution from magnesium oxide boards and plastic panels. However, gypsum board may be used in place of oriented strand board (OSB) in applications such as sheathing and underlayment, supporting sales. In 2024, gypsum demand is projected to decline 2.9% as conventional housing completions in square feet are projected to fall 14% following elevated levels stimulated by strong housing demand during the height of the COVID-19 pandemic. In addition, spending on residential improvements in real terms is expected to contract 1.6% in 2024. However, real construction spending on commercial buildings is projected to advance 5.0% in 2024, preventing further declines. These and other key insights are featured in Gypsum: United States. This report forecasts annually to 2028 US gypsum demand and crude gypsum production in metric tons. Crude gypsum demand in nominal US dollars at the mine level is also forecast annually to 2028. Total demand is segmented by product in terms of: crude gypsum synthetic gypsum Total demand is also segmented by application as follows: board cement other applications such as agriculture, pharmaceuticals, and plastics To illustrate historical trends, total demand, crude gypsum production, the various segments, and trade are provided in annual series from 2013 to 2023. Board demand quantities include the weight of paper, metal, and other materials incorporated into the product. More information about the report is available at: https://www.freedoniagroup.com/freedonia-focus/gypsum-united-states-ff60022.htm About Freedonia Focus Reports Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Metals, Minerals, & Glass reports can be purchased at Freedonia Focus Reports or MarketResearch.com. Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including: segmentation by products and markets identification of market drivers, constraints, and key indicators segment-by-segment outlook in five-year forecasts a survey of the supply base suggested resources for further study
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