# Mineral Industry Surveys

For information, contact: M. Michael Miller, Lime Commodity Specialist U.S. Geological Survey 989 National Center Reston, VA 20192 Telephone: (703) 648-7716, Fax: (703) 648-7757 E-mail: mmiller1@usgs.gov Internet: http://minerals.usgs.gov/minerals



# LIME IN THE UNITED STATES 1960 to 2009

The term lime as used throughout this discussion and th e attached tables and figures refers to chemical lime (sometimes known as burnt lime) produced by the calci nation of high-purity calciti c or dolomitic limestone followed by hydration where necessary. Traditionally, data have been collected on three general forms of lime—quicklime (high-calcium and dolomitic), hydrated lime (high-calcium and dolomitic), and refractory dead-burned dolomite. The last 50 or more years have seen considerable growth in U.S. lime output despite some significant decreases during poor economic times a nd some major market shifts (table 1). During this period, the industry has transformed from being primarily a commercial industry to one with se veral large captive industries (e.g., steel and synthetic soda ash) and then back to a pr edominantly commercial industry. The following discussion briefly looks at lime in terms of its production growth and at lime prices in a bit more detail. Production data include combined quantities of all types of lime, incl uding high-calcium and dolomitic forms of quicklime and hydrated lime, and dead-burned dolomite (fig. 1). Valu e data include all types of lime sold and used by producers, quicklime sold, and hydrated lime sold. Value data for dead-burned dolomite sold are not specifically addressed. The production data reported in table 1 for 1960 do not include production from some captive lime producers; beginning in 1961, increased collection of data from the captive sector wa s achieved. Lime output was affected by factors unique to the industry and like other commodities fluctuated with the economy (fig. 2). The recessions of 1975 and 1980 all saw lime output decrease by 10% to 11% in a single ye ar, but these were minor events compared with the recessi ons of 1982 and 2008–09, which resulted in lime output decreasing by 25% (in 1982) and by 21% (in 2009). From 1960 to 1974, lime production grew from a reported fi gure of 11.7 million metric tons (Mt) in 1960 to a peak of 19.6 Mt in 1974, an increas e of 67%. During the next 35 year s, lime production was much more volatile; lime production was fairly st able through the late 1970s, dropped to a 20-year low in the early 1980s, started to recover, slumped again, and then exhi bited a prolonged period of growth from 1987 to 1998. Beginning in 1999, production decreased for 4 successive years, then increased for the next 4 years, culminating in setting an alltime production r ecord of 21.0 Mt in 2006. Lime production decreased modestly in 2007 and 2008 before plummeting in 2009. A snapshot of the developm ent of the U.S. lime indus try during the past half century is detailed in the “Chr onology of Lime from 1960 to 2009” s ection at the end of the report. Changing technology, economics, and environmental regul ations have played large roles in some lime markets. Steel is the best example of where a change in technology—the replacement of open-hearth furnaces with basic oxygen furnaces—resulted in a dramatic change in the quantity and kinds of lime used. In the 1950s,

U.S. Department of the Interior May 2011 U.S. Geological Survey

## the steel industry was a large mark et for dead-burned dolomite as refr actory lime for use in open-hearth furnaces. The basic oxygen furnace did not require dead -burned dolomite, however, but instead required quantities of high-calcium and dolomitic quicklime. The soda ash market is an example of how simple economics caused the shift from synthetic soda ash producti on, which at its peak consumed more t metric tons per year of lime, to less expensiv e mined production that consumed no lime. Flue gas desulfurization (FGD) is an example of a market that essentially did not ex ist prior to enactment of the Clean Air Act Amendments in large

han 3 million

1970, but passage of this legislation and successive amendments have made FGD a

y,

ng tors

cess

in a given year (hydrate being a higher va lue product) and possibly by values

ut

ion

70s.

ilar f

ut

009 are shown in figure 4 (U.S. Department of Energy, Energy

o

period, however, the constant dollar value decreased by 22%. During the next 7 year s, lime prices displayed major market for lime. An analysis of lime prices during this same period reveals a much simpler pattern of growth. Prices are represented as the average value per metric ton of lime, on a free-on-board basis as prepared for shipment at the plant, and are inflation adjusted using the consumer price index 1 

## , with 2007 as the base y ear (table 2). In simple terms, there was a period where values gradually increas ed, followed by a period when values increased rapidl a long period exhibiting gradual increas es, and then a period of sharp incr eases (fig. 3). Although the trend in nominal values appears simple, the way in which these valu es relate to the rate of inflation is not. The followi is more of a macroeconomic perspective and does not ta ke into account some of the industry-specific fac that may have affected lime values during certain time periods. These factors may have included ex capacity, intense competition among lime companies a nd with other alkali pr oducers, and costs of environmental regulation. In addition, the average value of all lime sold a nd used may be affected by the ratio of quicklime to hydrate produced assigned by the captive sector. Figure 3 shows the very slow gradua l increase in average actual values fr om 1960 until the firs t oil crisis in 1973. During this period, the nominal value increased fr om $14.70 per metric ton to $19.20 per ton or by abo 31%, which in constant 2007 dollars actually represented a decrease of nearly 13%. From 1973 to 1979, the nominal value increased from $19.2 0 per ton to $45.50 per ton—an increas e of 137%—and while the constant dollar value also increased, it only increased by 45% during the same period. The large jump in prices during the 1970s was caused by a period of high in flation and, more directly, as a resu lt of rising fuel costs. Prior to 1973, many lime kilns in the United States were oil fired, and because fuel is frequently the single largest cost of operation in a lime plant utilizing rotary kilns, the jump in oil prices dramatically increased lime product costs. According to data compiled by the U.S. Depa rtment of Energy, Energy Information Administration ([undated]a), the cost of crude oil to refiners increased by 327% during this period. As a result, many lime plants shifted to coal, but even co al prices increased by 176% during this period. The second oil crisis, in 1979, continued the upward push, with the crude oil price increasing by an additional 100% between 1979 and 1981. Crude oil prices soon decreased but have remained signi ficantly higher compared with those in the early 19 After the 2002 recession, crude prices entered a peri od of strong growth driven by increased demand from emerging economies such as China and India. Between 2003 and the summer of 2008, crude prices increased by 232% before falling back during the 2008–09 recession. During the 1970s, coal prices followed a pattern sim to that of crude oil but peaked a year later, in 1982. Beginning in 1983, coal prices entered a long period o decline, and by 2001 were roughly in the same range as in 1974. This decline wa s likely the result of the increased supply of lower cost coal from the large ope n pit operations in the Western United States (e.g., Powder River Basin in Wyoming). Th e 2002 recession resulted in a small de crease in coal prices in 2003, b coal prices recorded annual incr eases during the next 6 years and in 2009 hit an alltime high. Average unit values for lime, oil, and coal for 1971 to 2 Information Administration, [undated]b). From 1979 to 1986, the nominal lime value increased by 27%, but the constant dollar value decreased by 16%. Between 1986 and 1988, nominal lime values experien ced an uncharacteristica lly sharp decrease t $53.00 per ton from $57.90 per ton. From 1988 to 2002, nomi nal lime values entere d a period of fairly consistent, although usually modest, growth represented by an overall increase of 18%. During the same time

1 The Consumer Price Index for a given calendar year represents ch anges in prices of all goods and services purchased for consump tion by urban households.

## increases not seen since the energy crises of th e 1970s and early 1980s. Between 2002 and 2009, the nominal

to

s

ly inal value had

od

e

sts

and

presented by

r

ndful of major companies, the four leading companies accoun ting for about 80% of production in 2009.

S. ation, [ undated]b, Table 7.8—Coal Prices, 1949–2009: U.S. Department of Energy. (Accessed February 22, 2011, at http://www.eia.gov/ aer/txt/ptb0708.html.) 

## value increased by nearly 68% and the cons tant dollar value incr eased by about 41%. Value data for quicklime and hydrated lime sold ha ve only been available since 1971 (tables 3–4). The majority of lime sold is in the form of quicklime, and as a result, the graph displaying the average value of quicklime sold (fig. 5) tracks the average unit value of a ll lime sold (fig. 3) fairly closely. Some of the major factors that affected quicklime prices are highlighted in figure 6. In contrast , the average value of hydrated lime sold (fig. 7) increased more rapidly and for a longer pe riod of time; nominal values increased by 333% between 1971 and 1986. In 1987, the average value decreased by near ly 16%, which began a period of 9 years (1987 1995) when the values stabilized in the range of $67 to $72 per ton. In 1996, hydrated lime nominal value jumped by nearly 10%, but then stabilized in the range of $80 per ton from 1997 through 2001, although jumping to as high as $85.10 per ton in 2000. Beginning in 2002, hydrated lime prices began rising steep (except for a dip in 2003 as a result of the 2002 re cession), and by 2009, the av erage nom increased to $126.40 per ton, an increase of 56% compared with that of 2001. When comparing the graphs showing all lime sold a nd used, quicklime sold, and hydrated lime sold, only the hydrated lime values increased (and decr eased) proportionally to the rate of inflation for most of the time peri shown. In other words, the nominal value of hydrated lime sold and the correspondi ng constant dollar values went up and down more or less concurre ntly. The other two graphs show that the constant dollar values wer frequently moving downward even when the nominal va lues were increasing, indi cating that product price increases were less than the increas e in the rate of inflation. Beginning in the early 2000s, lime production co began increasing rapidly driven larg ely by higher fuel costs. In late 2008, one of the leading lime producers announced major price increases for 2009 in an attempt to get ahead of the rapidly rising production costs regain its margins. Several of th e other leading producers followed suit and, despite the severe economic downturn experienced in 2009, the lime industry managed to sustain price increa ses averaging about 14% compared with 2008 prices. As can be seen in figures 6 and 7, price increases in 2008 and 2009 re the nominal value were larger than the rate of in flation represented by inflation-adjusted values. During the past 50 years, the lime industry has adapted to major market changes that required product shifts and has seen some markets disappear and new ones app ear. The industry weathered recessions, coped with new environmental regulations that resulted in the permanent closure of some plants, experienced periods of rising energy costs, and responded to threatened or shrinking marg ins. This has resulted in the construction of large lime plants and the installation of larger and more energy -efficient lime kilns, such as modern vertical shaft kilns and preheater rotary kilns. In addition, the industry has c onsolidated into a ha with

References Cited

Department of Energy, Energy Information Administration, [ undated]a, Data 1—U.S. total refi ner a U.S. cquisition cost of crude o il: U.S. Department of Energy. (Accessed February 22, 2011, via http://www.eia. doe.gov/dnav/pet/pet_pri_rac2_dcu_nus_a.htm.) Department of Energy, Energy Information Administr U.1987 259 TABLE 1 LIME SOLD OR USED BY PRODUCERS IN THE UNITED STATES 1/ 2/ 3/

(Thousand metric tons)

Dead-burned Year Quicklime Hydrate dolomite Total 1960 4/ 7,503 2,463 1,768 11,734 1961 8,163 2,058 1,798 12,019 1962 8,626 2,165 1,686 12,476 1963 9,188 2,221 1,768 13,177 1964 10,315 2,330 1,967 14,612 1965 10,894 2,392 1,974 15,260 1966 11,970 2,448 1,989 16,407 1967 12,201 2,441 1,705 16,347 1968 13,100 2,180 1,663 16,943 1969 14,042 2,634 1,693 18,369 1970 13,833 2,872 1,246 17,951 1971 13,733 3,165 914 17,812 1972 15,069 2,400 975 18,444 1973 15,631 2,406 1,134 19,171 1974 16,143 2,333 1,159 19,635 1975 14,401 2,151 829 17,381 1976 15,353 2,110 914 18,377 1977 14,770 2,482 878 18,130 1978 15,281 2,377 922 18,580 1979 15,924 2,390 719 19,033 1980 14,489 2,331 448 17,268 1981 14,644 2,096 395 17,135 1982 10,615 1,880 306 12,801 1983 11,234 1,906 379 13,519 1984 11,915 2,120 442 14,477 1985 11,791 2,120 343 14,254 1986 10,750 2,017 385 13,152 1987 11,774 2 ,262 259 14 ,295 1988 12,760 2,319 413 15,492 1989 13,154 2,064 365 15,583 1990 13,392 2,124 342 15,858 1991 13,191 2,195 308 15,694 1992 13,665 2,259 302 16,226 1993 14,344 2,428 315 17,087 1994 14,800 2,310 300 17,400 1995 15,800 2,410 308 18,500 1996 16,800 2,190 300 19,200 1997 17,300 2,170 300 19,700 1998 17,500 2,330 300 20,100 1999 17,100 2,310 300 19,700 2000 17,300 1,970 200 19,600 2001 16,200 2,470 200 18,900 2002 15,800 1,930 200 17,900 2003 16,400 2,610 200 19,200 2004 17,200 2,570 200 20,000 2005 17,100 2,700 200 20,000 2006 18,000 2,780 200 21,000 2007 17,400 2,590 200 20,200 2008 17,200 2,420 200 19,900 2009 13,700 1,950 200 15,800 1/ Excludes regenerated lime; includes Puerto Rico. 2/ Beginning in 1996, data for dead-burned dolomite are rounded to one significant digit to protect company proprietary data. 3/ After 1993, all data are rounded to three significant digits. 4/ Prior to 1961, some captive production data were unavailable.1988 TABLE 2 PRICES FOR LIME SOLD AND USED IN THE UNITED STATES

(Dollars per metric ton)

Year Nominal value 1/ 2007 dollars 2/ 1960 14.70 102.97 1961 14.80 102.63 1962 15.00 102.98 1963 15.10 102.32 1964 15.30 102.33 1965 15.30 100.71 1966 14.60 93.43 1967 14.80 91.88 1968 14.80 88.18 1969 15.40 87.00 1970 16.30 87.11 1971 17.50 89.59 1972 18.60 97.22 1973 19.20 89.66 1974 24.30 102.20 1975 30.30 116.77 1976 33.30 121.34 1977 36.90 126.25 1978 40.50 128.79 1979 45.50 129.95 1980 49.00 123.30 1981 51.80 118.16 1982 54.50 117.10 1983 56.30 117.20 1984 56.40 112.55 1985 57.00 109.84 1986 57.90 109.54 1987 55.20 100.75 1988 53 .00 92 .89 1989 54.90 91.80 1990 57.10 90.58 1991 57.00 86.77 1992 58.80 86.90 1993 57.40 82.36 1994 58.60 81.99 1995 59.50 80.95 1996 61.50 81.27 1997 61.00 78.80 1998 60.30 76.70 1999 60.40 75.17 2000 60.60 72.97 2001 61.30 71.77 2002 62.60 72.15 2003 64.90 73.13 2004 68.90 75.63 2005 75.00 79.62 2006 81.20 83.51 2007 87.10 87.10 2008 92.40 88.98 2009 105.00 101.48 1/ Value of hydrated lime sold as prepared for shipment, free-on-board plant. 2/ Inflation adjusted using consumer price index; base year is 2007.1999 TABLE 3 PRICE OF QUICKLIME SOLD IN THE UNITED STATES

(Dollars per metric ton)

Year Nominal value 1/ 2007 dollars 2/ 1971 16.85 86.26 1972 18.02 89.39 1973 17.87 83.45 1974 23.39 98.37 1975 31.09 119.82 1976 32.87 119.78 1977 36.06 123.38 1978 40.12 127.59 1979 43.83 125.18 1980 48.83 122.87 1981 51.46 117.38 1982 52.81 113.47 1983 51.86 107.96 1984 51.50 102.77 1985 51.21 98.68 1986 53.46 101.14 1987 52.50 95.82 1988 51.10 89.56 1989 52.27 87.40 1990 54.62 86.65 1991 55.04 83.79 1992 55.48 81.99 1993 55.02 78.95 1994 56.43 78.95 1995 56.77 77.24 1996 57.26 75.67 1997 56.62 73.14 1998 57.00 72.51 1999 56 .60 70 .44 2000 57.60 69.35 2001 58.00 67.90 2002 58.70 67.65 2003 61.20 68.96 2004 65.10 71.46 2005 70.90 75.27 2006 77.20 79.40 2007 83.10 83.10 2008 89.20 85.90 2009 100.00 96.65 1/ Value of quicklime sold as prepared for shipment, free-on-board plant. 2/ Inflation adjusted using consumer price index; base year is 2007.1999 TABLE 4 PRICES OF HYDRATED LIME SOLD IN THE UNITED STATES

(Dollars per metric ton)

Year Nominal value 1/ 2007 dollars 2/ 1971 19.06 97.58 1972 21.61 107.19 1973 22.70 106.01 1974 28.29 118.98 1975 32.54 125.41 1976 37.50 136.65 1977 40.21 137.58 1978 45.89 145.93 1979 52.73 150.59 1980 54.44 136.99 1981 59.03 134.65 1982 58.32 125.31 1983 66.28 137.98 1984 72.41 144.50 1985 74.47 143.50 1986 82.62 156.30 1987 69.67 127.16 1988 68.28 119.67 1989 68.52 114.57 1990 67.11 106.46 1991 69.78 106.23 1992 72.15 106.63 1993 67.84 97.34 1994 67.71 94.73 1995 72.09 98.08 1996 79.21 104.68 1997 80.43 103.90 1998 78.40 99.73 1999 80 .30 99 .94 2000 85.10 102.47 2001 80.80 94.60 2002 88.60 102.12 2003 84.90 95.67 2004 89.70 98.46 2005 91.10 96.72 2006 98.30 101.10 2007 102.40 102.40 2008 107.20 103.24 2009 126.40 122.16 1/ Value of hydrated lime sold as prepared for shipment, free-on-board plant. 2/ Inflation adjusted using consumer price index; base year is 2007.10,00015,00020,00025,000

O USAND METRIC TONSFIGURE 1LIME SOLD OR USED BY PRODUCERS IN THE UNITED STATESDead‐burneddolomiteHydrateQuicklime05,000

TH OYEAR16,00018,00020,00022,00024,000

SAND METRIC TONSFIGURE 2SOCIOECONOMIC FACTORS AFFECTING LIME PRODUCTION IN THE UNITED STATESFROM 1960 TO 2009Strong economy and steel industry’sshift to BOF technologyfuels growth during mid-1960sDomestic steel productionreaches alltime highPhase I of Clean Air Act amendmentsof 1990 goes into effectTariffs on steel imports boostU.S. steel production10,00012,00014,000

THOUYEARLast and largest syntheticsoda ash plant closesTwo synthetic soda ashplants closeLongest recessionsince the 1930sRecession year5060708090100110120130140

O LLARS PER METRIC TONFIGURE 3AVERAGE UNIT VALUE FOR ALL LIME SOLD AND USED2007dollars1/Nominalvalue2/01020304050

DOLLA RYEAR1/ Inflation adjusted using consumer price index; base year is 2007.2/ Unit value of all lime as prepared for shipment, free-on-board plant.405060708090100110

D OLLAR VALUE PER UNITFIGURE 4VALUE OF LIME AND MAJOR FUELS 1971 TO 2009Lime(metricton)1/Coal(metricton)2/Oil(barrel)3/0102030

DYEAR1/ Average nominal value for all types of lime.2/ Average nominal value for all types of coal.3/ Average nominal cost of crude oil to refiners.5060708090100110120130140

O LLARS PER METRIC TONFIGURE 5AVERAGE VALUE FOR QUICKLIME LIME SOLD2007dollars1/Nominalvalue2/010203040

D OYEAR1/ Inflation adjusted using consumer price index; base year is 2007.2/ Value of quicklime sold as prepared for shipment, free-on-board plant.5060708090100110120130140

O LLARS PER METRIC TONFIGURE 6SOCIOECONOMIC FACTORS AFFECTING AVERAGE ANNUAL QUICKLIME VALUESFROM 1971 TO 20092007dollars1/Nominalvalue2/Energy costs quadrupledfrom 1973 to 1977Overcapacity and competitionlt d i t t iSlow but steady growth ini i dd d1982 recession; lime productiondecreased by 25%F l ti dLime production costsrose steeply 2004 to 200901020304050

DOLLA RYEAR1/ Inflation adjusted using consumer price index; base year is 2007.2/ Value of quicklime sold as prepared for shipment, free-on-board plant.Energycostsquadrupledfrom 1973 to 1977Flood and strike at MississippiLime Co. resulted in supply shortagesRecession slowedenergy-driven price increasesRegional shortagesincreased pricesOvercapacity and competitionresulted in stagnant pricesSlow but steady growth inconsumption; prices edged upwardFuel costs increasedLimeproductioncostsrose steeply 2004 to 200960708090100110120130140150160170180

O LLARS PER METRIC TONFIGURE 7AVERAGE VALUE FOR HYDRATED LIME SOLD2007dollars1/Nominalvalue2/010203040506070

DOLLA RYEAR1/ Inflation adjusted using consumer price index; base year is 2007.2/ Value of hydrated lime sold as prepared for shipment, free-on-board plant.

# CHRONOLOGY OF LIME 1960 TO 2009

1960 : Industry made significant increases in capacity.

1961 : U.S. Bureau of Mines attained additional coverage of captive operations.

1964 : Record production reported. Use for steelmaking in basic oxygen furnaces (BOF) was the fastest growing market. BOF technology was replacing the open hearth furnace, which is the major market for dead-burned dolomite.

1965-66 : Record production reported for both years. Consum ption for BOF continues to be fastest growing market.

1967 : BOF market continued to increase and dead-burned dolomite use decrease as a result of the continuing switch from open-hearth furnaces to BOF. Lime-production capacity continued to increase, mostly in captive steel sector.

1968 : Quicklime sales increased 8%, pushed by BOF consumption. Lime capacity continued to expand, mainly in captive steel sector.

1969 : Lime production reached a new high. Large consumption increases recorded for BOF and soil stabilization. New plant construction plans announced by steel companies and commercial lime companies.

1970 : Clean Air Act (CAA) amendments enacted which, among other things, regulated emissions of sulfur dioxide and particulate matter. Capturing sulfur dioxi de emission would create the flue gas desulfurization (FGD) market for lime. Dead-burned dolomite production continued to decline.

1970–80 : Some unprecedented peacetime shortages arise resulting in a “seller’s market.” A number of older lime kilns closed because they were unable absorb the cost of dust control technology to meet new CAA particulate emissions limits. Production was lost because of strikes and shutdowns caused by plants exceeding particulate emissions limits, natural gas curtailments, and time spent refitting kilns to burn coal instead of gas or oil.

1973–74 : Arab oil embargo took place, which resulted in higher fuel prices. Lime prices responded, increasing by 74% between 1973 and 1975, although other industry- specific factors played a part (see 1974).

1974 : A flood and 3-month strike at Mississippi Lime C o. caused a lime supply shortage that extended into early 1975. Shortages added to upward pressures on lime prices.

1975 : A recession resulted in decreased consumption and slowed the rise in lime prices.

Late 1977 and 1978 : Pronounced regional shortage developed, first in Texas and then spread to the entire Southeast. By late 1978, supply was tight nationwide. At each instance of insufficient supply, consuming industries tended to look at alternative alkalies. Timely expansion of industry capacity to meet increased demand levels was hampered by increasingly complicated environmental and other regulations.

## Late 1970s : During this period of high inflation, lime prices showed corresponding increases.

1982 : Economy was slow to recover from 1981 recession; a very large decrease in raw steel production resulted in an overall decrease in lime production of 25% compared with that of the previous year. Lime plants or individual lime kilns were idled or permanently shut down across the country.

1983 : Lime output began to recover, but lime plant closures continued, and others remained idle.

1984 : Most markets showed growth, and overall output increased by 7%.

1986 : Production declined by 8%; major causes were weak demand for steel and the closure of the last synthetic soda ash plant. First precipitated calcium carbonate satellite mill was built at a paper mill.

1987–88 : Production increased by more than 8% per year driven by increased consumption for chemical and industrial uses.

1990 : Clean Air Act Amendments of 1990 were enacted into law. Title IV was amended to include a marketbased system for reduction of sulfur dioxide and nitroge n oxide emissions. This would lead to dramatically increased lime sales for FGD, especially in 1995, when phase I of the law went into effect (see 1995 below).

1990s : Significant trends in the 1990s were industry cons olidation and growth in sales for FGD, gold ore processing, precipitated calcium carbonate production, and soil stabilization.

1990–91 : The lime industry weathered the recession; lime sales decreased only by about 1%.

1993 : Lime output increased by 3.7% compared with that of the previous year driven by solid gains in construction and FGD.

1995 : Phase I regulations of the Clean Air Act Amendmen ts of 1990 went into effect. Two large coal-fired powerplants in Midwest began using lime scrubbers, and in a single year, FGD sales increased by nearly 37%. This made FGD lime’s second ranked market, accounting for 14% of consumption.

1997 : Severe spring flooding along the Mississippi and Ohio Ri vers disrupted barge shipments, especially to powerplant customers in the upper Ohio River Valley.

1998 : Carmeuse Lime Inc., which had acquired Marblehead Lime Co. in 1994 and the Pennsylvania lime operations of Tarmac America Inc. in 1996, acquired Dravo Lime Co. making it the leading lime producer in North America.

1999 : The lime industry recorded its first decrease in production since 1991; decreases in the FGD, steel, and nonferrous metallurgical markets were the main causes. The two leading lime companies in North America got even bigger as Carmeuse merged its North American lime operations with those of Lafarge S.A. and Chemical Lime acquired APG Lime Corp.

2000 : The price of natural gas began rising in the summer, and by December had spiked at nearly five times its previous price causing the temporary shutdow n of gas-fired kilns across the country.

## 2000–04 : Unable to compete with inexpensive imports, about 40 domestic steel companies declared bankruptcy, which allowed them to divest themselves of billions of dollars of unfunded pension obligations. Domestic steel industry restructured and emerged from bankruptcy more competitive. By 2004, U.S. steel production and concurrent lime sales had essentially recovered to 2000 levels.

2001 : The recession and a battered domestic steel industry resulted in a 700,000-t decrease in total lime production despite a 16% increase in construction sales.

2002 : Largest single-year decrease in production sin ce 1982 caused by lingering effects of the 2001 recession, steel industry bankruptcies, and large decreases in domestic production of copper and gold. In March, the United States imposed tariffs for 3 years ranging from 8% to 30% on various types of imported steel.

2003 : Import tariffs on steel were repealed in December, but were in place for most of the year helping to boost U.S. steel production. Lime sales for soil stabilization achieve alltime high of 1.64 Mt.

2004 : Fueled by strong demand by steel and utility markets, lime production exceeded 20 Mt. Coal prices increased raising lime production costs; lime prices increased by $4 per ton—the largest annual increase since 1979.

2005 : Lime production was essentially unchanged compared with that of 2004. Decreased consumption of quicklime by the steel industry was balanced by increased consumption of hydrated lime in construction.

2006 : Lime industry set new record highs in production at 21 Mt and value at $1.7 billion.

2007 : Production decreased by 4%, but value increased as a result of an overall increase in lime prices of 7%. Recession began in December.

2008 : Healthy year for lime producers until the major effects of the severe recession that began in December 2007 hit in the fourth quarter 2008. Steel markets were a dversely impacted almost immediately, which resulted in idling of steel production capacity. In response, the lime industry began idling lime plants dependent on steel industry sales beginning in December.

2009 : The U.S. economy suffers the effects of the longest recession since the 1930s, although recession officially ended by the summer of 2009. Lime output dr opped by 21%, the largest decrease in production since 1982, and 10 lime plants were idled all or part of the year as a result.