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 the attached tables and figures refers to chemical lime 

(sometimes known as burnt lime) produced by the calcination of high-purity calcitic 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 and some major market shifts (table 1). During this period, the industry 

has transformed from being primarily a commercial industry to one with several large captive industries (e.g., 

steel and synthetic soda ash) and then back to a predominantly 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, including high-calcium and dolomitic forms of quicklime and 

hydrated lime, and dead-burned dolomite (fig. 1). Value 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 was 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 year, but these were minor 

events compared with the recessions 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 figure of 11.7 million metric tons (Mt) in 1960 to a 

peak of 19.6 Mt in 1974, an increase of 67%. During the next 35 years, lime production was much more 

volatile; lime production was fairly stable through the late 1970s, dropped to a 20-year low in the early 1980s, 

started to recover, slumped again, and then exhibited 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 record of 21.0 Mt in 2006. Lime production decreased modestly in 2007 and 

2008 before plummeting in 2009. A snapshot of the development of the U.S. lime industry during the past half 

century is detailed in the “Chronology of Lime from 1960 to 2009” section at the end of the report. 

 Changing technology, economics, and environmental regulations 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 market for dead-burned dolomite as refractory 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 production, which at its peak consumed more t

metric tons per year of lime, to less expensive mined production that consumed no lime. Flue gas 

desulfurization (FGD) is an example of a market that essentially did not exist 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 value 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 years, 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 index1

, with 2007 as the base year (table 2). In simple 

terms, there was a period where values gradually increased, followed by a period when values increased rapidl

a long period exhibiting gradual increases, and then a period of sharp increases (fig. 3). Although the trend in 

nominal values appears simple, the way in which these values relate to the rate of inflation is not. The followi

is more of a macroeconomic perspective and does not take 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 and with other alkali producers, and costs of 

environmental regulation. In addition, the average value of all lime sold and used may be affected by the ratio 

of quicklime to hydrate produced

assigned by the captive sector. 

 Figure 3 shows the very slow gradual increase in average actual values from 1960 until the first oil crisis in 

1973. During this period, the nominal value increased from $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 $19.20 per ton to $45.50 per ton—an increase 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 inflation and, more directly, as a result 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. Department 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 coal 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 significantly higher compared with those in the early 19

After the 2002 recession, crude prices entered a period 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 was likely the result of the 

increased supply of lower cost coal from the large open pit operations in the Western United States (e.g., 

Powder River Basin in Wyoming). The 2002 recession resulted in a small decrease in coal prices in 2003, b

coal prices recorded annual increases 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 experienced an uncharacteristically sharp decrease t

$53.00 per ton from $57.90 per ton. From 1988 to 2002, nominal lime values entered 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 changes in prices of all goods and services purchased for consumption by urban households. 

2
increases not seen since the energy crises of the 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 accounting 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 constant dollar value increased by about 41%. 

 Value data for quicklime and hydrated lime sold have 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 all 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 period of time; nominal values increased by 333% between

1971 and 1986. In 1987, the average value decreased by nearly 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 recession), and by 2009, the average nom

increased to $126.40 per ton, an increase of 56% compared with that of 2001. 

 When comparing the graphs showing all lime sold and used, quicklime sold, and hydrated lime sold, only the 

hydrated lime values increased (and decreased) 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 corresponding constant dollar values 

went up and down more or less concurrently. The other two graphs show that the constant dollar values wer

frequently moving downward even when the nominal values were increasing, indicating that product price 

increases were less than the increase in the rate of inflation. Beginning in the early 2000s, lime production co

began increasing rapidly driven largely 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 the other leading producers followed suit and, despite the severe economic 

downturn experienced in 2009, the lime industry managed to sustain price increases 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 inflation 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 appear. 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 margins. 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 consolidated into a ha

with

 

References Cited 

U.S. Department of Energy, Energy Information Administration, [undated]a, Data 1—U.S. total refiner acquisition cost of crude oil: U.S. Department of Energy. 

(Accessed February 22, 2011, via http://www.eia.doe.gov/dnav/pet/pet_pri_rac2_dcu_nus_a.htm.) 

U. Department of Energy, Energy Information Administr

3
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. 

4
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. 

5
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. 

6
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. 

7
10,000

15,00020,00025,000

OUSAND METRIC TONS

FIGURE 1

LIME SOLD OR USED BY PRODUCERS IN THE UNITED STATES

Dead‐burned dolomite

HydrateQuicklime

0

5,000

THO

YEAR

8
16,000

18,00020,00022,00024,000

SAND METRIC TONS

FIGURE 2

SOCIOECONOMIC FACTORS AFFECTING LIME PRODUCTION IN THE UNITED ST

FROM 1960 TO 2009

Strong economy and steel industry’s 

shift to BOF technology

fuels growth during mid-1960s

Domestic steel production

reaches alltime high

Phase I of Clean Air Act amendments

of 1990 goes into effect

Tariffs on 

U.S. st

10,00012,00014,000

THOU

YEAR

Last and largest synthetic

soda ash plant closes

Two synthetic soda ash

plants close

Longest re

since the 

Recession year

9
50

60708090

100110120130140

OLLARS PER METRIC TON

FIGURE 3

AVERAGE UNIT VALUE FOR ALL LIME SOLD AND USED

0

1020304050

DOLLAR

YEAR

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

10
40

5060708090

100110

DOLLAR VALUE PER UNIT

FIGURE 4

VALUE OF LIME AND MAJOR FUELS 1971 TO 2009

Lime (metriCoal (metric Oil (barrel) 

0

102030

D

YEAR

1/ 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.

11
50

60708090

100110120130140

OLLARS PER METRIC TON

FIGURE 5

AVERAGE VALUE FOR QUICKLIME LIME SOLD

200No

0

102030

D40O

YEAR

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

12
50

60708090

100110120130140

OLLARS PER METRIC TON

FIGURE 6

SOCIOECONOMIC FACTORS AFFECTING AVERAGE ANNUAL QUICKLIME VALU

FROM 1971 TO 2009

2007 Nom

Energy costs quadrupled

from 1973 to 1977

Overcapacity and competition

lt d i t t i

Slow but steady growth in

i i dd d

1982 recession; lime production

decreased by 25%

F l ti d

Lim

rose s

0

1020304050

DOLLAR

YEAR

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

Energy costs quadrupled

from 1973 to 1977

Flood and strike at Mississippi 

Lime Co. resulted in supply shortages

Recession slowed

energy-driven price increases

Regional shortages

increased prices

Overcapacity and competition

resulted in stagnant prices

Slow but steady growth in

consumption; prices edged upward Fuel costs increased

Lim

rose s

13
60

708090

100110120130140150160170180

OLLARS PER METRIC TON

FIGURE 7

AVERAGE VALUE FOR HYDRATED LIME SOLD

2N

0

102030405060

70

DOLLAR

YEAR

1/ Inflation adjusted using consumer price index; base year is 2007. 2/ Value of hydrated lime sold as prepared for shipment, free-on-board plant.

14
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. Consumption 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 dioxide 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 Co. 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. 

15
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 nitrogen 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 consolidation 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 Amendments 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 Rivers 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 shutdown of gas-fired kilns across the country. 

16
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 since 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 adversely 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 dropped by 21%, the largest decrease in production since 

1982, and 10 lime plants were idled all or part of the year as a result.

17