July 25, 2022 08:21 ET | Source: SkyQuest Technology Consulting Pvt. Ltd. SkyQuest Technology Consulting Pvt. Ltd.
Westford, USA, July 25, 2022 (GLOBE NEWSWIRE) -- Silica sand is an alternative to crushed stone, sand, and other granular materials. With growing demands in the construction industry and business sector, silica sand has been continuing to exhibit a rapid growth in various sectors, in particular building restoration and construction accounts for 60% of the global silica sand market. However, even though the current amount of interest for silica sand are high, few people are aware of the challenges that this industry is confronting on a day-to-day basis.
Silica sand has been commonly used as a building material since Roman times. Houses were constructed using waterproof materials like clay and lime and then coated with hydrophobic resin or plaster in order to create a waterproof surface. This technique was used until the 1900s, when silicon was beginning to be introduced into construction products like concrete, limestone, and quartz grout. Today, silica sand is also used in glass and steel-making across the global silica sand market because it helps in developing structure which is hard, tough, flexible (or brittle), good-hardness (HV) and have a small degree of elasticity.
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Countries are Banning Export of Silica Sand as Environmental Concern Rises and is Projected to Leave negative Impact on Silica Sand Market Growth
In the United States, several states, including California and Minnesota have banned exports of silica sand. Globally, some countries have banned export of silica sand citing health concerns. In the United States, many companies are looking to substitute other materials in products like glass and ceramics.
Other countries that have banned exports in the global silica sand market are China, India, and the European Union. The bans are in place due to environmental and health concerns such as respiratory issues and cancer. It is estimated that over 90% of the global output of silica sand is used in industrial production. There has been a significant shift towards using substitutes for this material. For example, China has been substituting mineral wool for silicon dioxide in insulation products.
World is Worrying about Growing Shortage in Silica Sand Market
Silica sand is the primary material used in the production of various types of glass, ceramics, and other materials. Despite its many uses, silica sand has been facing a shortage due to its high demand from the glass and ceramic industries. The shortage could have significant impacts on various industries such as construction, defense, energy, and automotive.
In the global silica sand market, the construction industry is the most affected by the shortage as a result of increased cost for substitutes likes harbor sand. Other industries that are likely to be significantly affected are the automotive industry, as well as the energy sector because of the dependency on glass for lights and windows.
There have been many efforts to try and address this shortfall in supplies including exploring new ways to produce silica sand from other materials or improving efficiency in current production lines. Despite these efforts, it is likely that there will be further shortages due to the high demand from industries.
The silica sand market is currently facing a shortage of silica, which is the material used to make silicon wafers. This shortage has caused several companies to close or slash employee numbers. The impact of this shortage on the various industry sectors is largely unknown, but could have a large impact on their respective performance.
A study by World Bank revealed that the silicon sand industry has been contracting for the past two years due to a lack of silica. This shortage is likely to continue as China's demand for silicon sand grows exponentially. In fact, the country consumes around 50% of the global silica sand. Manufacturers have also been forced to switch to other materials, such as glass and aluminum, which may have an adverse effect on their performance.
The impacted companies are expected to post losses in 2022 and 2023. Considering that millions of jobs are tied up in this sector, these losses are likely to be significant. Ultimately, the lack of silica will likely have a negative impact on the global economy as a whole.
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Increasing Cost of Silica Sand Have Created Domino Effect on End-Use Industry
The continuing increase in the cost of silica sand is having a ripple effect on the end-use industry as well as on the global silica sand makret. As a byproduct of refining crude oil, silica sand is used to make a variety of products, including automobile glass, tennis balls, and ceramics. However, the price of this key raw material has surged in recent years, driven in part by global demand for solar panels and other renewable energy sources.
As a result, companies that use silica sand are facing increasing costs that are making it difficult to compete in the global silica sand market. For example, auto glass manufacturers now pay an average of $265 per ton for sand, up from $100 just five years ago. Meanwhile, the price of solar panels has surged more than 100% since 2010. These price hikes have forced many companies to reconsider their reliance on silica sand and look for alternative materials.
Fortunately, there are other available sources of this key raw material. For example, quartzite rocks can be used as a substitute for silica sand in a wide range of products. However, this may not be an ideal solution for all companies in the global silica sand market. For instance, quartzite is less strong than sand and doesn't form as many durable objects.
Shortage of Frack Sand Impacting Crude Oil Production
The hydraulic fracturing, or "fracking" process is used to extract crude oil from the ground requires a high-quality sand known as "frack sand." This sand is mined from underground deposits and must meet certain specifications in order to be effective in the fracking process. A shortage of frack sand has begun to impact production of crude oil, as drillers are unable to obtain the necessary amount of sand to complete their operations across the global silica sand market.
This shortage is being driven by a number of factors. First, demand for frack sand has exploded in recent years as the fracking industry has taken off. The United States is now the world's leading producer of crude oil, and much of this growth has been due to fracking. As a result, there are more drillers competing for a limited supply of frack sand.
Another factor contributing to the shortage in the global silica sand market is that many traditional sources of frack sand have been depleted. This has led companies to look for new sources of sand, which can be more difficult and expensive to mine. In addition, some companies are mining lower-quality sands that do not meet all the specifications required for use in fracking. This means that they must purchase higher-quality sands at a premium price or risk using Sands that might diminish their production quality.
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