Another Disappointing Year for Industrial Minerals

A glance at the following chart reveals that because of the continued poor economy, the slump in industrial mineral production continued into 1980. Gypsum was down 17% from 1979; cement down 9%, sand and gravel, 17%, and crushed stone, 11%. All these downward trends reflect the high interest rates and high costs that slowed construction starts. Domestic fluorspar was down 21% and imports off 14% due to the steel iudustry slump. However, potash production was up 8% and phosphate, 5%. Increased drilling activity spurred au increase in barite production of 25%. Most other industrial minerals posted losses with only a few insignificant increases. As expected, prices were higher, reflecting increases due to high costs for labor, supplies, and above all, energy. Increasing energy and transportation costs also had their effect on industrial mineral production. Railroad freight rates increased 16-22% including fuel surcharge; truck rates increased 11-14%a; and ocean freight rates increased 20% for finished goods. The 1979 shortage of boa and hopper cars did not continue into 1980-most likely due to low production of many of the hulk industrial mineral commodities. All in all, 1980 was not a good Year for industrial minerals.