Report: Good growth expected for Canadian silica

Canadian industrial silica sand demand is projected to rise 6.7 percent each year to 9.81 million metric tons in 2022, according to a report from The Freedonia Group.

Based on the report, titled “Global Industrial Silica Demand,” growth will be driven by oil and gas suppliers’ need for frac sand. This and other trends are presented in the report.

The Freedonia Group projects hydraulic fracturing to account for 82 percent of Canada’s industrial silica sand demand in 2022. In addition to an increase in active rigs, demand will be supported by the rapid adoption of new oil and gas exploration technology and its associated engine oil standards.

Since well drilling often occurs in environmentally sensitive areas, any lubricants that offer a reduced environmental impact in these areas will also benefit, the firm reports.

The foundry and building products segments will also support industrial silica sand demand. Fabricated metals manufacturing will boost foundry demand, while Canada’s intensive use of asphalt roofing will aid building products demand.