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Fracking is forecast to consume 60 million tons of sand a year. Prior to the recent surge in demand, the entire industrial sand market was 30 million tons.


he metalcasting industry uses an estimated 100 mil-


lion tons of sand annually, includ- ing recycled and new material, to produce a majority of its castings. According to a 2014 Metal Cast- ing Design & Purchasing survey of metalcasting facilities in the U.S., nearly 50% used a green sand casting process, (horizontally and/or verti- cally parted) while 35% reported nobake casting capabilities. (Note: Respondents may use both.) Of the 100 million tons of sand in use annually, metalcasters only pur- chase somewhere between five and six million tons, meaning much of the supply is reused for an extended period of time through many production cycles. Still, considering the ubiquity of sand in metalcast- ing operations, both for producing cores and molds, issues related to supply and demand could signifi- cantly impact the industry’s ability to produce timely, cost-effective components.


The Recession & Fracking Boom Te recession of 2008-2009


resulted in a considerable decline in metalcasting production, leading to facilities consuming less sand. During this economic downturn, however, the oil and gas industry experienced a significant boom in fracking, thanks in part to techno- logical advancements in horizontal drilling. Fracking, or hydraulic frac- turing, is a drilling process that uses silica sand to fracture subterranean rock to release previously unavailable oil and gas reserves. Fuel suppliers pump a slurry, which includes silica sand, into wells at high pressure. Fracking is forecast to consume


approximately 60 million tons of sand a year by 2017. Prior to this recent surge in demand, the entire


The industrial silica sand market, which historically has remained around 30 million tons per year, nearly doubled by 2013.


December 2014 MODERN CASTING | 23


industrial sand market was roughly 30 million tons. Te metalcasting industry is the third largest consumer of sand at roughly five million tons per year, slightly behind the con- sumption of glass producers. With the fracking boom in full


swing during the metalcasting indus- try’s recovery from the recession in 2010-2011, the sand market went through a turbulent period. When the glass and metalcasting indus- tries exited the recession looking to increase consumption, the fracking industry already had purchased much of the available capacity. Tere was a real shortage for many metalcasters because major sand producers were running at or near capacity. But metalcasters were able


to procure the necessary sand as the production of fracking sands boomed. Suppliers who had long serviced the metalcasting industry were able to modestly increase the


amount headed for metalcasters, while the total capacity of silica sand increased dramatically. Considering the growth in both supply and demand of frack- ing sand, the average price for industrial silica sand as a whole has increased substantially since 2007. Sand destined for the met- alcasting industry had remained relatively stable until the short- age in 2011. According to the Bureau of Labor Statistics, the average price then jumped nearly 20% (see Table 3). Since then, the price appears to have stabilized, with the 2011 price increase a part of a new normal. Due to a number of issues


including differing technical specification, the price of sand destined for metalcasting facili- ties is significantly lower than sand used in fracking. A relatively insignificant cost for oil and gas


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