US domestic supply

Commodity-Grade Mercury
U.S. Market Overview
Mercury Products Workshop
Mexico City
October 28-29, 2008
Timothy Lehman, Economist
Economics, Exposure and Technology Division
Office of Prevention, Pesticides, and Toxic Substances
U.S. Environmental Protection Agency

Overview
• U.S Mercury Demand
• Existing U.S. Product and Process Demand
• Sources of U.S. Supply
• Trends in the Mercury Market
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U.S. Mercury Demand
• Between 1980 and 2001, annual mercury use in the U.S.
decreased from 2,225 to 271 metric tons. More recently,
the US is estimated to consume 100 metric tons per
year.
• Reductions largely due to:
– Limits on mercury use in batteries.
– EPA cancellation of pesticide registrations for the use of mercury
in paint.
– Closure or conversion of mercury cell chlor-alkali production
facilities.
– Reductions in multiple products.
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U.S. Mercury Product and Process Use Trends
Other category includes batteries, paints, laboratory applications, biocides, pesticides, pharmaceuticals, and
as a preservative in cosmetics
U.S. EPA. EPA’s Roadmap for Mercury, available at http://www.epa.gov/mercury/pdfs/FINAL-Mercury-Roadmap-6-29.pdf, p. 37.
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Existing U.S. Product and Process
Demand
• Major U.S. Products
– Switches and relays
– Measuring and control devices
– Electrical lighting
– Button cell batteries
– Dental amalgam
• Major U.S. Processes
– Mercury cell chlor-alkali production
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Total Use of Mercury in Products in US, 2004
(percentage)
Switches and Relays
43%
Dental Amalgam
26%
Formulated Products
1%
Batteries
2%
Miscellaneous
2%
Measuring Devices
4%
Lamps
9%
Thermostats
13%
Switches and Relays Dental Amalgam Thermostats Lamps
Measuring Devices Miscellaneous Batteries Formulated Products
Source: Trends in Mercury Use in Products: Northeast Waste Management Officials'
Association, 2008
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Existing U.S. Product and Process
Demand (cont’d)
• Switches and Relays
– 2004: 51 metric tons
– 2001: 60 metric tons
- Category includes: tilt switches, float switches, flame
sensors and relays.
- By 2006, Honeywell International ceased
manufacture of mercury switches and reduced
mercury use by 11.5 metric tons.
– U.S. motor vehicles produced after January 1, 2003
do not contain mercury switches.
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Existing U.S. Product and Process
Demand (cont’d)
• Thermostats
– 2004: 15.0 metric tons
– 2001: 15.5 metric tons
- Includes: residential, commercial and industrial
types.
- Many state collection programs exist.
- EPA and private sector are attempting to increase
recycling rates
- Eight states enacted legislation prohibiting the
purchase of new mercury-containing thermostats.
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Existing U.S. Product and Process
Demand (cont’d)
• Measuring Devices
– 2004: 4.8 metric tons
– 2001: 6.0 metric tons
– Category includes barometers, manometers, blood pressure
cuffs, thermometers, etc.
– Three U.S. manufacturers of precision measuring devices
announced phase-out of mercury-added commercial products.
– Fifteen states enacted legislation prohibiting the purchase of new
mercury-containing thermometers.
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Existing U.S. Product and Process
Demand (cont’d)
• Electrical Lighting
– 2004: 10.7 metric tons
– 2001: 10.1 metric tons
– Includes mercury used in fluorescent tubes, Compact
fluorescent lights (CFLs), high intensity lights, and
neon signs.
– In 2007, NEMA signed a voluntary agreement to cap
per unit consumption of mercury to 5 mg per CFL.
– Increased promotion of fluorescent lamps shifts
emphasis from mercury demand reduction to disposal
and recycling.
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Existing U.S. Product and Process
Demand (cont’d)
• Button Cell Batteries
– 2004: 2.6 metric tons
– 2001: 3.0 metric tons
– Mercury consumption in batteries down from 1,000 metric tons in
early 1980s due to federal laws.
– Button cell (including zinc air, silver oxide and alkaline
manganese oxide) and mercuric oxide (only used in military and
medical equipment) only remaining types.
– Members of National Electrical Manufacturers Association
(NEMA) plan to phase out mercury use in button-cell battery
production by 2011.
– Four states enacted legislation prohibiting the distribution of
items containing mercury-added button cell batteries.
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Existing U.S. Product and Process
Demand (cont’d)
• Dental Amalgam
– 2004: 30.4 metric tons
– 2001: 30.8 metric tons
– Between 1979 and 1990, CDC reports a 38 percent decrease in
use of mercury dental amalgam.
– 17 states enacted legislation to regulate dental amalgam, best
management practices for waste, bans, informed consent
requirements, and mandatory notification of available
alternatives.
– Higher cost non-mercury alternatives may limit future reductions.
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Existing U.S. Product and Process
Demand (cont’d)
• Mercury Cell Chlor-Alkali Production
– Current Demand: 5 metric tons
– Consumption down from 124 metric tons in 1996
– In late 2008 to 2009, one plant is anticipated to
convert to non-mercury cell technology and one plant
is expected to close.
- Remaining four plants are expected to close during
next 30 years, but timeframe uncertain.
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Sources of U.S. Supply
U.S. domestic supply sources:
• Closing/retrofitting chlor-alkali plants
• By-product from gold mining
• Product recycling and waste recovery
• Import of commodity-grade mercury
• Import of calomel (mercury chloride)
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Estimated Quantities of Commodity-Grade
Mercury in the U.S. in 2005 and 2006
Totals: 580 359
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U.S. Domestic Supply Source: Chlor-alkali
Plants
• Elemental mercury released to market upon closure of plants
or conversion to mercury-free technology
– Current Inventory: approx. 2,100
metric tons
– Largest U.S. private-sector source of stored and in-use
mercury.
– Facilities generally operate 40 to 60 years.
• No new construction in U.S. since 1970.
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U.S. Domestic Supply Source: Chlor-alkali
Plants-cont'd
Recent trends:
– One plant is anticipated to close and one plant is expected
to convert to non-mercury cell technology soon
• Remaining four plants are expected to close during next
30 years, but rate uncertain.
- One plant closure resulted in 174 metric tons sold in 2005
and 71 metric tons in 2006.
- Second plant closure in June/July 2007 resulted in ~400
ton supply.
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U.S. Domestic Supply Source:
Byproduct Mining
• Total Annual Supply: ~118 metric tons of commodity-grade
mercury in 2006
- Extraction will occur until 2015; processing will continue until
2029
• Trend: Quantity may increase modestly over time
– Quantity dependent upon mine life and industry expansion
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U.S. Domestic Supply Source: Product Recycling and
Waste Recovery
• Total Annual Supply: Anecdotal evidence indicates
that from 50 to 80 metric tons and potentially as much
as 100-200 metric tons were recovered in 2006.
• Sources: Retorting of end-of-life products, off-spec
products, hazardous industrial waste, and
contaminated soil from cleanup sites.
• Trend: Quantity is assumed to remain constant in the
short term (e.g. next decade), and then decline as
mercury content of products decreases and waste
streams get smaller.
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U.S. Reservoirs of Mercury – Limited
Recovery Potential
• Total Potential Supply: ~2000 metric tons of mercury currently
contained in dental amalgam and products; unknown amount in
contaminated soil
• Most is now being land-filled or otherwise released when discarded,
including:
• discharges of dental amalgam to wastewater from dental offices
and
• small percentages of the mercury are recovered from reservoirs,
e.g. from dental offices, auto switches and fluorescent lamps
•Trend: Unknown percentages may be recovered in the future
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Year
U.S. Domestic Supply Source: Imports and Exports
(Data from U.S. ITC, Metric Tons)
Mercury
Equivalents of
Calomel
Imports
Imports of
Elemental
Mercury
Total
Imports
Total
Exports
Net Exports
2002 27 210 237 324 87 - 114
2003 11 46 57 287 230 - 241
2004 207 92 299 279 -21 - 187
2005 328 212 540 319 -221 - 107
2006 58 94 152 390 238 – 296
Average 126 131 257 320 63 - 189
• Nearly all calomel imports since 2004 have been from Chile; we assume calomel is 50 percent mercury by
weight (Reported imports of elemental mercury in 2006 were predominantly from Russia (51 metric tons),
Peru (22 metric tons), Germany (14 metric tons), and Canada (eight metric tons) whereas 2005 imports were
predominantly from Peru (128 metric tons), Chile (31 metric tons), Israel (29 metric tons), Canada (13 metric
tons), and Germany (11 metric tons)).
• Net exports = total exports minus total imports; second number in range excludes mercury from imported
calomel due to uncertainty of calomel estimates.
• Average annual net exports may be closer to 140, based on a separate estimate of 50 tons of mercury per year
from calomel imports.
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Expected Future Trends
• U.S. domestic supply: ~200 metric tons per year (from byproduct
mining and recycled from products and waste) + releases from
chlor-alkali plants
– Secondary recovery growing slowly, but will ultimately be limited
by size of reservoir.
– May decline with demand (with or without a time lag), and with
closure of all mercury cell chlor-alkali plants.
• Imports for processing: ~257 metric tons per year
- May be impacted by U.S. Mercury Export Ban
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U.S. Mercury Stockpiles
• Current U.S. stocks: ~8,036 metric tons.
• Progress to date:
– More than half is already in long-term storage.
– DOD maintains 4,436 metric tons of mercury in strategic
stockpile.
• Will be stored at one location for at least 40 years.
– DOE stated it will continue to store 1,200 metric tons.
– Remaining mercury stores in non-federal stocks is ~2,400 metric
tons.
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Summary of U.S. Mercury Supplies
Mercury
(metric tons)
1000
800
600
400
200
0
2006
2008
2010
Year
2012
2014
Elemental Mercury Imports
Chlor-alkali plants
Recycling and Waste
Recovery
Byproduct Mining
• Releases from chlor-alkali plants are “lumpy.”
- 2006 data reflects the scheduled closure of two chlor-alkali plants
- We assume a plant releases 300 metric tons every three years after 2009
• Recycling of products and waste may also be “lumpy”-- we assume a slight increase over
time in recycling and waste recovery rates.
• We assume continuing trends in imports based on a linear extrapolation of historical data
from US ITC from 1989 through 2006.
• This benchmark does not reflect any controls on exports or domestic supplies.
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U.S. Mercury Export Ban
– Export ban legislation signed this month by
President and should go into effect in 2013.
– Will ban exports of mercury generated in the
U.S.
– Will allow voluntary storage of mercury by
private sector in a DOE facility. User fee will
be imposed.
– Several reports to congress required to
determine the impact of this legislation on
primary mining and recycling.
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