Silica Supply Chain - Executive Summary

Silica

R

w Material

Si02
(solid)

Source of Raw Material:

Naturally occurring mineral

^ Derivative Water Treatment Chemicals:
«

Sodium Silicate

% of Total Domestic Consumption
Attributed to Water Sector:

Less than 3%

Understanding Chemical Supply Chains

^ Product Family:
Silica

CAS No.: 14808-60-7

K Shelf Life:
60+ Months

— RISK OF SUPPLY DISRUPTION (Assessed in 2022)

RISK RATING: Low

I aik

RISK DRIVERS

Use of silica in hydraulic
fracturing is the leading
domestic use. Increases or
decreases in demand for
hydraulic fracturing sand
may periodically impact the
availability and price of sili-
ca, however silica resources
are abundant.

RISK PARAMETERS

Criticality: High. Essential for water filtra-
tion, well construction, and production of
corrosion control chemicals.

Likelihood: Low. The water sector did not
experience silica supply disruptions be-
tween 2000 and 2022.

Vulnerability: Low. The U.S. is a leading
worldwide producer and net exporter of
silica. Silica is abundant and production is
widely distributed.

PRODUCTION PROCESS

Water Treatment Applications

Mining

•	Filtration media

•	Water treatment chemical production

Other Applications

Input	End Use

•	Hydraulic fracturing (73% overall domestic use)

•	Glassmaking

•	Whole-grain uses (cement, mortars, etc.)

•	Foundry sand

DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE

Domestic Production Locations (2019):

308, widely distributed across 35 states.

(^) International Trade (2019)

Primary Trading Partner (Imports): Canada
Primary Trading Partner (Exports): Canada

Domestic Consumption (2019):

102,849 M kg

I Domestic Production (108,000 M kg)
¦ Imports for Consumption (389 M kg)
I Export of Domestic Production (5,540 M kg)

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Silica Supply Chain - Full Profile

Product Description

Silica, also known as silicon dioxide (Si02), is an abundant, naturally occurring mineral commonly found in sand.
Silica is used directly in water treatment as a filtration media, and also as an input in the manufacturing of liquid
silicate solutions for corrosion control. The most common domestic use is in hydraulic fracturing well
development.

Use in Water Treatment

Silica sand is used directly in water filtration and as a component of well-packing sand for well construction
(USGS, 2021).

Use as a Precursor to Other Water Treatment Chemicals

Silica is used to manufacture liquid silicate solutions, such as sodium silicate, used as corrosion inhibitors in
drinking water distribution systems.

Other Applications

Silica has a wide range of applications. The leading domestic use of silica is for hydraulic fracturing well
development, packing, and cementing. It is also widely used in glassmaking, foundries, ceramics, chemical
manufacturing, roofing, construction, and filtration (USGS, 2020; USGS 2021).

Primary Industrial Consumers

In 2019, approximately 73% of silica consumed in the U.S. was used for hydraulic fracturing well development,
packing, and cementing. Additional uses include glassmaking and use as whole-grain silica, each accounting 7%
of consumption, use as foundry sand (3%), ceramics and building products (2% each), and recreational sand
(1%). Use in water filtration is one of many other applications that accounted for the remaining 3% (USGS,

2020).

Manufacturing, Transport, & Storage

Manufacturing Process

Silica, also called silica sand, industrial sand and gravel or quartz sand, is a sand and gravel with high silica (silicon
dioxide) content. There are four common categories of silica: silica sand, quartz crystal (a form of crystalline
silica), special silica stone products, and tripoli (USGS, 2021).

Sand and gravel deposits can be found on beaches or in deltas, rivers, and streams. Quartz is one of the most
common forms of silica and the second most abundant mineral on the Earth's surface. It is found in rocks such
as granite, gneiss, and sandstone. Silica sand deposits are most commonly quarried by surface mining in open pit
operations, but dredging and underground mining are also employed. Silica is commonly screened to remove
impurities and sorted by grain size. Grain size, shape, color, structure, and refractoriness differ based on deposit
location, and will dictate how the mineral is processed and the applications after mining (Minnesota DNR, 2014;
USGS, 2021).

Product Transport

Silica is routinely transported from mining operations by many modes of transport including rail, truck, and
barge (USGS, 2021).

Storage and Shelf Life

Silica is stable and non-reactive over a wide range of temperatures. When stored properly, silica can have a shelf

EPA 817-F-22-041 | December 2022

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Silica Supply Chain - Full Profile

life in excess of 60 months (AGSCO, 2017; Northern Filter Media, 2013).

Domestic Production & Consumption

Domestic Production

Production data was collected from USGS, while trade data was collected from the USITC Dataweb, as shown in
Table 1. Both production and trade data are specific to silica.

Table 1. Silica Production and Trade Data Sources

Production and Trade Data

Category

Data Source

Identifier

Description

Domestic Production

U.S. Geological Survey

CAS No.: 14808-60-7

Silica

Imports and Exports

U.S. International Trade Commission

HS Code: 2505.10

Silica

Total U.S. domestic production of silica was approximately 102,849 million kilograms (M kg) in 2019 (USGS,
2020). Domestic commercial production of silica takes place at 308 locations in 35 states within the U.S.
Production in 10 states accounted for 85% of domestic sales and use, and Wisconsin, Texas, and Illinois were the
top producing states in 2019 (USGS, 2020). In 2018, 93% of total silica production took place at 46% of the
production locations. In 2019, the U.S. was the world's leading producer and consumer of silica. The U.S. is a
significant exporter due to high quality of silica exports and advanced processing methods that allow producers
to meet a variety of specifications (USGS, 2020).

Domestic Consumption

U.S. consumption of silica in 2019 is estimated at 102,849 M kg. This estimate includes production of 108,000 M
kg, import of 389 M kg, minus export of 5,540 M kg (USGS, 2020), as shown in Figure 1.

Domestic Consumption (2019):

102,849 M kg

¦	Domestic Production (108,000 M kg)

¦	Imports for Consumption (389 M kg)

¦	Export of Domestic Production (5,540 M kg)

Figure 1. Domestic Production and Consumption of Silica in 2019

Trade & Tariffs

Worldwide Trade

Worldwide import and export data for silica (natural silica and quartz sands) are reported through the World
Bank's World Integrated Trade Solutions (WITS) software, as a category specific to silica. In 2021, the U.S. ranked
first worldwide in total exports and 24th in total imports of silica. In 2021, Canada ranked first worldwide in total
imports (WITS, 2022), as shown in Table 2.

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Silica Supply Chain - Full Profile

Table 2. WITS Worldwide Export and Import of Silica in 2021

2021 Worldwide Trade
Silica (HS Code 2505.10)

Top 5 Worldwide Exporters

Top 5 Worldwide Importers

United States

5,356 M kg

Canada

5,129 M kg

Belgium

2,378 M kg

United Arab Emirates

4,515 M kg

Malaysia

1,060 M kg

China

3,455 M kg

Saudi Arabia

861 M kg

Singapore

2,863 M kg

Portugal

701 M kg

Belgium

1,736 M kg

Domestic Imports and Exports

Domestic import and export data are reported by USITC in categories specific to silica. Figure 2 summarizes
imports for consumption1 and domestic exports2 of silica between 2015 and 2020. During this period, the overall
quantity of exports varied, with the greatest volume of exports occurring in 2018. The volume of imports,
considerably smaller than the volume of exports, remained relatively steady. Over this five-year period, Canada
was the primary recipient of domestic exports and the primary source of imports (USITC, 2021).

7,000
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2016

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2018

2019

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¦	Imports from Canada ¦ Exports to Canada

¦	Imports from Taiwan I Exports to Mexico

¦	Imports from Other Countries Exports to Other Countries

Figure 2. USITC Domestic Import and Export of Silica between 2015 and 2020

Tariffs

Imports of silica are primarily supplied from Canada. There is no general duty for import of silica, however there
is a 25% additional duty on imports from China (USITC, 2022), as summarized in Table 3.

1	Imports for consumption are a subset of general imports, representing the total amount cleared through customs and entering
consumption channels, not anticipated to be reshipped to foreign points, but may include some reexports.

2	Domestic exports are a subset of total exports, representing export of domestic merchandise which are produced or manufactured in
the U.S. and commodities of foreign origin which have been changed in the U.S.

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Silica Supply Chain - Full Profile

Table 3. 2020 Domestic Tariff Schedule for Silica

HS Code

General Duty

Additional Duty - China
(Section 301 Tariff List)

Special Duty

2505.10

None

25%

None

Market History & Risk Evaluation

History of Shortages

The most significant current domestic use of silica is hydraulic fracturing well development, packing, and
cementing. This application accounts for the consumption of the majority of domestically produced silica.
Increases or decreases in demand for hydraulic fracturing sand may periodically impact the availability and price
of silica, however silica resources are abundant and there were no identified supply chain disruptions between
2000 and 2022.

Risk Evaluation

The complete risk assessment methodology is described in Understanding Water Treatment Chemical Supply
Chains and the Risk of Disruptions (EPA, 2022). The risk rating is calculated as the product of the following three
risk parameters:

Risk = Criticality x Likelihood x Vulnerability
Criticality Measure of the importance of a chemical to the water sector

Likelihood Measure of the probability that the chemical will experience a supply disruption in the
future, which is estimated based on past occurrence of supply disruptions

Vulnerability Measure of the market dynamics that make a chemical market more or less resilient to
supply disruptions

The individual parameter rating is based on evaluation of one or more attributes of the chemical or its supply
chain. The ratings and drivers for these three risk parameters are shown below in Table 4.

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Silica Supply Chain - Full Profile

Table 4. Supply Chain Risk Evaluation for Silica

Risk Parameter Ratings and Drivers







1

1 Criticality High



1 Likelihood Low 1

1 Vulnerability Low 1

Silica is essential and has widespread
application in water filtration and well
construction. It is a precursor in the
production of silicates used in
corrosion control.



The water sector has not experienced
silica supply disruptions between
2000 and 2022.

The U.S. is a leading worldwide
producer and net exporter of silica.
Silica is abundant and production is
widely distributed.

Risk Rating: Low

<3?

''I

te-Low Moderate

Range >e/>

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1 1

References

AGSCO Corp, 2017. Safety Data Sheet for Silica Sand, retrieved from https://www.agsco.com/silica-sand-
safetv-data-sheet/

EPA, 2022. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved
from https://www.epa.gov/waterutilityresponse/risk-disruptions-supply-water-treatment-chemicals

Minnesota Department of Natural Resources (DNR), 2014. Silica Sands of Minnesota, Minnesota
Department of Natural Resources, Division of Lands and Minerals, Saint Paul, MN.

Northern Filter Media, 2013. Safety Data Sheet for Silica Sand, retrieved from

http://www.nfmpools.com/wp-content/uploads/2013/05/Silica-Sand-MSDS.pdf

U.S. Geological Survey (USGS), 2020. Mineral commodity Summaries for Sand and Gravel (Industrial),
retrieved from https://www.usgs.gov/centers/national-minerals-information-center/silica-
statistics-and-information

U.S. Geological Survey (USGS), 2021. 2018 Minerals Yearbook: Silica, retrieved from
https://pubs.usgs.gov/mvb/voll/2018/mybl-2018-silica.pdf

U.S. International Trade Commission (USITC), 2021. USITC DataWeb, retrieved from
https://dataweb.usitc.gov/

U.S. International Trade Commission (USITC), 2022. Flarmonized Tariff Schedule (FITS) Search, retrieved from
https://hts.usitc.gov/

World Integrated Trade Solutions (WITS), 2022. Trade Statistics by Product (HS 6-digit), retrieved from
https://wits.worldbank.org/trade/countrv-byhs6product.aspx?lang=en#void

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