# Cement and Gypsum Cement contains about 4 to 5% gypsum, ground in with clinker to control setting, and USGS finds no practical substitute for it; India imported about 35% of the gypsum its cement plants used in FY2022-23, so supply, not price, is the main link. Source page: https://www.materialinsights.org/links/cement-and-gypsum/ [Cement](https://www.materialinsights.org/commodities/cement/) (commodity) and [Gypsum](https://www.materialinsights.org/commodities/gypsum/) (commodity): 4 relationships. ## How they are linked ### 1. Set retarder *Physical flow · Strong · Gypsum → cement* Without gypsum, ground clinker sets too fast on contact with water, so gypsum is added before final grinding to slow setting to a workable time. - **about 4 to 5%** gypsum share of cement produced USGS states that gypsum has no practical substitute in portland cement manufacture. Both mined gypsum and by-product gypsum from industry are used, so cement makers can switch sources but not avoid the input. Sources: [Indian Bureau of Mines](https://ibm.gov.in/writereaddata/files/1712755928661694d8d8774Gypsum.pdf); [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-gypsum.pdf) ### 2. Price link: input *Cost and price · Weak · Both ways* Gypsum is a small share of cement cost, so gypsum prices do little to move cement prices, and the price series share only part of a construction cycle. - **0.19** monthly change correlation - **0.29** 12-month change correlation - **0.69** fitted elasticity The link in the data is weak, with gypsum lagging cement by about three months, partly because the gypsum proxy tracks wallboard products rather than raw gypsum. For a cement maker the risk is availability and freight, not the gypsum price itself. Sources: [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/commodities/cement/correlation/) ### 3. Synthetic gypsum supply *Joint production · Medium · Coal power, fertiliser and salt works → gypsum for cement* Flue gas scrubbing at coal power plants, phosphate fertiliser making and salt pans all produce gypsum, which can replace mined rock in cement. - **about 39%** synthetic share of US gypsum supply, 2025 - **9,280 MW (4.4%)** Indian coal capacity with flue gas desulphurisation installed, May 2023 (CEA data) In the US, less coal-fired power means less scrubber gypsum, so supply depends on power sector choices. In India, all marine gypsum goes to cement, and scrubber gypsum could grow sharply if flue gas desulphurisation is fitted across coal plants, but by May 2023 only about 4% of coal capacity had it. Sources: [Indian Bureau of Mines](https://ibm.gov.in/writereaddata/files/1712755928661694d8d8774Gypsum.pdf); [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-gypsum.pdf); [Indian Cement Review](https://indiancementreview.com/2023/07/scarcity-of-domestic-gypsum-supply-2/) ### 4. India's import dependence *Shared risk · High in India · Indian cement depends on imported gypsum* India's mineable gypsum is limited, so cement plants import a large share of what they use, mostly by sea from the Gulf. - **5.76 Mt** India's gypsum imports, FY2022-23 - **about 35%** imports as share of cement industry gypsum use - **about 49%** Oman's share of India's gypsum imports, cumulative FY2009 to FY2023 Iran's supply fell from 1.57 Mt in FY2021-22 to 0.17 Mt in FY2022-23, showing how quickly one source can drop out. Domestic natural gypsum is concentrated in Rajasthan, which holds about 81% of resources. Sources: [Indian Bureau of Mines](https://ibm.gov.in/writereaddata/files/1712755928661694d8d8774Gypsum.pdf); [Indian Cement Review](https://indiancementreview.com/2023/07/scarcity-of-domestic-gypsum-supply-2/) ## For investors ### Key learnings 1. Gypsum is a small but essential cement input with no practical substitute, so the risk is supply interruption rather than cost. 2. Indian cement makers relied on imports for about 35% of their gypsum in FY2022-23, and Oman supplied about half of imports over FY2009 to FY2023. 3. Scrubber gypsum from coal plants could reduce India's imports as flue gas desulphurisation is installed, but only about 4% of coal capacity had it in May 2023. ### What to track - **India gypsum imports by origin**: Concentration on Oman and exposure to Gulf freight (Monthly · Ministry of Commerce trade data) - **Flue gas desulphurisation installed at Indian coal plants**: Future domestic supply of synthetic gypsum (Quarterly · Central Electricity Authority) ## For policymakers ### Key learnings 1. Gypsum supply security is part of cement and construction security, since cement cannot be made without it. 2. Fitting scrubbers at coal plants delivers both cleaner air and a domestic gypsum stream, if quality and logistics to cement plants are planned. 3. Phosphogypsum and marine gypsum can replace imports where quality rules allow. ### What to track - **Gypsum imports as a share of cement industry use**: Progress in cutting import dependence (Yearly · Indian Bureau of Mines, industry data) - **Flue gas desulphurisation commissioning**: Volume of new synthetic gypsum (Quarterly · Central Electricity Authority) - **Use of phosphogypsum in cement**: Uptake of by-product supply (Yearly · Indian Bureau of Mines) ## India India's cement industry imported 5.76 Mt of gypsum in FY2022-23, about 35% of its use, mainly from Oman; domestic gypsum output, about 4.3 Mt in 2025 (USGS estimate), is concentrated in Rajasthan, which holds about 81% of resources. ## Sources 1. [Indian Minerals Yearbook 2022: Gypsum](https://ibm.gov.in/writereaddata/files/1712755928661694d8d8774Gypsum.pdf), Indian Bureau of Mines (2024) 2. [Mineral Commodity Summaries 2026: Gypsum](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-gypsum.pdf), USGS (2026) 3. [Scarcity of domestic gypsum supply](https://indiancementreview.com/2023/07/scarcity-of-domestic-gypsum-supply-2/), Indian Cement Review (2023) 4. [Price correlation, Material Insights](https://www.materialinsights.org/commodities/cement/correlation/), Material Insights (World Bank, FRED, IMF data)