Plastic exports headed for calmer waters: EDC
Canadian exports of rubber and plastics will stabilize over the next two years despite a 3.5 per cent drop in expor...
Canadian exports of rubber and plastics will stabilize over the next two years despite a 3.5 per cent drop in export values in 2006, according to Export Development Canada‘s Global Export Forecast for spring 2007.
The report said that exports of rubber and plastics have held steady at $10 to 10.5 billion in recent years, aside from the 2006 drop. The drop was mainly attributed to the US, which accounts for nearly 90 per cent of the export market in this sector. Overall, US markets still accounted for most of the exports by processors in the chemicals, rubber and plastics sectors.
“Canadian producers remain heavily dependent on the US market, which accounted for 82% of export sales last year [for chemicals, rubber and plastics],” said the report. “On average, exports to developing markets are expected to continue outperforming sales into industrialized economies.”
Export sales for the rubber and plastics sectors are expected to grow by two per cent each year in 2007 and 2008. Non-US markets also showed significant growth in 2006, especially in China and Germany, where sales increased by 124 per cent and 30 per cent respectively. The report said that the Chinese export market would continue to thrive, but at a slower, sustainable pace.
Sales are also expected to increase by five to seven per cent in markets located in Latin America, East Asia and Europe.
Additionally, exports of rubber and plastics machinery and equipment fell by 3.4 per cent in the last year. Once again, the drop can mainly be traced back to the US market, which accounts for more than 60 per cent of the sectors exports.
The EDC expects exports of rubber and plastics M&E to rise by three per cent in 2007 and four per cent in 2008.