Canadian chemical profits soared last year

Source: China National Chemical News January 24, 2019

Sinochem New Network News The Canadian Chemical Industry Association (CIAC) recently estimated that the country's industrial chemicals sector generated a high operating profit of CAD 4.3 billion in 2018, an increase of 23% over 2017. CIAC also estimated that sales rose 6% to 25.4 billion Canadian dollars (19.2 billion U.S. dollars) and production increased by 1%.　CIAC released relevant data in the 2018 year-end business situation survey, and said that the export value of chemical products increased by 10% to 20.5 billion Canadian dollars. CIAC said that in 2018, Canadian chemical products accounted for 81%, of which 75% was exported to the United States.

Looking ahead, respondents to the survey predicted that industry output will increase by 3% in 2019, but sales will fall by 1% and exports will fall by 4%. The association also expects operating profit to decline by 3%, while maintaining a historically strong trend.

Capital expenditures in 2018 are expected to be CAD 1.2 billion, a decrease of 7% from 2017 and a decrease of nearly 50% from the peak in 2014. However, respondents to the survey expect this number to soar by 65% ​​in 2019 to reach CAD 1.95 billion.