Most Cdn exports collapse in Feb; Autos, forestry hit hard

OTTAWA — The two-week strike at CN Rail in February is being blamed for a 2.1 percent slip in exports from a record high in January, according to Stats Canada.

The strike, which interrupted regular transportation patterns, made it difficult for exporters to ship their products to the border or port, says the report.

The only sector registering a gain for the month was energy (up 16.3 percent to $8.0 billion), most of which is transported via pipeline. With energy excluded, exports plummeted 5.8 percent. Exports of industrial goods posted the largest decline in February, following nine consecutive increases.

Overall, Canadian companies exported $39.6 billion worth of merchandise in February, a $800 million drop from the previous month.

Imports, however, were relatively stable, edging up 0.3 percent to $34.8 billion. Merchandise arriving at a port or border may have been cleared through customs and thus included in import values, explains StatsCan, even though the product may not have been shipped through to the importer.

As a result of the hit to exports and steady imports, Canada’s trade surplus with the world contracted in February to $4.8 billion from a revised $5.8 billion in January.

Industrial Goods Exports Fall:

For the first time in 10 months, industrial goods and materials led the decline in exports in February. This was the first decline for the sector in 10 months, down 8.9 percent to $8.1 billion from January’s record high of $8.9 billion. Chemicals, metal ores, metals and alloys as well as other industrial goods and materials were all down.

Forestry continued its downward trend, recording
its lowest export value since the fall of 1994.

Automotive exports, already reeling in recent months, were hit hard, falling 5.6 percent to $6.8 billion.

The forestry sector also continued to follow its downward trend, recording its lowest export value since the fall of 1994. Exports were down 9.1 percent, falling to $2.5 billion from $2.8 billion the month previous.

Agricultural products were not immune to the declines either, with exports dropping 2.7 percent to $2.9 billion.

… Imports Steady, However:

While industrial goods and material exports were the weakest in months, imports increased 3.0 percent to a record high of $7.3 billion.

The increase for the month was fuelled by imports of metals and metal ores, particularly raw copper from Chile, which will be refined in Canadian processing plants, says StatsCan.

Imports of automotive products increased slightly by 1.3 percent in to $6.8 billion, with a 2.2 percent gain in parts accounting for most of the advance.
Imports of energy products dropped 11.7 percent to $2.6 billion in February, with crude petroleum, as well as other energy products, such as refined petroleum and coal, all declining.

Consumer goods remained unchanged. Lower import levels of recreational equipment were offset by an advance in imports of apparel and footwear as stores stocked up on inventories for the summer season.