Canadian chem utilisation reaches 80.8% in Q2

27 September 2006 16:29  [Source: ICIS news]

TORONTO (ICIS news)--Capacity utilisation at Canadian-based chemicals plants rose by 1.4 percentage points to reach 80.8% in the second quarter, compared with the same period in 2005, Statistics Canada (StatsCan) said on Wednesday.

 

The rate for the three months ended 30 June compares with 78.4% in the 2006 first quarter, Ottawa-based StatsCan said.

 

StatsCan primarily credited the increase to higher capacity utilisation of resin and synthetic rubber makers, which boosted production by 10.6%.

 

The data for the chemicals industry compares with a 1.1% decline in Canadian manufacturing capacity utilisation in the second quarter. Manufacturing capacity utilisation was 83.1% in the April-June period, compared with 84.2% in the same period last year. Manufacturing capacity utilisation dropped 0.6%  from 83.7% in the 2006 first quarter. StatsCan noted that the 2006 second-quarter manufacturing capacity utilisation marks the lowest rate since the second quarter of 2004 when it was 83%.

 

Overall industrial capacity utilisation in Canada was 85.5%, reflecting a decline of 0.5% from 86% in the 2005 second quarter, and a decline of 0.2% from the 85.7% recorded in the 2006 first quarter. StatsCan cited a drop in exports and a slowing Canadian housing market for the decline. “However, due to the level of new orders and the decline in stocks of finished products, manufacturers remain optimistic in their forecasts for the third quarter,” StatsCan added, citing findings for its latest survey of business conditions.

 

StatsCan defines the capacity utilisation rate as the ratio of an industry's actual output to its estimated potential output.


By: Stefan Baumgarten
+1 713 525 2653



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