29 December 2010 20:02 [Source: ICIS news]
By Stefan Baumgarten
“We are still looking at a very shallow recovery; it could take some time to build back to pre-recession levels across the overall economy,” said the Ottawa-based trade group Chemistry Industry Association of Canada (CIAC).
The slower growth would come after the chemical industry’s strong recovery this year, when sales of basic chemicals and resins rose 14% to Canadian dollar (C$) 21bn ($21bn, €16bn).
CIAC, citing its recent survey of member firms, said Canadian chemical producers would see low growth next year because of limited export opportunities to the
Overall sales volumes were forecast to increase by 5%, with exports volumes to the
“Weakness in the housing sector and personal spending will impact demand for chemistry products which are predominantly exported into this market,” it said.
Meanwhile, globally, high debt levels in many nations continued to threaten financial and banking stability.
CIAC reiterated earlier predictions of an ethane shortfall of 70,000 bbl/day by 2015 if nothing was done to increase the ethane supply in
The group noted, however, that the
As one measure, CIAC was advocating an extension of the province’s Incremental Ethane Extraction Policy (IEEP) from 2007 to boost feedstock supplies, it said.
In addition, chemical producers were exploring new feedstock sources such as those from the US Bakken and Marcellus shale deposits, and olefins-rich off-gases from bitumen upgrading in
Another worry for the industry was that many of its customers were moving production to
Also, the increasing number of new basic chemical facilities in the
Major chemical firms with production in
($1 = C$1.00) ($1 = €0.76)
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