INFORMATION BULLETIN, JUNE 2013
Reduced Prices Result in Lower Export Values;
Balance of Trade Down, But Still a Substantial $16.7 Billion
Canada depends on international trade to support the national economy and to sustain a high standard of living. Mineral commodities continued to make a substantial contribution to Canada’s international trade position in 2012. Canada’s mineral trade balance was +$16.7 billion in 2012.1 Mineral exports accounted for 21.0% of the country’s export value and mineral imports accounted for 16.4% of its total imports.
TRADE BY COUNTRY
The United States continued to be Canada’s leading partner in the trade of mineral commodities in 2012, accounting for 49.3% of mineral exports and 50.5% of mineral imports. The European Union (EU) (24.2%), China (7.0%), and Japan (4.1%) were the next most important destinations for Canada’s mineral exports, while China (9.1%), the EU (8.3%), Mexico (4.9%), and Peru (4.4%) were the next most important sources of mineral imports.
While the United States remains Canada’s leading trading partner, the percentage of mineral exports to the United States has been declining steadily since 1999 and the percentage destined for other countries has been growing. In 2000, less than 2% of Canada’s mineral exports went to China, but in 2012, that proportion had increased to 7.0% ($6.2 billion). Exports to Brazil, valued at $1.4 billion in 2012, have more than quadrupled since 2000, while mineral exports to other countries, including Mexico, Indonesia, India, and Russia, also increased substantially over the same period. As markets for Canada’s mineral commodities become more diverse, market concentration risks are mitigated, but producers must compete to supply growing markets. Table 1 provides mineral export and import values for Canada’s leading trade partners in 2012.
Balance of Trade 2
Canada’s balance of trade for the mining and mineral processing industry fell to $16.7 billion in 2012, a value higher than any year prior to 2007. Canada continued to maintain positive trade balances with the United States, the EU, Japan, and South Korea. Imports from China, Mexico, Chile, Argentina, and Peru significantly exceeded Canada’s exports to these countries (see Table 1).
TRADE BY MANUFACTURING STAGE1
Table 2 shows Canada’s trade in minerals and metals by production stage. Traditionally, Canada runs large, positive trade balances in Stage 1 – mineral extraction ($20.9 billion in 2012) and Stage 2 – smelting and refining ($18.3 billion in 2012). Trade balances in Stage 3 (semi-fabrication) tend to be neutral or slightly negative (-$4.5 billion in 2012) while balances for Stage 4 (fabrication) are traditionally large and negative (-$18.1 billion in 2012). This reflects Canada’s natural resource wealth, strengths in mineral extraction, and changing patterns of production and use along key value chains. As a result, Canada tends to export ore and primary metals and to import labour-intensive fabricated goods with low value added.
TRADE BY MINERAL CATEGORY
Metallic Products
Exports of metallic products typically account for the largest share of Canada’s mineral exports, and in 2012 they represented 75.0% of mineral exports (Figure 2). Metal exports decreased in 2012 (-8.2%) to $67.1 billion. Soft demand and lower prices reduced the export volume and value for a number of major metal products: the gold value decreased 7.4% to $17.0 billion on substantially reduced volumes; the aluminum value fell 13.0% to $8.6 billion on lower volumes and prices; the value of copper was down 9.3% to $5.8 billion, mainly on lower prices; the nickel value declined 22.7% to $5.2 billion, also mainly on lower prices; and the value of zinc fell 9.8% to $1.5 billion despite volume gains. The value of iron and steel exports increased 1.1% to $12.8 billion despite a slightly lower volume.
Imports of metal products decreased at a lower rate than exports, falling by 2.8% to $63.8 billion. Gold, aluminum, nickel, lead, and zinc all showed significant decreases in import value, while iron and steel imports increased 6.5% to $24.1 billion.
Nonmetallic Products
Canada’s exports of nonmetallic products decreased in 2012 to $15.6 billion (-5.3%). Most major nonmetal products experienced decreases in volume and value: the potash value fell 9.5% to $6.1 billion on volume and price reductions; the value of diamonds was down 12.9% to $2.2 billion despite volume gains; and the value ($0.7 billion) and volume of salt were relatively unchanged. The export value of cement was up 13.2% to $0.5 billion despite a reduced volume.
The value of nonmetallic imports increased in 2012 (4.7%) to $10.8 billion. As in 2011, almost all nonmetallic product groups experienced year-over-year gains in 2012. Notable increases included clay and clay products, which rose 7.5% to $1.1 billion, and titanium oxides, which saw gains of over 22%.
Coal Products
The volume of metallurgical coal (coking coal, used to produce iron and steel) exports increased substantially in 2012 (+11.2%), but the value decreased 19.6% to $5.9 billion. The volume of thermal coal (used to produce electricity) exports increased 3.2%, but the value decreased 22.8% to $0.7 billion.
Metallurgical coal imports increased in both volume (+9.1%) and value (+4.9%) to reach $0.9 billion in 2012. The volume of thermal coal imports decreased 6.2% while the value increased 4.7% to $0.3 billion.
TRADE BY PROVINCE AND TERRITORY
As in the past, the majority of Canada’s 2012 mineral trade flowed to and from Ontario and Quebec (Table 4). Ontario accounted for 44.8% of exports and 59.4% of imports while Quebec accounted for 20.2% and 14.1%, respectively.
Exports of mineral and metal products represented a significant proportion of total exports from most provinces and territories, accounting for virtually all exports from the Northwest Territories, 98.3% of exports from Yukon, and well over one-third of exports from British Columbia.
The balance of mineral trade for each jurisdiction was mixed. Alberta, Manitoba, New Brunswick, Nova Scotia, Ontario, and Prince Edward Island posted trade deficits. British Columbia, Newfoundland and Labrador, the Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon all posted trade surpluses.
1Total exports include all goods leaving the country for a foreign destination. They consist of the sum of domestic exports and re-exports. Domestic exports consist of the exports of all goods grown, produced, extracted, or manufactured in Canada. Exports of imported merchandise that has been substantially enhanced in value are also included. Re-exports refer to goods that have previously entered Canada and are materially the same product upon leaving the country. Domestic exports are an important barometer of economic value added occurring in the country, and are the export values used in this information bulletin unless noted otherwise.
2The balance of trade is determined by subtracting total imports from total exports.
Note: Information in this bulletin was current as of May 1, 2013.
Figure 1
Value of Canadian Mineral Trade, 2002-12
.jpg)
Sources: Natural Resources Canada; Statistics Canada.
Note: Mineral trade includes coal.
[Text Version - Figure 1. Value of Canadian Mineral Trade, 2002-12]
Figure 2
Value of Canadian Mineral Trade by Commodity Group, 2002-12
.jpg)
Sources: Natural Resources Canada; Statistics Canada
Note: Stages 1 to 4 for metals and nonmetals; Stages 1 to 3 for coal.
[Text Version - Figure 2. Value of Canadian Mineral Trade by Commodity Group, 2002-12]
| Country | Domestic Exports ($000) |
Total Exports ($000) |
Total Imports ($000) |
Balance of Trade ($000) |
|---|---|---|---|---|
| United States | 44 186 494 | 46 329 265 | 38 297 669 | 8 031 596 |
| European Union | 21 647 890 | 22 092 076 | 6 318 537 | 15 773 539 |
| China | 6 233 853 | 6 303 094 | 6 872 724 | - 569 630 |
| Japan | 3 642 897 | 3 653 923 | 1 241 292 | 2 412 631 |
| South Korea | 1 965 410 | 1 973 081 | 910 529 | 1 062 551 |
| Norway | 2 008 351 | 2 013 011 | 146 365 | 1 866 646 |
| India | 814 599 | 825 894 | 737 461 | 88 433 |
| Mexico | 913 858 | 975 629 | 3 719 198 | - 2 743 569 |
| Brazil | 1 420 361 | 1 433 461 | 1 390 214 | 43 247 |
| Chile | 228 605 | 234 684 | 883 448 | - 648 764 |
| Hong Kong | 930 493 | 955 044 | 48 386 | 906 619 |
| Indonesia | 598 817 | 602 469 | 111 306 | 491 162 |
| Other countries | 4 957 396 | 5 154 770 | 15 182 077 | - 10 027 267 |
| Total Canada | 89 549 024 | 92 546 401 | 75 859 208 | 16 687 193 |
Sources: Natural Resources Canada; Statistics Canada.
Notes: Mineral trade includes coal. Numbers may not add to totals due to rounding.
| Stage | Domestic Exports ($000) |
Total Exports ($000) |
Total Imports ($000) |
Balance of Trade ($000) |
|---|---|---|---|---|
| Stage 1 | 29 158 554 | 29 211 622 | 8 307 819 | 20 903 803 |
| Stage 2 | 32 299 510 | 32 602 832 | 14 257 602 | 18 345 229 |
| Stage 3 | 16 561 469 | 17 602 959 | 22 110 084 | - 4 507 124 |
| Stage 4 | 11 529 492 | 13 128 988 | 31 183 703 | - 18 054 715 |
| Total | 89 549 024 | 92 546 401 | 75 859 208 | 16 687 193 |
Sources: Natural Resources Canada; Statistics Canada.
Notes: Mineral trade includes coal. Numbers may not add to totals due to rounding.
| Commodity | 2011 ($000) |
2012 ($000) |
|---|---|---|
| Gold | 18 273 030 | 16 924 926 |
| Iron and steel | 12 641 017 | 12 779 811 |
| Aluminum | 9 855 226 | 8 575 857 |
| Coal | 8 264 200 | 6 614 616 |
| Potash and potassium compounds | 6 706 591 | 6 070 108 |
| Copper | 6 445 307 | 5 847 480 |
| Miscellaneous metal products | 5 407 033 | 5 349 785 |
| Nickel | 6 735 530 | 5 207 555 |
| Iron ore | 4 160 399 | 4 135 596 |
| Diamonds | 2 573 516 | 2 242 292 |
| Silver | 2 197 835 | 2 154 329 |
| Nitrogen | 1 763 935 | 1 855 314 |
| Zinc | 1 686 764 | 1 521 433 |
| Uranium and thorium | 2 399 104 | 1 490 780 |
| Sulphur and sulphur compounds | 1 036 305 | 906 938 |
| All other minerals | 7 428 178 | 7 872 202 |
| Total | 97 573 969 | 89 549 024 |
Sources: Natural Resources Canada; Statistics Canada.
Note: Numbers may not add to totals due to rounding.
| Province/Territory | Domestic Exports ($000) |
Total Exports ($000) |
Total Imports ($000) |
Balance of Trade ($000) |
Total Provincial/ Territorial Domestic Exports ($000) |
Domestic Exports as a Percentage of Provincial or Territorial Total (%) |
|---|---|---|---|---|---|---|
| Alberta | 4 760 929 | 4 845 833 | 5 165 220 | - 319 387 | 94 873 156 | 5.0 |
| British Columbia | 11 571 538 | 11 621 685 | 7 834 642 | 3 787 042 | 31 305 834 | 37.0 |
| Manitoba | 2 026 078 | 2 031 729 | 3 313 853 | - 1 282 124 | 11 119 600 | 18.2 |
| New Brunswick | 889 966 | 894 243 | 910 694 | - 16 451 | 14 755 994 | 6.0 |
| Newfoundland and Labrador | 2 736 092 | 2 739 875 | 189 889 | 2 549 987 | 11 274 417 | 24.3 |
| Northwest Territories | 1 829 964 | 1 830 103 | 10 | 1 830 093 | 1 831 304 | 99.9 |
| Nova Scotia | 239 591 | 245 189 | 471 780 | - 226 592 | 3 763 565 | 6.4 |
| Nunavut | 4 360 | 4 926 | – | 4 926 | 13 543 | 32.2 |
| Ontario | 40 135 366 | 42 784 897 | 45 074 165 | - 2 289 268 | 162 595 416 | 24.7 |
| Prince Edward Island | 10 398 | 10 730 | 31 350 | - 20 620 | 840 207 | 1.2 |
| Quebec | 18 045 158 | 18 177 126 | 10 950 951 | 7 226 175 | 62 175 002 | 29.0 |
| Saskatchewan | 7 087 974 | 7 148 452 | 1 913 643 | 5 234 810 | 32 485 629 | 21.8 |
| Yukon | 211 609 | 211 612 | 3 010 | 208 602 | 215 374 | 98.3 |
| Total Canada | 89 549 024 | 92 546 401 | 75 859 208 | 16 687 193 | 427 249 044 | 21.0 |
Sources: Natural Resources Canada; Statistics Canada.
– Nil.
Notes: Mineral trade includes coal. Numbers may not add to totals due to rounding. The export data in this table are attributed to the province or territory of origin and the import data are attributed to the province or territory of clearance. As an example, gold mined in Yukon that is refined in Ontario would be attributed to Ontario.
© Her Majesty the Queen in Right of Canada, 2013