Iron and steel are popular construction materials used to build the support skeletons for bridges, pipelines, ships, skyscrapers and stadiums. An alloy consisting mostly of iron, steel is also a major component used to make a myriad of other products including vehicles, household appliances, bolts, nails and screws.
Canada exported C$7.1 billion worth of iron and steel around during 2010, a 38.4% increase over 2009.
Canadian imports of iron and steel grew at even faster pace, up 40.9% to $7.7 billion for the year.
Canada’s Iron and Steel Exports by Top Trade Partners
The following top 10 countries generated 95.5% of Canada’s iron and steel shipments in 2010, for a subtotal of $6.7 billion. Two North American Free Trade Agreement (NAFTA) partners, the United States and Mexico, consumed 85.1% of Canadian iron and steel exports.
- United States … C$5.8 billion, up 47.8% from 2009 (81.8% of total exports)
- Mexico … $230 million, up 45.6% (3.3% of total)
- Egypt … $180.3 million, up 95.2% (2.6% of total)
- China … $133.8 million, down 21.8% (1.9% of total)
- Netherlands … $127 million, up 38% (1.8% of total)
- Italy … $93.4 million, up 131.3% (1.4% of total)
- India … $90.1 million, down 7% (1.3% of total)
- Bangladesh … $46million, down 13.5% (0.7% of total)
- South Korea … $37.9 million, down 1.2% (0.5% of total)
- Taiwan … $33.4 million, up 16.3% (0.4% of total).
Led by Italy which more than doubled its purchases, six of the top countries increased their consumption of Canadian iron and steel exports in 2010.
Canada’s Iron and Steel Imports by Top Trade Partners
The 10 countries below supplied 88.3% of the iron and steel imported into Canada in 2010. The United States supplies by far the largest percentage of imported Canadian iron and steel, about 25 times more than second-place Germany.
- United States … C$5.6 billion, up 39% from 2009 (72.9% of total imports)
- Germany … $229.1 million, up 59.9% (3% of total)
- South Korea … $164.5 million, down 14.7% (2.1% of total)
- Brazil … $130.7 million, up 46.2% (1.7% of total)
- China … $126.3 million, up 22.9% (1.6% of total)
- Japan … $120.3 million, up 10.1% (1.56% of total)
- Sweden … $112.8 million, up 38.2% (1.5% of total)
- Trinidad and Tobago … $106.3 million, up 104.9% (1.4% of total)
- Taiwan … $105.4 million, up 39.1% (1.4% of total)
- Mexico … $92.2 million, up 195.3% (1.2% of total).
Among the top10 suppliers, only Canadian imports of South Korean iron and steel declined last year. Mexico experienced the best improvement at 195.3%, followed by Trinidad and Tobago’s 195.3% gain.
Canadian Iron and Steel Trade Surpluses and Deficits
Canada’s iron and steel imports exceeded comparable exports in 2010, resulting in a $654 million commodity-specific deficit. The 2010 trade deficit is almost twice Canada’s $372.9 million shortfall in 2009.
Yet Canadian iron and steel traders posted impressive surpluses with some of its top trade partners. For example, Canada posted a $147.4 million trade surplus in iron and steel with the U.S. That positive balance reverses a $142.3 million trade deficit with America in 2009.
Canada also grew its iron and steel trade surplus Mexico to $137.9 million in 2009 (up 8.7 %), and its surplus with Egypt to $92.2 million (up 94.9%).
But while Canada delivered a $7.5 million trade surplus with China, the Canuck iron and steel surplus represents an 89.1% drop from the $68.3 million trade surplus with the People’s Republic in 2009.
Sources:
- Central Intelligence Agency World Factbook (accessed June 17, 2011).
- United Nations’ Comtrade Database (accessed June 17, 2011).
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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