This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Quebec Exports Restrained By Weak Mineral Prices: EDC Forecast

OTTAWA, Nov. 22, 2012 /CNW/ - Export Development Canada's (EDC) forecast for Quebec export growth calls for gains of 3 per cent this year and a slight acceleration to 4 per cent in 2013.

" Quebec's export numbers are being decimated by weak prices for aluminum and iron ore and flat precious metal prices," said Peter Hall, Chief Economist, EDC. "Output gains in each of these segments paint a totally different picture of activity."

The province's industrial goods sector (metals, chemicals and pharmaceuticals) generates approximately 39 per cent of Quebec's exports. EDC expects just 3 per cent export growth this year and 1 per cent in 2013.

Aluminum exports will gain immediately from resolution of the strike at the Alma smelter, and over the medium-term as Aluminerie Alouette expands production. The fourfold boost in production at Osisko's Malartic mine and the expansion of Agnico-Eagle's LaRonde mine will give a substantial boost to gold production. Iron ore output is set for further growth as New Millennium Iron begins shipping ore from its mine at Schefferville in 2013 with output destined for India's Tata Steel

Quebec's machinery and equipment sector accounts for more than 13 per cent of the province's total exports, and is forecast to grow by 11 per cent this year and a further 6 per cent in 2013. " Quebec is set to capitalize on a surge of investment spending in the United States," said Hall.

The transportation sector is also important to Quebec's export picture, responsible for 12 per cent of the province's total exports, and it is set to eke out 1 per cent growth this year before rebounding with 6 per cent growth next year. A key driver of this sector is the aerospace industry.

After a slow start, the province's aerospace exports will record limited gains this year and next with business jet deliveries expected to drive most of the growth. Although new commercial aircraft orders have slowed, a backlog of orders will support deliveries over the short term. Bombardier's long-awaited C-Series is now in testing phase, with the plane's first flight planned before end of year, which has the potential to create long-term gains in this industry.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs