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Markets :: Basic Chemicals :: Petrochemicals :: Ethylene

A Tale of Two Canadas

3:42 PM MDT | August 4, 2008 | Robert Westervelt Robw@Chemweek.Com

Those looking to make the case against decoupling—the idea that world economies can shrug off a weak U.S.—just need to look a bit north of the U.S., to Canada. Canadian chemical producers face sharp drops in profitability this year amid soaring energy costs, a slowing economy, and a rapid increase in the Canadian-U.S. dollar exchange rate, as our cover story shows (p. 14). Earnings could drop as much as 30% following a record 2007. “With the U.S. leading the significant downturn in the global economy, one of our biggest markets is buying...

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