In May, Canada's merchandise exports increased 0.9%, while imports edged down 0.2%. As a result, Canada's merchandise trade surplus with the world widened from $3.4 billion in April to $4.2 billion in May. This was the third consecutive month with a trade surplus for Canada, according to a report by Statistics Canada.
Total exports were up 0.9% in May to a record $77.1 billion. This represented a fourth consecutive monthly increase, with exports rising 22.2% over this period. In May, increases were observed in 7 of the 11 product sections. Excluding energy products, exports rose 2.0%. In real (or volume) terms, total exports were essentially unchanged, said the federal agency.
"Exports of metal ores and non-metallic minerals (+16.1%) posted the largest increase in May, with gains observed in most product groups. Exports of diamonds and other non-metallic minerals (+37.0%) rose sharply in May, mainly driven by higher sulphur exports. This increase occurred in a context of constrained global supply, as sulphur shipments transiting through the Strait of Hormuz have slowed since the conflict in the Middle East began. Exports of other metal ores and concentrates, which more than doubled in May, also contributed to the monthly increase, largely on new shipments of gold ores and concentrates to China," it said.
"Exports of metal and non-metallic mineral products were up 1.5% in May, despite a 4.1% decrease in exports of unwrought gold, silver, and platinum group metals, and their alloys—a category largely composed of unwrought gold. Exports of unwrought aluminum and aluminum alloys (+50.7%) contributed the most to the growth in this product section, mainly on higher exports to the Netherlands, Italy and Greece. Exports of unwrought aluminum and aluminum alloys reached $1.2 billion in May, the highest value since the record high observed in May 2022."
Imports edge down
After reaching a record high in April, total imports edged down 0.2% in May. This decrease occurred despite increases in 9 of the 11 product sections, as lower imports of metal and non-metallic mineral products more than offset these gains. Excluding this product section, imports rose 1.9% in May. Lower prices affected imports in May; in real (or volume) terms, total imports were up 0.4%, said Statistics Canada.
Imports of metal and non-metallic mineral products fell 18.2% in May, a second consecutive monthly decrease. Imports of unwrought gold, silver, and platinum group metals, and their alloys (-33.0%) saw the largest decline, mainly due to lower purchases of gold from non-residents. Imports of basic and semi-finished iron or steel products (-22.7%) contributed to the decline as well, posting their lowest level since December 2020. Imports of waste and scrap of metal (-20.0%) and basic and semi-finished products of non-ferrous metals and non-ferrous metal alloys (-21.2%) also posted notable declines in May, it said.
The decrease in total imports in May was partly offset by a 3.5% increase in imports of consumer goods. Imports of miscellaneous goods and supplies (+10.0%) increased the most, driven by higher imports of batteries and battery chargers from China. Following declines in the previous two months, imports of pharmaceutical and medicinal products were up 6.4% in May, largely on higher imports from Germany, the United States and Spain, said the federal agency.
In May, several other product sections posted notable increases, which moderated the decline in total imports. These product sections included basic and industrial chemical, plastic and rubber products (+3.8%), industrial machinery, equipment and parts (+2.8%), metal ores and non-metallic minerals (+5.8%), aircraft and other transportation equipment and parts (+5.7%) and motor vehicles and parts (+1.2%), it said.