Canada's exports rise for fourth straight month as Iran war reshapes global supply chains
May exports reached a record $77.1 billion, boosted by higher prices for oil, sulphur, and other resources as Middle East conflict disrupts competing shipments.
The day's top stories, food & events — every morning at 7. Unsubscribe anytime.
Canada's merchandise exports climbed to a record $77.1 billion in May, marking the fourth consecutive monthly increase, as disruptions to global supply chains from the Iran war created demand for Canadian resources.
Statistics Canada reported the gains Tuesday. Exports rose 0.9 per cent in May, continuing a trend that began in February when Iran's threats to restrict shipping through the Strait of Hormuz sent shockwaves through world trade. The strait handles roughly a fifth of global oil and resource supplies.
Sulphur exports jumped 37 per cent in May, alongside higher shipments of diamonds and other non-metallic minerals. Nuclear fuel demand surged 55 per cent, while natural gas exports increased 7.4 per cent and refined petroleum products rose 4.6 per cent. Aluminum exports spiked more than 50 per cent in May compared to April, with most shipments bound for the Netherlands, Italy, and Greece — the highest aluminum exports since May 2022, totalling $1.2 billion.
Crude oil exports, however, dropped 5.4 per cent in May after climbing 43 per cent from February through April, reflecting price volatility during the conflict. Statistics Canada cautioned that crude oil price swings may lead to future revisions of the data.
Canada's trade surplus with the U.S. widened to $11.6 billion in May, the largest since records began, as exports to the U.S. rose 1.5 per cent while imports fell 1.4 per cent. Economist Jasleen Trehan of the Business Data Lab and Canadian Chamber of Commerce noted that "Canada's export story is becoming more balanced," but warned the gains must be driven by volume growth, not just higher prices, to sustain long-term economic growth.
