Weak Natural Gas Prices—Booming shale gas production in the U.S. is keeping gas prices down. This will support the resin industry and the production of chemical fertilizers, such as ammonia.
Residential Construction—Higher interest rates and still-high house prices dragged seasonally adjusted housing starts in February down to their lowest level in more than three years. This will decrease demand for plastics, adhesives, paints, and other chemical products.
Regulatory Environment—New policies to fight climate change have created multiple layers of regulation with frequent overlaps between federal and provincial rules. This adds to the timeline for big projects, reducing the competitiveness of Canada’s chemical industry.