Prospects for Canada's asbestos industry

"A review is made of some of the principal factors and conditions that are, and will be, important to the over-all market climate for asbestos fibre and for the future of Canada's asbestos industry: - health hazard associated with asbestos exposure;- uncertain international regulatory environment for continued asbestos use;- adverse public reaction to asbestos;- product liability/litigation costs (U.S.A. primarily);- promotion of substitution by governments and asbestos user industries; and- minimal product and market development efforts by asbestos producing and consuming industries.In addition, Canadian producers, who export some 95 per cent of their production, face additional constraints:- dramatically reduced integration with asbestos-consuming industries;- 60 per cent of exports to most rapidly declining markets (U.S.A., Europe);- increased competition from offshore producers favourably located to growth markets in developing countries;- increasing production costs;- a strong dollar;- disadvantageous freight rates; and- loss of price leadership and price erosion.Future market trends, as well as prospects for Canada's asbestos industry, will be projected in this paper.Economic FactorsTable 1 presents asbestos fibre production in all countries for the period 1980-82. In certain instances, e.g. U.S.S.R. and China, these are capacity estimates as production statistics are not officially published. The U.S.S.R, by far, is the world's largest producer accounting for some 50 per cent of world production, though most production is consumed internally or by COMECON countries. It is estimated that some 700 plants produce asbestos-containing products within the U.S.S.R.Canada accounts for some 25 per cent of world production though it ranks first in world trade. Other important producers are South Africa Zimbabwe, Brazil and Italy. Since 1979, Canada's asbestos mining industry has experienced a dramatic drop in production and exports of asbestos fibre, as demonstrated in Table 2."