The phantom chemicals boom

| Print |  Email
Monday, June 01, 2009
Given China’s remarkable economic rise over the past decade, it comes as no surprise that it has grown into Oregon’s largest export market, with the state’s savviest players such as Nike and Intel well embedded there and prospering as a result. But it is surprising which sector has seen the sharpest growth: chemicals.

Statistics compiled by WISER Trade, a Massachusetts-based firm recognized as an expert on exports, show an astronomical 292% increase in chemicals exported from Oregon to China from 2007 to 2008, catapulting them over scrap waste and paper to become the state’s second-biggest China-bound export behind only computer and electronic products.

But if you’re wondering which Oregon companies are benefiting from this trend and whether it is expected to continue, don’t waste your time. There is no trend.

The biggest clue can be found in the corresponding fall-off for exported minerals, which dropped dramatically at the precise time that the chemical numbers shot up. Hmmm.

It turns out that the great boom in chemicals exported from Oregon to China has nothing to do with Oregon business and everything to do with a change in the classification of potash mined in Saskatchewan, sent by rail to Portland and shipped around the world as fertilizer. The market for this chemical (or is it a mineral?) made a few investors temporarily rich during the commodity boom of 2008, but that boom has gone bust along with trade in general. Vessel calls and tonnage are down more than 30% at the Port of Portland, and Oregon will be hard pressed to approach, much less improve on, the record $2.5 billion worth of exports shipped to China last year.
BEN JACKLET
 

More Articles

Farm in a Box

July/August 2015
Friday, July 10, 2015
BY JACOB PALMER

Most of the food Americans consume is trucked in from hundreds of miles away. Eric Wilson, co-founder and CEO of Gro-volution, wants to change that. So this past spring, the Air Force veteran and former greenhouse manager started work on an alternative farming system he claims is more efficient than conventional agriculture, and also shortens the distance between the consumer and the farm.


Read more...

Store Bought

July/August 2015
Friday, July 10, 2015
BY LINDA BAKER

Market of Choice is on a tear. In 2012 the 35-year-old Eugene-based grocery chain opened a central kitchen/distribution center in its hometown. The market opened its third Portland store in the Cedar Mill neighborhood this year; another outpost in Bend broke ground in March. A fourth Portland location is slated for the inner southeast “LOCA” development, a mixed-use project featuring condos and retail. Revenues in 2014 were $175 million, a double-digit increase over 2013. CEO Rick Wright discusses growth, market trends and how he keeps new “foodie” grocery clerks happy.


Read more...

Oregon needs a Grand Bargain energy plan

Linda Baker
Monday, June 22, 2015
0622-gastaxblogthumbBY LINDA BAKER

The Clean Fuels/gas tax trade off will go down in history as another disjointed, on-again off-again approach to city and state lawmaking.


Read more...

Reader Input: Energy Overload

June 2015
Wednesday, July 15, 2015

We asked readers to weigh in on the fossil fuel-green energy equation.


Read more...

Downtime with Debra Ringold

July/August 2015
Monday, July 13, 2015
BY JACOB PALMER

Dean of the Atkinson Graduate School of Management, Willamette University


Read more...

Portland’s long-distance bike commuters

The Latest
Wednesday, July 29, 2015
Matt KellyresizethumbBY KIM MOORE | RESEARCH EDITOR

Pushing the extreme.


Read more...

Urban benediction

Linda Baker
Wednesday, July 22, 2015
072215 THUMB Credit-PontificalAcademyofSciencesBY LINDA BAKER

Charlie Hales has long viewed sound urban planning as the route to salvation: social, economic and environmental. This week, the mayor's city design philosophy got the nod of approval from a bona fide spiritual authority, Pope Francis.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS