Australia’s iron ore miners cashing in

Original article by Shane Wright
The Age – Page: Online : 21-Dec-20

The federal Department of Industry has revised its export earnings forecasts in response to a surge in the iron ore price. It had forecast in September that the nation’s iron ore producers would boast sales of about $97bn in 2020-21, but this has now been upgraded to $123bn. The forecast for iron ore sales in 2021-22 has in turn been upgraded from $80bn to $95bn. However, thermal coal exports are expected to be lower in 2020-21 due to China’s restrictions on imports from Australia. Meanwhile, the nation’s overall resources and energy exports are now expected to total $278.7bn in 2020-21; this is $22.3bn higher than was forecast in September, but $11.9bn lower than in 2019-20.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Canavan calls for retaliatory levy on iron ore to China

Original article by Ben Packham
The Australian – Page: 6 : 14-Dec-20

Former resources minister Matt Canavan contends that the federal government should respond to China’s import bans and punitive tariffs by imposing a levy on iron ore exports. Australia ships nearly 900 million tonnes of iron ore to China each year, and Canavan argues that a levy of just one per cent would raise more than $800m annually; this could be used to compensate companies that have been hit by China’s trade sanctions. Canavan notes that iron ore has not been affected by the trade war, as China cannot quickly and easily source an alternative supply.

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Find another market other than China, exporters warned

Original article by Will Glasgow, Nick Evans
The Australian – Page: 6 : 6-Nov-20

Federal Trade Minister Simon Birmingham has asked the Chinese government to clarify whether it does intend to impose new bans on Australian imports, after media reports in China appeared to confirm this. Meanwhile, federal government officials have discussed the potential ban during a telephone briefing with representatives from the agricultural industry, one of the sectors that would be amongst the hardest hit by such a ban. Participants in the briefing say they were advised to find alternative export markets.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

China to halt key Australian imports in sweeping retaliation

Original article by
Bloomberg – Page: Online : 4-Nov-20

Sources have indicated that Chinese traders have been ordered to cease buying at least seven categories of Australian commodities, amid growing tensions between the two nations. Traders are said to have been verbally told to stop buying Australian coal, barley, copper ore and concentrate, sugar, timber, wine and lobster from 6 November. However, iron ore is not believed to be included in the list of barred commodities at present. Chinese media reports have also suggested that a ban on Australian wheat will also be imposed.

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Resource exports face $40bn hit

Original article by Jared Lynch
The Australian – Page: 13 & 16 : 28-Sep-20

Australia’s resources and energy exports rose to a record $290bn in 2019-20, driven by a rally in the iron ore price. However, the Department of Industry’s latest Resources and Energy Quarterly report forecasts that the nation will export just $256bn worth of commodities in 2020-21. The total value of resources and energy exports in 2021-22 is forecast to be $252bn. The Department expects a pullback in the iron ore price to around $US85 a tonne by the end of 2020-21; iron ore shipments are expected to fall to $80bn, after reaching a record $102bn in 2019-20. Meanwhile, gold export earnings are forecast to reach a record $31bn in 2020-21.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Australian exports to China fall 26pc, fastest drop among trade partners

Original article by Glenda Korporaal
The Australian – Page: 20 : 8-Sep-20

Data from China’s General Administration of Customs suggests that the value of the nation’s imports of goods from Australia fell by 26.2 per cent year-on-year in August, to $US8.81bn. This follows a 7.2 per cent fall in July. Australia’s overall exports to China have fallen by 7.5 per cent to $US75.7bn over the year, according to the Chinese data. The Australian Bureau of Statistics has previously reported that the nation exported a record $150bn worth of goods to China in the year to 30 June. Australia’s relations with China have become increasingly strained in recent months.

CORPORATES
CHINA. GENERAL ADMINISTRATION OF CUSTOMS, AUSTRALIAN BUREAU OF STATISTICS

China devours one-third of all our farm exports

Original article by Patrick Commins
The Australian – Page: 5 : 20-Aug-20

Data from Rabobank shows that China accounted for 32 per cent of Australia’s food and agricultural exports in 2019-20. China also bought 30 per cent of Australia’s lamb exports and 25 per cent the nation’s beef exports during the financial year, while it accounted for 77 per cent of wool shipments. Tim Hunt of Rabobank warns that Australia is too reliant on a single export market, particularly given the recent tensions between the two nations. He notes that while China has been the major driver of the agribusiness sector’s growth over the last decade, there is a need to diversify into other export markets.

CORPORATES
RABOBANK AUSTRALIA LIMITED

Resources exports to turn south

Original article by Perry Williams
The Australian – Page: 13 & 16 : 29-Jun-20

The federal government expects Australia’s mining and energy export earnings to fall 10 per cent to $263bn in 2020-21, after rising to a record $293bn in the 2019-20 financial year. The Department of Industry, Science, Energy & Resources has advised that iron ore export earnings are likely to have met its forecast of $100bn in 2019-20, given the resilience of the steel input’s price during the coronavirus pandemic. The department expects gold export earnings to reach a record $32bn in 2020-21, although revenue from LNG and coal exports is forecast to fall.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Iron ore surge a $100b elixir for coronavirus

Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 21 : 9-Jun-20

The rally in the price of iron ore to more than $US100 a tonne will boost federal government revenue by about $2.3bn. The 2019-20 Budget forecasts were based on the iron ore price averaging about $US62 when shipping costs are included, but it is currently averaging more than $80 a tonne. Australia’s export revenue from iron ore is set to top $100bn in 2019-20, eclipsing the previous annual record of $76bn in 2018-19. Meanwhile, shares in Australia’s three major iron ore producers have rallied since the end of March, and investors are set to receive big dividend payouts for the financial year.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Australia relaxed over China’s changes to iron ore export rules, but war of words goes on

Original article by Ben Doherty
The Guardian Australia – Page: Online : 22-May-20

BHP and Fortescue Metals Group have welcomed China’s decision to relax its inspection rules for iron ore shipments. From 1 June, customs officials will only inspect batches of iron ore if this is requested by the importer or trader; all shipments were previously subject to mandatory inspection on arrival in China. Minerals Council of Australia CEO Tania Constable says the new customs procedures recognise the high quality of Australian iron ore. However, the Chinese media has warned that growing trade tensions could potentially hit Australia’s iron ore exports. Australia supplies 62 per cent of China’s iron ore.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA