Records roll on China iron ore sales

Original article by Ronald Mizen
The Australian Financial Review – Page: 10 : 23-Jul-21

New figures show that Australia’s iron ore shipments to China rose by $1.1bn to $14.8bn in June, despite the ongoing trade tensions between the two countries. Australia exported some $17.6bn worth of the steel input during June, with China accounting for about 85 per cent of this total. The Australian Bureau of Statistics notes that the iron ore price rose by five per cent during the month. Meanwhile, Australia’s overall exports grew by $2.8bn in June, to $41.2bn; the nation’s goods trade surplus was steady at a record $13.2bn.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Current account surplus gives Australian economy breathing room, says Bank of America

Original article by Michael Janda
abc.net.au – Page: Online : 2-Jul-21

Data from the Australian Bureau of Statistics shows that the nation has posted a trade surplus of $9.68bn for May, slightly below the record $9.87bn surplus in January. Exports rose by 6.1 per cent in May, amid continued strong demand for commodities such as iron ore. The steel input has been a key driver of Australia’s trade surpluses. Tony Morriss from Bank of America notes that while the iron ore price is widely tipped to fall, the decline may not be as sharp as anticipated, as the massive infrastructure program in the US will help to offset any fall in demand from China as that nation’s stimulus measures are wound back.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, BANK OF AMERICA AUSTRALIA LIMITED

Record $36b exports lift goods trade surplus

Original article by Ronald Mizen
The Australian Financial Review – Page: 6 : 26-May-21

The ongoing trade tensions with China have not significantly affected Australia’s export trade. New figures show that the nation’s international goods trade surplus topped $10bn in April, after the total value of exports rose by $13m month-on-month to a record $36bn. Iron ore exports rose by one per cent overall, but the value of shipments to China increased by $234m to a record high of $10.5bn. There was also strong growth in export volumes for commodities such as coal and petroleum. Meanwhile, the total value of imports fell by seven per cent to $25.8bn.

CORPORATES

Mine export surge holds up economy

Original article by Angela Macdonald-Smith, John Kehoe
The Australian Financial Review – Page: 1 & 4 : 29-Mar-21

The federal government expects the value of Australia’s resources and energy exports to top $296bn in 2020-21, after a record $291bn in the previous financial year. The surge in export earnings will be driven by iron ore; the Department of Industry, Science, Energy & Resources now expects iron ore earnings to total $136bn, compared with its forecast in December of $123bn for the financial year. However, exports of LNG, thermal coal and coking coal are forecast to be lower in 2020-21. The record resources and energy exports will boost the Budget bottom line, with the full-year deficit now expected to be $150bn.

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

Record trade surplus adds to recovery

Original article by Matthew Cranston
The Australian Financial Review – Page: 1 & 6 : 5-Mar-21

Australia’s trade surplus rose to a record $10.2bn in January, compared with market expectations of just $8.3bn. Strong growth in the resources sector’s exports was a key driver of the record trade surplus; the value of iron ore exports rose by 14.2 per cent month-on-month to $16.1bn, while LNG and coal exports rose by 7.9 per cent and 2.6 per cent respectively. Treasurer Josh Frydenberg notes that in addition to growth in iron ore export volumes in January, the price of the steel input remains well above the Budget forecast of just $US55 a tonne free on board.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

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.

CORPORATES

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