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.
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.
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES
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.
CHINA. GENERAL ADMINISTRATION OF CUSTOMS, AUSTRALIAN BUREAU OF STATISTICS
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.
RABOBANK AUSTRALIA LIMITED
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.
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES
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.
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG
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.
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA
Original article by Sarah Turner
The Australian Financial Review – Page: 27 : 13-May-20
Commonwealth Bank commodity strategist Vivek Dhar does not expect China to reduce imports of Australian iron ore despite the growing trade tensions between the two nations. He contends that China is too reliant on iron ore from Australia, noting that 85 per cent of its iron ore imports are sourced from Australia. Dhar adds that exports of commodities such as coal are at greater risk, as they can be sourced more easily from other countries. Analysts also expect any economic stimulus measures in China to boost demand for steel, and therefore iron ore.
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA
Original article by Peter Ker
The Australian Financial Review – Page: 14 & 16 : 11-May-20
The coronavirus pandemic has resulted in a sharp fall in demand from major thermal coal buyers such as Japan and India. This has in turn seen the price of top quality coal from New South Wales and Queensland falling by 27 per cent and 30 per cent respectively. Rory Simington of Wood Mackenzie estimates that about 31 per cent of Australia’s thermal coal exports are unprofitable at current prices. He adds that a significant proportion of Australia’s coal output is sold via long-term contracts. However, the recent price falls will eventually flow through to future contracts.
Original article by Matthew Cranston
The Australian Financial Review – Page: 6 : 8-May-20
Official data shows that Australia has posted a record trade surplus of $10.6bn for March; the result was driven by strong growth in exports, particularly to China. There was a 33 per cent increase in iron ore exports to China, as one of Australia’s key trading partners began to ease coronavirus restrictions; analysts also note that iron ore supply in February was disrupted by cyclone Damien. Meanwhile, gold exports rose by 22.5 per cent in March, while coal and LNG shipments also rose. Economists had expected a trade surplus of just $6.4bn.
AUSTRALIAN BUREAU OF STATISTICS