Iron ore price rise builds excitement for Australian exports
June 26th, 2019
The Australian Government’s outlook for commodities export earnings has attracted excited analysis as iron ore prices continue to ascend.
The iron ore price jumped as high as $US123.65 ($177.60) a tonne this morning, at a time when Australia has cemented its status as the world’s largest supplier of the commodity during a time of global supply issues.
The Department of Industry, Innovation and Science’s latest Resources and Energy quarterly for the three-month period ending June 30 has shown that commodity earnings were estimated to reach $275 billion in 2018–19 and $285 billion in 2019–20.
Iron ore led the way as Australia’s top resources sector export at $64 billion for 2018–19, while liquefied natural gas (LNG), metallurgical coal and gold also performed well.
Thermal coal, which ranked as the fourth-largest export earner for 2018–19 overall, is expected to slip to fifth place behind gold by 2019–20 and 2020–21.
Minister for Resources and Northern Australia Matt Canavan said exports of iron ore and liquefied natural gas (LNG) helped to provide energy and infrastructure for “hundreds of millions of people” in emerging economies around the world.
“Australia produces more than half of the world’s iron ore and every year exports enough to build 10,000 Sydney Harbour Bridges,” he said.
“Steel produced from Australian ore is building the new wave of global infrastructure, with around half being used for construction, and much of the rest for machinery and motor vehicles.” Read more…