Article by Stuart McKinnon courtesy of the West Australian
Australia posted a record $10.9 billion in iron ore exports last month, highlighting China’s ongoing reliance on WA supplies of the steelmaking commodity despite a worsening trade spat between the two countries.
The red dirt’s significance to the Australian economy was also underlined by Australian Bureau of Statistics data yesterday which showed it accounted for 36 per cent of the value of the nation’s exports in October.
Overall, the total value of exports from Australia rose $1.8b, or 6 per cent, to $30.5b in the month. ABS head of international statistics Branko Vitas said the primary driver for the increase was an $833 million (7 per cent) increase in exports of metalliferous ores, most of which was iron ore headed for Australia’s biggest trading partner, China.
Although China has introduced sanctions against several Australian export commodities, the data highlights how heavily reliant it remains on seaborne imports of iron ore from WA, particularly amid disrupted supplies from Brazil and South Africa.
WA Chamber of Minerals and Energy chief executive Paul Everingham said the data reflected the hard work of the WA resources sector to continue operating through COVID-19 , while also ensuring the health and safety of its workforce and the wider WA community.
He said it also reflected WA’s longstanding, strong trading relationship with China across a variety of commodities , including iron ore, gas and nickel.
“Australia has shown over the past 50 years that it can preserve and maintain strong geopolitical ties with our longstanding ally, the US, while also maintaining a strong trading relationship with China ,” Mr Everingham said.
The surge in the value of Australia’s iron ore exports comes on the back of six-yearhigh prices for the commodity above $US120/t. WA exports of the commodity continue at near record levels.
Data from the Pilbara Ports Authority showed monthly throughput of 62.5Mt in October, up 11 per cent on the same month last year. High iron ore prices have been underpinned by record steel production in China, backed by heavy stimulus spending by the government as the country emerges from its coronavirus-related slowdown .
China produced steel at record rates of 781.6Mt in the nine months to September, up 4.5 per cent on last year.