Demand for iron ore pushes Australian resource exports to new heights

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Australia’s resource and energy exports are expected to hit a record $ 310 billion in 2020-21 and be even stronger in fiscal year 2021-2022 at $ 334 billion on strong demand for iron ore, base metals and new raw materials related to technology.

Resources, Water and Northern Australia Minister Keith Pitt said as the world recovers from the global COVID-19 pandemic, record iron ore prices have led to an increase export earnings, while metallurgical coal exports also benefit from an increase in global steel production.

“The June edition of the Department of Industry, Science, Energy and Resources’ Resources and Energy Quarterly forecasts total resource and energy exports of $ 310 billion for 2020-2021, in up seven percent from the previous high of 2019-2020 and from the $ 296 billion forecast in March, ”he said.

“These incredible results underscore the importance of Australia’s resource sector to the national economy and international markets throughout the COVID-19 crisis.

“Australia’s energy and resources sector has remained secure and reliable suppliers to domestic and global markets throughout the pandemic, helping to support economic growth and weather the difficult business conditions of the past year.

“The outlook for Australia’s exports of energy commodities and resources continues to improve.

“The industry is poised to take advantage of the post-COVID global recovery and seize the opportunities of strong demand and higher prices for a range of commodities.

“Our iron ore producers benefit from today’s high prices and decades of investment and innovation, while coal exporters have looked to new markets to recoup much of the losses due to the COVID slowdown and the China’s informal import restrictions. “

Since March, iron ore prices have crossed the US $ 200 per tonne mark. The outlook is that exports will increase from 871 million tonnes in 2020-2021 to 954 million tonnes by 2022-2023.

The value of iron ore exports is estimated to have increased from $ 103 billion in 2019-2020 to $ 149 billion in 2020-21, with lower prices at the end of 2021 expected to push profits down to $ 113 billion. dollars by 2022-2023.

The export value of metallurgical coal, used for steelmaking, is expected to reverse most of its recent decline, from $ 22 billion in 2020-21 to nearly $ 32 billion by 2022-2023 , in accordance with the improvement of global industrial production and economic activity.

Exports of thermal coal have increased from 213 million tonnes in 2019-2020 to a forecast of 194 million tonnes in 2020-21, but are expected to recover to 212 million tonnes by 2022-23, as economies around in the Asian region return to normal conditions. The value of exports is expected to rise to $ 17 billion in 2021-2022, compared to $ 20 billion in 2019-2020.

Australian LNG export volumes are forecast to increase 5.3% to 83 million tonnes in 2021-2022. LNG export revenues are expected to increase from around $ 33 billion in 2020-2021 to $ 49 billion in 2021-2022.

Gold export earnings are forecast at $ 29 billion in 2021-2022, before declining to $ 28 billion in 2022-2023, as gold prices retreat.

Copper prices hit a record high in May, but the price is expected to moderate during the forecast period. Australian copper export earnings are expected to reach $ 13 billion in 2021-2022, up from $ 10 billion in 2019-20.

Australian nickel exports are expected to increase from around 197,000 tonnes in 2020-2021 to around 251,000 tonnes in 2022-2023. Export revenues, supported by rising world prices, are expected to reach $ 4.6 billion in 2022-2023, compared to $ 3.8 billion in 2019-2020.

The last Quarterly on resources and energy is available on the website of the Ministry of Industry, Science, Energy and Resources.

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