Coal and iron defy fears with record high
Coal and iron ore miners may be the most surprised to hear warnings about the future of Australia’s commodities markets, with new records set this month for exports to China and Japan.
Exports of both of Australia’s prime resources are up, with iron ore and coal figures rising in the month from June to July at the same time as the trade balance sank from surplus.
Australia’s trade surplus with China has exceeded $35 billion for the first time.
Chief economist at CommSec Craig James says: “While some fret the mining boom is over, in the background Australia continues to rack up record trade surpluses with China... our reliance on China... is now even greater than when Japanese industrialisation was at its peak.”
Senior economist Joshua Williamson says: “Both export and import values gained in the month, confirming overseas trade data showing a pick-up in regional cross-border commerce... this should be taken as a positive sign for the economy.”
Dylan Eads, an economist from ANZ said: “the lower Australian dollar and more favourable economic conditions in Chin are likely to boost the value of iron ore exports going forward.”