Logistics, Ports & Terminals

December exports boosted by ore, cereals and coal

Ores, cereals and coal exports have helped create a $9 billion goods trade surplus for December, up $7.4 billion from the November surplus, according to newly released data by the Australian Bureau of Statistics (ABS).

The surplus is heavily influenced by trade with China, according to the ABS. Imports from China fell $641 million (7 per cent) in December, while exports to China increased $2.3 billion (21 per cent). Australia’s goods trade surplus with China alone stands at $5.2 billion for December.

December’s total exports amounted to $34.9 billion, a 16 per cent increase, with the main drivers of this growth due to metalliferous ores, cereals and coal. Metalliferous ores were up $2.8 billion (22 per cent), 82 per cent of which was iron ore, which was up $2.2 billion (21 per cent) to $12.5 billion, according to the ABS.

The bureau also found the increase in cereals was driven by wheat, up $604 million (423 per cent) and barley, up $182 million (254 per cent). Strong growing conditions in Australia’s wheatbelt, and lower than average rainfall in the Black Sea growing region has driven demand for Australian wheat to record highs.

Hard coking coal helped drive the coal increase. The ABS found that while hard coking coal exports to China have diminished since mid-2020, increased exports to India, Japan and South Korea have offset some of the fall.

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ABS Head of International Statistics Katie Hutt said imports have fallen following a November spike to be more in line with recent history.

Total imports decreased $2.5 billion (9 per cent), to $26 billion in December, following strong imports in November. This decrease was most evident in transport equipment, down $1 billion (74 per cent) and telecommunications and sound equipment, down $511 million (23 per cent).

Offsetting the decreases were specialised machinery, up $132 million (13 per cent) and road vehicles, up $66 million (2 per cent) to $3.7 billion.

“Carrying on the trend through the second half of this year, we continue to see a rise in road-vehicle imports with December recording the highest monthly value, surpassing the previous record set in June 2018” Hutt said.

Imports for the 2020 calendar year are the lowest since 2015, which the ABS said highlights the pandemic’s impact on the imports of motor vehicles in early 2020.

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