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Australia’s resources and energy exports will hit a record high this year, driven by international demand for iron ore, lithium, nickel and copper as the global economy recovers from the pandemic.
Export earnings are tipped to reach $296 billion in 2020-21 in real terms, latest estimates from the Department of Industry, Science, Energy and Resources show, before decreasing 3 per cent in 2021-22 to $288 billion due to a softer price outlook. The outlook for 2025-26 remains relatively stable.
Iron ore prices and high demand for Australian mining supplies are winners for the nation.
Iron ore exports, which broke the $100 billion threshold in 2019-20 for the first time, will continue to surge in 2020-21 by about a third to $136 billion on these predictions. This is up from the December forecast of $123 billion.
The new outlook for overall resources and energy exports in 2020-21 is an increase on the December forecast of $279 billion.
World trade recovered to pre-coronavirus levels by the end of 2020, and China, Australia’s biggest trading partner, is predicted to have elevated construction and manufacturing activity over 2021, resulting in high demand for iron ore. China is planning to boost supply of iron ore from its own sources, which may be a challenge for Australia in the future.
One risk noted in the report is any delay in rolling out COVID-19 vaccines across the world, which would affect the predicted recovery, as well as any disruption to trade relations between Australia and China. The relationship between the two nations has been deteriorating during the pandemic, resulting in China slapping new tariffs and restrictions on Australian wine, barley, beef, coal, lobster and forestry products.
However, there have not been limits on exports of resources such as iron ore. Due to high demands from the technology sector, exports of lithium (used in batteries) are forecast to increase more than five-fold in real terms, nickel exports are likely to double and copper could increase by a third, to collectively reap $28 billion in revenue by 2025-26.
Metallurgical coal earnings are tipped to reach $31 billion in 2025-26, with thermal coal at $15 billion this year and remaining constant by the middle of the decade.
Resources Minister Keith Pitt said the outlook showed the resilience of the resources and energy sector in Australia, which had remained a significant supplier both locally and internationally during the pandemic.
“The increasing demand for Australian commodities has allowed export earnings to overcome challenging conditions for the benefit of the Australian economy and Australian jobs,” Mr Pitt said.
“The rollout of COVID-19 vaccines presents an opportunity to bring the pandemic under control and boost global economic activity and further demand for Australian commodities.
“Iron ore is benefiting from both high prices, as well as decades of investment, innovation and automation which have placed Australia at the forefront of the global iron ore market.”
Metallurgical coal exports are tipped to rise from a 2020-21 low of 173 million tonnes to 191 million tonnes by the end of the outlook. Thermal coal exports are expected to fall between 2019-20 and 2020-21, from 213 million tonnes to 206 million tonnes, but will then increase to 231 million tonnes by 2025-26.
www.theage.com.au
Wonder where all the CCP trolls/bots/fanboys and bootlickers are hiding?
Export earnings are tipped to reach $296 billion in 2020-21 in real terms, latest estimates from the Department of Industry, Science, Energy and Resources show, before decreasing 3 per cent in 2021-22 to $288 billion due to a softer price outlook. The outlook for 2025-26 remains relatively stable.
Iron ore prices and high demand for Australian mining supplies are winners for the nation.
Iron ore exports, which broke the $100 billion threshold in 2019-20 for the first time, will continue to surge in 2020-21 by about a third to $136 billion on these predictions. This is up from the December forecast of $123 billion.
The new outlook for overall resources and energy exports in 2020-21 is an increase on the December forecast of $279 billion.
World trade recovered to pre-coronavirus levels by the end of 2020, and China, Australia’s biggest trading partner, is predicted to have elevated construction and manufacturing activity over 2021, resulting in high demand for iron ore. China is planning to boost supply of iron ore from its own sources, which may be a challenge for Australia in the future.
One risk noted in the report is any delay in rolling out COVID-19 vaccines across the world, which would affect the predicted recovery, as well as any disruption to trade relations between Australia and China. The relationship between the two nations has been deteriorating during the pandemic, resulting in China slapping new tariffs and restrictions on Australian wine, barley, beef, coal, lobster and forestry products.
However, there have not been limits on exports of resources such as iron ore. Due to high demands from the technology sector, exports of lithium (used in batteries) are forecast to increase more than five-fold in real terms, nickel exports are likely to double and copper could increase by a third, to collectively reap $28 billion in revenue by 2025-26.
Metallurgical coal earnings are tipped to reach $31 billion in 2025-26, with thermal coal at $15 billion this year and remaining constant by the middle of the decade.
Resources Minister Keith Pitt said the outlook showed the resilience of the resources and energy sector in Australia, which had remained a significant supplier both locally and internationally during the pandemic.
“The increasing demand for Australian commodities has allowed export earnings to overcome challenging conditions for the benefit of the Australian economy and Australian jobs,” Mr Pitt said.
“The rollout of COVID-19 vaccines presents an opportunity to bring the pandemic under control and boost global economic activity and further demand for Australian commodities.
“Iron ore is benefiting from both high prices, as well as decades of investment, innovation and automation which have placed Australia at the forefront of the global iron ore market.”
Metallurgical coal exports are tipped to rise from a 2020-21 low of 173 million tonnes to 191 million tonnes by the end of the outlook. Thermal coal exports are expected to fall between 2019-20 and 2020-21, from 213 million tonnes to 206 million tonnes, but will then increase to 231 million tonnes by 2025-26.
Australian exports tipped to hit record high as world economy recovers
Australia’s resources and energy exports are set to hit a record high during 2021, driven by international demand for iron ore, lithium, nickel and copper as the global economy recovers.
Wonder where all the CCP trolls/bots/fanboys and bootlickers are hiding?
