Australia sees iron ore exports rising, even as demand falters
Bureau of Resources and Energy Economics (BREE) forecasts iron ore exports of 610 million tonnes in next financial year
Australia, the world’s biggest producer of iron ore, forecast a 14 per cent rise in exports in the this year/14 fiscal year as the country’s big miners press ahead with multi-billion dollar expansions despite signs demand growth is softening.
Slower than expected economic growth in China is forecast to weaken prices for iron ore, Australia’s largest export earner, further next year.
The Bureau of Resources and Energy Economics (BREE) forecast iron ore exports of 610 million tonnes in the financial year that begins July 1 after upgrading its forecast for the current year by 11 million tonnes to 533 million tonnes.
“Concerns over moderating Chinese economic growth weigh on almost all commodity prices, and particularly iron ore which is forecast to trend downwards,” BREE said in its report.
The government agency also forecast a 5 per cent rise in exports of thermal coal and 6 per cent rise in metallurgical coal, despite softening demand and global oversupply.
“Thermal coal prices are expected to weaken as increased Australian supply competes with higher US exports,” BREE said in the report.
The forecast for higher coal output comes with the opening of new mines and despite job cuts in the sector. In the latest example, Peabody Energy Corp and Glencore Xstrata
