Australia Records Nearly $200 Billion in Exports

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In late November the Australian Department of Foreign Affairs and Trade reported that Australia recorded nearly $200 billion in exports in 2005-2006. Notable in those figures were the size of coal, iron ore, and natural gas exports to trading partners in Japan, China, and Korea. This highlights the importance of Asia to continued growth in Aussie resources stocks. It also suggests that Australia’s resource boom may be more resistant to an American slow-down than first meets the eye.

 

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Here are more Highlights from the report:

Coal

Exports of Coal were valued at $24.3 billion in 2005-06, up 42 per cent from 2004-05 (mainly due to rising world coal prices). Coal exports contributed 16 per cent of the value of total merchandise exports. Since 2000-01, exports of Coal have increased by an average 14 per cent per annum. Principal destinations for Coal exports in 2005-06
included:

  • Japan ($10.1 billion)
  • India ($2.5 billion)
  • Republic of Korea ($2.5 billion)
  • Taiwan ($1.7 billion)
  • Netherlands ($1.0 billion)

Coal exports rose to all principal destinations in 2005-06, with strong rises in Coal exports to Japan (up 42 per cent), India (up 55 per cent) and the Republic of Korea (up 16 per cent). ABARE  has forecast the value of Australian exports  of Coal to rise by 3 per cent in 2006-07, mainly driven by increased export volumes.

 

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Iron ore

Australia’s exports of Iron ore increased 57 per cent to $12.8 billion in 2005-06 (mainly due to rising world iron ore prices). Iron ore exports comprised 8 per cent of total merchandise exports. Since 2000-01, Iron ore exports have increased by an average 19 per cent per annum. Principal export destinations for Iron ore in 2005-06 included:

  • China ($6.8 billion)
  • Japan ($3.8 billion)
  • Republic of Korea ($1.3 billion)
  • Taiwan ($517 million)
  • United Kingdom ($143 million)

Exports of Iron ore to all principal destinations rose in 2005-06 with strong rises in exports to China (up 76 per cent), Japan (up 42 per cent) and the Republic of Korea (up 48 per cent).

ABARE3 has forecast the value of exports of Iron ore to rise 20 per cent in 2006-07, as a result higher export volumes.

Gold

Exports of Gold rose 29 per cent to $7.3 billion in 2005-06 and accounted for 5 per cent of total merchandise exports. Exports have increased by an average 6 per cent per annum since 2000-01. The principal destinations for exports of Gold in 2005-06 included:

  • India ($2.8 billion)
  • United Kingdom ($2.4 billion)
  • Thailand ($704 million)
  • Japan ($384 million)
  • Singapore ($308 million)

In 2005-06, exports of Gold to the United Kingdom increased by 205 per cent (or $1.6 billion) and exports to Japan rose 180 per cent (or $247 million). Exports to the Thailand fell 28 per cent, while exports to India remained unchanged. ABARE has forecast the value of Gold exports to rise by 31 per cent in 2006-07 due to increases in world prices.

Natural gas

Exports of Natural gas increased 38 per cent to $4.4 billion in 2005-06 and accounted for 3 per cent of total merchandise exports. Since 2000-01, exports have increased by an average 9 per cent per annum. Details of destinations for Australian exports of Natural gas are confidential; however the predominant destination is Japan with some exports to the Republic of Korea. Australia has started exporting Natural gas to China from June 2006.

ABARE has forecast Natural gas exports to increase by 30 per cent in 2006-07 due to a combination of increased export volumes, reflecting the commencement of production from the Darwin LNG project in early 2006, and higher world prices.

Japan

Japan remained Australia’s largest individual merchandise trading partner in 2005-06, ahead of China. Total two-way trade was valued at $48.4 billion, representing 15 per cent of Australia’s merchandise trade with the world. Japan also remained Australia’s largest merchandise export market in 2005-06, with exports rising 25 per cent to $31.1 billion (20 per cent of total exports).

Significant exports to Japan in 2005-06 included:

  • Coal ($10.1 billion)
  • Iron ore ($3.8 billion)
  • Bovine meat ($2.2 billion)
  • Aluminium ($1.5 billion)

China

China was Australia’s second largest merchandise trading partner in 2005-06, with total two-way trade valued at $41.3 billion, or 13 per cent of the total.

China was Australia’s second largest destination for Australia’s merchandise exports in 2005-06, with exports rising 39 per cent to $18.1 billion (12 per cent of total exports). China was the largest source of imports, with imports rising 17 per cent to $23.2 billion (14 per cent of total imports).

Exports to China in 2005-06 included:

  • Iron ore ($6.8 billion)
  • Wool ($1.3 billion)
  • Copper ores ($990 million)
  • Other ores -mainly manganese, zinc and lead

Republic of Korea

The Republic of Korea was Australia’s fourth largest merchandise trading partner in 2005-06. Total two-way trade was valued at $18.2 billion, accounting for 6 per cent of Australia’s total trade. The Republic of Korea was Australia’s third largest export market, with exports rising 21 per cent to $11.7 billion (8 per cent of total exports) in 2005-06.

Principal exports to the Republic of Korea in 2005-06 included:

  • Coal ($2.5 billion)
  • Crude petroleum ($1.4 billion)
  • Iron ore ($1.3 billion)
  • Aluminium ($741 million)

 

The Daily Reckoning
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