Australia’s top commodity exports to fall 10 billion USD by 2020: report

8-Oct-2018

The value of Australia’s coal exports is set to drop 18 percent by 2020, government projections have revealed.

The September quarterly export report, released by the Department of Industry, Innovation and Science on Tuesday, found that Australia’s export revenues would lead 11 percent to an all-time high 252 billion Australian dollars (182 billion U.S. dollars) in 2018-19.

However, the boost will be short-lived with the value of the country’s top export earners, coal and iron ore, set to decline.

Projections in the report found that the value of coal exports would drop 18 percent from 60.8 billion Australian dollars (43.9 billion U.S. dollars) in 2018-2019 to 49.9 billion Australian dollars (36 billion U.S. dollars) in 2019-2020.

Iron ore exports are expected to drop 7.8 percent from 60.4 billion Australian dollars (43.6 billion U.S. dollars) in 2018-2019 to 55.7 billion Australian dollars (40.2 billion U.S. dollars) in 2019-2020.

“The iron ore price is forecast to decline modestly over the next two years, as Chinese steel output eases and world supply grows,” the report said.

The value of liquefied natural gas (LNG) exports was projected to rise from 30.8 billion Australian dollars (22.2 billion U.S. dollars) in 2018-2019 to 42.4 billion Australian dollars (30.6 billion U.S. dollars) in 2019-2020 as a result of higher prices.

It means that LNG was on track to overtake coal as Australia’s second biggest export commodity.

Source: XINHUA