Australia’s commerce surplus surprises with document excessive on commodity demand By Reuters

By Wayne Cole

SYDNEY (Reuters) – Australia’s commerce surplus unexpectedly grew to a document in August as energy in liquefied and coal exports greater than offset a pullback in iron ore costs, a windfall to mining earnings and tax receipts.

Figures from the Australian Bureau of Statistics out on Tuesday confirmed the excess on worldwide commerce jumped to A$15.1 billion ($11.0 billion) in August, from A$12.7 billion the month earlier than. That was the very best on document and confounded analysts’ forecasts of a drop to A$10.3 billion.

Exports climbed 4.1% within the month to A$48.5 billion led by LNG, laborious coking coal and thermal coal, courtesy of robust vitality demand in Asia. Each costs and volumes have been greater, eclipsing a pointy fall in costs for iron ore, Australia’s primary export earner.

Demand for vitality in Asia has solely obtained hotter as shortages of electrical energy in China led to blackouts and international locations compete for LNG and coal shipments forward of winter.

Australian items exports to China alone stood at A$18.6 billion in August, up 55% on a yr earlier and displaying little influence from ongoing commerce and political tensions with Beijing.

Imports fell 1.5% in August to A$33.4 billion, with the drop primarily in capital items whereas consumption good imports have been led greater by vehicles.

Commerce in companies stays round half of pre-pandemic ranges with Australia’s worldwide borders nonetheless shut to vacationers and college students.

The ABS mentioned that as a result of issues with sourcing dependable knowledge on companies it might cease reporting the figures from January, whereas searching for means to enhance the statistics.

($1 = 1.3729 Australian {dollars})