China-Australia relations: bad weather and seasonal slowdowns weigh on key exports such as iron ore
- Throughout January, the ports authority in Australia’s Pilbara mining region issued several cyclone warnings, resulting in iron ore production being seasonally low to start the year
- There was also less demand from Chinese steel mills last month due to unusually cold weather and a coronavirus outbreak in Hebei
Australia’s exports of iron ore, cereals and meat to its most important trading partner fell in January due to bad weather and industrial factors, the latest preliminary trade data from the Australian Bureau of Statistics (ABS) shows.
Despite its ongoing political conflict with China, trade between the two countries remained steady last year. The total value of Australia’s goods exported to China reached A$145.2 billion (US$114.6 billion) in 2020, or just 2.16 per cent less than A$148.4 billion in 2019, which was the highest total recorded in ABS data since 1988.
In January, the total value of Australia’s iron ore exports to China fell 5 per cent, driven mostly by a decline in shipments but offset somewhat by high prices, the ABS said.
Analyst Navigate Commodities managing director Atilla Widnell attributed the lower iron ore shipments from Australia last month mainly to production being disrupted by cyclones and seasonal mine maintenance.
Throughout January, the ports authority in Australia’s mining region of Pilbara issued several cyclone warnings, resulting in iron ore production being seasonally low to start the year – an annual occurrence.