Australia’s export surge to China tails off amid rising trade tensions and lower iron ore production
- Iron ore exports to China in July were 10.5 per cent higher compared to a year earlier, but dropped significantly compared to June
- Trade tensions between the two countries have been on the rise this year with barley, beef and wine exports from Australia to China in the spotlight
Australian export growth to China slowed sharply in July as trade tensions continued to rise, with iron and coal shipments falling after a strong performance in the first half of the year, the latest trade data from the Australian Bureau of Statistics released on Thursday showed.
In July, lump and fine iron ore exports – Australia’s biggest export to China – fell 6 per cent and 13 per cent per cent respectively compared to the previous month.
Lower volumes shipped, rather than price, drove the decline in July’s exports of iron ore compared to June, as seen with the 17 per cent drop in shipments out of Port Hedland, the main terminal in Western Australia.
Trade tensions with China continue to cloud the export outlook, particularly for some rural goods, while services appear to be under pressure
Exports of hard coking coal also decreased by 22 per cent, while thermal coal shipments slipped 61 per cent.