Steelmaking commodities, thermal coal prices to buoy Australian export earnings

2017-10-11 16:43:00 Price,  Import & Export,  International sxcoal.com

The Australian government is forecasting record resources and energy exports in 2017-18, but says exports will decline in 2018-19, Mining Weekly reported on October 6.


The Industry, Innovation and Science Department forecasts resources and energy exports of A$211 billion ($1643 billion) in the current financial year and exports of A$201 billion in the following year.


The Office of the Chief Economist expresses in its latest Resources and Energy Quarterly that resource and energy export earnings in 2016-17 increased by 27% to A$204 billion.


The report shows that the 2016-17 increase was largely driven by price increases in Australia's top two commodity exports, iron ore and metallurgical coal.


Price spikes in metallurgical coal and iron ore in 2016-17 were aided by capacity cuts in coal, a resurgence of China's steel sector, as well as by temporary supply disruptions.


"Buoyant prices for steelmaking commodities and thermal coal, and increased liquefied natural gas (LNG) export volumes, are expected to increase Australia's resource and energy export earnings to a record A$211 billion in 2017-18" Chief Economist Mark Cully said.


However, the high prices that have bolstered Australia's resources and energy export earnings in 2016-17 and (so far in) 2017-18 are not expected to last. The combination of slowing demand growth from China's steel sector and increased global supplies are expected to lower export unit values in 2018-19.


Despite the forecast decline in export earnings, LNG export growth is expected to constrain declines in export values in 2018-19.


"In the next two years, LNG export earnings are forecast to increase at an annual average rate of 26%, to reach A$35 billion in 2018-19, becoming Australia's second largest resources and energy commodity in terms of export earnings," Cully said.


(Writing by Becky Du   Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Recent price drop stokes bearish sentiment on China thermal coal market 2017-10-23

Spot thermal coal prices continued to edge down at China's northern ports, fueling growing wait-and-see sentiment among downstream traders and utilities that resulted in even fewer transactions.

2 Weekly China thermal coal market analysis and forecast 2017-10-23

Thermal coal prices started to edge up at northern China ports and some production areas last week, due to growing wait-and-see sentiment among utilities, despite reduced output as mines suspended p

3 Chinese traders turn bearish on import coal as quotas run out 2017-10-20

Chinese traders turned bearish on the seaborne thermal coal market, as import quotas are running out at some ports in southern China and along the Yangtze River. After about a week's spar

4 Weekly global coal market news summary (Oct 16-Oct 20) 2017-10-20

U.S. H1 coal production fell after increasing in late 2016 U.S. coal production averaged 192 million short tonnes per quarter in the first half of 2017, a slight decrease from the second half

5 Huadian Power Int. 3Qs power generation up 2.43% on yr 2017-10-20

Hong Kong-listed Huadian Power International Corporation, one of largest power generators in China, produced 142.65 TWh of power in the first three quarters of this year, up about 2.43% year on year,

6 NDRC urges to expand production of CBM, shale gas and coal-based gas 2017-10-20

The National Development and Reform Commission urged provinces and large state-owned energy enterprises to produce clean gases as much as possible to ensure energy supply in the coming winter heating

7 Hunan vows to cut unsafe and outdated coal capacity by end-2018 2017-10-20

China's Hunan province is set to close all coal-and-gas outburst mines with production capacity at and below 9 million tonnes per annum by the end of next year, reducing the number of coal mines

8 China power companies going green for blue skies, energy sector delegates say 2017-10-20

Major companies in the power-generation sector, including coal, have taken measures to lower pollution from consumption and mining, party delegates to the 19th National Congress of the Communist Party

9 NDRC gives nod to China Coal's two coal mine projects 2017-10-20

China Coal Energy Co., Ltd., the listed arm of China National Coal Group, has recently received approval to build two coal mines and associated washing plants in Ordos, Inner Mongolia, with annual cap

10 Indonesian miners keep thermal coal prices steady 2017-10-19

Indonesian miners continued to keep their offer prices steady for thermal coal, despite a lack of buying interest from Chinese buyers. A wait-and-see sentiment has dominated the market re

Most Read Articles

1 China makes great progress in switch from coal to power heating 2017-10-16

China has made great progress in switching to electricity from coal for winter heating in northern part of the country, part of the government's efforts to tackle the long-standing air pollution issue

2 Mongolia coal exports cool as China border issue creates a bottleneck 2017-10-17

Mongolia's coal exports, which have helped lift its slow-growing economy this year, are losing steam, according to trade data. In the first nine months of the year, exports earned $1.73 b

3 Weekly global coal market news summary (Oct 9-Oct 13) 2017-10-16

Glencore, Japan's Tohoku Electric set annual coal price at $94.75/t Glencore Plc and Tohoku Electric Power Co have settled an Australian thermal coal import contract for October 2017-September 2

4 Weekly China coal market news summary (Oct 16-Oct 20) 2017-10-20

China Sep raw coal output up 7.6% on yr China produced 298.12 million tonnes of raw coal in September, up 7.6% year on year and 2.53% month on month, showed data from the National Bureau of Stat

5 NDRC urges to expand production of CBM, shale gas and coal-based gas 2017-10-20

The National Development and Reform Commission urged provinces and large state-owned energy enterprises to produce clean gases as much as possible to ensure energy supply in the coming winter heating

6 China steel and raw materials futures retreat after smog-driven rally 2017-10-19

Prices of steel and its raw materials futures pulled back on October 17, after recent gains that were fuelled by steel production cuts in top producer China that are part of Beijing's anti-pollution c

7 NDRC gives nod to China Coal's two coal mine projects 2017-10-20

China Coal Energy Co., Ltd., the listed arm of China National Coal Group, has recently received approval to build two coal mines and associated washing plants in Ordos, Inner Mongolia, with annual cap

8 State power companies in India seek coal imports to tide over supply crisis 2017-10-16

Some state-owned power producers, who had stopped imports, are now looking at importing coal at a time when the Centre's focus is on reducing imports and eventually bringing it down to zero, Economic

9 China power companies going green for blue skies, energy sector delegates say 2017-10-20

Major companies in the power-generation sector, including coal, have taken measures to lower pollution from consumption and mining, party delegates to the 19th National Congress of the Communist Party

10 Rio Tinto reports thermal coal production drop in Q3 2017-10-18

Rio Tinto has seen thermal coal production decline in the third quarter after the sale of its Coal & Allied business, the miner said on October 17, while lowering its output guidance for 2017.