While consumers were not consuming as much in October, the trade account held up very nicely, with another $2 billion-plus surplus recorded.
Figures from the Australian Bureau of Statistics showed a small rise in exports and a small fall in imports in the month.
The surplus was $2.625 billion for the month, the seventh straight month of sizable surpluses. It was also much larger than the $2 billion forecast from the market.
In fact the surplus was the second highest on record, topped only by the $3.62 billion surplus recorded in June.
Notably it came as the quarterly prices for iron ore and coking coal reportedly fell under the new pricing system, (iron ore prices were said to be down about 11% for the December quarter).
During October, exports were up 1%, seasonally adjusted, while imports were down 3%.
September’s surplus was revised higher to $1.814 billion, from the $1.760 billion originally reported.
But the August surplus, originally reported at $2.446 billion, was revised down to $2.384 billion in the latest figures.
In October exports (seasonally adjusted) rose $253 million or 1% to to $24,324 million.
The ABS said shipments of non-monetary gold rose $414 million (up 36%) and rural goods rose $181 million (up 8%) were the main factors.
Non-rural goods fell $245 million (down 2%) with exports of coal, coke and briquettes, down $172 million or 4% on both volumes and prices
Services credits fell $73 million (down 2%).
Imports fell 1% or $222 million to just over $22 billion.
"In seasonally adjusted terms, goods and services debits fell $558m (3%) to $21,699m. Intermediate and other merchandise goods fell $411m (5%), consumption goods fell $111m (2%) and non-monetary gold fell $48m (8%), the ABS said.
"Capital goods rose $5m. Services debits rose $8m."
The change to the pricing of iron ore and coal exports (the quarterly indexed based price, along with spot pricing and some fixed price longer term (12 month contracts), continues to inject volatility into the monthly trade data.
Export volumes of iron ore lump and fines were up 11% and 8% respectively in October, after an 8% rise in lump in September and 1% fall in fines. Prices were not available.
For coking and thermal coal, volumes and prices were lower in October. Hard coking coal volumes fell 6% and prices were off 8%. Semi hard (soft) coking coal volumes however were up 15% and prices were unchanged. Thermal coal volumes and prices were down 1% and 6% respectively in the month.
The ABS said in a note in yesterday’s release:
"A $250m adjustment has been made to the value of ‘metal ores and minerals’ in the balance of payments series for October 2010 to take into account additional information on the unit price of iron ore exports.
"No adjustment has been applied to the ‘coal, coke and briquettes’ component.
"In the revised unadjusted recorded trade series, the unit price of metal ores and minerals decreased 13% between September and October 2010.
"In the equivalent adjusted balance of payments series, the unit price of metal ores and minerals decreased 8%.
"The $475m adjustment made to the value of ‘metal ores and minerals’ for September 2010 remains in balance of payments figures as revised merchandise trade data have not yet been incorporated in the balance of payments series for this month."
