Despite the continuing fall in world iron ore prices, (down to $US84.30 overnight Thursday) exports to China are soaring, hitting new highs in July and August, according to figures out yesterday.
The monthly trade data for July revealed a near $900 million rise in the value of iron ore exports, led by a $696 million jump in shipments to China.
Partly offsetting this was a $100 million fall in the value of coal exports, thanks to a big fall in coking coal exports to China and India.
That wasn’t anywhere near enough to prevent the country reporting another trade deficit for July, but the size of the shortfall was trimmed to $1.359 million from $1.564 million.
Exports rose 1% in the month, thanks to the rise in iron ore exports. In fact the value of iron ore exports soared in July compared to June and July 2013, but were well down on the higher levels at the start of 2014.
The ABS said the preliminary value of iron ore exports in July was $6.071 billion, up 17% from June’s $5.195 billion, and well above May’s $5.934 billion. July’s figure was also up 10% on July 2013.
But it was down sharply from the $7.38 billion shipped in March of this year and the $7.23 billion exported in December 2013 (all seasonally adjusted). That’s when prices were much higher, but volumes lower.
Seasonally adjusted, the Australian Bureau of Statistics said exports rose $280 million to just over $27 billion in July.
Imports edged up $78 million to $28.38 billion.
The continuing fall in the iron ore price is a big drag, but the rising volume of exports (as we have seen in July and August) is providing some offset.
And figures from the Port Headland Authority in WA showed iron ore shipments hit yet another new high in August of 37.38 million tonnes, up more than 1.6 million tonnes from July.
And exports to China were up 1.4 million tonnes to an all time high of 32.34 million tonnes.
Another indicator was a rare, surprise monthly update from Fortescue Metals Group about its record iron ore shipments in August.
The company, which is the world’s fourth largest iron ore miner said it shipped 15.16 million tonnes of iron ore in August, on top of new highs for mining and processing ore.
The result topped the miner’s previous record of 13.25 million tonnes reached in June.
"This great team effort started at our mining operations, continued along our world-class rail line and finished at the port where we are meeting the high demand for our iron ore with record volumes of tonnes shipped," chief executive Nev Power said in a statement.
Shares in Fortescue bounced to a day’s high of $4.05, and closed at that level for a gain of 1.2%.
Fortescue expects to produce 155 to 160 million tonnes of iron ore in 2014-15.
