February was a record month for Australia’s trade account, with the first time the goods surplus has topped $8 billion for three months in succession, a record month for exports of cereals (and especially to Vietnam), a near record month for gold exports to Singapore and a record month for imports of electric vehicles.
Despite a sharp slide in iron ore revenues Australia still managed a goods trade surplus of more than $8 billion in February as shipments of other commodities more than made up for the difference.
The Australian Bureau of Statistic the $8.1 billion surplus was the first time the country has seen three months in a row of $8 billion goods surpluses. It followed January’s $8.7 billion.
That was despite a 2% rise in imports ($577 million) to $24.013 billion, while exports rose 2% as well, or $502 million to $32.1 billion.
The ABS said imports of motor vehicles surged 24% or $705 million as offshore car factories started catching up with unfilled orders.
ABS Head of International Statistics, Andrew Tomadini said “A number of commodities drove February’s road vehicle increase. Most notable were electric and hybrid vehicles. Electric vehicle imports grew $104 million to the largest value on record, while hybrid vehicle imports grew $95 million.”
The 2% rise in exports was mainly driven by non-ferrous metals, meat, petroleum, coal, cereals and textile fibres. Offsetting this increase was a large decline in metalliferous ores of $833 million (a fall of 6%).
The ABS said there was a $1.246 billion fall (or 12%) in exports to China, the bulk of which was iron ore, down $1.122 billion (a 12% fall), thanks to a 10% or 5.2 million tonne fall in export volumes.
“February 2021 monthly exports for cereals was the highest on record, $1.3 billion or 4 per cent of total exports,” the ABS said with a record amount being shipped to Vietnam.
“The main driver of the increase was wheat and meslin (a mixture of wheat and rye), up $152 million (20 per cent) as Australia’s two largest markets for wheat, Indonesia and Vietnam both saw increases.
“Vietnam received its largest wheat export on record from Australia, up 58 per cent to $116 million,” the ABS said.
The ABS said exports to Japan declined across a number of categories, partially offsetting the decline was a 32% rise in metalliferous ores and a 264% increase in non-ferrous metals led by unwrought aluminium.
Non-monetary gold drove the increase to Singapore, up $522 million. February’s value alone ($766 million) is more than half the value of all, the ABS pointed out.
Gold exported to Singapore in 2020 and the second largest monthly gold export to Singapore on record. Non-monetary gold also drove the increase to India with exports worth $596 million.
The increase in exports to South Korea’s came from various products, most notably coal, up $191 million (or 52%).
Shipments to China fell 8% or $990 million in February, thanks to the slide in iron ore volumes and total value – off $1.246 billion or 12%, a $44 million or 69% fall in shipments of cereal and a 97% drop in transport equipment ($43 million).
Among imports, the ABS said the record month for electric vehicles in February was four times that of February, 2020 and the third highest on record for hybrids.
“These increases align with media reports of a shift in demand for electric vehicles in early 2021 as a greater range is made available in Australia,” the ABS said.
