Australia exported a record $14 billion worth of iron ore in March, a $2.5 billion increase from February as volumes recovered and prices surged to a series of new highs.
The surplus came off the back of an all-time high figure for goods exports of $36.246 billion, up 15% from the $31.647 billion in February and 2% from $35.543 billion in March 2020.
On the other side of the ledger, imports rose 15% to $27.77 billion in March from both February and from March, 2020.
That saw a surplus of $8.496 billion and thanks to big rises in revenue from exports of iron ore, copper (the third highest ever), LNG, gains and cereals
That meant the good trade surplus topped $8 billion for the 4th month in a row – a new record and gave Australia a quarterly goods trade surplus of around $25.5 billion – a record based on preliminary figures.
The Australian Bureau of Statistics said in its merchandise trade report on Wednesday that the latest solid performance was powered by a rise in exports of metalliferous ores which reached a record high in March of $16.402 billion.
Driving the increase was iron ore (up 21%) and copper ore (up 62% to $745 million), according to the Bureau.
Shipments of metalliferous ores to China was driven by iron ore, up $1.291 billion to $10.113 billion and wholly offsetting the February decline, the ABS said.
The ABS said March’s iron ore increase was primarily driven by quantity, up 5.25 million tonnes (11%), with unit value increasing 3%. January and February saw a fall of 12.4 million tonnes in iron ore exports to China.
“The increase in iron ore was predominantly due to an increase in quantity exported. Iron ore accounted for 39% of all Australian merchandise exports in March.
“Copper ore recorded its third highest export value on record at $745m. March is the second month on record that Australian copper ore has fetched a unit value above $4.50kg. The recent price strength is demand driven, as green technologies are significantly more copper intensive,” the ABS said.
Gas exports rose 12% in March – that was up $326 million, with increases also recorded in liquified butane gas and liquified propane gas, according to the ABS.
Non-monetary gold export to China in march were the first in 15 months. China is the world’s largest gold producer and consumer, typically consuming more than it produces.
In rural exports the rise in shipments of oil seeds was driven by canola, up $354m million to $510 million, beating the previous export record set in April 2013.
“Contributing factors were favourable Australian harvests, poor European and Canadian harvests and strong global oil seed demand,“ According to the Bureau.
The ABS said that offsetting these increases were non-monetary gold, down 47% or $1.664 billion from march, 2020, coal, down 29% $1.408 billion and gas, down 30% or $1,376 billion from a year ago.
The ABS pointed out that “The increase in imports of non-monetary gold was driven by unwrought gold. Aligning with reports of record first quarter gold sales by The Perth Mint (Australia’s largest gold refinery).
The value of petroleum imports in March was the highest since January 2020. The increase in petroleum was driven by diesel, up $343 million and crude oil up $108 million, according to the ABS.
The ABS said road vehicle imports reached another record high in March, the second since December 2020. The increase in March was led by major diesel vehicle categories. Hybrid vehicles also increased, building on an already strong start to the March quarter.
Electrical machinery also recorded a record high, led by an increase in assembled solar arrays and solar cells.
“The increase in medicinal and pharmaceutical products was driven by medicaments, immunological products and vaccines. Vaccines increased 101% to their highest value on record, $106m, the majority made up of seasonal flu vaccines and some COVID-19 vaccines,” the ABS said.
