Coal prices are soaring, iron ore prices remain firm and shipments have just hit new highs to China, according to data from the Pilbara Ports authority.
In fact after shipment figures in July and August, Australia could be heading for a solid trade and growth performance in the September quarter.
But we won’t know that until early December.
The news came on the same day as a small fall in net exports cut GDP in the June quarter by 0.2 percentage points, and came on the eve of the August trade figures from China, due for release later today.
They will show the level of iron ore imports into China last month (among a host of other commodities).
We have reported on how coking coal prices had more than doubled this year to close to $US160 a tonne for coking coal, and are up 38% this year for thermal coal to more nearly $US70 a tonne.
Yesterday we learned that iron ore shipments from Port Hedland, rose to a record last month.
Exports totalled 42.9 million tonnes in August, up 11% from 38.7 million in July and 10% from the 39.2 million tonnes shipped in August, 2015.
The Pilbara Ports Authority figures showed that shipments to China were a record 35.4 million tonnes, also an all-time high, from 32.5 million in July and 33.9 million in August of last year. The price of 62% iron ore in northern China was just under $US60 a tonne yesterday.
That’s up 36% from the start of this year and that rise and increased volumes has helped to cushion the Australian trade account for the year so far (especially in the March quarter).
Port Hedland handles exports from miners including BHP Billiton, Fortescue and Gina Rinehart’s Roy Hill, which is increasing production this year.
