Australia’s trade balance lifted $776m in December
Make us a preferred source
Make us a preferred source on Google
The news: Australia’s balance on international trade in goods rose by $776 million as exports of metal ores and minerals increased 1% month on month to $440 million.
The numbers: Iron ore fines exports (by volume) rose 12.2% in December after falling 9% in November. Iron ore lump exports rose 20.1% in December after falling 15.8% in November.
The value of imports also fell by $336 million, driven by a 1.3% month on month increase in the value of other merchandise goods fell by 1.3%. The value of capital goods imports increased 2.5% while the value of consumption goods imports fell by 0.8%.
The context: Moody’s Analytics head of Australia economic Sunny Nguyen said the December result “marks a modest improvement in Australia’s goods trade surplus but doesn’t reverse the sluggish trend”.
Nguyen noted that the increase in iron ore volumes but slight decline in unit prices “is consistent with China’s contradictory trade dynamics—iron ore imports have hit record highs even as steel demand and output have declined, with port stockpiles rising through mid-December”.
However, Nguyen said the “large swing in other merchandise goods is almost certainly a data quirk or reclassification”.
The sources: ABS data, Moody's Analytics statement
