Iron ore record to deliver 30th trade surplus

Matthew CranstonEconomics correspondent

Jul 24, 2020 – 5.46pm

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China's thirst for Australian iron ore has registered a new record of $9.4 billion in a single month, helping to drive a big bounce in overall exports.

Preliminary figures from the Australian Bureau of Statistics show the bounce in exports means Australia is expected to have recorded a 30th successive trade surplus in June.

Analysts are divided, however, on just how long the rocketing Chinese demand for iron ore will last as the country transitions from a post-COVID-19 infrastructure boost to one focused instead on driving consumption.

The value of June exports to China rose 7 per cent, or about $1 billion, to $14.5 billion. The country now accounts for 39 per cent of Australian exports and the biggest part of that is iron ore, where a record $9.4 billion was shipped in June, up 12 per cent.

The jump in iron ore exports to China pushed total exports of iron ore for 2010 financial year to more than $100 billion, representing more than a quarter of Australia’s total goods exported for this period and likely to provide a comparatively small but helpful boost to the government's deficit of $85.8 billion.