Mineral exports to deliver $22bn bonus David Uren, Economics correspondent 13dec05
Mentioned:-
#resources boom is gathering a new head of steam # higher prices for most of Australia's minerals expected to deliver an extra $22 billion in exports to the nation's miners this financial year.
#unquenchable demand from the Chinese steel industry, which is driving commodity prices higher worldwide, will see the value # Australia's mineral exports leap 31.7 per cent to $90.3 billion.
# iron ore exports will rise 72 per cent.
#The renewed resources boom will ensure continued growth in employment and investment.
"We had been saying for the past six months that the heat would go out of (the resources) market in 2006," ABARE forecaster Andrew Dickson said. "We're now saying it will be more like the end of 2006."
Mr Dickson said the upgrade to forecasts was caused by the phenomenal growth of China's steel industry and the difficulty of producers around the world in responding to its demand.
Three months ago, ABARE had expected China's steel production to rise just 2 per cent in 2005-06, reaching 353 million tonnes. It now expects a 16 per cent jump to 402 million tonnes. "The Chinese steel industry just goes and goes," Mr Dickson said.
ABARE had been expecting that, after a record-breaking 71.5per cent increase in iron ore prices last year, miners BHP Billiton and Rio Tinto would have to swallow a price cut during the current negotiations for next year's prices.
ABARE now believes the iron ore exporters could win a 10-15 per cent increase.
IOH Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
