Value of Australia’s resources exports, including iron ore, set to go down. Source: Martin Tuchscherer, Wikimedia Commons
A major increase in the value of Australia’s resources exports is expected to come to an end due to forecasts that earnings from iron ore, coal, and gas, will fall.
The Department of Industry, Science and Resources, said in its latest snapshot of Australia’s mining and energy exporters, that the value of resource shipments has most likely peaked and is now set to decrease.
Findings from the department reveal that Australia had exported resource and energy commodities worth $460 billion in the 12 months to the end of June.
But it has been forecast that earnings would decrease to $390 billion in 2023-2024 due to the slowing of global economic growth the easing of constraints on supply chains.
Australia’s fossil fuel exports look to fall particularly hard with thermal coal sales expected to drop from $64 billion to $30 billion by 2024-2025.
The global price of gas, which increased dramatically in 2022, would also decrease the money generated by Australia’s liquefied natural gas (LNG) production.
Despite these decreases, LNG exports are still expected to be more valuable than in 2020-2021.
The department also found that Australia’s most valuable export commodity, iron ore, was set to drop in value, due to China’s slowed post-COVID economic growth.
The value of iron ore exports would drop from $93 billion in 2024-2025 compared with $123 billion in the past financial year.
